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If you are buying a property in Croatia, whether as an investment, holiday home, or to live there permanently, it is likely that you will have to pay for your property in Euros or possibly Turkish Lira.
Moneycorp is a trading division of the TTT Moneycorp Group
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Exchange rate volatility will inevitably play a key role in your property purchase. It is not uncommon for currencies to fluctuate by as much as 10% over relatively short periods of time.
For example, a couple wishing to purchase a property for 200,000 Euros could have paid the Sterling equivalent of £132,529 in June of 2004. Six months later they would have paid £139,324 for the same property. By securing an exchange rate in advance, they would have made a saving of almost £6,800.
Moneycorp offer the following benefits for your purchase transactions:
More competitive exchange rates available, saving you money.
Fixed exchange rates for settlement in the future, protecting you from adverse currency movements and allowing you to lock in to favourable exchange rates.
Fast and seamless international money transfers.
Friendly, expert staff to guide you.
No commission charges.
Below are some common questions about exchanging foreign currency
Q. Where should I buy currency?
You can obviously walk into any high street bank or bureau de change and exchange your currency for Euros. This may be convenient for your holidays but for larger amounts of currency it pays to get in touch with a specialist foreign exchange dealer such as Moneycorp. Specialist brokers will almost always offer much more competitive rates than high street banks or tourist outlets, as they deal exclusively in high-volume transactions and their overheads are much lower.
Q. What will it cost me?
Currency brokers do not charge a commission fee as they make a margin on your money from the high-volume rates they obtain in the money markets. Don’t be afraid to email or pick up the phone and call a currency dealer like Moneycorp to see what rates are on offer and compare with your bank. In general the more money you wish to convert the better the rate. Depending on your bank or broker, there will be a cost to transfer funds of between £15 and £40 per transaction. It’s a good idea to compare the total cost of a currency trade as some currency dealers do not charge a transfer fee but more than make up for this difference in the exchange rate that they quote.
Q. What information do I need to provide in order to make an exchange?
You can set up a trading facility free of charge and without obligation. Simply fax or post your completed application form to your currency dealer along with copies of two forms of identification e.g. a copy of your passport plus a recent utility bill or bank statement. Your account is normally opened the same working day. Moneycorp can open your account within an hour if your payment is urgent.
Q. How do I purchase currency?
Provided you have set up your trading facility with the broker or bank you will be able to buy currency over the telephone. This usually takes the form of a binding verbal agreement to buy currency at the quoted rate.
Q. Can I hold out for a particular rate?
Yes, you can instruct the broker to contact you the moment the rates change to your desired level. Some brokers, such as Moneycorp, can place an order to purchase currency outside London trading hours, which will automatically trigger as soon as your desired rate is achieved. Just make sure you are being realistic about the rate you are looking for and be prepared to wait!
Q. What if the rate is good now, but I don’t need to make payment for 3 months?
You can fix an exchange rate for up to two years to make it easier to plan the cost of your currency payments. This is particularly useful if you are buying a new property “off plan”. Through a reputable currency dealer, forward buying your currency is very straightforward. Simply book an exchange rate and send your dealer a deposit, usually 10% of the contract value. The 90% balance of your currency contract is payable when you wish to have funds transferred overseas. Many dealers recommend spreading your currency risk by splitting your currency requirement in two, buying half on a forward contract, as above, and the rest nearer your completion date.
Q. Will foreign exchange dealers offer advice about market conditions and rates?
Currency dealers are not regulated to give advice but many will provide you with information about prevailing market trends and currency movements. However, remember that no-one can predict the markets with any real certainty. You will have to make your own decision about when to buy currency, but market knowledge and experience imparted by your currency dealer will hopefully make that decision easier! Further information can be found at websites such as www.moneycorp.com where you can peruse the latest currency charts as well as sign up to receive daily or weekly market updates.
Q. How do I pay for my currency?
After fixing the exchange rate with your dealer, you will need to transfer funds to their client account. The easiest and quickest way is by bank transfer but some currency dealers will accept a cheque. Bear in mind that your cheque will have to clear before funds can be sent. Once the dealer has received your cleared funds, they will transfer your currency to the account of your choice.
Q. How can I find out current exchange rates?
The Interbank rate can readily be found on the internet and on Ceefax. Moneycorp’s website has live currency charts and you can also view historical exchange rates. Although a useful guide to current market levels, do bear in mind that unless you are trading millions of pounds on a regular basis, you will not receive the Interbank rate for your own transaction! For a live quote on the amount you are looking to exchange, it is best to call your currency dealer.
Q. How long will my funds take to transfer to an overseas bank account?
Foreign exchange dealers use Electronic Funds Transfer and can generally get the funds into the destination account a good deal quicker than a high street bank. Moneycorp has a same-day transfer service to most European countries and North America, and next day for all other destinations. Bear in mind that there is sometimes a short delay in the receiving bank before your account is credited, this can usually be overcome with a “proof of payment” document that your currency dealer can provide on request.
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