Currency Quote
Copyright (c) 2008 Phillip Booker
CURRENCY QUOTE - CURRENCY EXCHANGE can be the single biggest cost when buying property abroad. Allow me to illustrate with these two brief examples:
ADVERSE CURRENCY FLUCTUATIONS
Don't run the risk of fluctuations! Currency Brokers, can, by fixing a rate for your currency requirements today for a purchase in the future (up to 6 months).
Currency Example... The Pound against the Euro... 16 months ago was €1.48/ £1.00; 6 months later it was €1.32/ £1.00. On a £100,000 transfer the difference in those 6 months is £12,000
Currency Example... Again the Pound against the Euro... in February 2008 the exchange rate was €1.32/ £1.00; in July 2008 it is €1.26/ £1.00. On a transfer of £200,000 the difference in those 6 months have been €8,000 (approx £6,000)
When getting a currency quote the Currency Broker can give you a quote by using a fixed rate that is valid for 6 months. Using the Euro against the pound is, and has been a good example of two currencies on the move with fluctuations daily
Trading Currencies and Buying Property Abroad are the two major reasons for changing currency. A close third is when regular payments are made to a different country and subsequent different currency. However a casual approach which is taken by many when buying property abroad can be the single most expensive part of buying abroad.
Getting a 'Currency Quote' when buying property abroad is obviously an important process, but more importantly is getting at least two quotes, possibly three. At the end of the day it is a competitive market and we should compare quotes.
To conclude; where I started about currency fluctuations... When buying property abroad, remember this process... When you first have an offer accepted it is wise to get a currency quote and ask about getting a fixed rate quote which will be valid for 6 months. Plus get the advice of the currency broker as they deal within currencies 24/7. Many experts have suggested the Euro has hit its peak against the Pound and perhaps over the next 6 months the pound may gain some ground lost over the last year.
Remember Currency Exchange is a costly business if you treat it casually. I can recall one person losing £15,000 by assuming his bank was getting him the best deal. Always get 2 or 3 quotes! Forgetting this advice and you may lose up and over £15,000 on your Currency Quote
About the Author
Mr. P. Booker Senior Currency Expert and Columnist http://www.Pounds-to-Euros.com
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