THE KNOWLEDGE
Top tip: Make a note of the exchange rate when you make an offer. This will give
you a benchmark to help you make decisions later on.
IMPACT OF EXCHANGE RATES ON YOUR PURCHASE?
HOW CAN YOU MANAGE THE
While using your bank for currency exchange might feel secure and familiar, it oſten isn’t the most cost- effective option and lacks specialised expertise. Here are the key benefits of using a currency specialist company:
• Planning and expert guidance: Currency specialists, particularly those with extensive experience in the private client market, provide tailored guidance and support. They assist buyers through every stage of their purchase and beyond. By understanding your situation, timeframe and budget, they help you plan your payments and offer transparency over market behaviour.
• Superstructure (apartment 33%, house 25%)
• Final completion (apartment 25%, house 40%)
• Handover (apartment 5%, house 15%) It can take up to two years to
finalise an off-plan purchase. This means that the risk is higher when it comes to exchanging your money. You can help manage that risk by using a forward contract and fixing your preferred rate for up to two years.
SETTLING IN After buying your property you might still be exposed to currency exchange payments, to pay for a mortgage or ongoing maintenance fees or
taxes. A currency specialist company will offer you flexible and automated solutions to manage such payments, saving you money on the exchange rate while streamlining your outgoings and income. By leveraging the currency
tools available to them, currency specialists can help you plan ahead, reduce risk and maximise your budget, making them a valuable resource for anyone dealing with international payments or property purchases in France. ■
Mar Bonin-Palmer is Head of Partnerships at Moneycorp
mar.boninpalmer@
moneycorp.com
moneycorp.com
• Competitive exchange rates: Specialist companies focus solely on currency exchange and have access to a panel of liquidity providers. This allows them to offer competitive rates, which can help you save money on your exchanges, regardless of market conditions.
• Ease and speed: Currency specialists are typically more accessible than banks, offering services both online and over the phone. They oſten provide faster and more transparent processes, making international payments more convenient. Having the option to speak with a specialist over the phone can be reassuring, especially when verifying bank details or seeking guidance on a payment.
• Advanced currency tools: Banks usually offer limited options, such as spot contracts, and may not provide live rates. Currency specialists, however, offer a range of products and tools to help you manage your exchange effectively: • Spot contracts: These allow you to exchange currency at the current market rate for immediate delivery. This is ideal for taking advantage of favourable rate fluctuations.
• Forward contracts: These enable you to lock in a favourable exchange rate for a future date, up to two years ahead. This is particularly useful for property buyers, as it fixes your budget and mitigates the risk of fluctuating rates (note that a deposit may be required to secure the rate).
• Rate tracking and market orders: If you have a flexible timeline or budget, you can set a market order to automatically purchase currency when your desired rate is reached. You can also set a stop limit order so as not to exceed your budget if rates fall below a certain point.
• Regular payment plans: Ideal for recurring payments such as monthly bills, mortgage repayments, or receiving income from overseas. These plans automate transfers and can include options to fix the exchange rate for added security.
FRENCH PROPERTY NEWS: March/April 202591
© SHUTTERSTOCK
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