Overseas Property:
Buying & Selling
Whether you are thinking of selling or buying a house abroad, it’s important to understand that the process may be different from that of the process in your own country. The world is now more accessible than ever before and so, whether you are buying a second home, investing in an up and coming market, or are looking to take advantage of house prices, you need to ensure you make the right decisions to avoid the pitfalls that can await. A key factor in selling or buying property abroad is the foreign exchange rates, and transferring money overseas. When dealing with overseas property investment, especially from the UK, you will need to exchange currencies and send and receive funds from abroad. If managed well the process can be smooth and beneficial, but without expert guidance you can end up losing thousands of pounds from the transaction. This is where NewbridgeFX can help you to manage the risks and guide you through the process.
Overseas Property
Key Factors
Speak to a specialist at NewbridgeFX who can guide you through your overseas property transaction to buy property overseas.
Exchange Rates
You want to receive the best possible exchange rate when converting currencies. For every £100,000 a 1% move will have an impact of £1,000, so not achieving the best possible rate can be expensive.
Currency Rates
Buying property overseas includes the additional process of the currency rate fluctuations, that can be a hinderance as solicitors and the notaries are conducting the legal proceedings. If you were to buy a property worth €200,000 and were putting a deposit down, where you could get €1.25 to the pound, this property would now be worth £160,000. This sounds great until the currency markets fluctuate before the legal proceeding have finished and the exchange rate is €1.10 to the pound. Your €200,000 property would now cost you £181,800, resulting in a loss of £21,800.
If you are unable to find this money it can mean losing out on the home, you’ve always dreamed of. There are ways to protect yourself from exchange rate volatility, from forward contracts, spot contracts and even a market order. Speak to one of our specialists to find out which option would be the right fit for you so you can live the dream of buying a house abroad.
Notary Fees & Real Estate Agent
In France, the seller is obligated to provide an up-to-date dossier de diagnostic technique (DDT), which includes essential information such as lead and asbestos presence, septic system status, energy performance, and natural disaster risks. Buyers should review these diagnostic reports carefully before finalizing their purchase agreements.
The fees differ depending upon the country you’re buying property from: The French notaries collect both a fee for themselves and tax for the state. The amount they charge for fees is based on the value of the property, with most people paying 0.799% for a property valued over €60,000. The taxes changed depending on whether the property you bought is new or a resale, under the ‘taxe de publicité foncière’, a new property is taxed at 0.71% and a resale at 5.81% plus the additional 0.10% for the ‘contribution de sécurité immobilière’.
Payments
You will need to make payments to solicitors, the owner or the seller, and anyone else involved in the property transaction. The deposit percentage you pay is typically a fraction of the overall property price, and if you retract your offer, you may face potential damages based on this amount. You shouldn’t be paying payment or transfer fees to send or receive money.
Timing and Property Value
The process of buying a house overseas or selling can take a long time. Property purchases involve various logistics, such as financing options and the role of notaires, that potential buyers need to navigate. You need to ensure that foreign exchange fluctuations do not impact you in a negative way. Risk management tools are useful to mitigate these risks and give you peace of mind.
Defining Your Property Search
Finding A Property In France
To find a property in France, you can work with a real estate agent or search online through property portals and websites. It’s also recommended to visit the area and get a feel for the local culture and lifestyle. Additionally, consider factors such as location, size, and condition of the property, as well as any specific features or amenities you require.
Some popular property websites in France include:
- Le Figaro Immobilier
- Leboncoin
- SeLoger
- Immoweb
When working with a real estate agent, make sure to choose a reputable and experienced agent who is familiar with the local market and can provide you with valuable insights and guidance throughout the buying process.
It’s also essential to understand the costs associated with buying a property in France, including estate agent fees, land tax, and other expenses. A typical estate agent fee in France is around 5-10% of the purchase price, while land tax can range from 0.5-1% of the property’s value.
By defining your property search and understanding the French property market, you can make an informed decision and find the perfect property for your needs.
Overseas Property:
Property Market Considerations
What do I need to consider when buying or selling an overseas property?
Selling and buying property abroad is not a process that you undertake without prior research or before seeking advice, because there are many factors to consider. One wrong decision could impact your finances and so, you need to ensure you get the right advice and guidance. Key factors such as tax implications, the legal system, the processes, and the foreign exchange market can drive the entire process.
Understanding property law and the role of a notaire, who is a legal expert specialized in property law in France, is crucial when entering into real estate transactions. This highlights the importance of understanding the legal framework when signing a ‘Compromis de Vente’.
Having to contend with this can prove challenging and that’s why you need to get help where possible. This is particularly true when it comes to navigating the complex world of foreign exchange rates, and making or receiving payments. While the process as a whole might seem simple on the outside, it is more complex than that and that’s why you need to take control of the process of transferring money.
To achieve this, there are many things to consider such as exchange rates, transfer fees, efficiency, and the ability to manage what could be many different currencies.
Overseas Property:
Bank Rates
Don’t Succumb To Bank Exchange Rates
It might seem simple enough to make the relevant transfers or receive payments through your bank. But in practice, the exchange rates are not going to be favourable and you will end up paying more or receiving less. If you opt to use a foreign exchange specialist, such as NewbridgeFX, then we will help you to achieve the best results based on experience and real-time information.
For non-EU citizens wishing to live in France, it is crucial to obtain a residence permit, particularly after acquiring a long-stay visa. This permit significantly influences one’s ability to access bank loans and serves as proof of the intent to reside in the country.
What’s more, it will be possible to put in place risk management strategies. The strategies will be beneficial to our clients and based on their best interests. Such as using spot contracts, forward contracts, or market orders, or a combination of these, to achieve the best possible price, exchange rates, and service.
Along with this, if you choose to use a specialist service then you are not going to feel as only part of a large database. As a client, you are going to receive support and expert guidance tailored to your needs, which will ensure the process is effective and efficient while providing complete confidence.
The transfer of funds for overseas property investment can come with risk. Yet you can mitigate those risks by making the right decisions and relying on expertise. With competitive rates, market insight, and experience, you can ensure that you benefit and achieve the best possible price and service.
Understanding The French Property Market
The French property market is a complex and diverse sector, offering a wide range of properties for sale, from apartments and houses to villas and châteaux. With its rich history, cultural heritage, and stunning landscapes, France is a popular destination for property buyers, both domestic and international.
Overview of the French Property Market
The French property market is characterized by a mix of old and new properties, with many historic buildings and modern developments available for purchase. The market is also influenced by regional variations, with different areas offering unique characteristics, such as the French Riviera’s luxury properties, the countryside’s rural charm, and Paris’s urban sophistication.
Why Invest in French Property?
Investing in French property can be a lucrative and attractive option for many buyers. With its stable economy, rich culture, and stunning landscapes, France offers a unique combination of lifestyle and investment opportunities. Additionally, the French property market is known for its resilience and long-term value retention, making it an attractive option for buyers looking for a secure investment.
FAQ:
Buying a property
Answer
Yes, you can set an exchange rate alert, advising us what your target rate is, or at what level you would like us to notify you. If the exchange rates move in your favour and the specified level is available, we will notify you and you can decide whether to book a transaction or to keep watching the market.Answer
Yes, a spot contract can is useful to send money overseas when the payment is due. You will receive a spot rate at the time of booking the transaction, and the payment settled immediately.Answer
Yes, this is a good way to reduce the risk of currency movements. You may decide to buy a property overseas today, but may not need to send any money for many months. During that time the exchange rates would have fluctuated. A forward contract enables you to secure an exchange rate today, but for settlement at a future date thus removing any risk of exchange rate movements.Answer
Yes, you can specify the exchange rate you would like to achieve before sending money to buy the property. Unlike an exchange rate alert, if the rate is available in the market then we will immediately book the transaction, and settle the payment upon receiving your sold currency.Answer
Yes, we provide tailored solutions to suit your requirements. The best approach depends on many factors which we will discuss with you in-depth. Such as your budget, attitude to risk, timeframes, and the structure of buying the property.Answer
The timeframe to transfer funds abroad does not differ based on the value of the transfer. Once you confirm the transaction, and you send the funds, the transaction will settle immediately and can arrive in the recipient’s account the same day.Products:
Manage Risk
NewbridgeFX offers a specialist service in the deliverable foreign exchange market, promoting a range of products and services, available online or over the phone. Our products have been designed to meet the needs of our clients when sending money overseas, and are ways for businesses, and individuals, to manage and mitigate currency risk.
Spot Contract
Lock in an exchange rate to settle immediately. Funds can be received the same day for most currencies.
Forward Contract
Lock in an exchange rate today, but for settlement at a later date that suits you, up to 12 months in the future.
Market Order
We monitor the markets real time and take action to trade between currencies when your desired rate is achieved.
Rate Alerts
Set an alert for phone or email notification when a rate has been achieved to take advantage at the best time.
Benefits:
NewbridgeFX
Multi-Currency Account In Your Company Name
Receive funds from your customers in to your own named collection account, using one account number for all currencies, or a local in-country account number still in your company name.
Create And Manage All Your Beneficiaries
Add and manage your beneficiaries, perform bank account validation & verification checks as you enter your beneficiary details & bulk upload multiple beneficiaries via a CSV file.
Make Fast & Secure Payments To Over 200 Countries
Real time Swift and Local payments are settled the same day, for most currencies, within minutes of processing. Live GPI Payment tracking capabilities allow you to keep updated on the payment status.
Multi-Currency Balances
Hold multiple currencies and access balance information in supported currencies. Receive, convert, send and move money between your multi-currency accounts without making payments.
Convert Over 100 Currencies, 24/7, Using Multiple Devices
We provide informative, up to date market news, including updates on currency movements, upcoming economic events and announcements that impact the foreign exchange market.
Real-time Reporting And Tracking
View and track all conversions, payments and incoming funds using our online platform, and receive email notifications when funds have been received, conversions processed and payments released.