Exchange rate
Sep 7th 2010, 12:01 pm
#2626
Wanna-be Canadian
Joined: May 2008
Posts: 176
Re: Exchange rate
Admittedly, we haven't been at this as long as some, but even we have seen the buying power of our £s go down a lot. When it is the value of your house equity, a little drop equates to big money. Add to that the housing market decline and we are hit on both fronts.
If all goes to plan we will get PR next year Easter to summer and we are hoping by that time the rate of exchange will be a little healthier for people transferring £ to $CAD. But I believe it is best to work on the worst case scenario as far as assessing budget for our home in Canada and then any extra will be a bonus. It may mean we can't afford exactly what we want at the start, so I have just had to think creatively and make plans that can be accommodated by our minimum budget if needs be. That might mean renting or living in a trailer on our plot for a while before we build our house, but it will not stop me going to reunite with my husband! NO WAY!
I'd rather be 'trailer trash'
!
If all goes to plan we will get PR next year Easter to summer and we are hoping by that time the rate of exchange will be a little healthier for people transferring £ to $CAD. But I believe it is best to work on the worst case scenario as far as assessing budget for our home in Canada and then any extra will be a bonus. It may mean we can't afford exactly what we want at the start, so I have just had to think creatively and make plans that can be accommodated by our minimum budget if needs be. That might mean renting or living in a trailer on our plot for a while before we build our house, but it will not stop me going to reunite with my husband! NO WAY!
I'd rather be 'trailer trash'
!At this stage a move to Canada is still a pipe dream for me, but if I was in your shoes it would take a lot to put me off the move - fingers crossed the exchange rate corrects itself.
...and about trailer parks. From what I've seen they not all bad, some are rather nice in fact. And, while living in your trailer you can pretend to be a part of The Trailer Park Boys gang. An excellent Canadian comedy programme aired in the UK - I got the box set from Amazon... http://www.amazon.co.uk/Trailer-Park...3860743&sr=1-1 .
M.
Sep 7th 2010, 12:26 pm
#2627
BE Forum Addict
Joined: Jul 2008
Location: Nova Scotia (from Scotland)
Posts: 1,032
Re: Exchange rate
we will be going regardless. We don't have a lot of savings, so a poorer rate is definitely not good, but I don't see how we can just wait and wait in the hope it might improve when there's no guarantee it will. Our move isn't imminent... if we're successful we'll go out in the next year or two, so I'm hopeful that is long enough to see some improvement!
Sep 8th 2010, 10:03 am
#2628
BE Enthusiast
Joined: Jul 2007
Location: Edmonton
Posts: 340
Re: Exchange rate
I really feel for all of you who are in the immigration process. You probably got the ball rolling years ago when the exchange rate was usually $2+ to the UK pound, and now look at it.
I still don't see why Sterling has been so hard hit. The economy growth figures are usually better than expected and the national debt isn't so large as many analysts make out - we are basically in the same boat as other nations but for some reason are getting a kicking from the doom mongers.
Hopefully China will need to unpeg is currency and let the market decide it's true value and America will realise it needs to print more money... these two things alone should help.
Again, my heart goes out to those are in the position of needing to exchange currency now, taking a 20% hit on what you currently get, and what you thought you'd get can't be easy.
QUESTIONS...
Just out of curiosity, what are the feelings of forum members on the current situation - will the exchange rate effect your decision to make the move to Canada, or will it merely delay it untill the financial markets calm down.
How high, or low, would the exchange rate need to be in order for you exchange funds for Canadian dollars, or postpone your move abroad ?
Mark.
I still don't see why Sterling has been so hard hit. The economy growth figures are usually better than expected and the national debt isn't so large as many analysts make out - we are basically in the same boat as other nations but for some reason are getting a kicking from the doom mongers.
Hopefully China will need to unpeg is currency and let the market decide it's true value and America will realise it needs to print more money... these two things alone should help.
Again, my heart goes out to those are in the position of needing to exchange currency now, taking a 20% hit on what you currently get, and what you thought you'd get can't be easy.
QUESTIONS...
Just out of curiosity, what are the feelings of forum members on the current situation - will the exchange rate effect your decision to make the move to Canada, or will it merely delay it untill the financial markets calm down.
How high, or low, would the exchange rate need to be in order for you exchange funds for Canadian dollars, or postpone your move abroad ?
Mark.
Hi
We keep talking about this and waiting for PR (whenever that'll be). One step at a time for now. Once PR comes then time to look at jobs and see what the salary brings in. Then make a discission for either husband to go first and we arrive later, to build up some extra funds that we've lost. Or remember we can hold off for a few years, wait for he market to pick up a little and save some more. It's got sooooo complicated over the last two years. My house is worth 30K less and houses are rarely selling at the current house prices. Now the exchange rate is down. Spent the last few years finishing house off to sell. Things appear to be tight, very tight.
I'm not overly sure which way we'll go, like I said take a step at a time.
This has happened to us and others' all at the wrong time!! Typical!
Nothing more we can do other than cut our loses, and not so eager to do that if things don't turn out right for us in Canada. At this moment of time it feels like a BIG risk but it may not be???
Angela
Sep 8th 2010, 10:27 am
#2629
BE Enthusiast
Joined: Sep 2008
Location: Edmonton, AB
Posts: 449
Re: Exchange rate
We will also be going regardless on 30th October. Unfortunately there is no way around the poor exchange rate. When we started the process it was about $1.80 to the £ so has never been that great anyway.
Tim
Tim
Sep 8th 2010, 10:39 am
#2630
BE Enthusiast
Joined: Jul 2007
Location: Edmonton
Posts: 340
Re: Exchange rate
It is when you've got three things going on, house price crash and exchange rate. Also houses not selling so have to reduce house price again just to sell it quicker!
Angela
Sep 8th 2010, 10:41 am
#2631
BE Enthusiast
Joined: Sep 2008
Location: Edmonton, AB
Posts: 449
Re: Exchange rate
Tim
Sep 8th 2010, 11:48 am
#2632
Forum Regular
Joined: Mar 2007
Location: By the Ocean, NS
Posts: 270
Re: Exchange rate
It is totally gutting to have to exchange at a rate where your savings are worth far less than you were expecting, but it is what it is. Canada was our dream and we are still going for it, just not in the way and location we had originally planned. As it turns out, our plan B is looking good, having just spent a very happy summer in our new home.
Was planning to exchange the money for our cars this week, seeing the rate go up to 1.63 last week. More grim data out of the UK has pushed the rate back below 1.60. I think the best bet for it to start upwards again is if the BOE put the interest rate up tomorrow. It's not going to happen though is it?
Was planning to exchange the money for our cars this week, seeing the rate go up to 1.63 last week. More grim data out of the UK has pushed the rate back below 1.60. I think the best bet for it to start upwards again is if the BOE put the interest rate up tomorrow. It's not going to happen though is it?
Sep 8th 2010, 1:25 pm
#2633
Joined: Aug 2005
Posts: 14,227
Re: Exchange rate
Probably not. Not for at least 5 years and possibly more as the major economies are now trapped in ZIRP. The people you really need to feel sorry for because of this are those within 10 years of retirement - pension fund managers are having to take bigger and bigger risks to find any sort of yield and annuity rates are at all time lows.
Sep 8th 2010, 4:19 pm
#2634
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Exchange rate
It is a very good reason to diversify you retirement savings.
* Yes, we can blame Maggie for this.
Sep 9th 2010, 3:41 pm
#2635
BE Enthusiast
Joined: Sep 2003
Location: Christina Lake. BC
Posts: 674
Re: Exchange rate
QUOTE Alan2005 Probably not. Not for at least 5 years and possibly more as the major economies are now trapped in ZIRP.
Interest rates who knows, they are being kept artificially low by the government as are the inflation figures if they do keep them at this level for the next four or five years the pound will plummet and eventually there will be big problems for the government trying to refinance its borrowing. The UK is getting close to be insolvent along with the Pig country’s how long before there is wide spread civil unrest and the IMF is called in.
QUOTE Alan2005 The people you really need to feel sorry for because of this are those within 10 years of retirement - pension fund managers are having to take bigger and bigger risks to find any sort of yield and annuity rates are at all time lows.
I don’t those people have grown up in the golden age borrowing from their Children’s and Grandchildren’s future and leaving them with a mountain of debt to pay back and massive pension liabilities. Can’t see the under 30 retiring on any think like the pensions that are available now and what will their retirement age be 80 plus if they can get a job.
Interest rates who knows, they are being kept artificially low by the government as are the inflation figures if they do keep them at this level for the next four or five years the pound will plummet and eventually there will be big problems for the government trying to refinance its borrowing. The UK is getting close to be insolvent along with the Pig country’s how long before there is wide spread civil unrest and the IMF is called in.
QUOTE Alan2005 The people you really need to feel sorry for because of this are those within 10 years of retirement - pension fund managers are having to take bigger and bigger risks to find any sort of yield and annuity rates are at all time lows.
I don’t those people have grown up in the golden age borrowing from their Children’s and Grandchildren’s future and leaving them with a mountain of debt to pay back and massive pension liabilities. Can’t see the under 30 retiring on any think like the pensions that are available now and what will their retirement age be 80 plus if they can get a job.
Sep 9th 2010, 3:43 pm
#2636
BE Enthusiast
Joined: Sep 2003
Location: Christina Lake. BC
Posts: 674
Re: Exchange rate
[QUOTE=JonboyE;8834365]Agreed. It is a big problem with the UK retirement savings system. So many people were persuaded to opt out of SERPS in the 80s and put their money into personal pension plans*. Same with companies moving from final salary to money purchase pension plans. With these plans you have no option but to convert the value to an annuity when you reach retirement age. If you happen to reach retirement age at a time when annuity rates are low you are stuffed for the rest of your life.
It is a very good reason to diversify you retirement savings.
Yes you can invest in over priced poor return real estate lets see how that one pans out.
It is a very good reason to diversify you retirement savings.
Yes you can invest in over priced poor return real estate lets see how that one pans out.
Sep 9th 2010, 4:03 pm
#2637
BE Enthusiast
Joined: Sep 2003
Location: Christina Lake. BC
Posts: 674
Re: Exchange rate
Even with the pound this low the deficit continues to grow. Start up the printing press.
The UK’s seasonally adjusted deficit on trade in goods and services was £4.9 billion in July, compared with the deficit of £3.9 billion in June.
Exports fell slightly in July while imports continued to rise.
http://www.statistic...dir/trd0910.pdf
The UK’s seasonally adjusted deficit on trade in goods and services was £4.9 billion in July, compared with the deficit of £3.9 billion in June.
Exports fell slightly in July while imports continued to rise.
http://www.statistic...dir/trd0910.pdf
Sep 9th 2010, 4:05 pm
#2638
BE Enthusiast
Joined: Sep 2003
Location: Christina Lake. BC
Posts: 674
Re: Exchange rate
Sep 9th 2010, 4:29 pm
#2639
Forum Regular
Joined: Aug 2010
Location: Calgary
Posts: 51
Re: Exchange rate
Don't bother waiting on the exchange rate going back in your favour for the move from UK to Canada. Look on the bright side, your looney will be worth more when you travel back on hols.
Sep 9th 2010, 9:01 pm
#2640
Just Joined
Joined: Jul 2009
Posts: 16
Re: Exchange rate
I'm thinking of leaving our savings here in the UK and waiting until the pound re-bounds a bit. Even with being so low, the savings % are better here than in Canada so I'll earn more interest on the money than in Canada.