Many a time, one of the first questions a real-estate agent asks of a potential home buyer is ‘What’s your budget?’ The hopeful purchaser responds, be it a conservative guesstimate, a carefully-pitched range taking into account their requirements versus availability or an enthusiastic, if slightly optimistic, upperbracket limit.
But just how does the property shopper arrive at that figure? No doubt, it can be more straightforward if there’s no change of currency involved, but with an international purchase, a buyer’s budget can prove to be a pesky barrier to realising their dream of owning property abroad if a currency strategy has not been implemented and carefully managed.
For example, back in November, Mr. A. Brit, soon to retire and wanting to find a little bit of paradise to settle into on Mallorca, had a healthy budget of £1 million with his funds held in the UK. The exchange rate he saw was around 1.40 so the target given to his real estate agent was €1.4 million. The ideal property was found at the top of his budget and the deal agreed, until…
The realisation set in that the exchange rate had moved quite dramatically and Mr. Brit could no longer achieve the €1.4 million agreed… he couldn’t even reach €1.3 million at the current rate for his Sterling. Hadthe rate been fixed on a forward contract for him back in November at the beginning of his search, there would have been no issue to resolve and the sale would have gone ahead as planned.
Volatile exchange rates regularly break dreams, yet such a disappointing scenario can be avoided. As early as two years prior to a property purchase, it is possible to lock down an advantageous market rate.
Premier FX is one tried-and-tested specialist that will guarantee a set exchange rate. Upon payment of a 10% deposit, house-hunters are at liberty to take their time searching for the right home, knowing they won’t be undone by lack of affordability when they find it.
There is another reason why sidestepping the conventional bank route makes more sense. Banks are notoriously expensive when it comes to the transfer of funds. The exchange rate set by a bank can be up to 6% less favourable than that set by a specialist currency broker. This alone can make a very big difference to the amount of required currency achieved. Add to this, the bank charge applied for the cross-currency payment, which can be anywhere between £15 and £60 depending on amount and type of bank account held. increasing numbers of shrewd buyers are turning to free-of-charge providers like the aforementioned Premier FX to avoid these unnecessary fees.
For Janet Donnelly, signing up to a currency broker’s service initially seemed like an added hassle. “It was yet another thing to add to the relocation list! But it is actually surprisingly quick and easy with Premier FX, and really was worth spending a few minutes on.”
In addition, all clients of this UK-registered company – not just the high-net-worth ones – are allocated a personal Account Director to promptly assist them. “A nice change from hanging on the phone to the bank”, says Janet, who recently bought an apartment on Mallorca.
According to Managing Director Nick Jones, more and more foreign residents in Spain are using the online service of Premier FX, PFX Online, to make secure international transfers around the clock.
“Our customers love the ease of it. Just a few clicks on their computer, smartphone or tablet takes care of transfers ranging from top-ups of £100, to larger amounts of up to £50,000.” For anything over this amount, your Account Director will manage the process personally for you. Of course, it’s vital to choose a safe, reputable and fully-regulated currency transfer provider.
“I did my homework and made sure the company I was signing up to is authorised and regulated by the Financial Conduct Authority in the UK” says Janet. “It’s also reassuring to know that Premier FX has an actual office in Palma, as well as London and Portugal too, I believe.”
Once you’ve secured an account, you’re likely to be glad you did. For property owners everywhere – not just on Mallorca – there is always a job to be done, and maintenance costs to pay. Going through a specialist broker that can give you a good rate instead of handing money over to your bank equals more cash in your hand to get your new home exactly the way you want it. Furthermore, it can determine whether you get the keys in your hand in the first place. Your budget could be better than you think!
More about Premier FX
Premier FX is a UK Limited Company with offices in London, Spain and Portugal. They are regulated by UK Revenue & Customs and authorised by the Financial Conduct Authority (FCA). Client funds are held in secure, segregated accounts at Barclays Bank in London and are fully protected by law.
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More about Premier FX
When it comes to buying a property on Mallorca or if you are regularly receiving or paying money in another currency then it is well worth while speaking to the currency exchange specialists on Mallorca. Call now! […] Premier FX Currency Exchange Mallorca
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