What is the most expensive part of buying property abroad? You would probably guess at your legal fees which may amount to £2,000 to £5,000. Although that expense is big, there is a bigger expense that many currency exchange forget.
Exchanging your currency! Transferring funds abroad is fraught with fluctuation. The Currency Exchange Rate can determine whether your currency exchange will cost a little or a currency exchange toronto lot.
0% Commission is all well and good; but eventually it is what you get for your MONEY that counts. Allow me to give you a couple of examples that will explain how exchange rates can cost you money…
Natalie and Kevin from Blackburn were transferring two amounts over 3 months. They were buying a property off plan in Tenerife. Their first payment was a deposit of ¬16,500 and then a final payment of ¬149,500. Their first payment was in a period during 2007 when (February) the exchange was good, but by May the rate had changed down a little. However their first bank quote for the first transfer was ¬1.43 / £1; the broker was able to beat that quote and consequently because of their disappointment with their bank they didn’t even get a quote for the second transfer. But the currency broker estimated we saved them ¬4,100 which is approximately £2,800
Ines and Kevin from Glasgow were buying a Duplex in Spain, January 2008; it was a strange scenario, they were renting before they bought. They had lived in Spain for approaching 11 months and had left their house sale money in their bank in Scotland. Because of their purchase they had been advised to use a broker. Rather than use the broker that the building company recommended, they had chosen to look on the internet. Fortunately they had found a Currency Broker. Most brokers can always beat a bank’s quote, it isn’t so easy to beat another broker. The Currency Broker saved Ines and Kevin ¬1,300 Euros over another broker, but nearly ¬6,200 Euros against the banks
In November 2007 Simon from Gloucestershire wanted to invest in a property in Miami, mainly because the dollar was weak against the pound. He had £175,000 to invest which was going to buy him a substantial property. He’d been given a quotation from his bank at US $1.80 / £1. A broker in comparison could achieve US $1.84 to the £1; plus of course these brokers don’t charge any incidental fees. Simon if he would have gone through his bank would have got $315,000; but because he chose a broker they were able to secure $322,000. This saved Simon $7,000 almost £3,400