When looking at moving overseas there are a number of factors to consider
One of the most overlooked aspects of emigration is often the role exchange rates can play in determining what your savings are worth or what your budget could be when purchasing your dream home.
In the UK there can be a considerable length of time between agreeing to purchase a property and then paying across your deposit.
In New Zealand, however, this is not the case. Typically, the valuation and bank approval for a mortgage takes around three days and clients normally then have seven working days to confirm their purchase and pay their deposit.
As such, when clients find their new home there is often a mad rush to buy their Kiwi dollars and, if the rate has dropped-off the way it has at times this year, the currency purchase can be needlessly expensive.
If you are looking at moving down under, it is well worth getting to know the various options available to you, that ensure you make the most of your currency.
A forward contract, for example, allows you to lock in a current rate of exchange for any period of time up to two years in the future.
Rather than purchasing the currency there and then (which can be expensive if you are buying property) you only need 10% of the amount you wish to convert to fix the price.
This gives clients plenty of time to work with their account manager to ensure optimal timing of their trade.
To put this in perspective, the Reserve Bank of New Zealand cut interest rates late Wednesday evening which saw the GBP/NZD rate hit a four-year high.
The difference between the current GBP/NZD price and the lows less than several weeks ago is over $55,000 NZD more on a purchase of £200,000.
To find our more feel free to contact the Foremost Currency Group to discuss all of the various choices open to you that can help make the most of your currency.
Written by Senior currency Broker Joe Mayhew
Notes to editors:
The full article can be found in Summer edition of Australia New Zealand Magazine.
Joe Mayhew is a Senior Currency Broker at the Foremost currency Group. He joined in 2012 having graduated from Loughborough University with a Graduate Diploma in Economics and a BA Hons in English Literature. Joe is well placed to help his customers navigate the FX Markets – making the complicated simple and offering suggestions to help maximise customers’ currency exchange.
About Foremost Currency Group:
“We are committed to shaking up currency exchange by operating in a smarter, leaner and more efficient way, passing the savings onto you and getting you a better rate – every time you trade. Say goodbye to impersonal service and hello to your new dedicated broker. Committed to working on your behalf to get you the very best deal possible.” Robin McEwen, Managing Director
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