Tips on Buying your dream property abroad.
The motivations for buying overseas property can vary considerably, although one common reason is that it could seem undervalued and therefore likely to appreciate in future. For example, if your local currency is particularly strong relative to that of a foreign country, the cost of buying overseas property can seem especially inexpensive, and could present a lucrative real estate investment opportunity over the long term.
Foreign transfers related to overseas property purchases are typically for larger amounts at a fixed settlement date in the future. When you send large amounts of money overseas you need to be aware that any currency movements of just a few percent can have a large cost to you when you come to settle.
When transferring funds denominated in your domestic currency to either make a payment in full, a down payment, or a series of smaller mortgage payments, you will probably want to find a better foreign exchange solution than simply using your regular bank.
Typically banks provide poor forex services, which often involve very wide dealing spreads and limited transaction sizes. Fortunately, you can usually do much better by transferring your money through one of our partner providers in our comparison tables.
You should consider using one of our BER partners specialising in foreign payments who can advise you on Forward Exchange Contracts that allow you to lock in a rate for some or all of your transfer. A forward foreign exchange rate is the exchange rate at which one currency can be exchanged for another currency for settlement on a predetermined future date (maturity date).
You should also read our article: Top Five Tips for Buying Property Overseas.
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.