Warning don’t get ripped off buying currency…

So you have bought your Off Plan Property and started on the road to ownership.

As many are aware the “buying an Off Plan Property” model allows most buyers the flexibility of paying in instalments. So lets use an example below:

Mr Investment buys an apartment on the Costa de la Luz in Spain on the 1st January 2004.

The price is 100.000€ (what a bargain) and the property will be complete on 1st January 2006.

This example does not include 7% IVA tax and other associated costs. The developer’s terms are as follows:

3000€ reservation deposit
10% 30 days after signing the contract minus reservation deposit
10% payment date 1st July 2004
10% payment date 1st January 2005
10% payment date 1st July 2005
60% on completion

So the investment would have cost in pounds sterling:

The 3000€ will cost £2109.6 @ rate 0.7032
The 7000€ will cost £4922.4 @ rate 0.7032
In July 2004: £ 6652@ rate 0.6652
In Jan 2005: £ 7065@ rate 0.7065
In July 2005: £ 6824@ rate 0.6629
Final Payment: £ 40944 @ rate 0.6824

Inter-bank rates taken from Daily FX are approximates and you would not receive these when using a foreign currency exchange company.

So the total investment would have cost: £ 69517 The reality is that if you buy your currency through a foreign currency exchange company you will pay 2-4% over the inter-bank rate and that is where they make there money.

I have been introduced to a company whose claim’s had me interested.
1) Guaranteed to be the best rates available.
2) Exchange your currency at the inter-bank rate
3) Cut out the middle man
4) Savings that go straight to you
So with these claims I tried the service out and these are my findings. I paid £200 to become a member and that was it. (I made this back on the transaction)

Excellent web interface and easy to use.
See the rate change in real time and the rates are very close to inter-bank rate.
Customer Support is good but could be excellent.
Once I had picked my rate I made a BACS payment and received the payment in full (charge and commission free).

Overall I was very impressed, if you don’t want to pay the £200 then you can still trade and still get a better rate than foreign currency providers.

They even have a service where by you can buy currency for travel at 0% commission. I felt very comfortable working with them, but I can give you all the information and you can check it out for yourself.

So if you are interested in either buying currency for holiday home payments or just travelling abroad go to my contact page here and ask me for more information!