Guest mandy1 Posted January 23, 2008 Share Posted January 23, 2008 Hi all This rate thingy is a bit upsetting for all hoping to move to Oz in the near future. We are about to move out of our house so will have a few grand to exchange soon. I think we'll have to just bite the bullet when the time comes as I am not (well also can't afford) to delay our departure in the hope that it goes up a cent or two. Lets keep our fingers crossed and pray for good news Mandy x Link to comment Share on other sites More sharing options...
Guest broadsman Posted January 24, 2008 Share Posted January 24, 2008 The deteriorating pound is certainly worrisome and the prospects currently given out by exchange market forecasters aren't encouraging. Like a number of other people here, I have a house for sale in the UK and when it eventually sells (no sign at present) I'll likely get many thousands of Oz dollars less than I hoped. Apart from the house sale problem, all my income comes from the UK (occupational pension)and I can't change that, so my wife and have suffered a substantial loss of income since we moved here a year ago. The exchange rate was then 2.51 and while I didn't expect that to continue, an average between 2.35 to 2.40 seemed reasonable. Incidentally, we didn't come here seeking the good life but because my wife is Australian and wanted to come home. Link to comment Share on other sites More sharing options...
Guest The Baggo's Posted January 24, 2008 Share Posted January 24, 2008 We have taken the plundge and exchanged at 2.26. We just think we have got what we've got and at least know where we are. We looked at it that is money you never had anyway. Recon the swimming pool has now turned into a paddling pool!! Link to comment Share on other sites More sharing options...
immy21 Posted January 31, 2008 Share Posted January 31, 2008 Thursday 31st January 2008 Interbank rate: GB POUNDS /AUSTRALIAN DOLLARS 2.2329 Economists after 50bp rate rise from Reserve bank of Australia. Prominent market economists are starting to question the anti-inflation credentials of the Reserve Bank of Australia (RBA), suggesting it may need to "aggressively'' lift official interest rates by 50 basis points to get prices growth under control. The ANZ bank's head of market economics, Warren Hogan, yesterday called for the RBA to lift its 6.75 per cent cash rate by either 50 basis points next month or by two 25 basis points moves over the next two months. "The RBA is now clearly behind the game on inflation,'' he said following Wednesday's numbers showing annual underlying inflation increasing to 3.6 per cent, well above the central bank's 2-3 per cent target zone. Mr Hogan said inflationary pressure had built up in the economy and would remain for 18 months. What does all this mean for you. Well put simply, Australia is the only Western economy that continues to raise interest rates. The Bank Oo England, the US Fed and ECB are all likely to cut interest rates this year in an effort to mitigate a possible recession. This makes Australian Dollar investments very attractive as you can bank on a higher yield and further currency appreciation. Expect AUD USD to barrle through 90 cents and GBP AUD to drop to back into the 2.10 level or perhaps lower. Sorry to be the bearer of bad news but this ain't good Link to comment Share on other sites More sharing options...
Guest broadsman Posted January 31, 2008 Share Posted January 31, 2008 Thursday 31st January 2008 Interbank rate: GB POUNDS /AUSTRALIAN DOLLARS 2.2329 Economists after 50bp rate rise from Reserve bank of Australia. Expect AUD USD to barrle through 90 cents and GBP AUD to drop to back into the 2.10 level or perhaps lower. Sheesh, at those rates I might have to come out of retirement and get a job! Link to comment Share on other sites More sharing options...
Guest dwaldron Posted February 1, 2008 Share Posted February 1, 2008 For those who are moving money over at very sad rates at the moment please look on the bright side. You can park the money in St George Bank Dragon Direct "at call" for 7% or Rabobank for 6.9% . For term deposits you can get as high as 7.6%. I am sure that is better than what is on offer in the UK. Please factor those rates in if you mare thinking of leaving funds in the UK. regards Liam Or, Bankwest at 7.2% Link to comment Share on other sites More sharing options...
immy21 Posted February 1, 2008 Share Posted February 1, 2008 are you saying that we will make good our losses on currency simply by parking our money in the bank when we get over? Link to comment Share on other sites More sharing options...
Guest KIKI Posted February 4, 2008 Share Posted February 4, 2008 Hi all Wonder whether someone can answer this question for me. Don't really understand the whole exchange rate over savings in Oz. We are in the process of talking to HIFX and need to move some money in a few days and the rates as you know are crap. When I spoke to HIFX today it was 2.13 ARGH!!!!!. So if we move our money at 2.17 but put it in a bank account in Oz how much interest would we make say in 2 months on $50,000. Is the interest paid annally or monthly. This is moving money for dummies so if you can answer make it simple.:twitcy: thanks in advance Kimberley xx Link to comment Share on other sites More sharing options...
Jo&Rich Posted February 5, 2008 Share Posted February 5, 2008 Kimberley, I'm waiting to move my money over now too, wish I'd taken $2.37 a few weeks ago:arghh:! No expert on what to do, I'm following this for ideas too, but can tell you we recieve our bank interest monthly at Westpac. Jo Link to comment Share on other sites More sharing options...
Guest KIKI Posted February 5, 2008 Share Posted February 5, 2008 Hi Jo its awful isnt it. Just gotta keep our fingers crossed and everything else. Kimberleyx Link to comment Share on other sites More sharing options...
Guest Liam Posted February 5, 2008 Share Posted February 5, 2008 Hi all Wonder whether someone can answer this question for me. Don't really understand the whole exchange rate over savings in Oz. We are in the process of talking to HIFX and need to move some money in a few days and the rates as you know are crap. When I spoke to HIFX today it was 2.13 ARGH!!!!!. So if we move our money at 2.17 but put it in a bank account in Oz how much interest would we make say in 2 months on $50,000. Is the interest paid annally or monthly. This is moving money for dummies so if you can answer make it simple.:twitcy: thanks in advance Kimberley xx Kimberley you could expect to make about $591 in 2 months with RaboPlus: High interest savings, term deposits, managed funds, online investments who have increased rates to about 7.1% for cash at call with no fees and charges and access via internet 24/7. aussie Dollar has dropped a little to-day so have a new look at rate with Hifx hope this helps Liam Link to comment Share on other sites More sharing options...
kellyjamie Posted February 6, 2008 Share Posted February 6, 2008 Hi all, we were at our bank yesterday seeing whens best to exchange to oz dollars for our reccie in June and have been advised that at present the banks expect the dollar to drop to around 2.12 within 2 months before it will start a steady rise? so for now our cash is in a high interest saving account until it strenghtens, this info is from the bank:unsure: Link to comment Share on other sites More sharing options...
Guest AndyJo&Lewis Posted February 8, 2008 Share Posted February 8, 2008 That sounds like the wisest decision to me if your in the position to do that , thanks for the info. :GEEK: Link to comment Share on other sites More sharing options...
Guest adey Posted February 8, 2008 Share Posted February 8, 2008 I work in the finance sector and been told something similar it will hit a real low of 2.12 to 2.10 and then should rise but maybe only to a maximum of 2.23 for a while as Aussie economy is very strong at the moment. Been advised to only bring over what we need bit by bit (as you can then average out your rates) or put it all into a high interest saving account until we need it. Remember you can leave an account open in the UK and access it via the ATM's if its an emergency. We used our UK accounts for the first month as we don't get bank charges with Nationwide but the bank charges here are higher than UK and it took us a while to get our accounts sorted out properly. Link to comment Share on other sites More sharing options...
Guest paulwbafc Posted February 11, 2008 Share Posted February 11, 2008 Look on the bright side. The Australia economy is getting better than the UK. Also it will be cheaper to visit the UK and those dollars will go far when visiting back in the UK. I would be more worried if the australia economy was getting weaker than the UK especially at the moment as we all know a recession is coming if it already hasn't started. I said on a post this time last year the exchange rate is going to get worse and told someone to get there money exchanged now and not wait. The $2 to the pound is coming. Whenever the UK cuts its rates the Sterling falls against AUD. When the Aussies put up there rates we get less dollars to the pound. Also with the mining boom and strong australia economy the exchange rate worsens from a uk perspective. If you have money to exchange do it via a broker like HIFX. They will give you best rates and you won't get charged. Also you need to set up an ozzy bank account. So get your UK currency converted to the better oz dollar sooner than later. Interest rates on Savings accounts in oz better than UK. I have not moved to oz just yet. Not until August. But my money is in a Westpac savings account already gaining higher interest than if it was in the uk. Don't dither on changing your money to dollars as it is the winning horse at the moment and it will not change. The only way the exchange rate will get better from a uk point of view is if the australians cut there rates and the economy hits a massive downturn swing (which won't happen yet). Or the UK economy begins to boom (which won't happen). Link to comment Share on other sites More sharing options...
Guest Liam Posted February 11, 2008 Share Posted February 11, 2008 Futures markets are factoring in a 65% chance the Reserve Bank of Australia will raise interest rates by a 0.25% points to 7.25% in March, up from 30% before the latest RBA statement was released. Domestic data in Oz on Monday showed the jobs market remained drum- tight, reinforcing the view that demand in the economy was strong and the central bank would have to tighten rates sooner rather than later. The Australian dollar's yield attractiveness is being further enhanced by monetary easing in other major economies. The US Federal Reserve has cut rates aggressively, while the Bank of England has also lowered borrowing costs and the European Central bank may follow suit soon. This means that as Aussie rates go up and the UK rates are lowered the interest rate differential makes it attractive for large investors to buy the Aussie Dollar and park the money here in high interest accounts thus putting more pressure on the other currencies like the GBP. That is bad news for people transferring their funds to Australia Australian dollar should remain in the 2.12 to 2.17 for a couple of days probably but the threat of a US recession and continued worries in credit markets, among other factors, still pose a risk to the australian currency which is not seen as a "safe haven" in times of economic turmoil. People go for the Euro, Yen, Swiss Franc, Gold or US$ not the AUD$. There's still a chance for a fairly significant clean-out to the downside on any event that sees risk appetite pull back. Google Monoline Insurers, AIG downgrading, Soc Gen 39% discount Rights issue...all these are signs of turmoil which may offer opportunites to transfer at better rates. If there is no appetite for risk, it doesn't actually matter how wide your interest rate differential is. So my general view is to drip feed and get ready to take advantage of any short term weakness in the AUD$ such as on the 26 Nov when it spiked temporarily to 2.38 or the 17th Dec when it spiked to 2.36. Talk to Hamish at Foreign Exchange Specialists | HiFX Ltd and see if he can give you some guidance. One thing is certain, the aussie dollar is a reasonably volatile currency and opportunities are there for the brave...all others should drip feed across over 6-12 months. For those who move make the most of your money and get the best rates available. See RaboPlus: High interest savings, term deposits, managed funds, online investments, dragondirect -, for decent Cash rates Hope this helps. Always seek personal advice for your own circumstances as this is only general advice based on market conditons. Liam Link to comment Share on other sites More sharing options...
Guest adey Posted February 29, 2008 Share Posted February 29, 2008 Look on the bright side. The Australia economy is getting better than the UK. Also it will be cheaper to visit the UK and those dollars will go far when visiting back in the UK. I would be more worried if the australia economy was getting weaker than the UK especially at the moment as we all know a recession is coming if it already hasn't started. I said on a post this time last year the exchange rate is going to get worse and told someone to get there money exchanged now and not wait. The $2 to the pound is coming. Whenever the UK cuts its rates the Sterling falls against AUD. When the Aussies put up there rates we get less dollars to the pound. Also with the mining boom and strong australia economy the exchange rate worsens from a uk perspective. If you have money to exchange do it via a broker like HIFX. They will give you best rates and you won't get charged. Also you need to set up an ozzy bank account. So get your UK currency converted to the better oz dollar sooner than later. Interest rates on Savings accounts in oz better than UK. I have not moved to oz just yet. Not until August. But my money is in a Westpac savings account already gaining higher interest than if it was in the uk. Don't dither on changing your money to dollars as it is the winning horse at the moment and it will not change. The only way the exchange rate will get better from a uk point of view is if the australians cut there rates and the economy hits a massive downturn swing (which won't happen yet). Or the UK economy begins to boom (which won't happen). Paul not trying to frighten you or anything but have you got your TFN (Tax file number), if not you need to check the tax implications of having your money in Oz until you get one as if I've read previous threads right you (and we were advised right) you will be taxed at the higer rate until you get your TFN. Contact Allan Collett on PIO or gomatilda to confirm this or try searching previous threads as I'm sure that I read that somewhere, almost 98% positive as we didn't move our money over until we physically arrived and obtained our TFN as we'd be told this before leaving the UK. Link to comment Share on other sites More sharing options...
Guest Smartline Home Lending Posted February 29, 2008 Share Posted February 29, 2008 Thats correct, if you dont provide your tfn, the interest you earn will be taxed at a higher rate. Link to comment Share on other sites More sharing options...
Guest adey Posted February 29, 2008 Share Posted February 29, 2008 Thats correct, if you dont provide your tfn, the interest you earn will be taxed at a higher rate. Hey the job must be rubbing off on me now - I work for a mortgage brokers down in Bunbury. I'm the Relationship Manager, still convinced it sounds like I'm working for Relate though!!!! Hate having to sound negative about things but think people need to know the implications as nobody will tell you they expect you to just know and its soooo hard to find anything out as alot of info isn't very clear or contradicts itself. Sarah Link to comment Share on other sites More sharing options...
Guest michele'n'michael Posted February 29, 2008 Share Posted February 29, 2008 You;'re taxed at 10% if you have no TFN. Not sure of the rate your taxed on the interest if you actually have the TFN tho'. Still thge interest rates good in OZ. Link to comment Share on other sites More sharing options...
Guest dwaldron Posted March 2, 2008 Share Posted March 2, 2008 You;'re taxed at 10% if you have no TFN. Not sure of the rate your taxed on the interest if you actually have the TFN tho'. Still thge interest rates good in OZ. No, you're taxed at 10% if you are a non-resident for tax purposes, which is quite different. If you are a resident for tax purposes and you have not quoted a TFN then the interest will be taxed at 46.5%. If you are resident and have quoted your TFN then no tax is withheld at all, but you need to declare it as income on your tax return and then pay interest. Link to comment Share on other sites More sharing options...
Guest michele'n'michael Posted March 2, 2008 Share Posted March 2, 2008 No, you're taxed at 10% if you are a non-resident for tax purposes, which is quite different. If you are a resident for tax purposes and you have not quoted a TFN then the interest will be taxed at 46.5%. If you are resident and have quoted your TFN then no tax is withheld at all, but you need to declare it as income on your tax return and then pay interest. Oh thanks for that. The info I recieved was unlear then!! Do you get a refund on the tax then if you've been charged at 46.5% once you have your TFN??? Link to comment Share on other sites More sharing options...
Guest dwaldron Posted March 3, 2008 Share Posted March 3, 2008 Oh thanks for that. The info I recieved was unlear then!! Do you get a refund on the tax then if you've been charged at 46.5% once you have your TFN??? Yes but you have to wait until the end of the tax year. Westpac were able to refund my overpaid tax for the current year only without having to wait, but if 1st July rolls around the only way to recover it is via your tax return. Remember that if it is a joint account you both need TFNs to avoid penalty tax. Link to comment Share on other sites More sharing options...
Guest The Greens Posted April 24, 2008 Share Posted April 24, 2008 Nah :no: Sorry to say, "Give it Up, at least until October / November, no chance of any big upturn for now. Emmy:cry: Just wondering how everyone is feeling at the moment, with the rate going down and down and the doom and gloom of the British economy getting more depressing each day. As I write this post, the rate around today is A$2.09 to the £. Without sounding a right know all, (Coz believe me I don't know a lot about much!!:goofy: ) we were told this was going to happen earlier in the year and I posted what we were told hoping it would help anyone interested. I know there's lots on here who just laugh and have a great cavalier attitude towards the money transfer, just wanting to get to Oz and take it from there. I admire those who can do that. I'm too much of a worrier to be like that, probably because from my early teens, I was in charge of the house and shopping bills, I just can't shake it off, even though Hubby earns plenty to keep the Wolf from the door. But I do feel you have to watch the pennies, and with inflation rising higher and higher in Oz, it's a real double wammy. Anyone have any more thoughts on this, or has anybody changed their plans, made different decisions as a result? Not winging honestly, just curious. EMMY :err: Link to comment Share on other sites More sharing options...
Guest Windsor2 Posted April 24, 2008 Share Posted April 24, 2008 Hi Emmy, Great post! I am often wary that my posts can come across as a sales pitch or a showcase of our services, but the fact is you have to start planning the move in terms of all things financial as early as possible, because it will have a massive impact on the start of your new life. You're exactly right in highlighting the risks of growing inflation in Aus, as this has been a reason why they have raised their interest rates so much. Such high interest rates and such a booming economy make it an even more attractive country for foreign investment, which then strenghtens the AUD. Unfortunately nobody has a crystal ball.....the majority of you will be renting for 6-12 months (maybe more) and take the decision to leave the bulk of your funds in the UK. Those of you who do take this approach, then make sure you keep following the markets and watch the exchange rates. You can set target rates (or market orders) if you want, which are basically automatic buying tools for if and when the rates hit your desired level, and are great ways for achieving the peaks in the market. Obviously this does carry a certain element of risk as there is no gurantee your rate will be hit, but do start thinking about the various options available. Emmy, we have had conversations with a number of clients who are rethinking their plans due to the slowdown in the UK housing market and drop in the exchange rate, so you are not alone. It is a very difficult time to be selling £'s, but this is not just an issue for those moving to Australia! People moving to new Zealand and Canada face similar issue, as do those buying properties in Europe as the £ is weak across the board. However, you are still lucky enough to qualify for a visa and have the opportunity to move to such a lovely country. The lifestyle and job opportunities are the real reaosn you are going.....we all just keep our fingers crossed the rates pick up a little bit!! Good luck! Richard, HiFX. Link to comment Share on other sites More sharing options...
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