The pound and the euro are doing a merry dance with each being a contender for the worst currency in the world prize as they are both seemingly balanced precariously on the back of the most unstable and bankrupt economy in the world! What this means for you and I is unpredictability when it comes to moving money internationally or using currency abroad.
So, how can you protect your financial position when you buy property abroad for example – after all, the weakened state of our world’s economies has left many property markets flat with bargains therein for the taking?
The secret is in clever currency conversion and carefully finding your way towards a home purchase overseas with the right advice and support around you…
If you’re thinking of buying a home abroad you probably have a very good idea of your budget – and if you haven’t, you need to get a hold on your finances before you go any further. You need to know how much deposit you have ‘instantly’ available to secure the right place, you need to know how much you have to pay for the remainder – either from your own savings or from a mortgage or re-mortgage – and you also need to know whether there is anything else in the pot to cover you in the event that costs go slightly above that which you wanted to pay.
With the money basics in hand, it used to be enough that you could go abroad and pick your property – nowadays it is not that simple. For example, as we Britons well know, the pound has become worth less and less against leading currencies such as the US dollar and the euro. This has made the pot we have to buy property with worth less in terms of the bricks and mortar we can get our hands on. So, nowadays you have to look at your pot and try and gage what it will buy you in your chosen market.
This is where a currency exchange specialist is likely to assist you – but you have to find a reputable one. There are many new companies making their fortune out of the exchange game, just make sure you pick the right one who will look after your needs. They will be able to help you ‘fix’ your exchange rate ahead of a purchase for example, and this can be a really useful (and potentially profitable way) for you to find out how much you will have to play with when you go abroad to buy your property.
Next you need to know that you can haggle in virtually every single market in the world – but as the new MoneySuperMarket.com adverts in the UK highlight, we Brits are rubbish at haggling! So, when in doubt, employ the services of a project manager, lawyer or friend to help! Any money you can save on the asking price is money in your pocket!
Finally, you have to remember that there are fees, costs and taxes associated with buying a home in any country in the world – and they differ greatly around the world. Never forget about your liability and ensure you have the cash in the bank to cover your costs otherwise you could fall at the last hurdle and lose your deposit and have to start all over again with even less in the bank to play with.
It pays to be very well prepared ahead of a purchase of property abroad – so do your homework and call in the experts to assist when it counts.
