It’s not just when you go on holiday that you might need to transfer money from one currency to another. In the modern world, more people than ever before are sending money to and from countries overseas, for a variety of reasons.
Here are seven situations where finding and securing the best possible rate can really benefit, all of them taken from this free information guide, prepared by World First Foreign Exchange.
Buying and selling property overseas
Moving house is often described as one of the most stressful things you can do. It’s difficult enough moving locally – moving to a new country escalates that stress to a whole new level. If you’re buying abroad, you might need to transfer the full value in one go, so getting a good exchange is crucial. Similarly, if you’re committed to a mortgage, you want to be assured that your payments won’t change month by month.
Retiring to live abroad is a dream for many. This means converting your pension and getting it transferred every month to the account you set up in your new country of residence. You can set up an automatic regular transfer so that the same amount is paid every month, and even, should you wish, fix an exchange rate in advance via a forward contract so that your money is subject to the same rate, over the long term, no matter what happens in the market.
Moving Back Home
If you’ve been living or working abroad for a period of time and take the decision to return home, there’s a lot do. The list is endless. Paperwork, transport, perhaps transferring furniture and other belongings from one country to another – you don’t want to lose money because of the process of moving overseas.
One Off Purchases
From time to time we all deserve to treat ourselves to a special purchase – maybe you’ve seen an absolutely fantastic deal on a new car and you want to buy it and bring it home. Or you’ve seen a stunning piece of artwork, or jewellery. This may require having to transfer money overseas to pay for it. Don’t lose a significant sum because of a poor exchange rate.
Plenty of people work abroad, away from their permanent home and family, and need to transfer their salary to their regular bank account in order to meet financial obligations. This makes the exchange rate important. A salary being paid in one country could reduce to a different amount when it is transferred home – that could mean being short on meeting the mortgage, for example.
Paying International School Fees
If you have children, your son or daughter may have the opportunity to live and study abroad – an increasing number of USA students are taking up that option. Who’s paying the tuition fees? You, of course! You’ll need to transfer the funds and ensure they are paid in the right currency, on time, and reliably.
Managing Overseas Property Investments
If you’re in the overseas property market, when it comes to managing those properties, the first thing you’ll need is a foreign bank account. You’ll be required to pay for any unexpected things around the property that need your attention and if you’re renting the house, villa or apartment out, you’ll be responsible for maintenance and other bills. As well as collecting the rent from tenants, and then transferring to a home-based account.