miss_ck

Hi all
Myself and my husband are arriving in Christchurch in around 3 weeks and I'm trying to get some things sorted while still in the UK.

One thing I'm not sure about (there are lots of things I'm unsure about but this is a main one at the moment) is what to do with our UK house sale money. Our plan is to rent for around 3-6 months before buying in NZ. Did any of you do this and if so, did you leave any cash you'd made in the UK account and transfer it to NZ when you were ready to buy a place or did you transfer it to NZ and then just leave it in a high interest account there.

I'm looking at exchange rates and they seem to be on the downward move at the moment but that's not to say it will continue I suppose.

Any help appreciated, my head is spinning.
Thanks
ps. am very happy to see most of you in the Christchurch area seem to like it.

danny.f

We bought within 5 days,so most of our capital went on a deposit. Interest rates are way higher here-so any spare cash-put it here. Good luck!

P2L

We didn't have much left over from our house sale, and been the undecided people that we are ( and the OH is snowed under at work at the mo) we're undecided on the build/buy dilemna.

As a result, our funds are still in the UK, until; next month any rate, as it is sat in Nationwides eSaving account, which is due to pay out on interest on the 30th September

You can transfer it using someone like HIFX or some of the banks, such as BNZ, offer foreign currency accounts.

themoores

We will be in the same dilema in a few months. whether to rent or buy. Do any companies do any deals on exchange rates if you have a lot to bring over?

danny.f

I'm sure they do. Speak to HFIX,they seem to co-ordinate most of this. If you've got millions-go to an independent adviser,and wear boss sunglasses!

Ash1

[QUOTE=miss_ck;5334295]Hi all
Myself and my husband are arriving in Christchurch in around 3 weeks and I'm trying to get some things sorted while still in the UK.

One thing I'm not sure about (there are lots of things I'm unsure about but this is a main one at the moment) is what to do with our UK house sale money. Our plan is to rent for around 3-6 months before buying in NZ. Did any of you do this and if so, did you leave any cash you'd made in the UK account and transfer it to NZ when you were ready to buy a place or did you transfer it to NZ and then just leave it in a high interest account there.

I'm looking at exchange rates and they seem to be on the downward move at the moment but that's not to say it will continue I suppose.

Any help appreciated, my head is spinning.
Thanks
ps. am very happy to see most of you in the Christchurch area seem to like it. [/QUOT

Hi,


You can open a "foreign currency account" over here. This is particularly usefull as the banks over here are very competitive on exchange rates and in my experience have given us better rates than Hifx. Therefore its handy to have the money on hand over here. You will get about 5.35% interest , which again isn`t too bad.
Again , in my opinion, rent for a while and get a feel for areas.
Good luck
Ash

themoores

Thanks. Not got millions, unfortunately, unless I win the lottery in the mean time - not likely as I don't even do it!!

Thinking of going to the NZ expo in Oct, expect there will be plenty of companies vying for our business!!

jads

Hi there

Not too sure about whats best to do with the cash, (apart from taking it home and just looking at it and counting it, and counting it again!!) but it does sound a good idea to get it out of this country and in to a higher interest rate NZ bank. We are very interested in Christchurch as a place to settle, only problem is we did not get there on our recci! Sounds and looks fantastic, I reckon you'll have a great time, good luck and enjoy

cypherpunk

It is all a big gamble really as to whether the exchange rates will change favourably for you in the timeframe in which you need the cash. Personally I am taking the long view as I think house prices are headed down here in Christchurch, and renting is much cheaper than buying right now, but that's not a popular view I know.

A few things to consider:
1. The interest rate difference is not that great any more with a savings price war going on in the UK as banks get a little desperate for liquid cash. If you have more than UKP60k to invest you can get 7% for a 3 month fixed at HSBC offshore at the moment, or 6.4% on call with Alliance & Leicester offshore, vs. 8.1-8.5% for Rabobank in NZ.

2. If you leave the cash offshore you get tax-free interest for up to four years, but you have to forgo the Working For Families benefit, assuming you would be eligible for it otherwise.

3. Some UK banks may be looking a bit shaky, especially those with a lot more loans outstanding than they have savings (including Alliance & Leicester!). Some say NZ banks are less exposed to the kind of cashflow problems that took Northern Rock down, but with a lot of their funding for loans coming from overseas I'm a bit sceptical.

Genesis

We bought within 4 days..after saying we would take it easy and would rent for the first 6-9 months. well happy with the house inspite of it being a money pit and having paid way too much for it!!!!!!!!!!!!!!!

We are in it long term and will probably get taken out of it in a box, just aswell cos I don't think anyone else would ever buy it....its one of those funny houses..but we LOVE IT!!!!!!!!!!!!!!!!!!!

helinuk

After lots of advice from britishexpats we've opened an account with Westpac bank (might change that when we get there in Oct) and Hifx and have moved a small amount of money over to cover buying a car etc then when exchange rate is good hifx will move the house money over. HTH

Boopy

We had mortgage approval on day 7 of arrival to Wellington. Like you we had planned to rent for a short while.
On a positive note, buying has helped us to settle in quicker, more so cos we shipped the lot. So much nicer being surrounded by your own stuff - more like home.

zoej

Just make sure if you leave the money in the uk your bank will allow you to organise a CHAPS to say HIFx over the phone. Ours did, but I have heard some didn't and could only transfer £10,000 a day.

Also watch the exchange rate, set a figure you are happy with and when it gets there book your currency. The house market in the wellington area is dead, but its good to have the money in a westac online saver here now so we are ready to jump when the right house comes up.

jads

Hi There

What do you mean by the house market is dead?

Cheers Jads

Wiz'n'Ton

Hi from Christchurch! Good luck with the move and everything, it sure is a busy and stressful time.

When we came - Jan of this year - property was going up in $10k/ month hikes, so we just jumped straight in at the deep end and bought a section of land to build on/ invest in. This was within 2 weeks of arriving. If we hadn't, the interest we would have got on the UK house money in a bank was no where near what we have now got in equity on the land. It seems a good way to go, as there is no stamp duty for buyers, or capital gains taxes for sellers here. Land value in ChCh is a little steadier now, and property prices have also eased a bit in their upward trend.

It's one of those things you just have to swalow up. As a previous poster said, if you are in no hurry then you can set an exchange rate target that you would be happy with and instruct your exchange company to buy at that level. Just don't look at rates AFTER you've moved the money - it can really piss you off!!!

It's lovely! A sunny 18 degrees yesterday, did a spot of fishing and then had a bbq with mates. Big 's from us.