Few people would buy something of value without first understanding exactly how much it was going to cost. But that’s exactly what many people do when they buy a property abroad.
Not only is property one of the single biggest investments most of us ever make, it’s also one you commit to paying for at a future date. Especially if you’re buying off-plan.
If currencies move against you between the date of purchase and the completion, you could end up paying significantly more for your property than you bargained for.
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Property Purchase Example
Suppose you find the perfect holiday home and agree to pay €300,000 for it. At the time you agree the price, exchange rates are €1.5 to £1, so you budget £200,000 for the house.By the time you’re ready to complete, the rates have moved to €1.4 to £1. €300,000 will now cost you £214,285, leaving you with an extra £14,285 to find.Alternatively, IFX can help you ‘lock’ the rate at the time you agree the price for the house. That way, whatever happens in the currency markets, you don’t have to spend more than you’d bargained for.
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