Planning for an overseas property purchase can be complicated, especially when factoring in removal and legal costs. On top of this, there’s the importance of planning international money transfer to pay for the property and understanding the impact of foreign exchange rates.
By planning with the specialist exchange company Moneycorp, providers of The Irish Times International Money Transfer Service, not only can you enjoy exchange rates up to 2 per cent better than those available at your high street bank, you’ll have access to expert guidance that can help make the most of your money transfer.
When purchasing an overseas property, it is worth considering that exchange rates can fluctuate significantly during the purchasing process, which can subsequently affect the agreed purchase price of the property by thousands.
For example, let's say you're buying property in America. You have found a property that costs $250,000. You have legally secured the property, but there is a delay of several months between signing the purchase agreement and paying for the property, which is not unusual. During this time you could see the exchange rates move against you.
This year the euro and US dollar exchange rate has fluctuated significantly, moving between highs of $1.38 to €1 in October and lows of $1.28 to €1 in March. If you had purchased a property costing $250,000 at the low $1.28 rate, it would have cost the equivalent of around €195,000, but at the more favourable $1.38 rate, it would have cost approximately €181,000, a difference of €14,000.
With The Irish Times International Money Transfer Service provided by Moneycorp, you can take advantage of these rate movements. If you send your money overseas using the service, you will be assigned your own professional dealer to guide you through the currency markets and help you make your transfer at the right time to achieve a favourable rate.
In addition to Moneycorp's foreign exchange market expertise, you can benefit from tailored transfers that fix exchange rates in advance or target a better rate not currently available on the market. For example, favourable rates can be fixed as far as two years in advance of making transfers, removing the worry of market fluctuations when managing a budget.
Alternatively, you can benefit from market movements by using a ‘market order’ to target exchange rates not currently available on the market. Your professional dealer will be able to help you decide on a good rate to target, and your transfer will be made automatically when the market hits your rate. This is great for maximising the value of your money transfer and reaping the rewards of foreign exchange.