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How to save when buying property with overseas money?

Purchasing a property is usually the largest financial transaction a person engages in their lifetime. Adding in the complexity of having some or all of the funds for the transaction from overseas can make it a more expensive and difficult process than it otherwise needs to be. This is where Valor can help. We are one of the few wealth firms that has a retail currency license, meaning that we can provide personal currency advice including hedging. It also means you have legislated protection as we are regulated by ASIC.

A summary of how we can assist is below:

1. Inform

Most people have experience exchanging their Aussie dollars to go travelling or send money home but they have not operated in the FX exchange for large transactions. Having some key information about potential currency movements in the short to medium term can be crucial when planning to purchase a property. The Australian dollar is one of the most volatile currencies in the OECD. This volatility makes the timing of cash payments for property purchase even more complex when being done from overseas money. The ability to pick up the phone and discuss currency levels and movements with a trusted professional could be key to securing the financial means of purchasing their home or investment.

2. Save Money

We offer lower currency transfers rates than the banks. Many unsuspecting customers get ripped off by the banks. Often, they charge up to 4% to transfer between currencies and the worst we have seen is 6%. With our contacts and negotiated prices we can reduce the cost of currency transfers significantly for clients. Even for those who have negotiated a reasonable rate with their bank, we can usually do better. We are talking thousands and potentially tens of thousands of dollars savings depending on the currency transfer amount. The larger the transfer, the more we can save for clients.

3. Protect

Many clients have longer settlements as they may not be coming back to Australia immediately. This can lead to a margin squeeze on the amount they purchased the house for in Aussie dollars and the currency they intend to pay from. Our services include advice on structuring their affairs to protect against adverse currency movements as well as making the derivative trades to set up the hedge.

4. Assist

Whilst most currency transfers are relatively straight forward, there are some transfers which require more work to get through the banking system hurdles. We have decades of expertise in helping assist in bank transfers and the helping hand of a trusted professional can open doors and smooth out the process.

If you would like to know more, please contact us through your preferred channel. Details available on the Contact us page or below.


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