Shaundawn

Hi all

We've just sold our house in the UK and will be bringing the money over in the next month or so.....but the exchange rate is going backwards again....and rapidly. I've just looked at Hifx and it's 1.74 now.

We will put the money in a Hifx account account until ready to buy here, think this is the best thing, but any advice would be appreciated.

Cheers S & D

old.sparkles

I'd have been happy with 1.74 - I got 1.45. Moved it over anyway and it's been earning interest here (not enough to account for the change though but exchange rates can go both ways)

Shaundawn

Thanks for replying, come to think of it, 1.74 is better than what it was 12 - 18 months ago. I think because it was something like 1.83 a couple of months ago, it seems to be falling again, but it comes and goes!

spouse of scouse

I always think that this is the third certainty of life - fluctuating foreign exchange rates. I like Sparkles take on it - you've actually done quite well and could have done much worse!

BUT! - unless things are very different in the UK compared with Australia, for God's sake don't transfer your money through a bank. Their exchange rates are abysmal (they are over here, anyway). Get onto a reputable foreign exchange agency such as Forex and check out their rates. For larger sums there are no transaction fees at all, and for very large sums (such as the proceeds of a home sale) you can even negotiate a higher rate with them. Best of luck

Shaundawn

Yep, we've been advised to transfer through someone like Hifx or Ozforex and not through the bank. Thanks for your reply.

OzTennis

It has been around and just above $1.80 for much of 2014 but dropped a few weeks ago below that. The reason for the drop from $1.77 to $1.74 in a word is Referendum. Due to the uncertainty over the result as the Yes vote has been strengthening of late this has affected the pound. I'd advise waiting until after September 18th for currency transfers to see what the result is (likely to be No). It's a good time to be holding some Australian dollars and converting them into £'s though.

Tramps_mate

Going the right way for me to move my super back to UK! Hurray!

koalakim

We went through all this 5 years ago! Things haven't improved much have they?!!!

Sold our UK place just as it was around $2 to the pound, thought it was a minor blip but then it kept on going down. I rapidly became a FX expert and watching when the pound made gains etc which I worked out was at 4am in the morning, so we set up an auto buy now thingy on HiFX.

We were about to put down a deposit on a block so needed the money over and eventually got $1.80 which turns out a good move as it just kept on falling after that.

However, it still pains us as we lost a hell of a lot of money which would have made life very much easier especially being self-employed. Ahem.....

So after 5 years is under $2 the new norm until Oz takes an economic dive or the BoE decides that it wants the pound to be stronger...anyones guess!

You just have to decide what is right for you, if we had waited to buy until it hit $2 again we'd still be waiting and renting. We would have had to bring the money over as it wasn't earning anything in the UK but at least here the interest rates are higher. Good luck!

paulry

There have been a few news articles lately that suggest things are likely to change next year that will result in an easing in the value of the Aussie dollar.

'Clear and present danger': Australia to be hit as Chinese economy starts unravelling

https://au.news.yahoo.com/a/24909280...ock-economist/

Economy enters danger zone

The Chinese economy's Breaking Bad moment

Beoz

Same here. I want to build on some land in the UK.

OzTennis

True and this rate won't hold over the long term but the current situation illustrates why it is so unpredictable. The rate was around $1.77 and a whole set of better stats for the UK economy were released. The pundits predicted a strengthening of the pound against the dollar but it's fallen due to other factors.

paulry

Yes, sometimes there seems to be no rhyme or reason. The rate a few weeks ago was around 1.84 but now it's dropped right back. But the China problem is massive - it would be hard to see how Australia can maintain it's pumped up exchange rates if things go pear-shaped there.

Bazza Boy

S & D, if you're talking about moving as much money as the proceeds from your house, I wouldn't be using HiFx. OzForex are always better - I've got accounts with both (since we moved to Perth in 2006).

I wouldn't usually have said anything as the rate difference between the two companies isn't always massive. But as I say, if you're talking house proceeds, then it will mean a lot more in your pocket upon settlement.

p.s. if you're worried about the FX rate going south, lock in a forward deal. That's what I did in July 2006 > value November 2006.

EvannTel

Interesting. Some years ago now but I found the exact opposite to be true!
I guess the advise is if you have a decent amount, shop around!

paulry

To the OP: I'd wait a bit.

FOREX-Dollar climbs to 6-year high vs yen, Aussie slumps | Reuters

http://www.theage.com.au/business/ma...10-10ervp.html