If you are a resident of the UK buying property in Florida, whether as an investment, holiday or retirement home, or to live permanently, you will have to perform one or more currency transactions to complete your property purchase.
Although not as obvious a choice as perhaps buying a property in France or Spain, buying property in Florida is becoming increasingly popular with many people choosing it as a place in which to retire, or to invest in with a view to making capital growth. With foreign exchange services from HiFX you can get a competitive rate of exchange on your currency when buying property abroad.
A Place in the Sun Magazine - Buyers Guide offers more information about buying property in Florida.
Whatever your reasons, buying property in Florida is a serious investment, and as such requires planning, especially if you are buying a new ‘off plan’ property where you are required to make several 'stage payments' during the construction of your property.
Foreign Exchange for buying Property in Florida
For illustration purposes, let us assume that you are a UK resident buying property in Florida. The developer will require a deposit in US Dollars straight away, and then further "stage payments" during its construction over the next 18 months, with a final payment upon completion. You will know the price of the property you plan to buy in US Dollars and this should not increase unless you upgrade the specification of the villa.
The actual cost in Sterling will be determined by the timing of your currency purchase. Naturally, if Sterling strengthens during construction, the cost of buying your property in Florida will decline but if the Dollar strengthens then your costs will increase - i.e. a stronger Dollar means your investment will be more expensive! (This will also apply to those purchasing a straight 're-sale' property where there is a gap between the offer being accepted and the completion of the sale).
The foreign exchange experts at HiFX offer guidance on the best time to exchange your money to make your purchase. If you have strong views about future currency exchange rates, you could wait to buy your currency at some stage between agreeing to buy the property and the date that currency is required. This applies to either buying (and paying for) all of the currency (a spot trade) or fixing a rate (a forward contract). Either way you are exposing yourself to currency risk.
Remember: You would never agree to buying a property in your country of residence if you did not know how much it was going to cost you; if you agree to buying property in Florida without fixing the exchange rate at the outset, you are taking a gamble. The team of experts at HiFX can provide you with information on the best time to exchange your currency so that you get the best rate of exchange on your property purchase.
Don't panic! If you are still confused, we have a team of dedicated specialists who will happily explain the various strategies mentioned above, and keep an eye on the market for you. Please do not hesitate to call with any questions that you may have on buying your Florida property.
Since its foundation in 1998, HiFX has helped tens of thousands private individuals buy and transfer foreign currency, many of whom have bought a home in Florida.
If you would like further information on how to buy foreign currency for property in Florida or any other country, and how to obtain the best exchange rate, please call our Private Client Desk on 01753 859159 or alternatively visit the HiFX call me back page to have one of our representatives call you at your convenience.