The Power of a Currency Specialist: Saving Money When Buying in France

When purchasing a property abroad, whether it be a holiday home or a new change of life, the process is meant to be exciting. However, since you are purchasing a property in a different country to your own, you are faced with the additional factor of currency exchange.

During times of volatility, the exchange rates can fluctuate hugely and, in some cases, could be the difference between a new kitchen or a pool you were hoping to add to your new home.

The first thing you need to distinguish is your budget range. This will include whether you will be purchasing the property with cash or you will require a mortgage to fund the property.

Once you have decided this, you will also need to factor in the taxes and the Notarie fees.

To some, the currency exchange can be seen as an additional cost to purchasing a property abroad; however, this is not necessarily the case. In some circumstances, you can use the rate changes in your favour in order to reduce your overall costs.

Using a currency specialist opens the door to a multitude of options for you. You have access to a competitive rate of exchange and the expertise of a currency specialist whose role is to help you plan your transfer to make the most of your money. They will understand your situation and support you by tracking the rate and guiding you on when is the best time to trade, making your money go further.

Here is an example of a few of the tools available to you and how they can benefit your exchange:

• Spot contract- A spot contract is an agreement between you and your FX provider to exchange money and buy foreign currency at the present exchange rate. This is the most common and traditional form of currency exchange and is suited to addressing any imminent currency transfer needs you may be.
• Market order- you could target a rate of exchange, and if that rate is then hit, we could either buy the funds for you automatically or notify you of your permission to buy. With the same principle, we can set up a limit order to protect your transaction in case the rate falls below a certain level. This suits those who have some time on their hands and are optimistic that the rate might improve within their time frame. One of the advantages of the market order is to ensure that the currency is bought at the desired level even if the market only touches that level very briefly – and this includes when the markets are closed for trading.
• Forward contract- This allows you to fix a rate of exchange up to two years in the future in advance of a payment. This tool is very popular among property buyers as it allows them to fix the whole price of the property ahead of completion, giving them the peace of mind and the certainty of how much they are going to pay for the property. But it is also a great way to take advantage of a positive rate movement. (Please not forward contracts may require a deposit)

With the current volatility in the market and the GBP/EUR exchange rate at 1.16, its lowest rate since December 2021, it is more important than ever to get some expert guidance ahead of your payments. The rate can move in any direction, and you can utilise these tools available to you to protect your budget. The sooner you get in contact with a specialist, the more time you have to plan your transaction, save money on the rate and remove the risk of currency fluctuations.