UKP to NZD exchange rate
#1
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Joined: Jan 2016
Location: Suffolk
Posts: 743
UKP to NZD exchange rate
Another off topic(ish) musing.
Pre Brexit vote the exchange rate was pretty strong; say about 2.2 NZD to 1 UKP. [Been up around 2.4 at times.]
If you were in the throes of moving (or preparing to apply) you would have done your rough calculations and looked at housing you might be able to afford.
Post Brexit vote the exchange rate has tanked to around 1.8 NZD to 1 UKP. [At one point it was significantly lower.]
As a simple illustration, if you thought you would be taking £200,000 UKP equity out of your house to use as a deposit, then the value would have gone from:
200,000 * 2.2 = 440,000 NZD
200,000 * 1.8 = 360,000 NZD
Difference = 80,000 NZD
At some point a drop in the the exchange rate could destroy the whole financial basis of the move.
Has anyone encountered this problem and had to change plans accordingly?
Pre Brexit vote the exchange rate was pretty strong; say about 2.2 NZD to 1 UKP. [Been up around 2.4 at times.]
If you were in the throes of moving (or preparing to apply) you would have done your rough calculations and looked at housing you might be able to afford.
Post Brexit vote the exchange rate has tanked to around 1.8 NZD to 1 UKP. [At one point it was significantly lower.]
As a simple illustration, if you thought you would be taking £200,000 UKP equity out of your house to use as a deposit, then the value would have gone from:
200,000 * 2.2 = 440,000 NZD
200,000 * 1.8 = 360,000 NZD
Difference = 80,000 NZD
At some point a drop in the the exchange rate could destroy the whole financial basis of the move.
Has anyone encountered this problem and had to change plans accordingly?
#2
Life is what YOU make it.
Joined: Oct 2009
Location: Christchurch
Posts: 3,312
Re: UKP to NZD exchange rate
You will find that everyone of us has been through the exchange rate shuffle when coming here and a lot are still doing it and we still moan and loose....but never seem to win !
#3
Re: UKP to NZD exchange rate
It certainly has hammered us but it wont stop us from making the move, will just mean we can't buy property immediately when we arrive but something to be said for getting the lay of the land before we settle down.
The real pain is the fact it cost us 3nzd to buy 1gbp when we came over and now 1.8gbp gets us 1nzd, its harsh but what can you do, all part of the rich tapestry of life lol
The real pain is the fact it cost us 3nzd to buy 1gbp when we came over and now 1.8gbp gets us 1nzd, its harsh but what can you do, all part of the rich tapestry of life lol
#4
Life is what YOU make it.
Joined: Oct 2009
Location: Christchurch
Posts: 3,312
Re: UKP to NZD exchange rate
The rate is back to April 2013 when we were trying to make sense of cash moving...
#5
Re: UKP to NZD exchange rate
Back in 2011 when we moved here it was down in the 1.80's, thankfully we didn't have much money so it didn't really bother us. Why it would stop someone moving here that has a big chunk of money is beyond me.
Moving to NZ is financial suicide anyway so whatever you do it'll cost you a fortune.
Moving to NZ is financial suicide anyway so whatever you do it'll cost you a fortune.
#6
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Posts: 570
Re: UKP to NZD exchange rate
It's not been financial suicide for me. I am better paid and have more savings than I ever did in the UK.
One plus side is if you have any debt in the UK (Student Loans etc) now is a good time to pay that off. I have and feel much better for it.
One plus side is if you have any debt in the UK (Student Loans etc) now is a good time to pay that off. I have and feel much better for it.
#7
Re: UKP to NZD exchange rate
The exchange rate was a factor in me not selling my house but renting it out when I moved here in 2011. When I did eventually sell, I got a much better rate, but also made a significant capital gain. Under the current circumstances I would probably wait until it improved a bit. If anything it may be more a case of the NZD coming down - it's pretty high right now because it's perceived to be a safe currency compared to others.
#9
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Re: UKP to NZD exchange rate
I expect to be long term unemployed
However I haven't even checked if there are any restrictions on ones right to work on a Parents' Visa.
Fortunately my pension is enough (with a little bit of a margin) to qualify under the rules for guaranteed income, but I had a moment's worry until I worked out what the exchange rate would have to go down to before we no longer qualified.
For others closer to the limit, there must be a point where a smaller drop in the exchange rate reduces income below the set limit. When I filled in the form for income I used the exchange rate current at the time, and did wonder how they handled changes in exchange rate. They can't really chuck you out after granting a visa if your income falls due to exchange rate fluctuation (can they?).
This is partly what prompted this thread.
However I haven't even checked if there are any restrictions on ones right to work on a Parents' Visa.
Fortunately my pension is enough (with a little bit of a margin) to qualify under the rules for guaranteed income, but I had a moment's worry until I worked out what the exchange rate would have to go down to before we no longer qualified.
For others closer to the limit, there must be a point where a smaller drop in the exchange rate reduces income below the set limit. When I filled in the form for income I used the exchange rate current at the time, and did wonder how they handled changes in exchange rate. They can't really chuck you out after granting a visa if your income falls due to exchange rate fluctuation (can they?).
This is partly what prompted this thread.