Sending money home to invest? 3 things to consider first
Money earned here in the UK can be invested in many ways overseas. Whether paying for a second home, setting up a business with a friend or family member, or contributing to an existing opportunity, sending money home to invest is one of the many reasons that customers use our money transfer service here at Small World.
We try to stay up to date with the important reasons that our customers send money home, and although supporting friends and family, as well as education and medical expenses, are priorities, so too is sending money home to invest.
If you’re thinking about investing your money, here are three factors to consider…
1. Why investment?
It might be that you haven’t thought about transferring money internationally for an investment before, or just haven’t been able to do so yet. For many people it is a sensible way of making more of their income.
Overseas property has always been an attractive proposition for investors, allowing them to make their British pounds go further than they would if buying a second home in the expensive UK market.
As well as traditional investment options such as overseas property, there are new opportunities all over the world. Colombians in the UK, for instance, might send money to Colombia to invest in the growing “Orange Economy”(the name given to goods, services and activities that have cultural or artistic content), while Nigerians may choose to capitalise on the rise in local bottled water companies in Nigeria. Whatever your investment interests, successful investors have a good knowledge of their destination market.
The contacts you have back in your home country can help you understand these growth markets, or may even become a partner in your new venture.
It is not all about personal wealth. Investing can boost economic growth back home, creating new jobs and opportunities and will have a positive long-term impact on local communities.
2. Investing safely abroad
Lots of our customers regularly send money internationally for investment opportunities, but these two points are still worth remembering:
- Only invest amounts of money that you are comfortable with and can afford
- Only go into business with companies and people that you know and trust You are less likely to be the victim of fraud if you concentrate your investments back in your home country, working with partners that you are familiar with.
A Bangladeshi, for example, living in the UK will have clearly have a better idea of what a sound investment looks like in Bangladesh and, of course, have the contacts and relationships to support that investment.
Therefore, be cautious of any “get-rich-quick” offers that involve sending money to a different country than your usual investment. Common investment scams include precious gems, metals, wine, land abroad and cryptocurrencies.
Once again, remember to research the investment opportunity thoroughly and know who you are transferring money to – simple precautions that can save you from potentially losing your money.
3. How do I transfer money home internationally to make an investment?
With the investment idea taken care of, it’s time to consider how you will send your money home safely, securely and at the lowest cost. When it comes to investing, there are good reasons to use a money transfer service rather than a bank. Some of the benefits of using Small World include:
- Lower transfer fees than banks. Not only that, we won’t charge you for your first transfer
- Better exchange rates, constantly updated on our site
- Easy to set up. Whether online or through the Small World App, it only takes a few minutes to open an account with us and then you are ready to go
- Efficient and quick service – transfer money abroad instantly direct to bank accounts in over 90 countries If you want to read more about how we compete with the banks and why turning to the bank is not always the best decision when sending money, read our recently published article.