Buying Abroad?

Xchange_2

Currency fluctuation from the minute you agree the purchase of your home abroad until the time you come to pay for it, can mean a significant increase in the eventual cost. Just look at the Euro today (1.43 ish) and where it was only 3 months ago (1.485 ish). There are ways of protecting yourself from currency fluctuation such as securing forward contracts (which can be done with only a 5% deposit). Remembering that rates can go up as well as down it is imprtant to seek good advice.

I am interested in your experiences. did you get good advice or bad advice? Did you use a bank or foreign Currency specialist? etc etc.

dolce_vita

Touting for business is not allowed on this site.

I suggest you either (a) remove the links in your signiture

or (b) advertise somewhere else.



Betting on currency fluctuations is a very risky game and as a way of making money is only suitable for very experienced and wealthy investors / gamblers.

Xchange_2

Dolce

I think you have made a fair point and I have removed the links from the signature.

Touting for Business was not my objective. I have a genuine interest in understanding peoples experiences for the very reason your quote on the bottom of your post states.

In my opinion, point B in your reply was uncalled for and out of order. Please follow suit and edit.

dolce_vita

There, OK, I have removed the offensive part of my post.

By the way your new signiture minus the advertising now suggests you are a
chancer and I would still not deal with you.

SquatNow

I'de suggest that anyone using this board probably isn't in a position where they should be speculating on the currency markets.

dolce_vita

SquatNow wrote: »

I'de suggest that anyone using this board probably isn't in a position where they should be speculating on the currency markets.

.............Precisely.

ManAtHome

Not sure about that - if you were buying a new-build abroad** with the usual lag between signing up and forking out, not "speculating" by fixing the rate is, errrm speculating isn't it?

**Not something I'm likely to do, but if you "bought" a euro-house in January without blagging euros, it's already gone up 5% or so...

Doozergirl

ManAtHome wrote: »

**Not something I'm likely to do, but if you "bought" a euro-house in January without blagging euros, it's already gone up 5% or so...

I know nothing about forex. What about a house purchased in Euroland a few years back that is perhaps still only worth what someone paid for it? Would the exchange rate have done them favours that the property market hasn't?

ManAtHome

Probably would Dooz - certainly remember getting over 1.60 euro to the quid on my holiday spends (probably around 4-5 years ago).

However, I also remember getting the same rate for dollars, around 10 years ago.

Jonbvn

IMHO US property drops plus the huge drop in the US$ is making me think that there may be bargains to be had across the pond, considering the mantra of buy low sell high. I will admit that it would be a very high risk strategy.

Xchange_2

No one wants to speculate, it is a very dangrous game but lets take an example.
You purchase a property in europe for €150,00. On the day of the purchase the exchange rate is 1.495. This means that the property has cost you £100,334. But if you do not secure the currency that day you are then seculating. Lets say you leave it to 3 weeks later and the exchange rate has moved to 1.455. The propery will now have cost you £103,093. A whopping £2,759 more.

Lets also consider this the other way round and that at the date of purchase the Euro exchange is 1.41.

Q Would you then

A