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exchange rates On Euros pounds Transactions
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Reports suggest that in the last year there was an increase of 25% in
Foreign Property purchases.
More people than ever before have been taking advantage of a strong
pound and comparatively cheaper property prices abroad.
Unfortunately when buying a property abroad, you will have to pay in
Foreign Currency. This means that all of a sudden you will need to
become familiar with a very volatile exchange market.
Depending on the type of property you buy, your payment schedule will
differ. If you are purchasing an already constructed property, it is
likely that you will initially pay a deposit and then some weeks or
months later, the balance on completion.
If you are purchasing a new property that is under construction, it is
likely that you will pay an initial deposit and then regular stage
payments until the property is completed.
The danger with these arrangements is that a volatile market can make
payments unpredictable. It is unlikely that you would purchase a
property in the UK without agreeing a definitive price first! – Why do
it with a foreign property?
Protecting yourself against advance movements in the market is an option
that we can offer. We can also make the price of the property cheaper
for you! It is important that when negotiating the Foreign Exchange
markets you are familiar with all the different tools and mechanisms
that are available to you. Combining Forward contracts with stop-loss
orders could prove to be very prudent. see contract types
In January 2003, €150,000 would have cost £97,400. By May 2003, the Euro
had gained approximately 10% in value against Sterling. If you had
agreed to buy a brand new property under construction in January with a
stage payment to be made in May the differential in the exchange rate
could have made it difficult for you to make your stage payment.
If you had fixed your exchange rate in January 2003 you could have saved
hundreds if not thousands of pounds.
If however, you were buying a property in the US at the beginning of
December 2003, $150,000 would have cost approximately £87,000 at a rate
of 1.724. If you had agreed a forward contract in December 2003 by May
2004 you would have been very disappointed to see that the US Dollar
weakened to 1.91 against Sterling. (A difference of approximately
9.75%).
It is clear from these examples that volatility can work for and against
you so it is our objective to work diligently to assist you in making
the correct decision.
Interbank foreign exchange rates:
These rates are for indication purposes only and are
not applicable for holiday money.
For holiday money rates
click here
Updated Monday 8th September 2008
EUROS TO POUNDS 0.8054
GB POUNDS TO EURO 1.2416
BRITISH POUND TO US DOLLAR 1.7605
GB POUND / CANADIAN DOLLAR 1.8838
EURO TO US DOLLAR 1.4250
GB POUND TO JAPANESE YEN 187.01
POUNDS TO AUSTRALIAN DOLLARS 2.1667
POUNDS TO NEW ZEALAND DOLLARS 2.6458
GBP/ZAR 14.1632
GBP/CHF 1.9618
GBP/SGD 2.5280
GBP/THB 60.75
GBP/HKD 13.7472
Where can I obtain the best exchange rate?
You need to compare like for like the exchange rate you can obtain from
your bank to what a broker can offer you.
Where do I find a reputable currency broker?
Ask the agent you are buying the property through to make a
recommendation or carry out some research on the Internet.
Are there risks involved when buying currency?
There is clearly potential for your property to cost more than expected
if the currency markets move against you. When buying in Europe you will
be provided a price for the property in Euros. It is therefore important
that you establish a relationship with a broker who is able to provide
you with expert advice and the best financial tools to use for buying
your currency.
How can I buy currency for a date in the future?
You can buy currency for a future date using a 'forward contract'. This
effectively means you can take advantage of a good exchange rate from
the market without making full financial commitment. The rate can be
guaranteed with usually a 10% deposit. This is a great option if you
want to fix your costs early on, so you know exactly how much the
property will cost you. This eliminates your risk and market exposure.
What can a currency broker offer me that can not be provided by my bank?
First and foremost currency brokers offer better exchange rates and
lower transfer charges. On top of that they offer a much more specialist
and personal service with an understanding of the complex and stressful
foreign property purchasing process.
Does it take longer to buy through a broker than a bank?
No. Generally as brokers are experienced working within the foreign
property market they understand the importance of payments reaching
their destination on time. Therefore as soon as funds reach a client
account they are automatically sent by international transfer known as
SWIFT. It can take as little as a few hours to deliver funds to an
account depending on the destination country.
What is the difference between the inter bank rate and commercial rate?
Inter bank is the real-time market rate on all major currency pairs used
by banks trading vast sums between one another. They are often displayed
in financial sections of newspapers and on websites. Commercial rates
are the wholesale rates provided to clients who are buying a large sum
of currency for a business transaction, property purchase or emigration.
These include a brokers spread or margin and are lower than the inter
bank rate.
Is it important I obtain a commercial rate?
Yes, very important; it is always beneficial to look beyond your bank
and get a preferable exchange rate by shopping around.
'It is unlikely that you would purchase a property in the UK without
agreeing a definitive price first! - Why do it with a foreign property?'
Fill out the form for
further information
"We will attempt to beat any
Euro Pounds quote"
For Today's exchange rates Click the following link: Euro Pounds Home
