Written by in News on March 4, 2021
If you’ve decided to take the exciting leap and buy property in another country, there are some things you can take into consideration to save yourself time, money, and a whole lot of stress. Whether it’s an investment property, a vacation home, or your eventual full-time dwelling, things such as competitive exchange rates and low global money transfer fees can seriously change the game.
Buying property abroad is life-changing and while it may seem daunting, familiarizing yourself with some key information and strategies can make a huge difference. First and foremost, here’s what you need to know:
Of course, you’ll need to become aware of what exactly you’re getting yourself into. Study the local real estate market where you intend to buy so you can understand not only the local prices but the buying process in and of itself. Seek local advice, government resources, and market fluctuation data to gain a well-rounded understanding. Be sure you’re comparing your potential investment against the local market rather than the one you’re used to. In addition, familiarizing yourself with the process can help you avoid unexpected surprises and costs along the way.
You will want to learn the rules, both overseas and where you live. Everything from filing your taxes to local property taxes, paying bills, and potential rental income. You must never assume that rules will be consistent from place to place, as they can be vastly different in different countries and areas. Ask any question you may have as a homeowner in your new jurisdiction so you understand what rules you need to follow and the ramifications of each.
Finally, there’s a good chance that you will be making your deposit and paying your fees in local currency. While staying on top of foreign exchange may not have mattered to you in the past, it certainly will now. In short, the exchange rates will directly affect how much you pay and selecting the best possible time to exchange your funds can save you a lot of money. Collaborating with a foreign exchange firm or global payments platform can be a big help for anyone investing in property overseas.
When buying a property in a currency different than your home currency, especially if that currency fluctuates a ton, crafting a mindful FX strategy is paramount. Your strategy may include forecasting, hedging, or both. While banks can offer fixed exchange rates, you can incur an array of additional fees that may offset your savings. Working with a global payments platform to identify your risk and set up a risk management strategy is an excellent course of action. Here’s why:
Payment platforms like Shift Connect give you the benefit of real-time conversions and quick transaction times so you can save time and gain a complete picture of your transaction almost immediately. Your settlement and reconciliation times will be far faster than if you deal with a financial institution and you gain access to your start-to-finish tracking information right away.
Global Payments platforms have a constant finger on the pulse of currency fluctuations. Therefore, they can offer you real-time exchange rates without additional cost to you.
Throughout your global payments process, you will be changed no additional or hidden fees. Full transparency is of the utmost importance and you will have access to all documentation needed to understand how your funds are being distributed.
You will gain the added benefit of security against exchange rate fluctuations as you will have an entire team of experts in your corner ensuring your money is maintaining or gaining as much value as possible.
Beyond the payment platform technology, there is a team of passionate experts dedicated to keeping you informed and comfortable every step of the way.
Our final piece of advice is to get in touch with a global currency provider prior to closing on your new property. This way, you can gain clarity on future exchange rates and any potential risks so you kick off the entire process with your best foot forward. It is never too late to join a global payments processor, but the guidance is invaluable and is best used from start to finish.
To find out how Shift’s custom solutions can serve and elevate your business, get in touch today.