House profits??

stevied20

Hello forum,

Me and my wife have just banked the profits of our house sale (£120,000)in preperation for our emigration to New Zealand.

We have put it in the highest interest web saver with Halifax for the four remaining months we are in the UK, splitting into two accounts, me and my wife.

My comcern is the NZ exchange rate is currently poor and the money is needed for a property in NZ.
The interest rates in NZ are very high, crap for borrowing and great for saving.
As we see it our options are:
1) somehow keep the money in sterling in UK or offshore until exchange rates are favourable.
2) exchange now at poor rate and immediately take advantage of the NZ high interest accounts and rent for 12 months
3) take advantage of options 1 AND 2 with half of the money.
I think you will agree the thought of converting to NZD and buying a house straight away is silly, especially as like ours their housing market is stalling quickly.
Any thoughts or advice would very much appreciated
Thanks

Steve

purch

Hiya,

We've recently sold our house, prior to emigrating to New Zealand.

The plan is to rent there for a few months, before commiting ourselves, so am wandering what to do with the proceeds of our house sale, such that I can get a reasonable return without paying too much tax?

Am reckoning on leaving the funds in an account for approx 9 months, maybe more.

Is that possible?

Thanks,

T-W

Wow............2 people with the same question.

stevied20.........maybe you should chat to TightWad about your startlingly similar situations

Dithering_Dad

Perhaps Tightwad is Steve's missus?

purch

somehow keep the money in sterling in UK or offshore until exchange rates are favourable.

What would you deem more favourable ?

Would 2.60 in 9 months time be acceptable ?

epsilondraconis

I wouldn't advise keeping all of the money in the same financial institution. Only the first £35k of your money (per person) is 100% protected. See:

http://www.moneysavingexpert.com/savings/safe-savings

stevied20

Could anyone direct me to tightwads thread please?

dunstonh

2) exchange now at poor rate and immediately take advantage of the NZ high interest accounts and rent for 12 months

What if exchange rate gets worse?

purch

Could anyone direct me to tightwads thread please?

http://forums.moneysavingexpert.com/showthread.html?t=878009

purch

NZ exchange rate is currently poor

Poor in terms of what exactly ??

The exchange rate is what it is....and it's that for a reason. For the rate to change dramatically over such a short space of time something major would have to happen.

Do you see UK interest rates rising in the next 4 months ?

Do you see NZ rates falling in the next 4 months ?? (more likely, but not too likely)

Most importantly do you see the NZD/JPY carry trade reversing anytime soon ?

stevied20

Is their any actual advice or knowledge on this forum, or do you just create more questions.
Just some simple ideas about MONEY
The rate is poor in terms of its recent history, $2.92 dollars last Sept. $2.5 at the moment, life is a gamble, the meaning of "poor" is relative I know, but just looking for ideas not more questions.
And the rate I am am talking about is monetary exchange rate NOT interest rates, which I know will not move quickly.
The NZ dollar does happen to be quite volatile, and with such a large amount of money, it pays to get advise.
Something I am obviously having to go pff and pay for after this forum.
Sorry
Steve

purch

The advice I gave to tightwad concerning his £120k, and his emigration to NZ in 9 months time, is the same as I would give to you with your £120k and youyr emigration in 9 months time.

Convert the money into Kiwi ASAP

The 9 month FWD premium is about 700 points which gives you $ 2.60 ish on the current Spot price of 2.5360

Basically that means if you convert to Kiwi and earn the higher interest rate for 9 months then you have acheived the higher exchange rate