Gatehouse estates

Currency Conversion – Trust Your Dealer

In these difficult times, you need all the help you can get just to keep hold of your hard earned money.

  • You may be in business and have a need to regularly pay suppliers abroad.
  • You may be an expatriate and have a need for a regular monthly payment to be transferred overseas.
  • You may have decided to emigrate and have a need to move nearly all of your savings.
  • You may have just decided to buy that, longed for, holiday home abroad and have a need to transfer your savings as a deposit.

Whatever your reason for moving money abroad and having to exchange the currency to another type, you need to choose your currency dealer wisely. This is mainly because there are usually seemingly small charges applied to the currency exchange deal AND some foreign exchange brokers will not give you the best rate available.

Yesterday, I even heard of 2 different banks who offered a client a rate of exchange that sounded competitive and confirmed that there would not be any charges by them for the transfer or at the receiving bank. In both cases, this was completely untrue! The clients dutifully told their managers to make the transfers. When they received their exchanged money, charges had been applied at both the sending and receiving banks in addition to a completely different rate of exchange being applied!

When each client visited their banks for an explanation, it was like the bank managers were reading from the same script. Both offered the lame excuse that they merely processed the exchange of currency. After that, the rate of exchange was applied by the dealing room whenever they got around to doing the deal. No explanation was offered to explain the charges.

If these people had used a professional currency exchange dealer, they would have had a contract with the rate of exchange on it and a full explanation of charges applied if there were any. They would have known exactly how much they would receive.

Why use a bank when you are protected by this form of contract? If you regularly make payments abroad, or need to make a one-off currency exchange try fx-foreignexchange.com. You will be dealing with professionals.

Pay Your Property Deposit by Card

How to beat the currency exchange system with credit card payments on property purchases.

Pay your overseas property deposit with a credit, or debit, card and get a better rate of exchange than you would by using the card abroad.

If you find yourself in the fortunate position of being able to buy that property abroad, and you need to place a deposit on the property to secure the one you want, then there is an answer.

Pay your initial deposit with your debit, or credit, card.

However, before you get too excited, consider this. I was in Spain recently and used my UK Bank debit card to draw some Euros at the “Hole in the wall”. I drew money on two consecutive days. The exchange rate between the pound and the euro had barely altered, but one bank gave me 1.19 euros to the pound. The other bank gave a rate of 1.23 euros to the pound. If, like me, you suffer from terrible thirst when it’s hot and you need £200 to pay for the drinks, the difference is €8. “Just €8!” I hear you say.

Well change that figure of £200 to £3000 as a house deposit and the difference between one bank’s foreign exchange rate and the other’s is now €120. Not a huge amount, but still worth saving.

FX-Foreignexchange have a facility, through their currency exchange partners, where you can now pay your initial deposit to secure a property abroad by using your debit or credit card. You get an even better rate than the banks can offer. It’s a safe way to pay and painless.

Just call FX-Foreignexchange on 0044 (0)1480 458400, (or email for them to contact you from here) , register your details with them, give them the details of where you want your deposit to go, and they take the payment in your local currency, change it, and send it to the account you’ve asked for it to be sent to.

Paying your overseas property deposit couldn’t be easier. You may even want to spend the money you save on a special dinner to celebrate how clever you are!

A couple of little things, FX-Foreignexchange can’t take card payments over £10,000, and they can’t take less than £2500. On the basis that most initial deposits for new homes abroad are €3,000, or £2,500, this shouldn’t present a problem.

The other area to consider is if you use the same company to change your further stage payments, the difference when using my example, is €1,200 when you change £30,000.

That’s a bit more interesting than the €8 I saved!

Getting the Best Exchange Rate today

Getting the best currency exchange rate available today.
The steady decline of the Pound against the Euro has fuelled much debate over whether the currency exchange rate avaliable today, at about 1.26 Euros to the 1 Pound, is aiding the slow quantity of property bought overseas.

There are even several new initiatives to seemingly offering the best euro / pound exchange rate. Some developers are even offering to fix the exchange rate to 1.4 Euros to 1 Pound, so that a buyer of their overseas properties is perceptively not losing out on the exchange rate. The truth of it is that the price that you pay for the property is probably higher than you might pay if you just accepted the ‘Real’ exchange rate and negotiated a little harder on the price of the property.

Consider this: You are looking to buy a property at €200,000. Generally, you could raise a local mortgage of 70% of this, leaving a need to transfer 30% of the purchase price (€60,000) plus 10% to cover all costs (€20,000).
You will have to change enough Pounds to pay a total of €80,000 at some point.

  • If you simply exchange Pounds for €80,000 at todays best currency exchange rate, (1.26), you will need £63,492 Pounds.
  • If you take someone up on the offer of an exchange rate at €1.4 Euros to 1 Pound, you will need to change £57,143 Pounds.
  • Clearly the better exchange rate will appear to make a saving of £6,349.

The question is… Did you get the best deal on the asking price of the property? Maybe, you could have negotiated more than £6,400 off the price?

currency conversion by professionals

currency conversion by professionals

In principle, there’s nothing wrong with these great exchange rate offers, but ask a few more questions of the builder. The builder may prefer to simply reduce the price. Try using an estate agent that is used to working on an International basis, like Gatehouse International, as they will be able to offer both types of exchange rate deals. You can then choose the deal that suits you most.

For the best currency exchange deals, get a free account with Global Currency Exchange Network and let us let you know when the best rates are available.

Protect your profits when trading overseas

Protect your profits when trading abroad…Every company trading internationally is at risk from currency exposure.

currency conversion by professionals

currency conversion by professionals

It doesn’t matter how large your organisation is, unexpected fluctuations in the exchange rate can eliminate your profit. Even worse, a major movement in the exchange rate can potentially make a profitable deal turn into a loss-making deal.

There are ways to mitigate your exposure to currency fluctuation. Global Currency Exchange Network are professional currency brokers and have a business advisor on hand to aid you in protecting your calculated profit margin.

Our main function is International foreign exchange and payments. We provide innovative currency risk management services and international payment solutions to businesses of all sizes.

  • Currency risk management services are designed to protect your profits against adverse exchange rate fluctuations while conserving gains from positive market movements; we can help to mitigate the risk, by providing a currency exchange plan that suits your business cash flow and works well with your agreed payment plan with your provider.
  • Personal service. We have a business manager, experienced in International trading, who can help with anticipating your needs and keeping you up-to-date on relevant market events.
  • A more competitive exchange rate than your bank may be able to offer.
  • Flexibility; you can invoice your customers in their local currency, adding value to the services you provide and reducing the risk of a breaking a deal because of the exchange rate fluctuation.
  • An easily set-up service, saving you time. One call will have you trading abroad, with increased risk management.
  • Fast, efficient worldwide transfers and 24-hour trading, free of the limitations imposed by the banking network.
  • Direct savings; you will not pay any receiving bank charges, saving your business up to 0.3% of amounts traded.

Request a call back and we’ll have a business manager contact you to discuss your needs

Tax breaks for UK Landlords

Tax Breaks for UK Landlords.

Landlords could be eligible for a maximum tax break of £1,500 per property against the cost of installing draught proofing, loft insulation, or insulation for hot water systems. The Government are keen to encourage all home owners, including landlords, to improve the energy rating of their properties.

Most landlords are unaware that they can make this tax deductable improvement to their rented property. Furthermore, it will improve the property’s energy rating when they have to conform to the new EPC ( Energy Performance Certificate ) scheme that comes into force in October 2008. By improving the energy performance rating, the landlord is simply improving their chances of letting sooner, and for more rent. Savvy tenants will want to see the energy rating of the property to rent, before they agree to let. With the cost of energy rising seemingly weekly, this will become a major decision maker.

This tax break is called LESA, Landlord’s Energy Saving Allowance. Talk to your financial advisor for more information, or if you are local to our offices in Godmanchester, or Bedford, call in. Contact us

More articles on letting property and EPC’s……

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