Overseas investors urged to consider currency rates

Article Date : Friday, August 17, 2007

Overseas property investors are being urged to take steps to protect themselves against volatile exchange rates as sharp movements could unexpectedly push up prices.

Problems in the US sub prime lending market have had a knock on effect across the globe recently, both in stock markets and in currency markets, causing huge instability.

According to the currency brokers HiFX this has serious implications for those buying property overseas as unpredictability in currency rates could impact on purchase costs.

Chris Towner, senior economist at HiFX, said: "Anyone planning to buy property abroad needs to be aware that they risk the cost of the property being more than they had budgeted for due to adverse rate movements."

The company recommends that overseas investors lock into current exchange rates through forward contracts, which essentially allow them to buy now pay later and avoid taking a gamble on the overall cost of property.

Research from HiFX shows that the number of people choosing to cash in on the international property boom by downsizing and bringing their profits back to the UK has doubled in the last 12 months.

Tags:

Hifx, United Kingdom, United States

Overseas investors urged to consider currency rates

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