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Protect against stock market jitters - 24 August 2007

The past weeks have seen some remarkable ups and downs on stock markets right across the world, often leading people with some money to invest to head straight for the relative security of bricks and mortar. Of course, investing in property has been shown as one of the most successful ways of investing savings, but the swings and roundabouts of the global markets can also affect the unwary overseas property investor.

Going hand-in-hand with volatility in the stock markets, the currency trading markets tend to experience the same kind of fluctuations, which can influence the Sterling prices of property overseas. Currency exchange specialists Moneycorp have seen this happening recently: On 15th August the Australian Dollar was trading at around AUD$2.42 to the Pound. Just two days later the rate peaked at AUD$2.56 to the Pound. On a purchase of AUD$100,000 that’s a difference of over £2,000 in the price that you would have to pay.

While no-one can predict market moves perfectly, speaking to a currency specialist about your foreign exchange needs could save you thousands of pounds. As with any part of the process of buying a property overseas, speaking to experts who deal with currency every day is by far the best way to get this advice. A high proportion of people are still going to their High Street banks for their currency exchange solutions, and not realizing that they are getting unfavourable rates on the size of transaction they are undertaking.

Nick Bull of Moneycorp is clear about advantages of taking advice from the experts: “Their job is to watch the currency markets on your behalf and to help you decide the best time to trade. They have many solutions available to help you achieve the best exchange rate for your currency transfers. One of these solutions includes fixing an exchange rate – for up to two years ahead. For just a small deposit you are guaranteed this rate and need only transfer the rest of your Sterling funds when you require your currency.”

 

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