Thinking of buying property abroad? – Here’s what you need to consider
The housing market remains an important aspect of the recovery from the coronavirus pandemic. Prices have risen at record rates (10.6% in the year to August!) with the average price sitting at over £270,000 as we move into 2022. The dramatic increase is due to both the momentum of the recovery as a whole and other related factors such as low interest rates.
Interest rates have increased for the first time since the onset of the pandemic, which may impact demand due to it becoming more expensive to borrow money including mortgages, but remain relatively low compared to pre-pandemic levels, meaning the effect is likely to be negligible. These factors mean that now may be the time to sell and fulfil that dream of moving abroad.
Once the decision to move abroad has been made, one of the first logistical hurdles and buyer faces is exchanging their money into the required currency in order to make the purchase. Making an exchange of that size means that the risks involved are also large, with potential bank charges eating up a sizeable chunk of the value as it passes across borders. Furthermore, the exchange rate may be disadvantageous or at least not optimum.
This is further complicated by the current state of the market. The Pound may have stabilised relative to its wilderness years during the Brexit tribulations of 2016-2020, but the market as a whole remains somewhat volatile due to the pandemic, especially with the spread of the Omicron variant and all of the uncertainty that entails. This means that it is hard to know when it is the best time to make that exchange. As a result, it’s best to seek the expertise and assistance of a firm that specialises in foreign exchange to provide you with the knowledge you need to transfer your funds securely and at a rate that is right for you.
Currency UK can assist with this. We will provide a dedicated account manager to support you based on your specific needs, allowing you to make transfers over the phone or using our state of the art online system.
Market orders may be of particular interest to those purchasing property, as customers can set up exchanges to occur once certain exchange rates are achieved in the market. This allows a customer to plan around receiving a certain amount in the target currency if they believe the market is likely to move in their favour. Furthermore, our experience in helping customers buy and sell properties globally allows us to factor in delays to projects and purchases. By utilising products such as a forward contract we can secure an exchange rate for you at a later date, meaning even if the exchange rate moves against you, your rate is locked in.
If you are thinking about taking the plunge and moving abroad or if you have already found a property overseas, speak to a member of our team on 020 7738 0777 and find out how we can make the process as easy as possible.
Click here to read how we helped a couple buy their dream home in France.