Previous
Looking to buy overseas in the light of the current volatility in the market place?
Added: (Thu May 08 2008)
If you are looking to purchase a property abroad in 2008, you are probably well aware of the current volatility with the exchange rate. However, this should not deter you from your dream home. If you are an investor you are probably well aware of the need to protect your “cash” as to “negotiate the property price”, however, if you are just buying for yourself, you may not be quite as aux fait.
In essence the Bank of England left rates unchanged at their meeting on 10th January which in turn offered some much needed support to the UK currency. It is a tough balancing act that the MPC face; balancing downside risks to growth with rising inflation.
However, properties abroad in the more desirable areas such as the French Riviera and Costa del Sol have stabilised.
“Homes in such sophisticated locations are always popular irrespective of the market place”, says Serge Cowan of Unique Living International Estate Agents specialists in high quality overseas homes. “With limited new build, easy access and an exceptional quality of life, properties upwards of £500,000 tend to gain in capital value irrespective of everything happening around them.
Property for sale in St Tropez is an example of where demand far outweighs supply. Unlike emerging countries with unstable Governments and overbuild, these are areas of supreme wealth which to a degree “glide over” the bumpy monetary market.
Having said that, no one likes to pay more than they need, and taking stock of how to avoid unnecessary expenditure is very important.”
Mark Bodega, Marketing Director at HiFX concurs ”In light of the current volatility in the currency markets, it’s important that buyers look to save money on their property.
Simple advice - don't let the banks cash in! Shop around and compare the rates given by your bank with an established currency broker. On average, mystery shops show that the high street banks were charging up to 4% more to exchange your money. 4% doesn't sound a lot but this means if you were changing £100,000 into Euros for example you'd pay around £4,000 more than if you'd used a company like HiFX”.
As Unique Living is dealing with high end properties, (an average sale is around £1 million), this difference in rate is exceedingly important.