Real Estate Industry
If you are managing property purchases overseas, we can help ensure your foreign exchange exposure is managed effectively.

Maximizing Your Overseas Property Purchasing Power

Rate Fluctuations

When significant amounts of money can change hands on each property transaction, our experience working with real estate companies from all around the world can be invaluable. Rest assured, if you choose to work with us for your property purchases and sales, your foreign exchange exposure will be a thing of the past.

When buying property overseas there are a number of things that need to be considered. In addition to choosing a new property overseas, you must budget for areas such as legal fees and taxes.

 You may also have to sell an existing property, which can take time. With exchange rates always on the move, the impact of rate movements can lead to a sudden increase in the cost of your overseas property. However, with a calm head and clear vision, we can help maximize your funds and minimize your risk to foreign exchange rate fluctuations. It’s what we do best and what we have been doing for thousands of clients since 2003.

Test Case

Spot Fx

Sale Value: $4,000,000

In Jan 2018 the EUR/USD exchange rate is 1.25044. Value is € 5,001,760.

By early July the USD has weakened, raising the rate to 1.1706. The value is now €4,628,240.

Your loss is €373,52

Fx Option

Cost of Option Jan 2018: €80,011

Guarantees FX rate at least: 1.25044

The USD has gotten weaker so your sale value has been protected

Your gain is €293,509

Residential Property Price Register

23,300 Single Transactions

The latest data from the Residential Property Price Register reveals that about 23,300 single transactions were recorded during the first half of 2018. This represents a 5 per cent increase on the same period in 2017. 

Notably, almost 4,300 new homes transacted in the first six months of the year, a 31 per cent increase year on year. Sales activity in the established or second-hand market was much more subdued, with about 19,000 sales representing just a 1 per cent rise.

Looking Into 2019

Test in the field

Looking to 2019, in the context of the continuation of macroprudential policy rules, we can once again expect a modest uplift in transaction activity, led by the new homes market. Within that, the completion of starter homes should accelerate in anticipation of the help-to-buy scheme potentially ceasing at the end of 2019. 

Price inflation is likely to remain in the low single digits not exceeding 5 per cent. However, rental inflation will remain elevated and volatile, without any notable improvement in the supply of rental properties.