Obviously when we look at overseas property investment, foreign exchange rates come into play. In fact, foreign exchange rates are one of the most important factors influencing decisions in property investment overseas, so it is important to know the facts.
Use a Broker
While getting your holiday spends on the high-street is okay (yes, just okay), doing so when buying overseas investment property is nothing short of foolish. While the differences between high street and specialist rates may only give you a few quid less on holiday, over the thousands involved in a property purchase you could be talking about hundreds of even thousands of pounds, Euros or dollars of difference. Not ideal I'm sure you'll agree, and this is why you must use a specialist broker when making overseas property investments.
IPINglobal recommend HIFX for currency exchange for overseas investments.
Remember Currency Can Fall as Well as Rise
As we all learned with a thumb in 2008/09 any currency can see its value tumble as well as rise. This is important to remember when buying overseas property. For example your currency has had a run against the euro, but you decide to give it another couple of days to get an even better deal on the best overseas investment properties in France, but overnight your currency takes a dive and you miss a good opportunity to buy.
But this is even more important to remember if you are considering buying a property abroad using a mortgage in the country you are purchasing. Exchange rates and different interest rates can make this very attractive indeed, but the tables could easily turn.
Seeking professional advice is always a good idea when considering buying international investment property. As in the example given above, you should always seek professional overseas property investment advice when trying to decide whether to buy in a home currency or away currency mortgage, preferably from an independent financial advisor specialising in property investment.