How to transfer money to buy property overseas?

One of the most critical steps when buying property overseas is transferring money across international borders. This process can often seem daunting due to the complexities of foreign exchange rates, fees, and regulations. Whether you are purchasing your dream holiday home, investing in foreign real estate, or planning to relocate, understanding how to efficiently and safely transfer your funds is key to ensuring a smooth transaction. In this article, we will discuss how to transfer money to buy property overseas.

What should you consider when transferring money abroad?

Transferring money abroad requires careful consideration of several factors that can affect your finances and the speed at which the recipient receives the money. Here is what you should consider when transferring money abroad:

1. Regulations

Navigating the complex world of international payments means dealing with strict regulations designed to transfer money to buy property overseas. These rules vary by your home country and the destination you’re sending funds to. In the United States, for example, ensuring your service provider is authorized by the Financial Crimes Enforcement Network (FinCEN) is important. For those utilizing platforms based abroad, it’s vital to check the provider’s licensing status and safety within its respective region. Completing and verifying your account with necessary personal documents and, sometimes, proof of fund sources is a standard requirement to reinforce the security and legality of your international money transfer.

2. Exchange rate

The impact of exchange rates to transfer money to buy property internationally cannot be overstressed, particularly for larger sums. An unfavorable rate can lead to significant financial losses. To avoid such pitfalls, use a reliable currency converter to obtain the mid-market exchange rate for your destination currency. The mid-market rate is the fairest, reflecting the true value of your currency in the global market and ensuring you get the most out of your transfer.

3. Transfer speed

Timing can be critical, especially in transactions like buying a house with foreign money where deadlines are common. Traditional banks and some payment services use the SWIFT network for these transfers, a method known for its reliability but criticized for its latency and higher cost attributed to the chain of intermediaries involved. In contrast, modern providers employing direct transfer methods can expedite the process without sacrificing security. This makes it essential to understand the estimated time frame for your transfer when choosing a provider.

4. Fees and charges

Buying a house overseas comes with continuous expenses such as mortgage installments, taxes, and upkeep costs. Choose a payment service that provides both affordability and ease, particularly one that allows for the scheduling of repeat payments. It can lead to significant savings in terms of both money and time.

5. Transfer limits

Consider any restrictions on the amount you can send when buying a house with foreign money. Both the service providers and the regulations of the destination country can set these limitations. For foreigners who want to transfer money to buy property overseas, larger transfers might necessitate further verification documentation to proceed. Ensure the service you opt for can handle the volume of your transfer to ensure a smooth operation. The most common transfer limits are the restrictions regarding the amount you can transfer, which may be influenced by the service providers and the destination country’s regulations.

How to transfer money to buy property overseas?

Here are seven steps to transfer money to buy property overseas:

Step 1: Register your account

Begin by registering for a no-cost account with a service like Wise, either through their website or app. The sign-up process is straightforward, asking for basic personal details. You’ll also need to verify your identity to comply with financial regulations and ensure the security of your transactions.

Step 2: Start your transfer

With your account active, proceed to initiate the fund transfer. Specify the transfer amount and the currency to which it should be converted to transfer money to buy property internationally. Wise immediately provides the actual exchange rate, their nominal fee, and the final amount the recipient will get.

Step 3: Enter the recipient information

Collect the banking information of the account where you’re sending funds. This includes the account holder’s name, account number, and the bank’s SWIFT/BIC code. For company transactions, such as with a real estate agency, gather the complete corporate banking details.

Step 4: Verify the information

Carefully review all entered information for accuracy. Errors in the recipient’s banking details can cause delays or misdirect your funds.

Step 5: Select a payment method

Select your preferred payment method to transfer money to buy property internationally. Options typically include bank transfers and payments via debit or credit cards. Beware that different methods may attract variable fees and timelines. The cheapest option for transferring money is using international money transfer services. This can be less expensive than traditional bank wires, with fees and exchange rates that are often more favorable.

Step 6: Track the transfer

Once the transfer is confirmed and paid, you will receive a receipt and tracking details. You can monitor the transfer’s progress through your account dashboard, and you (and, optionally, the recipient) will receive updates upon completion.

Step 7: Confirm the transfer

After the transfer is successfully received, it’s advisable to get confirmation from the receiving party, such as your estate agent or property seller, to ensure they have the funds.

Safest option to buy a house with foreign money

Buying a house overseas involves securely and efficiently transferring significant amounts of money across borders. Money transfer providers like Wise are considered one of the safest and most cost-effective options for such transactions to buy property abroad. Unlike traditional banks, Wise is known for its low, transparent fees and for always using the real mid-market exchange rate during international payments. This approach can result in considerable savings for customers who want to transfer money to buy property overseas when covering the costs.

Furthermore, Wise streamlines the transfer process by utilizing its payment networks, thereby avoiding costly SWIFT network charges typically associated with traditional bank transfers. Customers can easily set up their payments through the website or its user-friendly app to transfer money to buy property internationally. For those with recurring payment needs, Wise offers a Multi-currency Account, which consistently provides the best exchange rates available to buy property abroad. 

Frequently Asked Questions (FAQs)