Should re­cent cur­rency mar­ket volatil­ity put the brakes on your in­ter­na­tional prop­erty pur­chase?

Country Life Every Week - - Voyage Of Discovery -

FOR ANY EURO­PEAN toy­ing with the idea of buy­ing in­ter­na­tional prop­erty, one event will have dom­i­nated their thoughts since the end of July: theukref­er­en­dum.

As theukpub­lic’s de­ci­sion to leave the EU un­folded on the night ofthe elec­tion, Brits watched their for­eign cur­rency spend­ing power fall off a cliff. In a mat­ter ofhours the pound plum­meted 10% against the US dol­lar, and over the fol­low­ing week ster­ling would hit a 30-year low. The euro was by no means im­mune to the un­cer­tainty ei­ther, fall­ing4% from its high as ques­tions were raised about the fu­ture of the EU.

For any­body that is used to deal­ing with cur­rency mar­kets, sud­den ex­change rate move­ments are ex­pected. In fact, one could ar­gue that, as Brexit al­ways posed a threat to cur­ren­cies like the pound and euro it was eas­ier to plan for; ad­versely, other events, such as nat­u­ral dis­as­ters or the re­lease ofweak eco­nomic data, are some­what harder to pre­dict and can have a dis­pro­por­tion­ate ef­fect on the mar­kets. One thing is cer­tain though - it can pay to be pre­pared. But the ques­tion is, what can be done to pro­tect against for­eign ex­change volatil­ity?

Us­ing a for­eign cur­rency spe­cial­ist­could be one an­swer. Time Mag­a­zine has part­nered with for­eign ex­change ex­perts, mon­ey­corp, to bring our read­ers the Time In­ter­na­tional Money Trans­fer Ser­vice. With mon­ey­corp, you will be al­lo­cated a per­sonal ac­count man­ager who will pro­vide ex­pert mar­ket guid­ance and as­sist you with ev­ery as­pect ofy­our cur­rency trans­ac­tion. They can ex­plain the spe­cial­ist tools avail­able to help pro­tect you against ex­change rate move­ments, such as a ‘for­ward con­tract’ (a for­ward con­tract may re­quire a de­posit). This al­lows you to se­cure an ex­change rate for up to two years. So, ifyou’re happy with a rate right now, but don’t need to make your trans­fer un­til fur­ther down the line – as is of­ten the case when pur­chas­ing prop­erty – you can fix the cur­rent rate and, in do­ing so, re­move any con­cern that the for­eign ex­change mar­ket will have an im­pact on the value of your trans­fer. Un­cer­tainty is likely to pre­vail in the short-term, mean­ing the pound could re­main volatile against other cur­ren­cies; par­tic­u­larly the US dol­lar, which has been one ofthe main ben­e­fi­cia­ries ofthe Brexit vote. While the pound and euro are a way off their peaks, when com­pared to the af­ter­math ofthe 2008 fi­nan­cial cri­sis, ster­ling has fared bet­ter against cur­ren­cies such as ZAR and AUD. As such, it is im­por­tant to look closer, and to put ex­change rates in per­spec­tive – per­haps another rea­son to seek guid­ance from a spe­cial­ist. The ex­change rate you re­ceive is not just down to mar­kets ei­ther. Rates be­tween dif­fer­ent providers can vary con­sid­er­ably. For ex­am­ple, through mon­ey­corp our read­ers get ac­cess to ex­change rates that are typ­i­cally 3-4% bet­ter than they would get from a bank. Put this into the con­text ofan in­ter­na­tional prop­erty pur­chase worth hun­dreds oft­hou­sands and the dif­fer­ence starts to look more than ap­peal­ing.

You are also able to ex­e­cute every­thing on­line in the same way that you would with in­ter­net bank­ing, buy­ing and selling cur­rency and man­ag­ing your trans­fers at the click of a but­ton. mon­ey­corp’s Reg­u­lar Pay­ment Plan en­ables you to set up re­peat pay­ments at any in­ter­val - par­tic­u­larly use­ful if you have reg­u­lar trans­fer com­mit­ments, such as repa­tri­at­ing wages in a for­eign cur­rency or ar­rang­ing set­tle­ment of­prop­erty main­te­nance costs abroad.

“Rates be­tween dif­fer­ent providers can vary con­sid­er­ably”

mon­ey­corp is au­tho­rised and reg­u­lated by the Fi­nan­cial Con­duct Au­thor­ity for the pro­vi­sion of pay­ment ser­vices and has been in the for­eign ex­change busi­ness since 1979. To find out more call 0808 159 2529 or email us at time@mon­ey­corp.com

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