How to finance overseas purchases
From a holiday home overseas to luxury goods and split asset investment, there are ways to make the most of your money overseas.
From artwork and jewellery to a yacht or a horse, when it comes to finding a unique item, attention to detail and personal service matter. Whether you’re buying online or in-country overseas, you’ll need to factor in the impact of currency costs on your budget.
Buying and maintaining a yacht
If you’re planning on investing in a yacht, then wherever you intend to sail it, there may be opportunities to buy from overseas. Between the initial purchasing cost and ongoing maintenance and mooring requirements you may find that you have costs in multiple countries over the course of the year. When it comes to mooring costs, some people choose to invest in a managed property with private mooring. This can be convenient, with all the advantages of other lifestyle properties alongside a guaranteed mooring even during busy times, but it may limit how much you can travel.
Hedging against risk in currency remuneration
If you are currently working overseas, then you may be in receipt of a salary or expecting a bonus in currency. From school fees to property maintenance, you may have commitments back in the UK even while you’re working abroad. If you’re managing costs in two or more countries, you may have faced a challenge in meeting those commitments due to currency fluctuations and could be spending a lot of your time making those payments to meet multiple deadlines.
Split Asset Investment
When it comes to investments in luxury goods, the assets are often held by third parties and may be overseas. For example, part investment in a Ferrari Enzo which costs roughly £2.5m can appreciate in value by 15% per annum. A £100k investment in the car would be an appreciating asset, which may be held overseas. In most cases, split asset investments have a limited term, and the end date is confirmed at the point of investment. Split capital trusts typically run for five to ten years, and given the potential for changes within the currency market over that period, a currency specialist may be able to provide a supporting currency strategy for exchange funds at a future specified date.
Tools to manage your foreign exchange exposure and international payments
There are a range of different currency tools which you can use to make the most of your money overseas. The choice depends on your attitude to risk and the nature of your requirements. A currency specialist can provide on the tools available to them as well as current trends in the currency market. The right tool for you will depend on a variety of factors, including your payment schedule, your lifestyle and your attitude to risk relating to currency fluctuations.
We know the value of your time. That’s why we provide guidance on a wealth of currency tools as part of the expert service our personal account managers provide. Whether you’re expecting a bonus from overseas or you’re looking to make an investment abroad, moneycorp is on hand to help you choose the best service that is right for you. With a moneycorp account, you will have access to:
• Great rates on 120+ currencies
• Convenient online platform and mobile app to manage and track your payments
• An automated Regular Payment Plan for scheduled costs
• Tools to track, target and even fix exchange rates for major payments
• Free expert guidance and support from a team of specialists
We have been delivering great value currency services for over 40 years and achieved Feefo 2020 Platinum award for consistently outstanding customer service. It is why we are partnering with City PM – visit www.cityam.com/talk/moneycorp-talk to find out more on how we serve the payment needs of global businesses, importers and exporters, online sellers and personal clients.
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