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Bailing back to Britain

Wednesday, September 30, 2009

Source: Catherine Deshayes

At a time when the Pound has fallen below one Euro, Britons with property in Europe are selling up to take advantage of the weakened pound - despite property prices falling in Europe, overseas property owners in the UK stand to make up to a 16% profit simply by selling their property at the same price they bought it at...

Whilst the recent change in exchange rates is bad news for holiday makers, many overseas property owners stand to gain from Britain's current financial misfortune; an opportunity that many overseas property owners are now pursuing according to Foreign Currency Direct, a foreign exchange specialist which has helped in excess of 500,000 individuals move money worldwide - including buying and selling property abroad - in the last 10 years. 

Foreign Currency Direct has seen a significant year on year increase in the number of Britons transferring their money back into Sterling, with the majority as a result of property sales and others taking advantage of the weakened Pound.

France in Focus

With French property prices shooting up by 210% between 1995 and 2007, and despite property prices in France beginning to decline, British owners of French property still stand to make a profit because current exchange rates will offset any loss in the value of their property:

The average cost of a house in France in 2008 was £140,000.  With exchange rates dropping from 1.26 Pounds to the Euro in September 2008 to 1.10 Pounds to the Euro today (16%), Britons selling a property in the Eurozone at this value now stand to make a profit of £22,400 (16%).

Making the most of your money

People with houses abroad, or money overseas that they want to convert back to Sterling, can get very good rates at present.

An independent research company has revealed how much money you could repatriate if you have Euro 250,000 to move.  The difference between using a broker and a bank could mean an extra GBP 17,604.36 in your bank account (the difference between Sterling achieved via Foreign Currency Direct and Bank of Scotland in the table below.)  

Hide table

Selling €250,000	Rate	Sterling achieved
Foreign Currency Direct	1.1082	£              225,591.05
Currency Solutions	1.11	£              225,225.23
HIFX	1.111	£              225,022.50
Caxton FX	1.1145	£              224,315.84
Barclays	1.1174	£              223,733.67
Nat West	1.1321	£              220,828.55
HSBC	1.1819	£              211,523.82
Bank of Scotland	1.202	£              207,986.69

Print Features Archive Show Full Table

Anyone considering selling their overseas property in the next two years, but concerned about falling house prices and exchange rate recovery can take out a Forward Contract with Foreign Currency Direct, allowing them to lock into current exchange rates for a future sale in return for a small deposit.

Peter S Ellis, Chief Executive of Foreign Currency Direct commented: "Falling property prices on the continent are not putting Britons off selling their properties.  In fact, we have noticed a significant annual increase in the number of our British clients selling property abroad and bringing their money back to the UK. 

"At Foreign Currency Direct we keep clients aware of fluctuating exchange rates in order to help them make an informed decision.  We can also arrange a Forward Contract, locking in favourable exchange rates for a future sale; this means that anyone thinking about selling their property within the next two years can secure a great rate now, even if they are keen to wait a while before selling up.

"There is little point in overseas property owners negotiating an optimum sale price, only to lose a significant amount of cash by getting a poor rate of exchange when converting their Euros back to Sterling. A good foreign exchange broker, rather than a bank, can help to ensure that you get the best possible value for money."

 Source: http://www.currencies.co.uk/

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