Whatever the Currencies involved - Dollar, Euro, Sterling, Rand etc – the sale of the asset is likely to involve exchanging significant amounts.
It could be due to a relocation or simply the sale of a family holiday home. You may have spent a considerable amount preparing the property for sale, in order to achieve the best possible price. Whatever the circumstances, there are also likely to be associated conveyancing costs and probable local taxation to factor into the calculations.
But once the sale goes through, there is then the extra layer of complexity connected with the Currency exchange itself.
This is where it pays to be especially careful.
Exchange rates have a habit of fluctuating, so the timing of any Currency exchange could have a large bearing on the outcome of the transaction. A miscalculation on the exchange could have a significant impact on the amount you receive.
Make sure you are the decision-maker:
Once you have the sale proceeds, make sure it is you who decides when / how much to exchange. Take control of the Currency.
Don’t allow the exchange to be carried out by the agent / lawyer / notary / bank in the country of sale. This would mean you would have no control over the exchange rate or the fees incurred.
Timing the exchange, so that it works in your favour, should always be a key consideration, which would mean keeping a close eye on how the markets are behaving.
Easier said than done – especially if you are unfamiliar with FX markets and have no prior experience of exchanging large sums of money from one Currency to another.
Engaging a Currency exchange specialist:
Unless you are experienced at making foreign exchange transactions, it may well pay you to engage the services of a Currency specialist to act on your behalf. If that sounds as though it might be an expensive option, it needn’t be. In fact, it’s likely to save you money.
By a Currency specialist, we aren’t talking about a traditional bank, property agent or lawyer, i.e. those who engage in FX activities as an add-on service to their frontline work.
We’re referring to dedicated Currency specialists that deal all day, every day with the markets, to ensure their clients achieve the best rates and benefit from lower fees than would be available through mainstream banks or other “part-time” providers.
Crucially, your Currency expert will also be able to offer advice on the optimum timing of the exchange, enabling you to maintain control of your money.
What it all boils down to, is keeping ahead of events and having access to the correct information, to ensure the proceeds from your property sale aren’t needlessly reduced by unwise exposure to the FX markets.
How MFX can help with your overseas property sale:
If you are selling an overseas property and intending to relocate to the Isle of Man to set up home, at some point it will mean converting large amounts of rand, dollars or euros into the Island’s base Currency - Sterling.
Alternatively, you may be off-loading a family property abroad, possibly under the auspices of a trust, with a requirement to switch the proceeds back into GBP.
As a long-established and dedicated foreign exchange brokerage, based right here in the Isle of Man, MFX has been involved in numerous cross border property transactions where Currency exchange is part of the equation.
We are partnered with moneycorp, world leaders in the field of international payments, who regularly work with over 100 Currencies worldwide. We will facilitate your connection to moneycorp where a dedicated FX specialist will work with you personally to devise an FX strategy that best meets your needs.
Given this level of expertise and service, we’ll ensure you retain control of your finances - so that it is not left in the hands of a bank operative with little or no specialist knowledge of the FX markets. In this way, you’ll achieve the best exchange rates - and the lowest fees.
To plan an effective Currency switch for your overseas property sale, call MFX on 01624 694731 email us at enquiries@mfx.im and we will get straight back to you.
MFX Ltd is a wholly owned subsidiary of the AIM-listed Manx Financial Group. Bank and a sister company of Conister Bank.