Brexit

On the 23^rd June 2016 the United Kingdom voted to leave the European Union (52%/48%) at the end of a historic referendum. The referendum results caused the GBP to instantly plumet to its lowest level for thirty years. Since then it has regained some ground but at the time of writing this Brexit still has not fully happened, we are still in the transitional period and politicians are debating deal or no deal.

Whatever is decided in 2020 Brexit will have a big impact on the British economy and the British pound.

If you regularly transfer money from Britain you will have noticed the volatility of the GBP and that today it does not buy as much as it used to. The pound may have recovered from the referendum fall but over the past few years overall the value of the GBP has fallen steadily. In June 2016 the GBP to EUR was 1.3 and in June 2020 it is 1.1.

For those transfering EUR or USD into GBP it's good news but for those transfering GBP into USD or EUR it's not. A "No Deal" conclusion will, no doubt, push the GBP down further. A "No Deal" conclusion will mean banks and financial services based in the UK will be unable to serve clients in the EU.

With the GBP fluctuating so much and generally falling; getting the best currency deal possible is more important than ever. That's why employing the services of a professional transfer company is vital. Transfer companies offer better exchange rates than banks because their markup is less and the fees charged by transfer companies are 80-100% lower than most banks.

If you know you have a transfer to do in the months ahead and you suspect the GBP will fall then a Forward Contract could protect you from such future uncertainties.

On the other hand if you need to transfer EUR or USD into GBP then the falling pound is in your favour. CurrencyFair, OFX and TorFX offer a Limit Order that only triggers a transfer when a certain transfer rate is reached.

Recurring Payments

There are many reasons why you may have regular payments to make overseas :

• mortgage payments
• loans
• bills
• services
• family support
• salary repatriation
• pensions
• general living expenses

Often these payments go through a bank. Banks charge a premium for sending money overseas, while dedicated international money transfer companies offer a quicker service for less.

OFX and TorFX offer their clients recurring transfers. They are regulated as a bank, so your money is safe. Once set up with your account manager you have nothing to worry about. The payment is made automatically at the specified dates using the best rates available.

Pensions Abroad

If you are retired and living overseas you may be reliant on your pension being transferred each month into your overseas account. The currency markets directly effect your income, for good or for bad. A good international money transfer company will help you make the most of your monthly transfer and give you more money in your pocket. At the same time the transfer will be easier and quicker.

OFX and TorFX offer recurring transfers. Once set up the transfer is automatic every month. Meanwhile you profit every month from lower fees (80-90% less than a bank transfer) and lower exchange rates. The monthly savings you make soon adds up!

Buying a House in France

Whether buying a French house as a second home, holiday home or to start a new life, buying a French property is really straight forward.

The most important person involved in a property sale in France is the notaire. A notaire sorts out the legal side of the sale, as a solicitor would do in the UK. Notaires are obliged to be impartial (they are regulated by the French government) so it is very common for the same office to deal with both the buyer and the seller. This should be quicker. Otherwise the buyer can employ their own notaire to work alongside the sellers. The process is thorough and fair. The notaire handles the funds for the sale and at the same time acts as a tax man: transferring land and house taxes to the new owner; searching for and reimbursing any debts (loans or mortgages) tied to a property; calculating and collecting any income tax due by the seller. The cost of the notaires services (notaires fees), including a land registry fee and various sales taxes, are all paid by the buyer. These fees vary between 2% and 8% of the property’s value, depending on the property’s age and value. Important to budget for these charges if you are buying a house in France.

Notaires also sell houses direct. Their offices resemble an estate agent with property adverts in the windows. If you view a property through a notaire and decide to buy you will be eligible for a “negotiation fee” similar to an estate agents commission.

Estate Agency fees in France are paid for by the buyer. You may notice the letters “FAI” next to the price. This stands for “Frais Agence Inclus” Agency Fees Included. So the price displayed  includes agency fees. Estate agency fees in France vary between 2% and 12%. The term was abused to conceal how much exactly the buyer was paying in agency fees. Therefore since 2017 it was made illegal to just display one price with FAI without equally showing how much the estate agent is charging. Today all estate agencies have to declare clearly what their charges are and who they are. Now the price is displayed as "net vendeur" (owners price) or "prix hors honoraires" (price excluding fees) followed by the percentage being charged by the agency. Some examples:

76,320€ FAI

just declaring the final price, illegal since 2017

Honoraires à charge acquéreur : 6%

Prix hors honoraires : 72,000 €

SARL Blogs

Buyers fees: 6%

Price excluding fees : 72,000€

Who agent is and they are registered

76,320€. 72,000€ + Honoraires de négo. : 4,320€ (soit 6% à la charge de l'acquéreur)

SARL Blogs

76,320€ (Total price). 72,000€ + negotiation fees : 4,320€ (6% to be paid by the buyer)

Who the agent is and they are registered

 76,320€

Le prix indiqué comprend les honoraires à la charge de l'acheteur : 6% TTC du prix du bien hors honoraires.

SARL Blogs

76,320€ (Total price)

The price shown includes the buyer's fee : 6% inc VAT in fees added to the asking price

Who the agent is and they are registered

All property advertised for sale in France has to display how much the agency fees are and who the agent is. If you see property for sale professionally and not displaying this information then leave it alone.

Don't forget you still have to pay the notaires fee on top of the final price.

You must be a company registered in France to sell a property professionally in France. Companies registered in other countries claiming to sell property in France are blurring the truth. Some estate agents employ "negotiators" who can show a property but are not qualified to sign any paperwork. They usually work for commission, so the fees are often higher. If you meet an estate agent or negotiator always ask to see a "Carte Professionnelle"; they are required to carry them by law.

Over 80% of property sold in France each year is sold privately. Here you will find just one price displayed. Sometimes it is followed by "net vendeur" (net seller or sellers asking price). Another term to look out for is "particulier" or "particulier à particulier" (personnal or private sale). A private sale cuts out the estate agent and his/her fees. With the growth of the internet it has become easier for owners to advertise for themselves and private sales have grown strongly in France.

If you agree a price direct with an owner the next step is the notaire.

Most notaires in France have someone who can speak English to help with the sales contract and sales procedure. If you find one that does not you are completely within your rights to change notaire.

Remember most properties will be listed with several different agents at different fees and maybe also privately. Use the internet. Estate agents may ask you to sign a paper before showing a house; this insures them exclusivity if are interested in the property and you can not deal with anyone else afterwards.

The DPE (Diagnostic de Performance Energétique) energy report has been a legal requirement since 2011 for houses being sold or rented. Property for sale with no heating or insulation (renovations) are exempt from the report. The DPE is very important in France. Since 2014 all newly built houses have to have A classes and there are lots of grants available to improve the ratings of existing older properties.

The energy rating is required to put a house on the market. After a sale has been agreed there are other surveys that the seller must produce (electrical, lead and termite). The notaire makes sure these are completed and will send you a copy. A structural survey is not a legal requirement.

If you find your new dream home you will need to sign a "compramis de vente" or a "promesse de vente" (sales agreement) either through an estate agent or a notaire.to proceed with the sale. A deposit (5-10%) will also be required. This should be paid to the notaire. At this point you usually have the right to withdraw for ten days. After the ten days have passed you are committed. Completion usually takes 2-3 months.

This delay gives you a good opportunity to wait for the best deal on the currency market. Transfer companies offer more options than the banks. Which option is best for you depends on the circumstances: currency and the markets. The goal is to get you the best deal possible and save money!

FundsAbroad recommendations for purchasing property overseas:

The CurrencyFair Wallet is perfect to be in a position to transfer a deposit quickly. Otherwise CurrencyFair offers rate alerts and a limit order contract to wait for the best moment to make a money transfer. Support with CurrencyFair is all on-line.

OFX offers forward contracts and limit orders to maximise your transfer. You will have an account manager to advise and 24/7 telephone or email support.

TorFX offers forward contracts, limit orders and a stop loss order to maximise your transfer. You will have an account manager to advise with telephone or email support (limited to working hours).

NB: High street banks in France are CLOSED EVERY MONDAY, open saturday mornings.

FundsAbroad.com wishes to thank Paulyne Small for writing this article Paulyne has lived and worked in France for over thirty years. For most of this time she has worked as a translator for notaires.

We hope this is helpful. Please feel free to comment or email us.

Transfering money overseas to purchase property

Using a good money transfer company for an overseas property transaction is essential.

Whether you are buying, selling or investing the right transfer will save you a lot of money, time and hassle. Don't leave it to the last moment. We recommend you register with a transfer company early and start a dialogue with your account manager who will advise on the options available, depending on the state of the currency markets.

If you are buying and find your dream house the chances are you will need to transfer money quickly to secure the deposit. Maximum 2 days with a transfer company whereas a high street bank will take longer and cost you a lot more (remember until this deposit is paid you risk loosing the property).

Otherwise you will proabaly have more time to transfer your money and this is where the transfer professionals excel:

• Very competitive exchange rates

  • Options to wait for the rate to move in your favour

• Low or no fees

• Fixed rate transfers

• Fast transfers

Transfer companies offer more options than the banks. Which option is best for you depends on the circumstances: currency and the markets. The goal is to get you the best deal possible and save money!

FundsAbroad recommendations for purchasing property overseas:

The CurrencyFair Wallet is perfect to be in a position to transfer a deposit quickly. Otherwise CurrencyFair offers rate alerts and a limit order contract to wait for the best moment to make a money transfer. Support with CurrencyFair is all on-line.

OFX offers forward contracts and limit orders to maximise your transfer. You will have an account manager to advise and 24/7 telephone or email support.

TorFX offers forward contracts, limit orders and a stop loss order to maximise your transfer. You will have an account manager to advise with telephone or email support (limited to working hours).

OFX Global Currency Account

Do you buy or sell regularly on-line? 

Do you run an on-line business?

If the answer is "yes" then you should consider the benefits of using the OFX Global Currency Account which is dedicated to people like yourself.

Open an OFX Global Currency Account for free and profit from their low rates and quick transfers to recieve payments and/or to pay for products easily on-line.

Accepted by all the major Ecommerce sites and many more...

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Click Here to learn more

The Global Currency Account works with the worlds major currencies: USD (United States), EUR (Europe), GBP (United Kingdom), CAD (Canada), AUD (Australia), JPY (Japan) and HKD (Hong Kong).

OFX charges less than 1.5% on financial transfers, PayPal charges 3% and takes 3 business days; banks charge 5% plus transfer fees and the transfer takes at least three days.

An OFX Global Currency Account utilises the best exchange rates and no fees to save you money and 80% of transactions are completed within the same day!!

All of this is supported by a 24/7 telephone helpline

Click Here to open an account

OFX