5 Top Foreign Currency Tips
Identify your budget: When transferring money abroad
from Pounds Sterling into Euros, or another foreign currency, the rate of exchange
you receive will determine how much or how little you will need to pay for the property.
It’s worth remembering at this stage that the price of the
property differs from the cost of a property. The cost to you and
therefore how much you pay in Pound Sterling can change substantially dependent
on the Exchange Rate you achieve. For example: A European property priced at €250.000
would have cost you £194.850 on the 11 th August 2008, but £204.580
by the beginning of September! That’s an increase of £9.730 in less
than three weeks!!
Regular foreign currency updates: It is always valuable keeping regular tabs
on the exchange rates and the sentiment in the foreign currency markets. A good
fx dealer should be able to provide you with a daily or weekly foreign currency
report providing you with an insight, like Halo Financial, into where the exchange
rates are and why they are moving. Information is an invaluable resource especially
when transferring large sums of money and when volatile exchange rates can have
such a direct impact on the cost of a property overseas.
Guarantee your exchange rate for each of your stage payments: Most overseas
property completions take up 2 to 3 months and over 12 months when you are purchasing
off plan. Purchasers must take into account their foreign currency exposure between
the time the initial contracts are signed and the completion date. Forward contracts
reduce the foreign currency risks by giving you the possibility to secure an exchange
rate for up to 2 years. This will enable you to calculate from the outset how much
your property will cost you in Pounds Sterling (or other foreign currency)!
Don’t take unnecessary risks by gambling on achieving better exchange rates
: Understanding how to achieve the best exchange rate will save you money. Halo
Financial will not only be able to provide you with a highly competitive exchange
rate, they will also help you choose the different options to buy your foreign currency.
Whether you need to urgently transfer a lump sum or compare an exchange rate
to prevent the exchange rates pushing the cost of the overseas property out of reach,
your dealer will suggest strategies that ensure to minimize your foreign currency
Speak to Halo Financial for expert guidance : In an era of overseas and automated
call centers, what a refreshing change it would be if you had a dedicated foreign
currency dealer to assist you in buying your foreign currency? Halo Financial will
provide you with your FX consultant who will open your trading facility, explain
our services, give you regular market updates and provide solutions for you to
transfer currency abroad.