Buying a Property Abroad
How First Rate FX can save you money
Buying Property | Emigration | Regular Payment Plan | Overseas Mortgages | Contract Types | Testimonials
Are you aware when purchasing a property abroad, the currency market plays a huge part in the price you pay? It can be some time between finding that dream home and making your first payment. Within this period, the currency market is continuously fluctuating and so is the price of your property.
First Rate FX can help to protect you against the adverse effects of movements in these markets.
For example, First Rate FX offer superior rates of exchange to the High Street banks – in fact, our rates are very rarely matched by any of our competitors. Dealing with a High Street bank can cost you up to 4% more on your total home price than if you use First Rate FX. In addition we will not charge you any transfer fees or commission charges!
How First Rate FX can save you money – Example One
As an example, Mr Harrison is buying a house in Spain that costs 200,000 Euros. He rings his bank and asks for an exchange rate. The bank advises him that the exchange rate will be 1.2310. If Mr Harrison uses his bank to complete his transaction he will need to pay £162,469 in order to get his 200,000 Euros. The bank will also charge him commission (with some banks this is up to 2%) and a transfer fee to send the funds.
When Mr Harrison rings First Rate FX he is quoted a far more attractive rate of 1.2505. This means that his 200,000 Euros will only cost him £159,936 (a saving of £2,533). Additionally he will not be charged any commission or any transfer fees to send the funds.
How First Rate FX can save you money - Example Two
Mr Harrison decides to buy his new property in May but does not need to exchange his Sterling to Euros until November when the property is finished. He therefore decides to wait until this time to purchase his Euros. During these 7 months the exchange rate fluctuates from 1.2505 to 1.2129. This means that when Mr Harrison eventually needs to purchase his currency it will now cost him 3% more than it would have done in May.
In May Mr Harrison could have purchased a ‘forward contract’ from First Rate FX. This contract would have ‘fixed’ the rate of exchange at 1.2505 (the rate at the time) and allowed for his payment to have been deferred until November. Mr Harrison would only have needed to pay a 10% deposit at the time of the trade in order to secure his funds.
*Please note that exchange rates can go up as well as down after the point of order confirmation and First Rate FX is not liable for any currency fluctuations between the order confirmation and the contract maturity date.
