If you are purchasing an international home in a foreign currency, you will not only need to execute an international transfer, but you will also need to exchange the money.
This is where a currency professional may help. We recommend Smart Currency in London.
https://www.smartcurrencyexchange.com/
When purchasing property in another currency, keep in mind that the shifting currency market might have a significant impact on the market price of your foreign house.
How does foreign exchange work when purchasing a property abroad?
We realise that the currency market, often known as the foreign exchange market (FX), is where businesses and people go to purchase and sell currencies. Banks, huge enterprises, investment management organisations, hedge funds, investors, and retail brokers are all part of this industry.
Being knowledgeable about the foreign exchange market helps you to capitalise on positive swings in the exchange rate of your preferred currency.
How powerful are market rates?
The currency market fluctuates on a daily basis, generally by less than 1%, but it all adds up. This month, the GBP/EUR rate has risen by over 4%, while the GBP/USD rate has risen by more than 3.5%. Over the previous few years, the average yearly change of the pound-to-euro rate has been roughly 10%.
To put that into perspective, suppose you want to buy a home in France for €250,000 at a GBP/EUR rate of 1.15. You would pay around £217,778 (rounded up) for this transaction. However, if the rate falls to 1.14, as it sometimes does following major data releases, your house in France might wind up costing you an extra £1,520, perhaps surpassing your budget.
What is the procedure for transferring money?
Smart Currency Exchange, a reputable foreign exchange business, helps our clients ease the process of purchasing property in a foreign currency. The following are the six important stages in changing your currency for a property purchase:
- Speak with your Personal Trader
Discuss your demands with your dedicated Personal Trader, who will assist you in understanding your budget and determining the best transfer option for you
- Exchange rate forecast
Your Personal Trader will offer you with a live rate quote, alerting you of the worth of your cash in euros, dollars, or any other currency relevant to your transaction.
- Accept the quote
When you are pleased with your quote, your Personal Trader will buy the foreign currency on your behalf, making the transfer legally binding.
- Payment instructions and confirmation
You will get email confirmation of your scheduled trade, as well as payment instructions.
- Tell them about your beneficiary account.
Send an email, fax, or letter to Smart Currency specifying which account you want your monies deposited into.
- Transfer and allotment of funds
Your cash will be delivered to the foreign beneficiary bank after they have cleared and will normally arrive within 48 hours. The monies will subsequently be transferred to your beneficiary account by the receiving bank.
How to Use Smart Currency to Make a Payment
Smart Currency provides various simple payment options for your overseas property purchase:
Send a cheque in the mail, which normally takes around five days to process.
Same-day bank transfer: Begin a same-day bank transfer, however keep in mind that your bank may impose a fee of £15-30.
The Smart Currency payment mechanism is faster: Use their speedier payment mechanism to take advantage of their free and same-day transfer option.
Internet banking: Use your bank’s Internet banking option to make your payment, which is usually free of charge.
