weener No 2

I'm currently looking into Oz for a vacation with the possibility to moving and did a little research on the £ vs $.

Was a little shocked on how much the rate has changed over the past 5 years.

Looking into the historical exchange rate over the past 15 years (excluding the last 5) it seems to fluctuate between $2.1 - 2.8 to the £1, with a average around the $2.3 mark.


Million dollar question here but will these rates return in the near future as it just looks to be on a constant slide at the moment,

I know the £ has lost alott of strength in other currencies but not as extravagant as the Oz $.

With a exchange rate that much different it must be a tough call what to do for the people currently looking at selling there house and changing over large amounts of money.

Going by past experience this subject normally causes alott of discussion but would be interesting the hear everyone's point of view.

Wol

Brave man who makes a prediction on future rates!

IMO the Australian dollar is very strong - but hangs by quite a thin thread. It's high mainly because of the mining industry and because interest rates are out of line with the rest of the world.

If the Chinese catch a mild cold, or if interest rates go down moderately, relative to the ROTW, the dollar could drop quite rapidly.

On the other hand, since most of the ROTW's economies are now based on fictitious money, it could surge.

Them's my firm prediction

isgraham

Given that the bank of England have stated that they will keep interest rates low until at least 2013 there will be no recovery in the pound until then. Of course The Australian dollar could fall when china eventually run into trouble but that's not the same as the pound improving.

It's an easy call on selling a house and moving the equity to Australia and my call is that's it's an exceptionally bad idea at the present time.

Beoz

Thems my thoughts as well. Pounds are staying as pounds right now.

It's worth remembering that those who are earning $A right now are usually earning a very good £GBP. Leaving the UK property and working down the UK morgtage with A$ can be a worthwhile move.

Bermudashorts

Precisely what we are doing, goal is to have it paid off by the end of next year.

I also agree with isagraham, for us it was not at all difficult to decide whether we should sell up and moving capital at this point.

weener No 2

I dont know any of the in's and outs of the why the strenght of the pound flucutuates, but the above comments have been a interesting insite.

I can only look into the Historical exchange rate and its currently around $1.5 - £1 which is the lowest its even been.

I'm guessing eventually things will return to the so called "Norm" and as I'm just looking into beginning the process it may improve by the time we think of moving.

Not good for the vacation were saving for in 2013 though

I like the idea of earning a $ and paying of the £ Mortgage though...