How are you? How are things going for you?

Well, two weeks ago Megan, my 4 year old daughter, presented me with a tomato plant she had grown at pre-school. The responsibility for these tomato plants had now been passed to the Mums for them to finish off growing at home!! Based on my last newsletter regarding my inability to grow cress, I can hear you laughing already! Me, responsible for not killing the tomato plant that my 4 year old daughter has grown from a seed (I am guessing they are grown from seeds?).

I have taken advice from some of the other Mums as to what to do with it and the plant is growing nice and tall, so hopefully we are on the right track so far! I’m sure you will wait with fingers crossed for next months update on the tomato plants fate!

On another note, we have had a new member of staff join the Smart Team. Nandita started with us a few weeks ago and if you haven’t spoken to her yet, she is very lovely. So if you know anyone who may need our services then get them to give her a call and she will be more than happy to help out. Oh and remember to get them to let her know that YOU told them about us so that can be entered into the £250 M&S Voucher refer-a-friend prize draw!

Nandita can be reached on the freephone number: 0808 163 0102.

We have had this month's prize draw for the £250 M&S vouchers, so have a look below to see if it is you! If you are unaware of our Smart refer-a-friend competition, it is a monthly draw we hold for people who have referred their friends/ family/ colleagues to us in order for them to also benefit from our service. So if you know of anyone, then please email me or Nandita their details at: mailto:Rebecca@SmartCurrencyExchange.com

This month's eNewsletter includes the following:

- M&S Vouchers Winner

- How to Avoid Troubles Relocating Overseas

- Your Stories: by Smart Client David Axon – The next chapter

- Currency Update

- Smart Client Feedback

Please send me YOUR stories about buying overseas any time. If you have any information on what to do, what not to do, tips things to look out for, how to plan for a purchase and anything else that you'd like to share with the Smart community, then send them to:
mailto:Rebecca@SmartCurrencyExchange.com

Please remember to recommend us to your friends - they will be so pleased that you did!

Until next time…. Happy Gardening!,

Becks

M&S Vourchers Winner

The winner of this months prize draw is:
Bob Francis of Epsom, Surrey!

CONGRATULATIONS - Your £250.00 worth of Marks & Spencer Vouchers will be sent in the post recorded delivery, so please keep a look out for them!

If you'd like to win £250.00 please send me the name and contact details of anyone you know that is planning to buy an overseas property and your name will be entered in the draw.

Mailto:Rebecca@SmartCurrencyExchange.com

Investing Overseas

An excerpt taken from the Overseas Guides Company’s Guide to Buying and Overseas Property for Investment. By Kim Brown

There are loads of things to consider when buying overseas however in this section I’d like to simply concentrate on the country/market that you’re interested in buying in.

When looking for a good investment, the main factors to look for in a country/market are low buying and borrowing costs, a growing economy, prices are low compared to other countries and demand for property (to buy and rent) is on the increase.

I cannot tell you how many people fail to understand this. ESPECIALLY the demand for property element. If you buy where there is little demand for property rentals or resale, you are going to have a HUGE problem trying to make money! (either from rentals or selling)

Let’s look deeper into this and, as you’re reading through, you’ll want to make a mental note that these factors must be considered for each country you plan on investing in.

Key Factors to Analyse

1. Interest rates: Interest rates range from base rates of 1% to around 8% in various countries. This will tell you how much it’s going to cost you to borrow. The cheaper money is to borrow, the better off your return will be!

2. Buying costs: To buy a property anywhere in the world there are associated costs including solicitor’s fees, taxes and other costs. These fees can be 15%, depending on the country. It’s imperative to make a note of these costs as they can be a determining factor as to whether the deal will work or not.

3. Amount of homeowners: When you decide to sell your property (whether you’re going to Buy-to-Sell in the short-term or way in the distant future), you’ll want to make sure that there is a market to buy it! In Spain and Ireland over 70% of people own a home, so buying property is common whereas in Germany only 40% own a home and it may be more difficult for you to sell. As a rule of investment, it’s always good to consider your exist strategy or how you intend to sell your investment. Regardless as to whether you intend to sell or not, you may find yourself in a position where you have to sell.

4. Financing/Refinancing: In some countries you cannot get a mortgage. Others you can get an 85% mortgage for 30 years with interest rates at under 4%. Depending on your budget, this is key to whether or not you can finance a property!

5. Taxes: What are the yearly taxes, as this will eat into your rental or capital appreciation profit? How much will it cost you to sell? Imagine spending tons of time to find a property to buy-to-sell and then realising the tax on a sale is 40% whereas you could have purchased a similar deal in another country with NO sales tax!

6. Accessibility: If you’re going to rent to tourists, you’ll need to be within one hour of an airport. If you’re going to rent to a local market, you’ll want to consider public transport. A nice villa out in the sticks might be cheap to buy but getting renters could prove impossible.

7. Political situation: Is the country at war or unstable? If so, what the heck are you thinking? Is the country safe to invest in? Does the British consulate warn against buying property in this country (i.e. North Cyprus)? Is it possible that new leadership would come to power and change the way the country runs? Is the government influenced by bribes or the black market?

8. Legal issues: Some countries will not let you take money out of the country. Others have a bad land registration system, or sometimes none at all…and so it’s uncertain as to who actually owns the land. It’s imperative to research these factors…

9. Economic/Employment: If employment is rising that is an excellent sign. Check out the trends of the economy…is everything going in the right direction? Another good indicator that things are going well is if the number of tourists visiting is on the rise… These figures can easily be located on the Internet.

10. Comparables: Are you getting value for money? In other words, if you get a 3 bedroom villa in Country X for Y amount, how does that compare to other countries?

11. Country Location: Is the country surrounded by wealthy countries that may invest or potentially benefit from it’s neighbours or is it in the middle of nowhere attracting limited sources of investment?

If you haven’t already downloaded your freecopy of The Overseas Buying and Investment Guide, please go to: http://www.overseasbuyingguides.com/smart.htm (Non-Smart contacts pay £12.97 for this Guide, so please do not pass this link out!)

Your Stories: by Smart Client David Axon – The next chapter

Thank you for the update Dave!

" Rebecca,

I've now almost settled into a routine in my Spanish home, although the local builder is here this week and I am helping him construct a set of steps down to my vegetable patch (30 metres long) and a covered terrace to provide shade from the summer sun.

I've been lucky in finding a tame plumber, electrician(s) and a builder, all English as it happens, in a very short space of time. Most of them came by recommendation and live nearby. I figured that if they are local they cannot afford to do a bad job or overcharge as news like that travels fast in the Campo (Spanish countryside).

I've had a reserve water supply installed, log-burning fire, new toilet, fridge freezer, oven, hob, washing machine, microwave and toaster. The house has virtually been re-wired and all the light fittings replaced. The pool is now maintained and (very) clean and I have plans for the garden and house that will keep me busy for the next ten years.

I take Spanish lessons at least once a week from the local Spanish school and a friend in town. It's not essential but you get a lot better reception from the locals if you try to speak their language, however falteringly.

The house I have is a gem, but it did not seem that way at first. It had not been cleaned for four years and six dogs and four cats had free range of the house and "garden". You cannot imagine the state of the place. But four months on it is looking good and the garden is taking shape, from a wilderness in December to my first vegetable harvest this week.

I've also bought a car - a slightly scary experience as it was a private sale and the paperwork took a while to come through but everything seems ok now and I saved several thousand euros by buying second hand. Cars seem to wear well out here, despite all the dust.

My cash is lasting well as you can live quite cheaply out here, providing you don't go down to the local bar every night. Food, especially vegetables, is very reasonable and soon I will have a supply of my own produce! However, I will be in touch with your colleagues in a few months to set up a regular transfer of UK funds to my Spanish bank account.

Regards,

Dave Axon"

Please, send me your story - How are your plans to buy overseas going? Rebecca@SmartCurrencyExchange.com

Currency Update by Charles Purdy

Even though the UK is not part of the Euro zone, the GBP would appear to be more stable against the Euro. This means that you're less prone to major movements (or nasty shocks).

As can be seen from the chart below, the "normal" trading range has been 1.44 to 1.495. Occasionally we get a blip when something very unexpected happens such as the Bank of England increasing interest rates in January of this year by 0.25%. This resulted in sterling gaining 3 to 4 cents in a very short period of time and moving to 1.52 plus against the Euro. We have now returned to the norm. The benefit of the reduced exchange rate movement between sterling and the Euro is that, assuming the range stays as it is, we are not taking on an major exchange risk.

The decision then comes down to a timing issue as to best when to buy or sell Euros. So - if you're buying, you want to buy closer to 1.49 and if you're selling you want to sell closer to 1.44 (assuming you have enough time to wait).

If you have time at your side - even a couple weeks, please call Carl and set yourself up on the Smart Rate Watch System. By doing so, we can alert you as to when the Euro hits a favourable rate and you can make the most of the movement.

As I've mentioned many times, your greatest savings when buying currency is by buying at the RIGHT TIME between now and when you need the money.

Smart Currency Exchange Limited:
http://www.SmartCurrencyExchange.com

PLEASE give us a call if you need to exchange and transfer money anywhere overseas. We will be able to save you quite a bit of money AND make it a heck of a lot easier than using the bank.

Call Smart today to see how much you can save on: 0808 163 0102 or
Fill out our Smart Quotation form to get an indication as to how much it will cost you to buy the currency you need.

http://www.smartcurrencyexchange.com/smartquotation.htm

Testimonials

"Great service - prompt and reliable and best rate out of 5 other companies I tried. Especially appreciate weekly emails on rates and situations from Charles"

Mrs. R. Wood

"Very good service. Trustworthy, helpful friendly staff. Give good personal service. Best currency service I've ever used and would be happy to recommend to friends and family."

V. Storey, Tyne on Wear

"Very pleased with the prompt, efficient service, friendly and competent suggestions - regardless of whether the amount is big or small."

Brian Macklin, Abingdon

"I consider myself most fortunate to have 'chanced' upon this first rate service. It is refreshing to find a company that follows through and does exactly what is promised. Whilst my experience to date is limited to early forays and small amounts, it has given me utmost confidence in the service."

Ian McDougall, Derbyshire

"Just a quick eMail to Thank You for all your help in transfering the Euro's to Spain for me. An excellent service with helpful staff you have a receipe for success. You treated my amount of money as important as larger sums I am sure you handle. I shall recommend your services to anyone asking."

Martin Rowland, London SW18

For more testimonials on the Smart service, please go to: http://www.SmartCurrencyExchange.com/testimonials.htm

That’s it for this month. PLEASE send me your stories to,
mailto:Rebecca@SmartCurrencyExchange.com