If you are considering buying a vacation home overseas, there are many things to take care of, including how to pay for it. Purchasing a property can be a great investment but you do need to ensure that you only used safe and secure methods when transferring money. No matter what type of vacation home you are purchasing or how much the value, do it the right way and you will not suffer due to problems later on.
All money transfer services are not the same
Some purchasers make the mistake of thinking that all money transfer service providers are the same and that no matter which one they use, they will pay the same. But this is not the case and before you make a huge error when it comes to sending your cash, it pays to look into the matter in as much details as you can.
Do your research
We are going to take a look at what you should do in order to purchase your vacation home the right way. By carrying out a little research in advance, you should find that many money transfer services can offer reduced transfer fees and preferential exchange rates, often providing a better deal than most banks. When researching several services to compare, look for things like transparency with no hidden charges. By choosing the best service provider you can save a great deal and will have full peace of mind, knowing that your money has been transferred securely, safely and cost effectively.
Do shop around in order to find the best exchange rates as they will not all be the same. Even a tiny amount percentage-wise can add up to a fair amount of money, depending upon how much you are transferring. Once you get into the thousands-of-dollars figures then every penny counts; don’t make the mistake that many people do which is failing to secure the best rate and then kicking themselves afterwards when they see how much money they have lost.
You can also often choose between two types of exchange rates; ‘Locked in’ or ‘Indicative’. The locked in deal is great for high-value transactions as this way you will know exactly how much money will be received by the property seller i.e. the person you are purchasing from.
Send the money all in one go
If you are having to send a variety of amounts to cover a mix of things, wait until you have the final overall total and send the money all in one go. It is much more cost effective to send just one larger amount as the higher the sum, the more beneficial the exchange rate will be. Sometimes, if the sum of money is over a certain value, you may even find the transfer fees being removed.
Be aware of all likely charges
Don’t just assume that you know how much this transaction is going to cost you. Ask your chosen money transfer provider to advise you of any other possible fees that you may incur. Here are just a few extra costs that you might find yourself paying unexpectedly:
- Transfer charges or fees from the bank receiving the money overseas
- Taxes in the U.S. may apply so do check this out although it is normally the receiver that pays as the money received by them may be classed as income
If you are going to be making ongoing mortgage payments once the purchase is made, you can set up a recurring amount service which will tie you into an exchange rate for the whole term. If exchange rates look as if they are going to rise, this can be a great way of guaranteeing how much you will send each time, making your budgeting easier. You will also not have to worry about rising exchange rates eating into your cash. Again, before tying yourself into this type of deal, always do your research as exchange rates always vary according to provider. There are even some online sites that will compare exchange rates for you between companies and then recommend the best one, thus allowing you to make a fully informed decision.
Buying a vacation home overseas can be incredibly exciting and represent a large investment for you so don’t rush it and do allow sufficient time to do your research. Before you commit to the purchase, check out the market and look at all of your money transfer service options. By getting to understand how the system works and securing the best value, the Dollars that you send will work a lot harder for you and you will be sure of making a much wiser investment with a good return on your money.