Buying a property in a different jurisdiction can be challenging, let alone the additional factor of needing to pay the price in a different currency. This is where the importance of expert guidance becomes crucial. Learn with Moneycorp the best way to account and manage the foreign exchange element in your overseas property purchase.
The element of foreign exchange
If you are planning to buy a property in France, the transaction legally has to happen in Euros. So if you hold funds in Pounds Sterling, or any other currency, you will need to consider the best way to exchange your local currency into Euros, as well as the most cost-effective way to make the cross-border transfer into France.
You can of course do this directly through your bank, but it’s becoming more common place that high-street banks may not be offering the best exchange rates, and can charge costly fees to send money internationally. This is where the help of a specialist foreign exchange company can prove to be a real asset and critical to managing your budget.
Given the exchange rate of any currency pair can move every second, it is highly unlikely that the exchange rate will be exactly the same the day you complete on your property transaction as the day you put the offer in. Therefore, the price you initially agreed might be quite different to the one you end up paying.
The importance to contact a specialist
Ultimately, if you want to avoid any disappointment on the final price you pay for your property, make sure you take professional guidance from a foreign exchange specialist from the very start of your journey. This will ensure you understand your options, protect –or even maximise- your budget and enjoy the amazing opportunity to own a property in France.
There are many benefits to setting up an account with a currency exchange specialist such FrenchEntrée’s trusted partner, Moneycorp. Here’s just a few benefits;
Competitive exchange rates
With currency being their sole business, they have the accessibility to a panel of liquidity providers, offering them very competitive rates of exchange. This therefore allows them to offer their customers a very attractive rate of exchange.
Planning and Expertise
Currency specialist not only offer you a competitive rate but also different planning methods to plan for your transfer. With 75% of the private client currency market being made up of property buyers, the currency specialist have extensive experience in this field, supporting expats and holiday home buyers throughout their purchase. With the purchase of a property, you know your budget well in advance and so have time to plan to make the most of your funds.
Currency specialist offer different tools to help you to plan ahead, remove risk and maximise your budget to its full potential. From the possibility to lock the price of the property ahead of completion via a forward contract to the potential of targeting an improve rate of exchange through a market order.
Ease and Speed
Currency specialists are quick to adapt to technology advancements to ensure they stay competitive in the market. With the old school feel of security from speaking with somebody over the phone, to the new era of online payment platforms, they cater for all preferences, with slick and speedy systems making your payments instantaneous. While some banks do have similar transfer options available, making a regular overseas transfer from your personal bank account is likely to take far longer, and you will most likely be subject to charges to.
Moneycorp are regulated by the Financial Conduct Authority (FCA) meaning they are required to safeguard customer funds into segregated client accounts, making them as secure as using your bank.
When shall I get in contact with a foreign exchange specialist?
You should get some guidance on the market as early in the process as possible as the exchange rates should be an element of your budget. Make sure you open a free account before you start inspecting properties either virtually or by travelling to France. If you find a property you can act quickly and if you don’t you can keep your account opened –at no cost or obligation- and benefit of market updates and the help of a market specialist.
Opening an account is really easy and free of cost or obligation. You can register online or over the phone in a couple of minutes and for FrenchEntree there are no charges in any payment.
With a Platinum Trusted Service Award 2020 from independent review site Feefo and 40 years of experience in the industry, FrenchEntrée has been recommending Moneycorp for more than 15 years. During this time they have helped thousands of client planning the best way to pay for their property as well as supporting them afterwards with any further payment from paying bills, mortgages to repatriating UK pension payments for those who have retired to France.
Furthermore, we have worked with the same person at Moneycorp for more than a decade! You might be familiar with her as she often writes for our French Property News magazine. She has 13 years’ experience in foreign exchange, and is a qualified European lawyer with experience in European transactions. Mar will be happy to answer any questions or enquiries to support you through these difficult times
Opening an account is really easy and free of cost. You can register online or over the phone in a couple of minutes and for FrenchEntrée readers there are no transfer fees in any payment.
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