Overseas Property:
Buying & Selling
Whether you are thinking of buying or selling a property overseas, it’s important to understand that the process may be different from that of the process in your own country. The world is now more accessible than ever before and so, whether you are buying a second home, investing in an up and coming market, or are looking to take advantage of house prices, you need to ensure you make the right decisions to avoid the pitfalls that can await. A key factor in buying or selling a property abroad is the foreign exchange rates, and transferring money overseas. When dealing with overseas property, especially from the UK, you will need to exchange currencies and send and receive funds from abroad. If managed well the process can be smooth and beneficial, but without expert guidance you can end up losing thousands of pounds from the transaction. This is where NewbridgeFX can help you to manage the risks and guide you through the process.
Overseas Property
Key Factors
Speak to a specialist at NewbridgeFX who can guide you through your overseas property transaction.
Exchange Rates
You want to receive the best possible exchange rate when converting currencies. For every £100,000 a 1% move will have an impact of £1,000, so not achieving the best possible rate can be expensive.
Payments
You will need to make payments to solicitors, the owner or the seller, and anyone else involved in the property transaction. You shouldn’t be paying payment or transfer fees to send or receive money.
Timing
The process of buying or selling a property can take a long time. You need to ensure that foreign exchange fluctuations do not impact you in a negative way. Risk management tools are useful to mitigate these risks and give you peace of mind.
Overseas Property:
Considerations
What do I need to consider when buying or selling an overseas property?
Buying and selling property abroad is not a process that you undertake without prior research or before seeking advice, because there are many factors to consider. One wrong decision could impact your finances and so, you need to ensure you get the right advice and guidance. Key factors such as tax implications, the legal system, the processes, and the foreign exchange market can drive the entire process.
Having to contend with this can prove challenging and that’s why you need to get help where possible. This is particularly true when it comes to navigating the complex world of foreign exchange rates, and making or receiving payments. While the process as a whole might seem simple on the outside, it is more complex than that and that’s why you need to take control of the process of transferring money.
To achieve this, there are many things to consider such as exchange rates, transfer fees, efficiency, and the ability to manage what could be many different currencies.
Overseas Property:
Bank Rates
Don’t Succumb To Bank Exchange Rates
It might seem simple enough to make the relevant transfers or receive payments through your bank. But in practice, the exchange rates are not going to be favourable and you will end up paying more or receiving less. If you opt to use a foreign exchange specialist, such as NewbridgeFX, then we will help you to achieve the best results based on experience and real-time information.
What’s more, it will be possible to put in place risk management strategies. The strategies will be beneficial to our clients and based on their best interests. Such as using spot contracts, forward contracts, or market orders, or a combination of these, to achieve the best possible price, exchange rates, and service.
Along with this, if you choose to use a specialist service then you are not going to feel as only part of a large database. As a client, you are going to receive support and expert guidance tailored to your needs, which will ensure the process is effective and efficient while providing complete confidence.
The transfer of funds for buying or selling a property abroad can come with risk. Yet you can mitigate those risks by making the right decisions and relying on expertise. With competitive rates, market insight, and experience, you can ensure that you benefit and achieve the best possible price and service.
Case Study:
Buying Property Abroad
Overseas Property Purchase Case Study
This case study explores the problems faced by the Bentley Family who were buying a property abroad.
After finding their dream home in Portugal, the Bentley family had agreed on a price of 300,000 Euros with the sellers. The exchange rate offered by their bank was 1.06 Euros to the Pound, which meant that their property was costing them £283,018. They felt that the rate was quite low and the GBP price was too expensive, so they decided to consider their options.
The Bentleys came to Newbridge Foreign Exchange and we looked at their problem. It was clear that the exchange rate offered was not the best possible rate. It is common for banks to apply a high margin to the exchange rate which means the client can overpay. Using our expertise, we were able to achieve a more competitive rate of 1.11 Euros and that meant the cost of their property had dropped to £270,270. In this instance, the Bentleys immediately sent the funds to the sellers’ solicitors, yet if they were not in a position to do so then we could have booked them a forward contract to ensure the exchange rate, and the extra saving of £12,748, was secure until the completion date.
Newbridge Foreign Exchange were able to help the Bentleys to make a significant saving when buying their overseas property. This is because in most cases, a foreign exchange specialist, such as NewbridgeFX, can often offer better rates but also offer options that allow them to fix in rates to ensure that they continue to benefit for an agreed period of time.
FAQ:
Buying a property
Answer
Yes, you can set an exchange rate alert, advising us what your target rate is, or at what level you would like us to notify you. If the exchange rates move in your favour and the specified level is available, we will notify you and you can decide whether to book a transaction or to keep watching the market.Answer
Yes, a spot contract can is useful to send money overseas when the payment is due. You will receive a spot rate at the time of booking the transaction, and the payment settled immediately.Answer
Yes, this is a good way to reduce the risk of currency movements. You may decide to buy a property overseas today, but may not need to send any money for many months. During that time the exchange rates would have fluctuated. A forward contract enables you to secure an exchange rate today, but for settlement at a future date thus removing any risk of exchange rate movements.Answer
Yes, you can specify the exchange rate you would like to achieve before sending money to buy the property. Unlike an exchange rate alert, if the rate is available in the market then we will immediately book the transaction, and settle the payment upon receiving your sold currency.Answer
Yes, we provide tailored solutions to suit your requirements. The best approach depends on many factors which we will discuss with you in-depth. Such as your budget, attitude to risk, timeframes, and the structure of buying the property.Answer
The timeframe to transfer funds abroad does not differ based on the value of the transfer. Once you confirm the transaction, and you send the funds, the transaction will settle immediately and can arrive in the recipient’s account the same day.Products:
Manage Risk
NewbridgeFX offers a specialist service in the deliverable foreign exchange market, promoting a range of products and services, available online or over the phone. Our products have been designed to meet the needs of our clients when sending money overseas, and are ways for businesses, and individuals, to manage and mitigate currency risk.
Spot Contract
Lock in an exchange rate for immediate onward settlement. Funds can be received the same day.
Forward Contract
Lock in an exchange rate today, but for settlement at a later date that suits you, up to 12 months in the future.
Market Order
We monitor the markets real time and take action to trade between currencies when your desired rate is achieved.
Rate Alerts
Set an alert for phone or email notification when a rate has been achieved to take advantage at the best time.
Benefits:
NewbridgeFX
Multi-Currency Account In Your Company Name
Receive funds from your customers in to your own named collection account, using one account number for all currencies, or a local in-country account number still in your company name.
Create And Manage All Your Beneficiaries
Add and manage your beneficiaries, perform bank account validation & verification checks as you enter your beneficiary details & bulk upload multiple beneficiaries via a CSV file.
Make Fast & Secure Payments To Over 200 Countries
Real time Swift and local payments are settled the same day, within minutes of processing (currency/country dependant), and payment tracking capabilities allow you to keep updated on the payment status.
Multi-Currency Balances
Hold multiple currencies and access balance information in supported currencies. Receive, convert, send and move money between your multi-currency accounts without making payments.
Convert Over 100 Currencies, 24/7, Using Multiple Devices
We provide informative, up to date market news, including updates on currency movements, upcoming economic events and announcements that impact the foreign exchange market.
Real-time Reporting And Tracking
View and track all conversions, payments and incoming funds using our online platform, and receive email notifications when funds have been received, conversions processed and payments released.