Why Brexit Could Help You Get More from Your Foreign Property Sale
Posted by Oliver Meredew on August 1st, 2016.
Over the last few weeks it’s become clear that the EU Referendum has had a big impact on the UK, with business confidence plummeting and ‘uncertainty’ becoming the buzz word in economic forecasts.
Although it may be difficult to see with the UK’s manufacturing and construction sectors struggling and the Pound trading at rates not seen since the 2008 global economic crash, there is a silver lining to these troubling times for the United Kingdom.
The mass devaluation of Sterling, while concerning for importers, provides a golden opportunity for those who happen to own overseas properties.
Foreign Property Sales More Lucrative Thanks to Weak Pound
Whether you’ve decided to sell a holiday home or are planning to return to the UK after time spent living overseas, you could get a far better return on your investment now than you could have done pre-Brexit.
After selling your foreign property you’ll need to convert the finds back into GBP, and with currencies like the Euro and US Dollar strengthening so much against the Pound since the start of 2016 your exchange could be worth substantially more than previously.
Before the UK’s decision to leave the European Union, Sterling was trading close to multi-year highs – limiting how much people moving money back to Britain were able to achieve. Since the vote the Pound has spiralled lower across the board.
The Pound Euro exchange rate, for example, crashed from 1.36 in January to a low of 1.16 in July while the Pound US Dollar exchange rate tumbled from around 1.49 to an over 30-year low.
GBP Exchange Rates Could Have Further to Fall
While the recent shifts in the currency market could massively benefit anyone looking to move money back to the UK, you can make your money go further still with the help of a supportive international currency transfer provider like TorFX.
TorFX’s Head of Trading, Adam Solomon, has been keeping a close eye on the Pound since the Referendum and had this to say:
‘Our client’s looking to sell property abroad will have seen a massive improvement in the exchange rate buying back into Sterling over the past month and that certainly helps when considering how to value the property, knowing that Euros or US Dollars will be worth far more now than they were before the Referendum’.
Adam estimates the drop in the Pound’s value to have been between ’10-12%’, and believes there is potential for further declines over the coming months. Looking ahead, he says that:
‘We could conceivably see the Pound trading 4% lower against the US Dollar by the end of September, trading at 1.25, with the currency slipping roughly to 1.14 versus the Euro’.
With no transfer fees and highly competitive exchange rates on offer, bringing the funds from a major property sale back to the UK via a currency broker like TorFX is a simple way of making your money go further.
Picking the Right Foreign Exchange Provider Makes a Difference
One of TorFX’s personal Account Managers, John Cameron, explains how the company’s experts make it easy to transfer funds of any size:
‘TorFX provides each client with their own dedicated AM who looks after their every requirement. Having a friendly and knowledgeable voice at the end of the phone to provide market information and details on trends shaping exchange rate movements can make all the difference. It lets clients make an informed choice on when to push the button and purchase their currency, and sets TorFX apart from other apparently similar currency exchange services’.
It’s rarely a snap decision to sell a home, especially when you might have invested a significant sum in making the purchase or fixing the place up. When the time comes to pass on the keys, however, currency brokers like TorFX are ready and willing to help you through every step of the journey and work towards making the process as stress-free and financially rewarding as possible.
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