Andrew from Vista Financial

Interest & Exchange Rates

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    For those who have not seen it already.

     

    The RBA cut rates by 1% today making the official RBA rate 6%.

     

    WestPac have already said they will cut by 0.8% on its standard variable home loan rate giving a rate of 8.56%.

     

    As of 4.30pm today Adelaide time the Dollar to the Pound is a tad over 2.4.

     

    Andy

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    Guest caoimhe

    woww that the best news, we could do with it since we lost so much on our house. Do you thinks it will steady at this andrew

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    Guest The Hadleys

    Hi Andrew

     

    Great news about the dollar, we fixed an amount last night with money corp and got a fab rate of 2.42, that has made quite a difference.

     

    We should be in adelaide in the next 3 weeks, so Andrew if we could arrange a meeting to discuss pensions, life cover etc.

     

    Regards

     

    Dawn

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    Hi Andrew

     

    Great news about the dollar, we fixed an amount last night with money corp and got a fab rate of 2.42, that has made quite a difference.

     

    We should be in adelaide in the next 3 weeks, so Andrew if we could arrange a meeting to discuss pensions, life cover etc.

     

    Regards

     

    Dawn

     

    Can I just add my bit - Andrew really is a great guy and has done us proud with pensions and life insurance, really made everything understandable. Our pensions are now on their way over (please stay up exchange rate) and we have reasonably priced life insurance! Certainly is a big relief and as I said cant recommend Andrew highly enough for all those who are on their way and the ones who are already here:notworthy:

     

    Lindsey

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    Guest Lulujim

    Great news!! Any predictions on what it will do from now?? :)

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    Guest Jim Scott

    It will most likely fall further I think, sometime in the new year

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    Guest caoimhe
    It will most likely fall further I think, sometime in the new year

    Sorry Jim, but I get confused with these sort of things:goofy: do you mean we will more dollars for our pound or the other way round

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    Guest HelenAndSiggi
    Sorry Jim, but I get confused with these sort of things:goofy: do you mean we will more dollars for our pound or the other way round

    Hi,

    the exchange rate is in your favour if you convert Sterling into AUS$:

    example:

    the exchange rate was yesterday 2.27

    now 2.44

     

    If you transfer say £100,000 today then you would have gained AUS$ 17,000

     

    The Australian interest rate has also fallen what means that borrowing money in Australia will be cheaper.

     

    Hope it helps,

     

    Siggi

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    Guest caoimhe
    Hi,

    the exchange rate is in your favour if you convert Sterling into AUS$:

    example:

    the exchange rate was yesterday 2.27

    now 2.44

     

    If you transfer say £100,000 today then you would have gained AUS$ 17,000

     

    The Australian interest rate has also fallen what means that borrowing money in Australia will be cheaper.

     

    Hope it helps,

     

    Siggi

    I get that bit but wasn't sure what Jim meant about it falling further

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    I get that bit but wasn't sure what Jim meant about it falling further

     

    Maybe he means that the Australian base interest rate may fall further. Australian rates have been much higher than Uk ones, our base rate is 5% but theirs has just fallen from 7% to 6%. If their interest rates fall, it makes the Australian dollar less attractive to investors so in theory the dollar weakens and the exchange rate gets worse for Australians and better for Brits.

     

    However everyone is predicting that the Bank of England will cut UK interest rates on Thursday so then we will be back to square 1, so the good exchange rate may not last for very long.

     

    Historically since 1990 the average exchange rate is £1 = A$2.385, so I reckon as long as you can get more than that for your money you are beating the average.

     

    It's also worth considering that I don't think there is any guarantee yet on deposits in Australian banks accounts, I think the government are considering bringing in some kind of scheme but at the the moment there is nothing like the UK guarantee for the first £50,000. So if the bank goes under you will lose your money. However the Australian banks claim they have been much more prudent than European/US ones so hopefully they should be pretty safe.

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    There is talk of another interest rate cut however I think that these are such uncertain times at the moment anything can happen. First it was inflationary pressure that caused the rise, the cuts have been made to bring down borrowing costs along with other factors.

     

    Lindsey, thanks for your recommendations!

     

    Dawn, thats absolutely fine to arrange a meeting, just contact me when you are ready.

     

    Andy

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    Guest Jim Scott

    I was talking purely about the "cash rate" in Australia as being likely to move lower. The cash rate is set by the Reserve Bank. This affects what australian lenders charge for funds they lend, i.e. lower mortgage payments etc and a lower cash rate in australia weakens the australian dollar.

     

    Whilst the exchange rate is affected by movements in the cash rate, I won't make any predictions about what might happen with the exchange rate because that, as Anne B said, depends on the equivalent cash rate for the other nation i.e UK.

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    Guest Aussie pat

    We completed on our house today. The Commonwealth Bank has a huge backlog today and says it may be a day or so before our money moves out of the UK! Fingers crossed. Apparently everyone is trying to move money today!

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    Guest Lulujim

    I have just transferred some money over with Hi-fx and got a rate of 2.57. Will have to make sure I don't look at the rates from now on as if it goes up anymore I'll be kicking myself!!

    At least we know how much we'll have when we get there I suppose! :)

    Alexis

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    Guest vikkiann

    I've also exchanged money and got 2.55. I like the option of safety. I never thought i'd see 2.5 before we move so i'm over the moon.

     

    Vikki

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    Guest Lulujim
    We completed on our house today. The Commonwealth Bank has a huge backlog today and says it may be a day or so before our money moves out of the UK! Fingers crossed. Apparently everyone is trying to move money today!

     

    Good timing!! :)

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    Guest alan smallman

    Hi

     

    Option A for us at the moment would be to ideally sell the house (isn't everybody's in our situation?). But.... if we did it appears that without gurantees from the Oz banks, that any equity we had (say £70,000) would be at risk if we transferred our funds over to an Australian account when/if we did sell. What do you do with your equity in such cases (that's if you're lucky enough to have some?)

     

    That makes plan B (renting our house out) much more of an option until the markets steady and maybe start to rise again. But (obviously) there are associated costs to maintaining a property up for rent as a landlord and ideally we'd like to get rid.

     

    There must be others out there who have lived with the anxiety of not being able to sell, have been lucky enough eventually to sell, who are now faced with the problem of where to put their equity where it will be safe?

     

    Andrew you sound like a decent bloke and obviously come highly-recommeded!! May give you a shout fairly soon (when we get nearer to coming over) with regards to my monthly works pension (it's not taxed over here as I get taxed at work - but would the net sum I received now be taxable over in OZ d'you think?) As I say I'd like to get in touch to talk specifics and the transfer of such funds and setting up of bank accounts etc when we get nearer the time if that's OK?:notworthy:

     

    Any probs with yer prostate then yer can let me know and I'll reciprocate!!!!! LOL:biglaugh:

     

    Cheers;)

     

    Alan

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    Guest caoimhe
    Hi

    But.... if we did it appears that without gurantees from the Oz banks, that any equity we had (say £70,000) would be at risk if we transferred our funds over to an Australian account when/if we did sell. What do you do with your equity in such cases (that's if you're lucky enough to have some?)

     

    Cheers;)

     

    Alan

    Very good point Alan, would it maybe be better to only take what we need to live and the money we plan to put down on a house leave in the UK until ready to buy.:confused:

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