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Did you have to take a financial hit to return to the UK?

Did you have to take a financial hit to return to the UK?

Old Sep 13th 2012, 7:45 pm
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Default Did you have to take a financial hit to return to the UK?

Hi returnees,

I am researching the possibility of finally returning from the US to the UK.
We have been away for too long and now that a potential move to Asia looks like it might have fallen through I know in my heart its time for our family to return to our roots.

My worry is that we're gong to take a big financial hit. Most of our savings and investments are in the US dollar. The house we own is in the states and we own no property in the UK.

If I just do a straight dollar to sterling conversion we are losing a big chunk of change and that worries me. Especially as its going to be a major negative when I try and sell the whole relocating plan to the OH.

So, did any of you take such a hit and if you didn't how did you avoid it? Does it pay to keep investments and savings in the US$ and wait for exchange rates to be more favourable?

How hard is it to get a mortgage or even to get on the property ladder when you've lived abroad for 12 years? UK house prices are just astronomical and scray compared to here.

Anyway your views and experiences would be much appreciated.

Thanks in advance,
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Old Sep 13th 2012, 8:18 pm
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Default Re: Did you have to take a financial hit to return to the UK?

We thought we would be returning with more, but only due to to our house price having dropped. We've owned it so long that we won't lose money like many, but we will be losing what we thought we'd get, not real $ if you know what I mean.
Other than that I think we may be financially better off in UK, Dh has paid enough SS here that we don't get hit with the windfall when he retires so will get full SS and his Union retirement and whatever UK pension for the number of years we have left to work. If anything happens to him I get all of those.
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Old Sep 13th 2012, 8:41 pm
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Default Re: Did you have to take a financial hit to return to the UK?

Originally Posted by Mummy in the foothills
We thought we would be returning with more, but only due to to our house price having dropped. We've owned it so long that we won't lose money like many, but we will be losing what we thought we'd get, not real $ if you know what I mean.
Other than that I think we may be financially better off in UK, Dh has paid enough SS here that we don't get hit with the windfall when he retires so will get full SS and his Union retirement and whatever UK pension for the number of years we have left to work. If anything happens to him I get all of those.
The whole ss thing is still bamboozling me a bit but i know he has 40 credits and its not like we're skipping out the door tomorrow so there may be another year of ss contributions.
the house thing is trickier as we bought in'08 just before crash but we dont have negativve equity on it. Am thinking we might try and rent it out through a property management company, anyone experience of that I wonder?
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Old Sep 13th 2012, 9:08 pm
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Default Re: Did you have to take a financial hit to return to the UK?

We're going to rent ours out too. We have 15 years left on the mortgage with a silly low rate (just refi'd) so it makes sense to let someone else pay the mortgage for us for a time and then we'll sell down the line. Hopefully that will give us a windfall in 10 years or so.

Don't get overwhelmed. Trust me... it's easy to think that moving back looks impossible. Try to break it down into small chunks and focus on those. Sure you're going to take a hit somewhere... whether it's selling and re-puchasing stuff, moving costs, getting setup in the UK. But at the end of the day it comes down to what's most important... for me that's family in the UK. After 23 years I'm moving home. Good luck to you with your plans.
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Old Sep 13th 2012, 9:27 pm
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Default Re: Did you have to take a financial hit to return to the UK?

Originally Posted by MrMuffin
We're going to rent ours out too. We have 15 years left on the mortgage with a silly low rate (just refi'd) so it makes sense to let someone else pay the mortgage for us for a time and then we'll sell down the line. Hopefully that will give us a windfall in 10 years or so.

Don't get overwhelmed. Trust me... it's easy to think that moving back looks impossible. Try to break it down into small chunks and focus on those. Sure you're going to take a hit somewhere... whether it's selling and re-puchasing stuff, moving costs, getting setup in the UK. But at the end of the day it comes down to what's most important... for me that's family in the UK. After 23 years I'm moving home. Good luck to you with your plans.
Oh Lordy I hadnt even got as far as thinking about selling stuff like household stuff and electronics. Guess we'll have to have a massive moving sale. We're on a two year plan so plenty of time to off load.
same as you i want my kids to grow up and know their grandparents before its too late.
are you going to use a property management company?
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Old Sep 13th 2012, 9:31 pm
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Default Re: Did you have to take a financial hit to return to the UK?

We took a hit because we basically sold or got rid of most of our stuff in the States. But in the long run I think it will all work out.

At the end of the day being back was more important than losing some money. It's been a bit of a struggle as we're going thru escrow on our LA home and there's a S*#T load of things that aren't up to code (bastard contractors) so our HUGE profit has become an OK profit.......but at least we're making a profit on the house. I know many people aren't in that position.
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Old Sep 13th 2012, 9:55 pm
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Default Re: Did you have to take a financial hit to return to the UK?

Originally Posted by britwhore
We took a hit because we basically sold or got rid of most of our stuff in the States. But in the long run I think it will all work out.

At the end of the day being back was more important than losing some money. It's been a bit of a struggle as we're going thru escrow on our LA home and there's a S*#T load of things that aren't up to code (bastard contractors) so our HUGE profit has become an OK profit.......but at least we're making a profit on the house. I know many people aren't in that position.
Its the hit that keeps my OH from agreeing to return. His argument is we should wait to be transferred back, but essenntially we've been waiting for his employer to do that for the last 8 years and i have come to the conclusion that it a carrot they dangle to keep him here. So i have to start makking the move / plans or i know its never going to happen.
2 years and my oldest will only have missed one year of proper decent uk education.
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Old Sep 13th 2012, 9:59 pm
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Default Re: Did you have to take a financial hit to return to the UK?

Yes I took a substantial hit (both times!). I''ll fill in the details later (am on a trip using mobile to reply) - but I feel your pain!
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Old Sep 13th 2012, 10:21 pm
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Default Re: Did you have to take a financial hit to return to the UK?

My parents made a move (only within the same country) but that move cost them $45,000. They are not rich people so this was a substantal amount of money.

But if you ask them today if it was worth it, they wouldn't take a second to say yes. When they made the move I could see the change in their happyness overnight.

Think long term and consider how much you want to return.
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Old Sep 14th 2012, 7:54 am
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Default Re: Did you have to take a financial hit to return to the UK?

Originally Posted by dunroving
Yes I took a substantial hit (both times!). I''ll fill in the details later (am on a trip using mobile to reply) - but I feel your pain!
OK, I've learned how to tether my laptop to the mobile phone (amazing!), so can fill in the detail.

For me, the following factors have hurt financially:

The costs of moving (shipping belongings, a dog, and myself, three times), costs of selling and buying houses.

Living in an area of the US at a time when house prices did not move, while they doubled in the UK.

Dollar/pound exchange rate (it's a function of Sod's Law - it is always moving in the wrong direction!).

Effects of moving on salary - sometimes moving in association with a job move involves a promotion or pay rise. However, moving for other reasons and looking for a job as a result often means taking a position that is below your current rank, or a new employer treating you as a "new" employee (which can mean entering at the bottom of the ladder). I can say with certainty if I were still at my first or second institution, I would now be at the top rank for a university lecturer. Due to the exponential increase in expectations at UK universities, I now likely won't ever reach that rank before I retire.

Miscellaneous other minor and major things too numerous to list, that results purely from the economic conditions at the time you move.

You just have to weigh up your desire to move with the long-term effects on your finances. I'll never recoup the money I have "lost", and TBH I resent some acquaintances who are in a very nice position purely because they lived in the UK when BT, British Gas, etc., were privatised, or because they lived in a council house when the government decided to sell them at a knock-down prices, etc.

But things are what they are. On reflection if I had known what the MBTTUK would have meant, I probably wouldn't have gone through with it (at that time), but you can't change the past. You just have to decide what to do, do it, and move on. (though you're allowed to grumble about it now and then)
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Old Sep 14th 2012, 7:57 am
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Default Re: Did you have to take a financial hit to return to the UK?

We are taking a huge financial hit going back. I just hope that we would be able to make up for it during the 20 odd years we have left working.

We were lucky to sell our UK house in August 2007, just before the crash, and we made a nice profit. All that profit has been plowed into a business in South Africa that has struggled to get off the ground for 5 years now. We're giving up before we loose any more money. Not sure if we would be able to sell the business, but even if we do we would never be able to recuperate the money we've put in.

We've also bought a house here and the property market is not great, so we will continue to rent it out until one day we will hopefully be ale to make a small profit or at least get our deposit back.

We're releasing our pension annuities to finance our move...
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Old Sep 14th 2012, 9:11 am
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Default Re: Did you have to take a financial hit to return to the UK?

Originally Posted by Adnams
His argument is we should wait to be transferred back, but essenntially we've been waiting for his employer to do that for the last 8 years and i have come to the conclusion that it a carrot they dangle to keep him here. So i have to start makking the move / plans or i know its never going to happen.
If I waited for my husband to come around to my way of thinking I'd also still be in LA and no closer to moving back. I had to take the bull by the horns and just start the process. We had been discussing it since October 2011 and by April 2012 we were still no closer to a decision because of his work. So in JUne I booked us on the QM2 and gave us 5 weeks to get s*#t done.

We've been back in the UK for just over a month and my husband, even though he's out of work, is SOOOOO happy to be back and now acts like he actually had something to do with the move.....cheeky bastard!
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Old Sep 14th 2012, 10:30 am
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Default Re: Did you have to take a financial hit to return to the UK?

Originally Posted by Adnams
Hi returnees,

I am researching the possibility of finally returning from the US to the UK.
We have been away for too long and now that a potential move to Asia looks like it might have fallen through I know in my heart its time for our family to return to our roots.

My worry is that we're gong to take a big financial hit. Most of our savings and investments are in the US dollar. The house we own is in the states and we own no property in the UK.

If I just do a straight dollar to sterling conversion we are losing a big chunk of change and that worries me. Especially as its going to be a major negative when I try and sell the whole relocating plan to the OH.

So, did any of you take such a hit and if you didn't how did you avoid it? Does it pay to keep investments and savings in the US$ and wait for exchange rates to be more favourable?

How hard is it to get a mortgage or even to get on the property ladder when you've lived abroad for 12 years? UK house prices are just astronomical and scray compared to here.

Anyway your views and experiences would be much appreciated.

Thanks in advance,
I usually post on the Spanish forum but have a big problem with all the expats over there who will not have a bad word said about Spain, seems like if you are leaving USA or Australia there is a lot more sympathy!

Anyway, I have been planning my move for a few years, been here for 10 and I'm from London and want to move back - which is another no no according to many on this forum as it is constantly bad mouthed.

I have done a lot of spreadsheets over time with every possible strategy and costing, if I rent out my flat, if I sell it at a certain price, if the euro to pound rate goes up or down, if I get a job when I get back, if I don't get a job and how long my savings would last, the list goes on and on and it's a nightmare scenario as no matter what I plan, until I am actually doing it it means very little in the scheme of things.

The big obstacle, for me anyway, is fear and extreme worry as I have no idea how things will work out, despite wanting to live in London again, I am aware of the changes in 10 years. Things are certainly not great in Spain though.

Despite having a nice central city flat (Barcelona) we just cannot sell unless we drop to what we paid for it 10 years ago which I absolutely will not do. We are now looking at renting it but it's a risk for all kinds of reasons and even though we have no mortgage the small rent we get from here will only pay a third for a comparable London flat and by my calculations, our potential incomes in London would not cover this. It's a double edged sword!

One thing I do know, is that I am losing much sleep and probably shortening my life with the stress of it all. Even though I know people have lost money and survived, it's very hard when you can't see the way forward as we are living in the most precarious times in living memory and it will definitely not improve.
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Old Sep 14th 2012, 11:24 am
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Default Re: Did you have to take a financial hit to return to the UK?

Originally Posted by Adnams
Hi returnees,

I am researching the possibility of finally returning from the US to the UK.
We have been away for too long and now that a potential move to Asia looks like it might have fallen through I know in my heart its time for our family to return to our roots.

My worry is that we're gong to take a big financial hit. Most of our savings and investments are in the US dollar. The house we own is in the states and we own no property in the UK.

If I just do a straight dollar to sterling conversion we are losing a big chunk of change and that worries me. Especially as its going to be a major negative when I try and sell the whole relocating plan to the OH.

So, did any of you take such a hit and if you didn't how did you avoid it? Does it pay to keep investments and savings in the US$ and wait for exchange rates to be more favourable?

How hard is it to get a mortgage or even to get on the property ladder when you've lived abroad for 12 years? UK house prices are just astronomical and scray compared to here.

Anyway your views and experiences would be much appreciated.

Thanks in advance,
Well, I'm moving back in the next 2/3 years come hell or high water, (luv that saying!) I'm 58 and a UKC and my wife is 60 and a USC, but as far as I'm concerned whatever economical level of life I am living here in the US I can live that life in the UK.

So for me personally, my home is calling and I'm going to answer that call by returning as soon as I can even if I have to take a financial hit because if I don't I'll be taking an emotional hit that will be far greater in terms of difficulty.

My plan is to save enough money (approx £20.000) put a deposit on a house in England, possibly next year and then rent out the house for a couple of years and start saving like crazy and return to the UK within 3 years max.

As far as selling this to my other half, well I have already made my feelings known to her and I won't take no for an answer, like I said 'hell or high water', I am returning.
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Old Sep 14th 2012, 11:38 am
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Default Re: Did you have to take a financial hit to return to the UK?

Hi All, I am giving up a very well paid (but stressful) job that I have no chance of doing in the UK due to an abundance of trained people in the UK. We are sellimg 90% of our stuff for a song but I cannot wait to come back home. I have been 16 years in Canada and don't believe them when they try and kid you that they are a nice polite people. My job invovled working directly with the public and although of course there are exceptions but on the whole they are much more similar to Americans then they will admit (apoligies to any Americans who are reading this!)
I would prefer to be poor in the UK than rich over here!
Just waiting for OH's Visa then I hope we are back by Christmas...
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