fleabo Posted September 11, 2010 Share Posted September 11, 2010 I can use my visa debit card to withdrawn cash foc in oz and also for shopping etc? This may work out to be quite an expensive method of buying Aussie dollars. You may want to think about using a dedicated FOREX company and move reasonable chunks of cash over from the UK to an Australian bank account as and when you need it (if you think that the exchange rate will improve in time). A lot depends on how much you will need and when. Good luck! Link to comment Share on other sites More sharing options...
Guest nigel50 Posted September 17, 2010 Share Posted September 17, 2010 I am also looking at moving over in November to Melbourne and have taken advice from one of the big 4 UK banks who I am fortunate enough to deal with on a regular basis and thus can get good recommendations. The one thing to learn is THAT NOBODY ACTUALLY KNOWS!! Once you get that clear you take the advice/views and opinions and make your own decisions. My situation: 1. I am not buying any property in the next two years in Aus. 2. I will only transfer a minimum cash balance to set me up and draw on in the first months. 3. I may lease or buy a car. This will be in AUD and will only utilise minimal UK funds as reqd. 4. I will try to save cash in order to become self sufficient in 3 months. ie. No UK draw downs. 5. I will avoid using UK cards due to cost per transaction wiping out any benefit. You have to remember the reason you move to Australia and they will be different for everyone. If it is financial you are likely to feel the pinch of the high standards of living already existing in Australia. having watched all the Wanted down Under series, the cost of property has come as a shock to many families which is crazy given the access to info on the net today. Link to comment Share on other sites More sharing options...
Guest girlwizz99 Posted September 17, 2010 Share Posted September 17, 2010 I am also looking at moving over in November to Melbourne and have taken advice from one of the big 4 UK banks who I am fortunate enough to deal with on a regular basis and thus can get good recommendations. The one thing to learn is THAT NOBODY ACTUALLY KNOWS!! Once you get that clear you take the advice/views and opinions and make your own decisions. My situation: 1. I am not buying any property in the next two years in Aus. 2. I will only transfer a minimum cash balance to set me up and draw on in the first months. 3. I may lease or buy a car. This will be in AUD and will only utilise minimal UK funds as reqd. 4. I will try to save cash in order to become self sufficient in 3 months. ie. No UK draw downs. 5. I will avoid using UK cards due to cost per transaction wiping out any benefit. You have to remember the reason you move to Australia and they will be different for everyone. If it is financial you are likely to feel the pinch of the high standards of living already existing in Australia. having watched all the Wanted down Under series, the cost of property has come as a shock to many families which is crazy given the access to info on the net today. Very smart! I am in the same situation. Are you on a temporary visa? There are some CGT implications if you are not as the ATO will want to tax any forex gains after your visa is validated. It would be tough to get stung on upside over 1.66! Link to comment Share on other sites More sharing options...
Guest nigel50 Posted September 17, 2010 Share Posted September 17, 2010 I'm not on any visa at all at present! I have been head hunted to take over the running of a couple of retail groups, I am still in preliminary discussions with both. i think my timetable looks like UK meetings later this month, visit to Aus in November, agree offer, move out in late nov on a short term visa/permit and commence 457 application. This has all happened rather quickly and i am not up to speed re any admin/visa etc yet at all. i have an immigration agent in place as of yesterday and will be taking advice next week. The simple rule of the money market is that everyone has a position, either buyer or seller and they all gamble! It is incredible to watch and be involved with, but awfully scary when it goes the wrong way. We buy a lot of USD to purchase goods in the Far East and it has been a similar rollercoaster for the past three years. As a simpleton who happens to get involved in such matters I take a simple approach. Is housing over valued in Aus? Yes based on average earnings and property values for say a 3 bed new home on a new development. Answer - rent. Car prices - are they higher than the Uk? Yes. Investigate import restrictions/cost for your car from the UK. Or buy one locally, my advice is a second hand car from a dealer with a good warranty, we don't know the area and it is probably the last thing you need to be worrying about on a dark night miles from anywhere you know! The exchange rates will fluctuate wildly in the coming months, interest rates will stay low initially in the UK but will have to rise, this will make the UK more attractive to investors looking for a safe haven for their cash. What will also be happening is a multitude of outside factors, USD/£ rate, AUD/£ rate and the Chinese economy movements, all of these and many more will affect both the economies and the exchange rates. My view is to bring what you need to Australia, nothing more, you can always get money sent over in 24 hours if you set it up before you leave. get a credit card in Australia asap, leave it alone and use it only in emergencies such as car repairs or flights home. THEN GET ON WITH WHY YOU MOVED................IF YOU CAN'T ENJOY BEING OUT AND ABOUT ON A FEW $$$ THEN YOU NEED TO ASK YOURSELF A FEW QUESTIONS! Link to comment Share on other sites More sharing options...
Guest girlwizz99 Posted September 17, 2010 Share Posted September 17, 2010 I'm not on any visa at all at present! I have been head hunted to take over the running of a couple of retail groups, I am still in preliminary discussions with both. i think my timetable looks like UK meetings later this month, visit to Aus in November, agree offer, move out in late nov on a short term visa/permit and commence 457 application. This has all happened rather quickly and i am not up to speed re any admin/visa etc yet at all. i have an immigration agent in place as of yesterday and will be taking advice next week. The simple rule of the money market is that everyone has a position, either buyer or seller and they all gamble! It is incredible to watch and be involved with, but awfully scary when it goes the wrong way. We buy a lot of USD to purchase goods in the Far East and it has been a similar rollercoaster for the past three years. As a simpleton who happens to get involved in such matters I take a simple approach. Is housing over valued in Aus? Yes based on average earnings and property values for say a 3 bed new home on a new development. Answer - rent. Car prices - are they higher than the Uk? Yes. Investigate import restrictions/cost for your car from the UK. Or buy one locally, my advice is a second hand car from a dealer with a good warranty, we don't know the area and it is probably the last thing you need to be worrying about on a dark night miles from anywhere you know! The exchange rates will fluctuate wildly in the coming months, interest rates will stay low initially in the UK but will have to rise, this will make the UK more attractive to investors looking for a safe haven for their cash. What will also be happening is a multitude of outside factors, USD/£ rate, AUD/£ rate and the Chinese economy movements, all of these and many more will affect both the economies and the exchange rates. My view is to bring what you need to Australia, nothing more, you can always get money sent over in 24 hours if you set it up before you leave. get a credit card in Australia asap, leave it alone and use it only in emergencies such as car repairs or flights home. THEN GET ON WITH WHY YOU MOVED................IF YOU CAN'T ENJOY BEING OUT AND ABOUT ON A FEW $$$ THEN YOU NEED TO ASK YOURSELF A FEW QUESTIONS! It is only a matter of time until property starts to come down in Australia and most analysts now believe this to be the case. It is also artificially high due to government stimulation and first time buyer grants. Additionally the Aussie economy is almost entirely dependent on mineral exports - principally to China - and the Chinese economic situation is not thought to long term sustainable due to the undervalued nature of the remnimbi. I would ship stuff over if you have a relocation package though - as many UK dvds as you can - TV here is abysmal, a decent car - if you have owned it overseas for more than 12 months - also below a certain value (can't remember how much) and British clothes - m&s kit etc as there aren't the equivalent stores here -although you can order from the internet easy enough. It is bloody refreshing to hear from someone who has some financial sense on this site......:err: Link to comment Share on other sites More sharing options...
fleabo Posted September 17, 2010 Share Posted September 17, 2010 China v's US - that is a match that only has one outcome.:biggrin: Link to comment Share on other sites More sharing options...
Parley Posted September 17, 2010 Share Posted September 17, 2010 It is only a matter of time until property starts to come down in Australia and most analysts now believe this to be the case. Not according to this article in Today's Age Real Estate | Outlook for residential property strong Link to comment Share on other sites More sharing options...
Guest gratom Posted September 17, 2010 Share Posted September 17, 2010 If you believe the above google a site called the unconventional econmist and read the article on property with reference to australia.:hug: Link to comment Share on other sites More sharing options...
fleabo Posted September 17, 2010 Share Posted September 17, 2010 Property prices are very localised - there are areas of Sydney that have been stagnant for years, other areas that have grown 20% per annum. I know that where we have been looking it is a buyers market - maybe 5-10% below advertised price is what you pay (but like I say it is localised). I have seen lots of 'market comment' recently saying how good the market is ... a sure sign... Link to comment Share on other sites More sharing options...
Les Avalook Posted September 17, 2010 Share Posted September 17, 2010 Very smart! I am in the same situation. Are you on a temporary visa? There are some CGT implications if you are not as the ATO will want to tax any forex gains after your visa is validated. It would be tough to get stung on upside over 1.66! Could you give an example of someone who has paid CGT on a forex gain as I believe this is often mentioned but never happens to private individuals whose gain is less than $50,000. (I know some may say fat chance but some of us hope the £ could rise 10%+). Link to comment Share on other sites More sharing options...
fleabo Posted September 17, 2010 Share Posted September 17, 2010 Could you give an example of someone who has paid CGT on a forex gain as I believe this is often mentioned but never happens to private individuals whose gain is less than $50,000. (I know some may say fat chance but some of us hope the £ could rise 10%+). No one in the last year probably:laugh: but I can't imagine how they would track such anyway... Let's hope CGT suddenly becomes a real possibility for us all in the next wee while! Link to comment Share on other sites More sharing options...
lyndalelodge Posted September 17, 2010 Share Posted September 17, 2010 Very smart! I am in the same situation. Are you on a temporary visa? There are some CGT implications if you are not as the ATO will want to tax any forex gains after your visa is validated. It would be tough to get stung on upside over 1.66! That's a bit worrying; is this definitely correct? :eek: Any idea where I could find this on the ATO website to apply it to my own circs? Link to comment Share on other sites More sharing options...
fleabo Posted September 17, 2010 Share Posted September 17, 2010 You are only paying tax on a GAIN. So you are better off anyhow, if they make it stick. So everyone gains - you and the ATO. Link to comment Share on other sites More sharing options...
Les Avalook Posted September 17, 2010 Share Posted September 17, 2010 No one in the last year probably:laugh: but I can't imagine how they would track such anyway... Let's hope CGT suddenly becomes a real possibility for us all in the next wee while! Someone who gained PR in May 2010 and moved their money over in early July could have made a 10% gain. :biggrin: Link to comment Share on other sites More sharing options...
fleabo Posted September 17, 2010 Share Posted September 17, 2010 Someone who gained PR in May 2010 and moved their money over in early July could have made a 10% gain. :biggrin: Yes - you're right - they would just scrape in at 10% - but made a gain so could pay tax - if it is true - lucky bast**ds.:wink: Link to comment Share on other sites More sharing options...
Parley Posted September 17, 2010 Share Posted September 17, 2010 My understanding (which may or may not be right) is you only make a gain when you go from one currency to another and then back again and make a profit. Eg Convert AUD to £ and back to AUD and make a profit. If you just do a one time conversion, how have you made a currency gain. You have just changed it at the prevailing rate, and your money is the same effectively. Link to comment Share on other sites More sharing options...
lyndalelodge Posted September 17, 2010 Share Posted September 17, 2010 This would be my understanding also. As a non resident with no Oz taxable property I don't understand how this could be measured and taxed? On arrival, the conversion to dollars presumably makes it Oz property at that time, but I haven't made any gain on the Oz property yet. But if someone knows differently, I'd be keen to know the detail? Link to comment Share on other sites More sharing options...
Guest GeorgeD Posted September 17, 2010 Share Posted September 17, 2010 Someone who gained PR in May 2010 and moved their money over in early July could have made a 10% gain. :biggrin: Could they gift it to someone else? I mean, transfer from offshore to a family member for example...there's no tax on gifts and no limit on money coming into the country is there? Link to comment Share on other sites More sharing options...
fleabo Posted September 17, 2010 Share Posted September 17, 2010 May be the theory goes...when you become resident for tax purposes in Australia, your wealth is 'assessed' and valued. Any captial gain from then on is then taxable in Australia. What the reailty is, I really don't know. Link to comment Share on other sites More sharing options...
Guest nigel50 Posted September 17, 2010 Share Posted September 17, 2010 The housing market will lag behind the rest of any economic fluctuation due to the perfectly understandable inclination of the home owners to not drop their price unless they are forced to do so by outside factors. We have seen in the UK and the US that whilst prices rise very quickly ( because we all like that) they fall much more slowly to the point that nothing sells! Buyers wait for prices to fall, owners dont market their property at the right price, leading to a stagnant market where eventually there is not enough supply! The Australian market is being internally stimulated as you rightly point out, but it has also had strong immigration and relatively affordable money. The UK unemployment will rise once the cuts to services and manpower come into effect, this will affect all govt depts, armed services and emergency services. It could put up to 1m on the dole if things get worse elsewhere. I am looking at bringing over my BMW car or my bike if I'm only allowed one vehicle. As to clothes etc, I am a retailer and you don't ever want to go shopping with one of those! I can shop for Europe....and often do! I'm also lucky to be able to travel overseas occassionally with work as well. Let me loose in woodbury Common NY and I can do a 7 page Visa bill in hours! Link to comment Share on other sites More sharing options...
Jibbah24 Posted September 17, 2010 Share Posted September 17, 2010 I'm not on any visa at all at present! I have been head hunted to take over the running of a couple of retail groups, I am still in preliminary discussions with both. i think my timetable looks like UK meetings later this month, visit to Aus in November, agree offer, move out in late nov on a short term visa/permit and commence 457 application. This has all happened rather quickly and i am not up to speed re any admin/visa etc yet at all. i have an immigration agent in place as of yesterday and will be taking advice next week. The simple rule of the money market is that everyone has a position, either buyer or seller and they all gamble! It is incredible to watch and be involved with, but awfully scary when it goes the wrong way. We buy a lot of USD to purchase goods in the Far East and it has been a similar rollercoaster for the past three years. As a simpleton who happens to get involved in such matters I take a simple approach. Is housing over valued in Aus? Yes based on average earnings and property values for say a 3 bed new home on a new development. Answer - rent. Car prices - are they higher than the Uk? Yes. Investigate import restrictions/cost for your car from the UK. Or buy one locally, my advice is a second hand car from a dealer with a good warranty, we don't know the area and it is probably the last thing you need to be worrying about on a dark night miles from anywhere you know! The exchange rates will fluctuate wildly in the coming months, interest rates will stay low initially in the UK but will have to rise, this will make the UK more attractive to investors looking for a safe haven for their cash. What will also be happening is a multitude of outside factors, USD/£ rate, AUD/£ rate and the Chinese economy movements, all of these and many more will affect both the economies and the exchange rates. My view is to bring what you need to Australia, nothing more, you can always get money sent over in 24 hours if you set it up before you leave. get a credit card in Australia asap, leave it alone and use it only in emergencies such as car repairs or flights home. THEN GET ON WITH WHY YOU MOVED................IF YOU CAN'T ENJOY BEING OUT AND ABOUT ON A FEW $$$ THEN YOU NEED TO ASK YOURSELF A FEW QUESTIONS! I agree with pretty much all the points made and am a strong advocate of the 'Keep It Simple Stupid' approach as this with a good dose of common sense will normally see you right. After a lot of 'mulling' things over we have now decided to rent for the first year or two when we get back to OZ. We will be letting out our main residence in the UK as opposed to selling in a flat market and sticking the money in a UK bank offering next to no interest or worse still converting to AUD. We will also be keeping our UK investment properties which are all pretty well set with good yields and LTV levels. The vehicle situation seems another non-brainer to me. Why sell a car cheap in what is a pretty flat 2nd car market in the UK, then change your money to AUD in a crap exchange rate and buy another/the same car in Oz where cars are clearly more expensive....especially luxury cars. My XK8 will certainly be coming with us!! :biggrin: Once you are earning AUD you should only need to dip into your UK stash for emergencies. I use one of the credit cards which don't charge you for foreign transactions and adjust their exchange rates daily...often providing a very decent rate as well!! Was also pleased to hear that one can continue to purchase items in the UK and have them shipped to AUS pretty cheaply as this means you can also utilise your UK funds and avoid the exchange rate.!!! Am actually feeling much better about things now!!!! :jiggy: Link to comment Share on other sites More sharing options...
Guest guest32776 Posted September 18, 2010 Share Posted September 18, 2010 Not according to this article in Today's AgeReal Estate | Outlook for residential property strong You can always find a contrarian opinion. If you google 'Australian housing market' all the reports it throws up are negative on growth prospects and most foresee a decline. Are you long Aussie property? Link to comment Share on other sites More sharing options...
fleabo Posted September 21, 2010 Share Posted September 21, 2010 There goes another 3 cents in 24 hours...:nah: Link to comment Share on other sites More sharing options...
Les Avalook Posted September 21, 2010 Share Posted September 21, 2010 There goes another 3 cents in 24 hours...:nah: World stock markets had another good day and the $ Aud seems to follow that. First time since May I have seen $1.62 quoted. Link to comment Share on other sites More sharing options...
fleabo Posted September 29, 2010 Share Posted September 29, 2010 More 'new lows' today...:embarrassed: Link to comment Share on other sites More sharing options...
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