What is your bench mark exchange rate figure?

[mr luvpants]

I was adamant that we were not going to exchange our cash unless the rate hit 2 dollars to the pound. However I am beginning to wonder if that is being a bit optimistic! Lately I am beginning to think that $1.80 to the pound is going to be a more realistic figure. The rate hit the 1.80 mark last week and dropped again and since a leak last night that China's economy is slowing, it has risen today to $1.75.

 

What is everyone else thinking?

 

JOHN

[terry & Melanie]

We are in the same boat John. we wernt going to exchange til $2 to the pound but now we are going to exchange £20K as soon as we reach $1.8 to tide us over, and then change it in smaller ammounts from there. not wanting to put all our eggs in one basket! If you can edge your bets and hope that you might still exchange some of your money at $2. Depends on hpw much you are changing and how much you need immediately on landing.

Melanie x

[lilly]

I was adamant that we were not going to exchange our cash unless the rate hit 2 dollars to the pound. However I am beginning to wonder if that is being a bit optimistic! Lately I am beginning to think that $1.80 to the pound is going to be a more realistic figure. The rate hit the 1.80 mark last week and dropped again and since a leak last night that China's economy is slowing, it has risen today to $1.75.

 

What is everyone else thinking?

 

JOHN

2 to 1 but small amount at 1.80 if it gets there again

:twitcy::jiggy::skeptical:

[fleabo]

Anything more than $1.65 is a bonus. Don't wait too long - interest rates may steam ahead in Australia, whilst in the Autumn the UK Government and the banks have got to work out what to do about repaying some of the £800M we loaned them.

 

That said $1.90 or $2 would be nice!:wink:

[Guest guest33730]

John,

 

I have a suspicion it will be at 2-1 within a year and will next jump the moment the UK put up interest rates. - I'm the same as a few others in that I'm bringing over what I need but will leave the rest til things improve.

 

Daniel

[Guest cazbeckham]

Exchange rate hit us really hard.

When we arrived in October 08 we brought all our house money over at a good rate and also locked in bringing our pension over for 1 year so all was pretty good.

Then last December it hit a bad rate and we lost $600 per month when we had to set up pension again, this time only for 6 months to see how it went, then when we locked in another 6 months in May this year we lost another $200 a month.

And that is all money we have to live on.................... let's hope by the end of the year all will be good again.

[mr luvpants]

We are not coming out till the end of the year so its difficult to decide what to do?

 

JOHN

[Guest Guest31881]

Exchange rate hit us really hard.

When we arrived in October 08 we brought all our house money over at a good rate and also locked in bringing our pension over for 1 year so all was pretty good.

Then last December it hit a bad rate and we lost $600 per month when we had to set up pension again, this time only for 6 months to see how it went, then when we locked in another 6 months in May this year we lost another $200 a month.

And that is all money we have to live on.................... let's hope by the end of the year all will be good again.

 

I receive an NHS pension and cannot lock to a rate (good or bad ?) it is paid monthly at the prevailing exchange rate and like you it gets painful when the rate drops, when you lose $600 a month due to something you have no control over it is sickening. But at least we have managed to keep our sense of humour.:jiggy:

 

For those waiting to bring money over, if it was me I would wait a few weeks and exchange a small amount at a time and try to keep a safety net just in case it drops dramatically again. but $2 would also be my target rate.

[crazmook]

Hi All,

 

It's funny how we are all forced to reassess as we progress on our journey to Oz! When we began and pencilled in the figures back in late 2008, we were working on 2.2-2.3 to the £! Now we would be happy with 1.8. I think we will take some money initially and then change the rest in a year or so if we buy a house, hopefully at higher than 2-1, and take the tax hit on the gain. Saying that, if Oz interest rates continue to rise faster than the UK it may be better to take the initial low exchange for higher interest on the savings when in Australia.

 

Not normally a gambling person, but this looks to be one of the biggest gambles we will make!

 

Hope it all works out good for everyone.

[mr luvpants]

Hi All,

 

It's funny how we are all forced to reassess as we progress on our journey to Oz! When we began and pencilled in the figures back in late 2008, we were working on 2.2-2.3 to the £! Now we would be happy with 1.8. I think we will take some money initially and then change the rest in a year or so if we buy a house, hopefully at higher than 2-1, and take the tax hit on the gain. Saying that, if Oz interest rates continue to rise faster than the UK it may be better to take the initial low exchange for higher interest on the savings when in Australia.

 

Not normally a gambling person, but this looks to be one of the biggest gambles we will make!

 

Hope it all works out good for everyone.

 

 

That is what I was thinking. You can get 7% on your savings in oz. £100,000 changed at 1.8 = $180,000. One year in a 7% savings account = $192,600. Which is not far off the target.

 

Dont know how much tax you would pay on that though?

 

JOHN

[Guest gratom]

On another web site similar to this[clues are;second letter of alphabet and fifth letter]there is a long running thread on precisely this issue;with contributions by some very well informed and erudite investors.As usual you get a diversity of views,but they are very informative.

For what its worth;[my opinion only]I think the pound will go to two dollars about the Jan'.There is to be a comprehensive spending review in the UK in the autumn and that is next substantial obstacle to it rising.The £ has become grossly undervalued--markets are like herds;always follow the crowd whether it is upwards or downwards.For example;I saw an advert in the window of a chain of shops for both f/t and p/t staff;and similar in two other shops.The employment position is better than the pundits make out.The UK has a unique talent for talking itself down;whilst Oz does exactly the opposite.

As for the Oz economy;it has a gross housing bubble[another thread on that issue on above site]and is over dependent on China[don't trust Chinese economic stats' they are extremely unreliable].As the yuan rises Oz will suffer--that is just beginning that is one reason why the pound is rising.As for the world economy I remain in the pessimistic school[try looking at sites such as Motley fool,zerohedge or global economic trends or economywatch.com].Australia has lived in a bubble for the last few years;now reality is very slowly kicking in and things may not be so good in the future.As I'm invested in the cash,currency and share markets I win either way--short of the whole world economy going pear shaped.Have a look at the threads on the alternative site and make your mind up:hug:

[Guest adsmith]

Were in the same boat too. I set up a Moneycorp acct at the end of last week (just before it hit 1.80) I was umming and arring about whether it would carry on up and I waited through Monday and then watched each day as it plummeted by 10 cents back to 1.70.

Its horrible cos its just like gambling but on a grand scale and with your hard earned cash. I hate it.

 

Moneycorp have been really helpful though. I spoke with a chap yesterday and Im shifting 10K at 1.77 and another 10K if it hits 1.80. We go in Sept so Im keen to get a bit over there for when we arrive and I dont want to be forced into whatever rate were on in September

 

I hope what gratom says above is true - roll on Jan and Ill bring all my wedge over!

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[sgperry]

We did all our budgeting on a rate of $1.70 to the pound, figuring anything above it would be a bonus.

 

It was a bit worrying when the rate dropped to $1.65 a week before we flew out but thankfully when it recently rose again, I was advised to set a stop loss order at $1.75 (I was trying to hold out for $1.80 but it just didn't make it). I exchanged just in time as it dropped the next day.

 

On the bright side though, I am getting 6.2% interest on the money in my Oz account and house prices have been in freefall in the area in Queensland I am looking at - so I guess its all swings and roundabouts really.

 

And I guess at the end of the day you cut your cloth to fit.

[Les Avalook]

That is what I was thinking. You can get 7% on your savings in oz. £100,000 changed at 1.8 = $180,000. One year in a 7% savings account = $192,600. Which is not far off the target.

 

Dont know how much tax you would pay on that though?

 

JOHN

 

You will pay tax on interest at the same rate as you pay on your earnings, budget for at least 20%.

 

I f you want to exchange at $1.80 you will have to wait until it hits $1.82 to get a good chance of getting what you want.

 

What bank quoted 7% John?

[Les Avalook]

Were in the same boat too. I set up a Moneycorp acct at the end of last week (just before it hit 1.80) I was umming and arring about whether it would carry on up and I waited through Monday and then watched each day as it plummeted by 10 cents back to 1.70.

Its horrible cos its just like gambling but on a grand scale and with your hard earned cash. I hate it.

 

Moneycorp have been really helpful though. I spoke with a chap yesterday and Im shifting 10K at 1.77 and another 10K if it hits 1.80. We go in Sept so Im keen to get a bit over there for when we arrive and I dont want to be forced into whatever rate were on in September

 

I hope what gratom says above is true - roll on Jan and Ill bring all my wedge over!

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I transfered Monday 5th when mid rate hit $1.80ish and found UKForex beat Moneycorp by 1/2 cent and HiFix by 1 cent on the $11,000 transfer.

 

HiFix & UKForex is an online price but Moneycorp you phone and haggle.

Don't forget to mention PIO to skip the £15 charge with Moneycorp for smaller amounts (but I think they get it back by adjusting the rate).

[Les Avalook]

Were in the same boat too. I set up a Moneycorp acct at the end of last week (just before it hit 1.80) I was umming and arring about whether it would carry on up and I waited through Monday and then watched each day as it plummeted by 10 cents back to 1.70.

Its horrible cos its just like gambling but on a grand scale and with your hard earned cash. I hate it.

 

Moneycorp have been really helpful though. I spoke with a chap yesterday and Im shifting 10K at 1.77 and another 10K if it hits 1.80. We go in Sept so Im keen to get a bit over there for when we arrive and I dont want to be forced into whatever rate were on in September

 

I hope what gratom says above is true - roll on Jan and Ill bring all my wedge over!

ad

 

Seems a safe option, have you booked those rates? Could be worth checking UKForex on the day, see my last post. All these money brokers will deal, it's just they are a lot better at it than us.

 

I feel the odds are better now for the UK going forward, I think by January you will have a better rate of exchange than now but it could be worth setting higher transfer rates if the chance arises., another £10K at $1.85, $1.90 etc.

 

In this market it is all about keeping a good average rate of exchange rather than hope to get the one good day.

[mr luvpants]

You will pay tax on interest at the same rate as you pay on your earnings, budget for at least 20%.

 

I f you want to exchange at $1.80 you will have to wait until it hits $1.82 to get a good chance of getting what you want.

 

What bank quoted 7% John?

 

Cant remember. I saw it in an advert whilst in oz last month.

 

JOHN

[Les Avalook]

Cant remember. I saw it in an advert whilst in oz last month.

 

JOHN

 

Maybe Rabodirect 4 and 5 year term savings 7% and 7.3% before tax. Good spot.

 

 

RaboDirect - RaboDirect Term Deposit | InfoChoice

 

I thought perhaps you had seen the mortgage rate. :wacko:

[PontePom]

We already moved over £10,000 and have about the same to move again very soon...

 

Also aiming for $1.80 now.

 

We've found ukforex to be very good.

 

I got about another 3 weeks to move it over ready for when we get their 4 weeks on Monday.

 

Whenever the house does sell, we'll wait until the rate eventually gets back to something better. £1 --> $2 maybe just a dream now.

 

Lets hope the rate does eventually climb and help us all out

 

Howard

[Guest The Ropey HOFF]

I was adamant that we were not going to exchange our cash unless the rate hit 2 dollars to the pound. However I am beginning to wonder if that is being a bit optimistic! Lately I am beginning to think that $1.80 to the pound is going to be a more realistic figure. The rate hit the 1.80 mark last week and dropped again and since a leak last night that China's economy is slowing, it has risen today to $1.75.

 

What is everyone else thinking?

 

JOHN

 

2.2 mate.

 

will it ever go up so high again with Australia doing so well and the uk doing so badly, the experts say its gonna be years before the uk will get back up from where it has plummeted financially.

 

2.1 mate, just revised because of my above comments.:wink:

[Guest peacock]

once the oz election is sorted the dollar will gain ground, UK has to much debt , the currency will stay in the doldrums for years

[Guest floater]

The pound WILL get stronger, it just depends if all of us can wait long enough. I leave in 3 weeks and have already sent £10 thou @ $1.75. I regret not sending another when we hit $1.82 but that's the game of Russian roulette that we are playing. For the bulk of our savings I'm holding out for $2, bear in mind that 2 months ago we were seeing $1.62 now we have seen $1.82. Who knows what next week will bring?

[sgperry]

I think you're right - the pound will improve. However, I reckon it will be another 6 months before it does.

[Guest peacock]

The pound WILL get stronger, it just depends if all of us can wait long enough. I leave in 3 weeks and have already sent £10 thou @ $1.75. I regret not sending another when we hit $1.82 but that's the game of Russian roulette that we are playing. For the bulk of our savings I'm holding out for $2, bear in mind that 2 months ago we were seeing $1.62 now we have seen $1.82. Who knows what next week will bring?

 

have you worked out the interest rate you could be getting in Oz compared to the low rates in the Uk, by holding money there hoping for the pound to gain strengh could take years.

[mrcatania]

Don't get me started on this old chestnut again..... 2.2 .....Anything lower than that and I am afraid it is not commerially viable coming out here. Simple. You will get fek all for your cash and you stand to loose tens of thousands of pounds. Moving here now is only worth doing for new applicants who are just starting out and are budgeting on 1.75.