Budgeting, currency transfers and payments for overseas property – all you need to know
Buying a property overseas is one of the most exciting decisions you’ll ever make — but it also comes with new financial considerations. From managing your budget to transferring large sums in a foreign currency, every detail matters. That’s why we’ve partnered with Smart Currency Exchange, the specialists in international payments for overseas property buyers. We believe their expertise of 20 years providing service to international buyer is an essential part of a successful property purchase.
There are several considerations and steps to understand the benefits of using a currency exchange specialists when buying a property overseas. Smart Currency Exchange method to help you plan, budget and pay for a property, as outlined below should be considered by all foreign and cross border buyers and investors.
Our recommendation is to build a currency plan early to understand the impact of currency exchange fluctuation on your set budget. To do this follow simple budgeting steps and request a bespoke currency plan from our recommended partner.
Your budget & payments made simple
With Smart Currency Exchange, follow these four steps to protect your budget and pay with confidence.
See your spending power in euros, dollars or other currencies and set a clear search range before you view.
Fix the exchange rate for deposits or completion so market moves don’t blow the budget.
Fast, secure international payments with clear tracking and a dedicated specialist.
Lock in value on recurring transfers for mortgages, bills or pensions — timed to suit you.
Stress test your budget with our currency risk calculator
Use this budgeting tool designed for international buyers to learn just how much a “forward contract” could save you on your overseas property purchase – based on real data over the past year.
Take control of your budget
Smart Currency Exchange offer a tool called a forward contract – which your bank and other money transfer apps/providers are unable to offer.
With a forward contract, you can lock in an exact exchange rate for up to 12 months. Agree your price today – and know exactly what you’ll pay for your property upon completion. It’s the perfect tool for large payments with uncertain timeframes (like overseas property completion dates!).
This strategy removes the ‘what if’ from your budget. It offers clarity and certainty – especially in times of volatile markets.
How to use our risk calculator
- Choose the currency you hold, for the ‘From Currency’ field.
- Enter the price of the property you are buying. If you’re not sure, estimate it based on your affordability calculator or those you like on our property portal.
- Choose the currency you’re buying a property in, for the ‘To Currency’ field.
- See how much Smart Currency Exchange could help you by working with them to protect against currency fluctuations.
How exchange rates can impact your property budget
Imagine you’re buying a property in France, priced at €200,000. At a rate of 1 GBP = 1.20 EUR, that property will cost you £166,600 which you need to budget for. But, if the exchange rate moves to 1.15 before the completion date, that cost increases significantly to £173,900 – leading to you unnecessarily paying an additional £7,300, for reasons beyond your control.
Currencies fluctuate by as much as 10% in the space of a year and we have seen it happen too often where buyers forget to protect their budgets against currency fluctuations. Your agreed price should be the price you pay.