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Exchange rates - where will it all end???


Guest Tom the Pom

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Guest Tom the Pom

As most of you will already be a aware the Aussie Doller is at it's strongest against the Pound. (Currently $2.05 - £1) This is the worst news for all of us trying to sell our houses that are losing value every week and hoping to get the most of our money when we exchange.

 

Where is it all going to end???:arghh::arghh::arghh:

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Definetley the wrong time to move money wise you lose on your house then on exchange rate the only way around it is to rent your house for a few years for the price to recover and the economy to pick up so the exchange rate improves which unfortunetly wont happen in the time it takes to get our visa but not everyone can afford to do this a way of getting a cheaper mortgage to rent is to change the term back to 25 years and change it to interest only if any one else has any tips would love to hear them.

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Guest tony and sheena

I'd be interested in interest only , but how does it work? Are the lenders usually willing to do this, if so for how long?

Would it be in our favour to tell them we're emigrating and house is on market, or should we just say we're experiencing a bit of financial difficulty?

 

Sheena

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I would be honest with them dont forget they have a legal right to your property until its paid of.

the interest only option means your only pay interest on your mortgage when your mortgage term is up its up to you to find the finance to settle your debt but you just sell your house before that date

ie you extend your mortgage to another 25 years pay interest only then in 25 years you have to find the amount you owe but if you are living in oz you will have sold your house by then in the mean time you rent it which might cover your payments

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it always seems that the world follows america.

 

what i mean is america is on verge of recession and house prices have tumbled, now the uk house prices are going the same way....................is australia next?, i hope so as im hoping to get in on the next cycle down.

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Guest Tom the Pom

It's at 2.03 now!!!

 

I've been trying my best to save enough to buy a house outright when I get to Oz this is now out of reach due to the exchange rate.

 

I guess I'll have to get a mortgage like everyone else:arghh:

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Guest tony and sheena

Yeah, we were hoping to be almost mortgage free, but with the crap value on our house now and the poor exchange rate, we'll not have a pot to p*ss in.

 

Sheena

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Guest Tom the Pom

Getting a better house was one of the main reasons for going to Oz - I want more space

 

I hope it doesn't get to the point where it won't be worth it.

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Guest brissy_pom

Hi guys, i live in brisbane (emigrated nearly 3yrs ago), house prices have slowed down here, apart from a few doom and gloom stories nobody is anticipating a down turn or the recession to hit oz as hard as at has in US, if it hits at all. In terms of house size you can definetly get more for your money here - but it really depends where you want to live, closer to city or beach the more expensive it gets. Dont let finances put you off though - you may not have the financial advantage that were available over the last five years but its still a fantastic lifestyle.

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Guest mazza007

I bit the bullet yesterday and changed 50% of funds at 2.05, just in case things worsen, especially after seeing 2.03! I need all my money here in the next few months!

Very tough.

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Guest itskaren

We thought that we would be better off here in Melbourne with a bigger house etc. This has just not happened. We are in rented and just cannot afford to buy a house! Makes you wonder why we bothered in the first place. When we were looking at real estate a few years ago things were so different. I just didn't take into consideration of the huge increase in house prices. For what it has cost us to mover here approx $100k in total with one thing and another I could cry! At least we are healthy!!!!

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Guest JoanneHattersley

We got $200 out of our UK bank and wait for this.....the rate that we got charged was $1.98 to the UK pound!!!

 

AARRGGHHH!!! We were getting $2.46 when we arrived just over three years ago!

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Guest paulwbafc

The rate is going to get worse. On average for last 18 months it is falling by 10c to the pound every 2 months. The UK shall soon be in recession and this will cause a sharp fall in the exchange rate. I sold my house last year and exchanged at the rate of $2.20 to the pound. We move over next month. I forecast back then that it would fall further to $2 to the pound. Now it is $1.94 to the pound. If the uk hits recession expect it to drop to the $1.70s.

I said back then for a reversal in the exchange rate the mining boom must end in oz, or the uk must have a strong economy. It is going to be a long wait.

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Guest paulwbafc

The uk economy is on the floor. The gas and elec is rising at same rate as petrol. Energy bills on average expected to rise nearly 50% this year on 2007. Average elec and gas is 1300 quid a year. People in houses with chimneys are going back to coal which is cheaper. So much for carbon emisions.

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You may well be right Paul. However reading between the lines in the Aussie papers, their economy can't keep riding this high forever.....surely? Just this week I read in the Melbourne paper - The Age, that house prices have actually gone down in some areas. It's difficult to know who to believe!

 

It all comes down to if you're the gambling kind or not. If you want to play it safe then maybe this is the best time to change. Our economy is well and truly broken and it's going to take a miracle to fix it!

 

Good luck.

 

KK.

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Guest Graham&kym

News papers today...WA house prices to drop between 5-20 percent... Not good news if (like us) you bought in December!

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Guest The Snowdons

According to "Real Estate WA (North)" (25/04/2008) the front page headline read "House prices DRASTICALLY drop as listings soar".

 

The article says "Perth experienced a fall of almost 3 per cent on the median house price for the March quarter, according to preliminary data released today by the Real Estate Institute of Western Australia. The REIWA data shows a fall of 2.7 per cent on the median house price pulling it down from $470,000 at the end of last year to around $457,000 currently".

 

So, for people like us (recently granted our 136 visa and wanting to go) we just need the UK property market to stablise (or rise again - fat chance!) and more importantly see a rise in the dire exchange rate.

 

For us wannabe migrants, the best we can do at the moment is sit tight here in miserable old Blighty, and hope the Propery in Perth continues to fall in value.

 

Snowy

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Guest tony and sheena
According to "Real Estate WA (North)" (25/04/2008) the front page headline read "House prices DRASTICALLY drop as listings soar".

 

The article says "Perth experienced a fall of almost 3 per cent on the median house price for the March quarter, according to preliminary data released today by the Real Estate Institute of Western Australia. The REIWA data shows a fall of 2.7 per cent on the median house price pulling it down from $470,000 at the end of last year to around $457,000 currently".

 

So, for people like us (recently granted our 136 visa and wanting to go) we just need the UK property market to stablise (or rise again - fat chance!) and more importantly see a rise in the dire exchange rate.

 

For us wannabe migrants, the best we can do at the moment is sit tight here in miserable old Blighty, and hope the Propery in Perth continues to fall in value.

 

Snowy

 

Yeah, we keep hearing that prices in Oz are on the way down, but looking at the property sites it certainly doesn't seem like it! I asked that on here recently and someone told me that the sellers are accepting a lot less than the asking price, so prices are looking higher than they actually are!

 

Sheena

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