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| Are You Planning On Investing Overseas? Avoid Losing Money On Your Next Purchase... By Kim Brown | ||||
| Several years ago, my in-laws lost a huge chunk of their life savings when investing in an overseas property. Sadly, due to the stress and strain, my mother-in-law is no longer with us and my father-in-law looks back with hindsight as to how he could have avoided such a tragedy. A significant portion of their loss was directly attributed to a poor currency exchange strategy – something even experienced investors often fail to consider. The actual act of buying and transferring currency is not difficult to understand. In fact, it’s quite simple, yet many ordinary buyers become bogged down by the jargon used by industry specialists. Problems arise when investors don’t spend enough time thinking about and understanding, the simple but fundamental elements that will enable them to avoid substantial losses. When transferring £100,000 worth of currency, an overseas property investor could lose £3,000 or more. Loses are realised when currency is purchased at poor rates from a high street bank and when consumers fail to buy at the right time—both of which can be avoided by working with a good specialist currency company. Let me explain the key elements involved in ensuring that you save money rather than lose it. Buying currency at poor rates. Banks will sell you currency at a rate that is 1 to 4 percent higher than rates quoted on the Internet, Teletext or listed in the newspaper. In comparison, currency exchange specialists provide rates at around 0.5 to 1 percent higher. Nobody can purchase currency at these listed rates—they are the middle rate between buying and selling as traded between banks themselves. However, the published rates do give the public an indication as to what direction the rates are moving in. By using a currency specialist rather than a high street bank you can save 2 to 3 percent when purchasing currency. |
Think about it: on £100,000, this alone could equate to a savings of £3,000. Buying currency at the wrong time. This mistake is made more often than any other. Some investors are switched on to the fact that buying from a specialist will save them money on the rates. However, many fail to understand that timing is a key factor. Even the most experienced investors will often wait until the last minute to contact their bank or currency specialist in order to purchase their currency. This less-than-perfect strategy will force them to buy at today’s rate which may or may not be a good rate. There are two options available that will give an investor more flexibility and ultimately help them to achieve additional savings. Option one is to work closely with a currency specialist, letting them know your requirements at an early stage (e.g. two to three months before the transfer is required) so that they can watch the rates. Discussing your needs with a good specialist will enable you to determine a realistic target rate—one that you would be happy to achieve in the next month or so. Once your target rate is determined, the specialist will watch the rates on your behalf. The rates change every second and are affected by a variety of factors including, but not limited to, economical and political announcements, so it’s imperative to have someone keep an eye on them for you. When the rate hits your target, the specialist can give you a call to determine if you’d like to purchase or reserve the currency for a purchase at a future date. This course of action allows you time to achieve better rates and brings me to option two. High street banks focus on numerous products. The sheer volume of their customers means that they often fail to explain to clients that, for a small deposit, currency can be reserved at today’s rate (if it’s in your interest to do so) and paid for in full at a later date when the money is |
needed. This later date could be later on. If the rate is at its year high and a buyer doesn’t want to lose the opportunity to buy at this rate, this option allows them to do it for a small deposit. It is fantastic for those that want a preferential rate but don’t have the funds immediately available or for those that want to keep their money in a savings account, earning interest. Apart from offering better rates, discussing a realistic target rate and ultimately helping to achieve significant savings, a currency specialist can also eliminate the charges imposed by overseas banks. This can be up to £500.00. Many investors don’t even realise that this charge exists until after they send the money and it’s deducted from their account. Furthermore, many specialist currency companies can move money in 24 to 48 hours versus the 3-5 days that the banks take. To take advantage of using a currency exchange specialist, you need only to determine which currency provider best suits your needs, open an account and schedule a few minutes to discuss your particular requirements. Opening an account is straight-forward and can be done via fax, email or post. Smart Currency Exchange Limited, managed by Kim Brown and Charles Purdy, is the only currency company in the UK that specifically works with overseas property buyers. Furthermore, Smart does not pay their dealers on commission so you know you’re getting the best rate possible. Ultimately, their aim is to help people avoid the mistakes made by Kim’s in-laws and many others in looking to buy and invest overseas. Smart’s approach to creating a currency strategy works extremely well with investors looking to make deposits and stage payments. Savings can be made on amounts as low as £10,000. For a free currency quotation and educational report, please visit: http:// www.smartcurrencyexchange.com/ psf.htm |
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