The volatility in world financial markets continues to have far reaching implications for individuals looking to buy and sell property abroad. Concern over the state of the world economy, recession fears and soaring commodity prices have caused considerable movement during 2008 to date in the value of currencies. Obviously this can have considerable repercussions on the price an individual will pay for a property between when the price is first agreed, and finally paid for.
Due to the unpredictable nature of the currency markets, along with the prolonged timeframe over which many clients pay for their property, many people find their final cost considerably exceeds their original agreed purchase price. Unfortunately it is very difficult to gauge the movement of the markets and regrettably leaving agreeing a rate of exchange to the last minute does not necessarily mean getting the best rate! The British pound, Euro, and Australian dollar have all seen considerable fluctuations in the last 12 months, with speculation, interest rates and raw materials prices all having an influence on their buying power. More recently the US dollar has witnessed a resurgence after over 2 years of depreciation.
Although there is no way of guessing where rates will go, there are means by which individuals can protect themselves from the volatility of the markets through securing rates for exchange for future delivery dates, guaranteeing the cost of their property abroad. For more information about why Flat Hunter and HiFX are working in partnership please click here.
