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Overseas property | 13
institutions should be encouraging them to marked difference between what is on offer foreign exchange in one case. McEwen
do so. By taking such a large margin on from a high street bank and a specialist comments, “By its very nature playing the
foreign exchange the high street banks are exchange broker. exchange game requires swift action – if the
doing exactly the opposite.” McEwen continues, “It’s not just the prospect markets move in your favour then you don’t
The ‘mystery’ calls were conducted on of saving thousands that should tip the balance want to wait an hour for the bank to confirm
22.08.09 from 10.30 to 10.45am (within a 15 in favour of a specialist. A broker’s day job is to a rate they can actually stick to.”
minute window to prevent movements in the specifically monitor the money markets; high “At Foremost Currency Group we have
money markets skewing the results). See street banks on the other hand are split across a returned to the old-fashioned way of banking,
below for a comparison table outlining the number of key remits and foreign exchange is where clients are allocated a personal account
different banks / brokers called and the not their primary focus.” manager to look after their transaction from
exchange rates offered by each: Getting through to an individual at the start to finish.”
The table also includes details of the bank that could offer a genuine exchange rate Foremost Currency Group has a variety of
transfer fees that the high street banks charge was also difficult; it took more than 20 overseas buyers that have used its services to
for each individual transfer. Again there is a minutes to reach someone that could discuss save money on foreign exchange.
Bill Williams retired to the Poitou- too uncomfortable to take on physical work personal service from specialist brokers
Charentes region of France just over five during the day so large gardens end up whose day-job is currency, and gains a
years ago with his wife. The Williams being left incomplete. It’s important to be competitive exchange rate (please see
herald from a small village between realistic about the size of property that you comparison table below). “I found that
Hereford and Abergavenny, and despite go for and not to bite off more than you when transferring relatively small
the region’s picturesque countryside, can chew!” amounts of money the High Street banks
increased rowdiness at night in the two Since moving to France, the Williams would offer close to a tourist exchange
local towns gradually discouraged them have become good friends with the locals rate and charge between £20 - £40 per
from visiting them at all, and was a in their village and often have fun trying to transfer and as much as 2% by way of
significant factor in their decision to leave communicate at dinner parties. Bill commission. By using a specialist I can
the UK. advises that “Although learning French is also fix a good rate for anything up to two
After several holidays exploring difficult, giving it a go is important, even if years, and so lessen my exposure to
different regions of France and with Bill’s it’s just a couple of words here and there - negative fluctuations in the money
retirement approaching, the Williams the locals really appreciate it.” markets.”
eventually decided to move to the tiny Financial planning is another vital The Williams are fully content with their
village of Tillou in 2004. aspect of moving abroad, and the Williams new lives in France, and with no plans to
Bill and his wife purchased an old, three sought out opportunities to save money ever return to the UK it is clear that
bedroom detached house in the village wherever they could. One key money- Poitou-Charentes is now where they call
which required extensive renovation and saving tip Bill shares is to research foreign home.
the house and garden consequently exchange options – as moving to a foreign
became an ongoing hobby and project for country inevitably requires the exchange of
the couple. Bill admits that despite the finances from one currency to another,
work needed on the property, they’ve especially when buying property.
enjoyed the project and feel entirely The Williams need to exchange money
settled in their new home – so much so on a regular basis for general living costs
that they have no plans to return to the and house maintenance. As such they
UK. transfer £700 of their pension over to their
For individuals who are thinking about French account every month and transfer
retiring abroad, Bill highlights that there £7,000 worth of dividends on a yearly basis
are a number of factors which should be using foreign exchange specialist
taken into consideration. For example Foremost Currency’s Overseas Regular
when looking to purchase a house, “You Payment Plan (ORPP). Unlike FOREX
need to be as clear and as firm as possible services offered by the High Street banks,
with the estate agents. At the end of the Bill is not charged commission, gets a
day, the agents will just want to sell you a
house and you’ll find yourselves viewing
Monthly transfer - typical savings:
properties which don’t match your criteria
at all. However, it’s important to stick to EXAMPLE HOW MANY ?s WILL HOW MANY ?s WILL
your guns, be direct with your agent, be £700 BUY YOU FROM £700 BUY YOU FROM
patient, and enter the viewing market with YOUR BANK? Foremost Currency?
an open mind, as it’s unlikely that you’ll be
able to find a property which matches your EXCHANGE RATE £700 @ 1.1101 = ?777.07 £700 @ 1.16 = ?812
criteria exactly.” COMMISSION 2% of £700 = £14 COMMISION FREE
Bill continues, “Many individuals who TELEGRAPHIC
move to France are often tempted by TRANSFER FEE PER MONTH = £25 PER MONTH = £8.50
beautiful, large houses which are
accompanied by acres of land. However TOTAL COST PER MONTH £739 £708.50
the long hot summers often mean that it is
www.investmentinternational.com September 2009 Investment International
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