Jeff Shields RE/MAX Anchor Realty serving Qualicum Beach, Parksville, French Creek, Coombs of the Oceanside area on Vancouver Island British Columbia

Jeffery Shields - REALTOR

RE/MAX Anchor Realty
(Independently Owned and Operated)
113 West 2nd Avenue, PO Box 1890
Qualicum Beach, BC V9K 1T5 Canada
Cell: 250-240-5021
Bus: 250-752-2466
Fax: 250-752-2433
Toll Free: 800-668-3622

Currency Exchange

Even if your heart is settled on a dream property overseas, currency fluctuations can cost you more than you think. Don't let it happen.

By Tom Wight — HIFX, October 2006

Working with international property specialists worldwide, HIFX realizes that many of their American clients may need to perform one or more currency transactions in order to facilitate a purchase abroad. Some people would simply contact their bank to exchange and transfer their US Dollars for Canadian Dollars (CAD). However, there are huge potential savings to be had by speaking to a 'specialist currency broker' like HIFX.

HIFX's focus is to:

The service is designed to make the currency aspect of an international property purchase as simple, secure, and cost effective as possible.

Volatility in the currency market is an undeniable daily occurrence. With a daily turnover in excess of $1.9 trillion and innumerable economic catalysts that cause the market to move, it is impossible to forecast currencies with 100% accuracy. While large corporations employ market professionals to manage billions of dollars worth of currency risk, private individuals purchasing property abroad are often left at the whim of this massive market — uneducated and at risk. More importantly, many investors don't realize how quickly the currency market can move or how these movements directly affect the cost of their property overseas.

A Canadian property priced at CAD$500,000 would have cost USD$377,472.44 in early September 2004. Due to a weakening of the USD and a fluctuating exchange rate, by November 2004 that same property would have increased in cost to USD$426,803.24. The difference in cost works out to be USD$49,330.80, or an 11.56% increase in cost in less than 3 months. This is a classic example of avoidable currency risk. If the CAD had been reserved in September through booking a forward contract with HIFX, the exchange rate would have been fixed and thus the $49,803.24 additional cost would have been eliminated.

Whether you are buying property overseas, relocating, or simply need to make regular payments abroad, it is worth learning more about how you can take advantage of the corporate rates of exchange and corporate services offered by HIFX's Private Client Services Group. The exciting news is that this HIFX service is FREE for Jeff Shields' clients!

HIFX will walk you through several different strategies that you can implement in order to protect against currency risk including locking in today's exchange rate for up to 24 months. There IS an alternative to using your bank.

About the author:

Tom Wight works in the Real Estate Group of HIFX Inc, assisting private clients worldwide to save them money on their currency transactions. He can be contacted directly by phone at (415) 321-6387, or by email at Thomas.Wight@hifx.com.

Currency Converter