When you’re thinking about buying property in France, whether for an investment, holiday property, or emigration, currency exchange is unlikely to be at the front of your mind. Few overseas property buyers realise how important using a currency exchange specialist is to the property buying process and how currency market movements affect the price of your property and the overall costs of the buying process.
Managing your French property budget
We recommend spending some time considering the impact that currency has on your budget. While you may already have a certain amount of Euros in the country to pay outright for your purchase, the majority of people will need to their French property purchase.
The currency market is constantly moving, with exchange rates going up and down in response to a range of factors, such as economic and political events – both planned announcements and activities; and unforeseen events. This means that when you are purchasing a property in France in Euros, the amount of the currency you are transferring to pay for the property, such as Sterling, will go up and down in line with the exchange rate. This exchange rate moves when key influences, such as Brexit negotiations or announcements about the economy, boost or weaken currencies and affect the market mood.
Uncertainty means market volatility
Times of political and economic uncertainty make the currency markets volatile, with rates often swinging up and down considerably, at very short notice. Given how quickly these currency market movements take place, the exchange rate you achieve on your currency transfer could represent a dramatic difference in the cost of your French property.
In many cases, a buyer will find their dream property in France, find out what the exchange rate is that day and then use that rate to decide whether or not to purchase. The wheels are set in motion to make this purchase, but the buyer does not actually exchange their funds until they need to send the money through to the seller. In response to the second-by-second fluctuations in the currency market, this means that the amount needed to transfer into Euros could be dramatically different from the price of the property that was originally budgeted for.
How does using a currency specialist work?
For example, during the course of summer 2017 GBPEUR rate fluctuated between 1.19 and 1.07. If you agreed the purchase a €300,000 property when the rate was 1.19, this would have cost you £252,100; if you did not complete the transaction until a few months later, when the rate was 1.07, your property would cost you £280,373 – a significant loss of almost £30,000. Using a currency exchange specialist to move your money between countries takes a significant amount of risk out of this process and helps you stick to your property budget.
Register early to be prepared
It’s worth registering with Halo Financial as soon as you know you wish to buy property in France, so you can benefit from a dedicated currency consultant, who can talk you through the markets and what they mean for your property purchase.
“Forewarned is forearmed”
We have a number of tools that you can use to your advantage to save money when purchasing your property.
A particularly useful tool is the ability to book a Forward trade, which allows you to book the exchange rate when that rate suits your property budget; and pay for this currency trade at a later date – this could be up to one year in advance.
By agreeing a Forward trade, no matter how the currency rate moves before you are able to settle the cost of your French property, the amount you pay will not change. This is particularly useful when exchange rates are volatile, as it ensures you can plan your purchase with price certainty.
Another benefit of using this tool is that you can transfer a lump sum initially and then make multiple payments over a period of time; for example, you could pay your deposit, the rest of the purchase price, taxes, fees and anything else from the one initial transfer, protecting your funds from market movements and allowing you to budget effectively.
Why use Halo Financial to make your currency trades?
In addition to specialist currency tools, there are a number of other reasons to use a currency specialist over your local bank. While many people will immediately go to their bank or the Post Office to make their currency exchange, not realising that they can save money on larger transactions by looking elsewhere.
As soon as you sign up with Halo Financial, ideally before you even put your plan to purchase in France into action, you will be assigned your own personal Currency Consultant who will work with you to understand the market and assess the best course of action for your needs. They will be able to advise you on the best course of action for you depending on the fluctuating exchange rates, and explain how these can affect you and your property purchase.
Your dedicated Currency Consultant
Your Currency Consultant will also monitor the currency markets for you to ensure you get the best deal. Unlike your local bank, you will not be charged a commission on your money transfers, and there are no additional fees on any transfers over £5,000 – saving you money before you even access the market.
Your Currency Consultant can also offer you a number of regular free news updates and insights to help you gain a greater understanding of the currency markets yourself, and how their movements can affect you.
There are many different combinations of currency services and tools that you can use to make your trades, depending on your own personal circumstances.
One-off payments to and from France
In addition to Forward trades, you can also make quick one-off payments if you find yourself needing additional funds quickly – and your Currency Consultant will help you target the most favourable exchange rate so that you can continue to make the most of your money.
Regular payments to and from France
Another useful tool you can use after you have bought your property in France is the ability to make Regular currency trades (RCTs). For example, if you are sending money regularly to France to pay your mortgage and monthly bills, you can set this up as an automated process, so you don’t have to worry about making separate payments each time, or missing any important payment dates.
You will not be charged a transfer fee for each payment, and you can rest assured that your Currency Consultant will offer you the best available rate. There is no maximum limit to how much you can transfer, and the minimum amount you can send is £250 per month.
You can also combine this service with a Forward trade, so you always know how much you need to pay or will have in your account.
Get in touch with Halo Financial today and find out the best way to make your currency transfers for your France property purchase.
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