Sending money to France? When sending money to France for a property you will more than likely have to transfer funds directly to your Notaire. Typically this is based on 10% for the initial contract signing and the further balance payable 8-12 weeks later. One issue you will have during this period is the exchange rate fluctuation which in a three month period can be quite large. Indeed, since the turn of 2013 GBPEUR exchange rates have dropped by 7% meaning a property at the beginning of the year that was valued at €200,000 is now the equivalent of £11,000 more expensive.
How can a currency broker help you?
By utilizing the service of a specialist foreign exchange broker you can secure your exchange rates from early on so that you know exactly what you’re paying for in Sterling even if the market goes against you. In order to secure an exchange rate for a period of time in the future you can place a deposit based on 10% on the Sterling value and the remaining balance payable on or before maturity date of the contract. One potential negative risk is that by locking into a rate you can benefit if the rate goes up. However, for many peace of mind is worth more and it means that the dream of buying a property abroad does not become a nightmare.
A specialist company can also help you protect you from adverse market movements by using Stop Loss & Limit Order which allow you to choose two exchange rates-both a higher and lower level which means you can budget for both best and worst case scenario. For more information as to how to save money when transferring Euros please contact me directly Tom Holian firstname.lastname@example.org