Fluctuating rates of exchange can make a noticeable difference when buying property in the Caribbean from the UK. Choosing the best way to transfer your hard-earned funds is therefore a vitally important part of the process.
Your purchase will usually be subject to two stage payments, the first of which represents the deposit to be paid on signing of the Agreement for Sale, which will be around 10% to 15% of the contractual purchase price. A second and final payment known as ‘Balance to Complete’ will follow, which amount is made up of the remaining purchase price, as well as legal fees and any associated disbursements.
Protecting against fluctuating exchange rates
Between the time you make an offer to purchase and the paperwork is completed, an unfavourable shift in exchange rates may leave you having to pay more for your Caribbean property than was first calculated. So how can you protect yourself against erratic fluctuating rates of exchange? Here at Tropical Connections, we work in partnership with Global Reach, a Financial Conduct Authority (FCA) registered foreign exchange company whose services are designed to help you make the most of your money when sending funds to the Caribbean or other overseas destinations at exchange rates that are better than those offered by High Street banks or building societies.
Although other types of contracts are also available from Global Reach, the following two are the most commonly used for buying property abroad:
• A Forward Contract that allows buyers to lock-in an exchange rate now, for up to two years.
• A Spot Contract for making immediate transfers.
No transfer fees
With Global Reach you won’t have to pay transfer fees to send funds to the designated recipient, which we will take this opportunity to remind you should only be the attorney dealing with the purchase formalities on your behalf.
Click here to learn more about opening your very own currency transfer account with Global Reach.
Article by Maureen Smith, Founder of Tropical Connections Ltd.