CairnsCoopers

Hi all,

Well, after 14 years and 2 children in Australia the wife wants to come home, me? I'm not so sure......
Does anyone have any experience with financial matters between Australia and the UK, and in particular if you are better of leaving savings over in Oz with higher interest rate, or move them over to the UK top take advantage of the excellent exchange rate that may not last???
Any advice would be sincerely appreciated!

johnh009

Having moved recently to the UK from Canada, I can only say that playing with exchange rates and interest rates is a lottery. No one can forecast these with any certanty, especially the governments. Do your research and try and get what you consider to be the best deal you can for yourself at the time. Have a look at this site, for what it is worth it will give you an insight into financial matters in the UK at the moment. Sorry to be vague but good luck with your move.

www.thisismoney.co.uk

My opinion is that you have a good exchange rate in your favour for now and that house prices in the UK will remain static or fall back. Look at Germany, house prices have dropped 17% in the past 10 years. Maybe we are in for the same dose of medicine. Ditto for Japan. Who knows? Maybe this is not only due to the economy but an ageing population. Very hard to determine.

dunroving

Agreed - but I'd say a good exchange rate opportunity generally trumps better interest rates most of the time. Exchange rates can swing by quite a lot even within a year whereas changes in interest rates tend to occur more slowly, and tend to be more of a global trend.

Also, it's better to have your money where you will likely use it. So if the OP plans to buy a house in the UK or stay here for a while, and the exchange rate is good at the moment, it's better to transfer now.

When I first came back, I wanted to buy a house (more fool me - this was close to the peak of the market). At the time, the dollar exchange rate was rubbish (£1 = $2, whereas it historically ranges between about 41.50 and $1.70). I needed a minimum of about £25k. This cost me $50k, whereas nowadays it would cost me only $40k.

Exchange rates suck bigtime (i.e., you don't want to need to exchange and be on the wrong side of them) so I think if they are good, the OP should take advantage of them.

In other words, what you said.

johnh009

Yes, I have seen more than enough financial prisoners in my time. I remember going to South Africa in 1982 when it was 1.8 Rand to the pound. Then it crashed to about 22 Rand to the pound. Many of those who took all of their money out are still there as their lifestyle would take a real drop if they came back to the UK. Of course, this was an exceptional situation and I am sure the Oz currency is fairly stable, or at least as stable as the pound.

welshviking

You should have transferred it to the UK about this time last month when the $ was at it's highest but certain to start dropping. We used this opportunity and are up 5k on the same conversion today.

It's still not too late, to come out with a good deal.

brits1

We moved back from Aus after 12 years and we leave money in our Aus account (until we buy a home we will continue to do this) but transfere amounts over through Ozforex now and again and deposit into our account here in the UK (very easy to do and also usually the best rates and no I do not work for them) It all depends on where and what you want if you do return home, ie do you need money for a mortgage? if not would you want to invest in the housing market here anyway ie buy to let and keep for the a long period and hopefully the market in years to come you have made a lot more than keeping your money in the banks. Good luck