Guest LEE & DONNA

10cent drop in exchange rate in one week..aaaarrrggghhhh

    Recommended Posts

    Guest LEE & DONNA

    just noticed that there has been a 10cent drop in the exchange rate in a week. cant believe it..what is it gonna take before it starts to rise again:wacko:

    Share this post


    Link to post
    Share on other sites

    AAAH! The question of the hour! All I can say is that I'm beginning to see the wisdom in my inlaws (they have ping ponged back and forth 3 times for family reasons) who having lost, gained, wished they waited to exchange and wished they had done it earlier - finally made the decision to exchange whenever they needed the money without looking back. We arrived in November when the exchange rate was 1.80 and left our money in the UK with the assumption it would finally go back up. You see where we are sitting now! I think only a conservative win will help us now and a hung parliament will make it plummet even more. We will need to exchange soon as can't live with the inlaws forever!!!

    Share this post


    Link to post
    Share on other sites
    Guest mimasawrus

    We too came over here in November when the exchange rate was 1.80 and left it there hoping it would go up, but it has only ever reached that stage. We were looking at it the other night like we did most days and decided our life was here now so our money should be with us. We also figured that the interest rates you can get here are much better than the UK, so we thought we would watch it grow here. Since we have transferred it the pound has lost more against the dollar. We also looked at it that we have gained so many benefits by moving here we havent really lost out

     

    Laurax

    Share this post


    Link to post
    Share on other sites

    Australia is in a very strong position at the moment and has been for a while, there seems to be no good news coming out of the UK and they still have a very long way to go to get their house in order.

     

    I think a lot depends on what you are going to be doing with the funds when you do bring them over.

     

    If the funds are being used for investment purposes then is it possible that the investment asset be it a house, shares (maybe even cash, there is a term deposit of 8% out there at the moment) will give greater growth on your money then leaving it and waiting for the exchange to improve.

     

    Also bear in mind the potential tax liability on the forex gain if you wait and exchange and it does improve.

     

    Obviously nobody knows what will happen for sure but these should be big considerations.

     

    Regards

     

    Andy

    Share this post


    Link to post
    Share on other sites
    Australia is in a very strong position at the moment and has been for a while, their seems to be no good news coming out of the UK and they still have a very long way to go to get their house in order.

     

    I think a lot depends on what you are going to be doing with the funds when you do bring them over.

     

    If the funds are being used for investment purposes then is it possible that the investment asset be it a house, shares (maybe even cash, there is a term deposit of 8% out there at the moment) will give greater growth on your money then leaving it and waiting for the exchange to improve.

     

    Also bear in mind the potential tax liability on the forex gain if you wait and exchange and it does improve.

     

    Obviously nobody knows what will happen for sure but these should be big considerations.

     

    Regards

     

    Andy

    Too true, Andy and we know it's luck of the draw. We were just one of those applicants who applied in August 2007 and our visa subclass was frozen for 15 months due to a fraud scandal. Where we would have been (almost mortgage free) if we got here in April 2008 compared to now (probably 2.5 times higher mortgage than in the UK) is hugely different. We didn't need to exchange immediately so were advised to wait. Now I'd be happy if it went back to 1.80:) Anyway, home is here now and it as it was said above - the money would be better off here. I do wish I had re-mortgaged in the UK to get a 10% deposit for a hold at 2.4 but never mind!!! Waiting for jobs to be confirmed here anyway so we will see how it goes over the next week. Have to laugh - forget capital gains tax - can you get relief for it going the other way!!??:jiggy:

     

    Liz

    Share this post


    Link to post
    Share on other sites

    I wish I knew the answer to this one as we have left all our money back in the UK.

     

    Historically for the previous 20 years before the £ fell this low the average exchange rate was I think £1 = $2.38.

     

    Today it is £1 = $1.72. :(

     

    We have thought about bringing our money over but once you've changed it there's no going back, and I live in hope of the exchange rate improving. It will, but the question is how long will it take and are we prepared to live that long without our money?

     

    As for bringing it over and investing it, if for example you have £100K, at todays rates that would get you $172K. Assuming you can get an interest rate 6% better in Australia than in the UK, then after a year it would be worth just over $182K.

     

    The exchange rate only has to be better than £1 = $1.82 for you to do better than putting it in a term deposit in Australia for year.

     

    We have decided to take the gamble and wait. I thought maybe the General Election might improve sterling but now I'm thinking we may have to wait until the 2012 Olympics. I'm sure the UK will be doing better by then. If the exchange rate returned to the previous 20 year average then you would have $238K. Wouldn't that be nice!!!:daydreaming:

    Share this post


    Link to post
    Share on other sites
    Guest kangomik

    Don't forget you will be taxed on that 12K intrest also.

     

    The rate dropped like a stone when we came, and the lack of pomms changing cash to buy houses here may have an effect on the rate in future.

     

    With other parts of the world not looking to healthy on the financial front its all a big guessing game.

    Share this post


    Link to post
    Share on other sites
    I wish I knew the answer to this one as we have left all our money back in the UK.

     

    Historically for the previous 20 years before the £ fell this low the average exchange rate was I think £1 = $2.38.

     

    Today it is £1 = $1.72. :(

     

    We have thought about bringing our money over but once you've changed it there's no going back, and I live in hope of the exchange rate improving. It will, but the question is how long will it take and are we prepared to live that long without our money?

     

    As for bringing it over and investing it, if for example you have £100K, at todays rates that would get you $172K. Assuming you can get an interest rate 6% better in Australia than in the UK, then after a year it would be worth just over $182K.

     

    The exchange rate only has to be better than £1 = $1.82 for you to do better than putting it in a term deposit in Australia for year.

     

    We have decided to take the gamble and wait. I thought maybe the General Election might improve sterling but now I'm thinking we may have to wait until the 2012 Olympics. I'm sure the UK will be doing better by then. If the exchange rate returned to the previous 20 year average then you would have $238K. Wouldn't that be nice!!!:daydreaming:

     

     

     

    And 3 years $204,854 and 5 years $230,174 so over $2 - 1GBP or $2.30 to 1 GBP respectively.

     

    The cash example was used as a consider this scenario because if the GBP doesn't come back to the levels of 2+ in the medium term (it could happen, nobody knows) then even cash investments could outperform the wait.

     

    Whilst I agree that if you were only going to invest in cash for a year then it's a different matter.

     

    It was moreso what is that money actually going to be used for when it comes across as there is a real possibility that if the money is to purchase property or be invested into the markets etc then waiting for an improved exchange could be outweighed by the investment asset increase here.

     

    Lots to consider.

    Share this post


    Link to post
    Share on other sites

    Create an account or sign in to comment

    You need to be a member in order to leave a comment

    Create an account

    Sign up for a new account in our community. It's easy!

    Register a new account

    Sign in

    Already have an account? Sign in here.

    Sign In Now