Posted by Laura Parsons on May 16th, 2016.
Brexit concerns have seen the Pound plummet since the start of 2016. If you’re planning an overseas property purchase, the uncertainty could cost you thousands. Additionally, if the UK opts to leave the EU in June buying a holiday home in Europe could become more difficult.
By looking into your options now and following these top tips you can beat the Brexit and enjoy serious savings.
With the arguments for and against the UK leaving the EU becoming more heated as the year progressed, the Pound dropped to multi-month lows against the Euro, Australian Dollar and New Zealand Dollar while striking its worst level for over seven years against the US Dollar.
To put this in real terms, the over 7 cent slide in the GBP/EUR exchange rate since January 1st could mean the difference of almost €20,000 on a £250,000 transfer.
Volatility is only set to increase in the build up to the vote so make sure you aren’t moving your money abroad when the exchange rate is against you by staying on top of the latest market news. By sourcing relevant updates on the latest Brexit developments you can time your transfer more effectively and secure a better exchange rate.
Whether you’re looking to buy a character cottage in the South of France or a luxury villa in Madrid’s Calle Serrano (well, we can all dream), you’ll have to move money overseas to fund the purchase at some point.
If you were planning to use your bank to manage the transfer you could get stung by having to pay transfer fees – costs which can be avoided just by using an alternative foreign exchange provider. Some international money transfer specialists work on a totally fee-free basis, so you’ll see immediate savings by using their services.
The exchange rate you secure for your international money transfer really does make a massive difference to how much you have to spend on your holiday home. Reputable providers can offer you highly competitive exchange rates, potentially saving you thousands.
Buying a property overseas is a big undertaking, requiring a substantial investment of both time and money. Having a supportive hand to guide you through some of the key areas, like foreign exchange, can prove invaluable – particularly in times of economic uncertainty.
By getting in touch with market-leading professionals early on you can really benefit from their support and expertise. As well as keeping you informed of the latest currency trends and Brexit news (so you can pick the best time to transfer your funds) they can advise you on risk-management options so you limit your exposure to currency risk.
A specialist service which could really come in handy in the build up to the EU referendum is a Forward Contract. With a forward contract you can fix an exchange rate up to two years in advance of a transfer – so even if you aren’t ready to move overseas quite yet you can protect yourself against the Pound falling further in the event of a ‘leave’ vote by securing a rate now.
Buying a holiday home or emigrating overseas is an exciting undertaking and if you follow these top tips you could counteract the impact of Brexit concerns and save thousands on your venture. Happy house hunting!
If you’re thinking about buying property abroad or have a foreign currency requirement coming up, please get in touch for a free, no obligation exchange rate quote.
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