Dubai Property Investments

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Managing currency intelligently PDF Print E-mail

When buying a property overseas 80% of buyers will simply use their bank exchange service to convert their currency.  However most banks charge a premium on the rate they offer to their customers meaning it costs around 6% more to convert currency during the bank transfer to the seller.  Additionally currency fluctuations which change every second mean that the price you agreed with the seller will probably not be the price you end up paying.


The actual cost of the property(in Sterling) will be dependent on the time you actually buy the currency to pay the developer. Now, if Pound Sterling strengthens during  the next few months, the actual cost will decrease but if the Dirham strengthens then your costs will increase. Either way your price in Sterling will fluctuate as does the exchange rate.

For example the price of Dirham was 7.3 in September 2008 and currently in April 2009 it is 5.5. If the property price is 1,100,000 AED and you agreed to buy it in September and settle the balance in six months, then your cost would have increased in Sterling from £150,684 to £200,000 This means that you will have to find an additional £49,316 to achieve 1,100,000 AED

With a little bit of planning, not only can you avoid the bank premiums but you can protect yourself against adverse currency changes.

By using a currency exchange company you can secure a rate for upto 2 years in the future allowing you to budget accurately and without fear that your costs will increase.  The currency providers make their profit by adding their premium on your exchange but at a much smaller rate than your bank. Its completely free, there are no obligations and you can open your currency account before you even find your property so its ready when you find your perfect property.  

Most currency companies offer the same services and same rates so its just a case of finding someone you are comfortable with.  The companies we recommend on the left are some of the largest currency providers in the world and you can open your account online within minutes.

Fill in the following form to find the best rate from the major UK currency providers.





Emirate Ventures will treat your personal information as confidential and will not disclose it to any third parties, but to those brokerage firms you have expressly chosen to be contacted by.Your privacy is our greatest concern.
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Last Updated on Thursday, 25 June 2009 15:36
 

Currency exchange

Managing currency exchanges intelligently can save thousands of pounds when buying a property overseas.  Open a free account with our recommended currency partners below and save significantly over bank rates.  Read more

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