Watch Those Exchange Rates!

It is easy to avoid falling into the above category.  All you need to do is bear one thing in mind: a good exchange rate will play a vital role on the day of your Sterling transfer when purchasing large amounts of currency for your overseas property purchase.  Remember, it is not uncommon for currencies to fluctuate by as much as 10% over relatively short periods of time, sometimes for the better and sometimes for the worse, so it is vital to watch the exchange rates carefully and secure one in advance and protect yourself from losing vast sums of money on the day of your transaction. 

At propertyshowrooms.com we fully appreciate the importance of making good foreign exchange transactions when dealing with the large sums involved in property investment abroad. For this reason the International Property Investment Network (IPIN) works in partnership with Moneycorp, a leader in the field of currency exchange to give its members the best deals currently available.

In their haste to seal the deal, many overseas property buyers do overlook the importance of securing a good rate of exchange.  Little do they know that using reliable foreign exchange dealers such as Moneycorp will literally save them thousands on the day of their transaction.  An average UK family moving abroad with assets of £250,000 could stand to loose up to £10,000 of their funds simply by transferring their money abroad on the wrong day.  Without a doubt, this represents a huge loss which could be avoided simply by being aware of professional money exchange brokers, such as Moneycorp, who will secure the best rates for their money.  For example, today, 15th January 2007, Sterling was strong against the Euro at €1.51 to the pound, while two weeks ago it stood at a mere €1.42 to the pound.  By arranging their funds today, wise investors have secured this favourable rate of exchange, which can even be fixed for a period of up to two years, allowing them ample time for the payment of off-plan investments if necessary. 

So exactly what services will a money exchange company like Moneycorp offer you, the foreign property purchaser?  Firstly, you will often get a better rate of exchange on the large amount you wish to transfer due to the fact that the brokers have lower overheads than high street banks or tourist exchange outlets.  In general the more money you convert, the better the rate. Depending on your bank or broker, a funds transfer will cost between £15 and £40 per transaction. It is advisable to compare the total cost of a currency exchange deal, as some currency dealers do not charge a transfer fee while more than making up for this in the exchange rate they quote.

By their very nature, money brokers aim to secure a favourable rate for clients.  The moment the rate changes to your desired level, they will place an order to purchase currency, even outside London trading hours, automatically triggering once your desired rate is achieved.  Be sure to be realistic however about the rate you are looking for and be prepared to wait!  Often savings of some £2,000 can be achieved on an average property purchase of say, 200,000 euros.  For example, investing in a property in Europe for 200,000 Euros, you would have paid the Sterling equivalent of £134,526.13 in May 2005. Two months later you would have paid £136,873.80 for the same property purely due to fluctuations in exchange rates.  The beauty of the foreign exchange brokers is that you can not only wait for your desired rate to materialize, but you may hold on to this rate until you need to make your transfer.  Indeed, many off-plan investors fix an exchange rate through Moneycorp for periods of up to two years.  All you need to do is book an exchange rate and send your dealer a deposit, usually 10% of the contract value. The 90% balance of your currency contract is payable when you wish to have funds transferred overseas.

Anyone can purchase currency with an exchange broker - once you have set up a trading facility with Moneycorp, you will be able to buy currency with ease by means of a simple telephone call.  After booking an exchange rate with Moneycorp, you will need to transfer funds to their client account via CHAPS of BACS. Bear in mind that any cheque will have to clear before funds can be sent out. Once Moneycorp have received your cleared funds, they will simply transfer your currency to the account of your choice, using the electronic funds transfer system, enabling faster transfer than any high street bank.  A same-day transfer service is available to most European countries and North America and there are next day transfers to all other destinations.

Through their Regular Payment Plan, Moneycorp also assists clients that need to make regular overseas payment transactions. Typical payments include overseas mortgages, transfers of UK pension payments or any other regular bank transfers.  The Regular Payment Plan fixes an exchange rate on regular overseas payments for a period of between 6 and 24 months, effectively removing the worry caused by fluctuations in the exchange rate over that period of time. Monthly direct debit payments and transfer of funds to the destination account of your choice are also regular services set up by Moneycorp.

Moneycorp has been operating since 1979 and is the only foreign exchange company in the UK to have been certified to ISO 9000 quality assurance standards.  With such large sums at stake and professional currency exchange experts such as Moneycorp by your side, we believe this system of funds transfer is well worth a closer look.  To enquire how you could potentially save yourself vast sums in your money transfer through our association with MoneyCorp, please click here.

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