The Organisation for Economic Co-operation and Development (OECD) has warned the Reserve Bank of Australia that it should seriously consider raising interest rates in a bid to slow rapidly rising property prices in the country.
Economic growth in Australia has been sluggish to say the least, and is forecast to be slow next year as well, but this hasn’t stopped property prices from continue to spiral – especially in and around the largest cities.
Figures show that Australia’s house prices increased by more than 11 per cent in the year to August, with prices in Sydney and Melbourne markets growing more than 16 per cent and 12 per cent in this period respectively.
“The booming housing market and mortgage lending will require continued close attention by authorities,” the OECD warned.
Given Australia’s fast rising property prices, especially in areas traditionally popular with new immigrants, for anyone considering emigrating to, and then buying a property in, Australia is well advised to ensure they get the best deal possible when it comes to exchanging their currency.
When exchanging large lump sums, even only slight fluctuations in the currency exchange markets can have a huge impact on the money you’ll have available to start your new life.
The Pound-Australian Dollar exchange rate has fluctuated wildly in the past three months. For example, on 10th September £1 would have purchased you AUS$1.737, while on 2nd October you would have received AUS$1.863. If you were exchanging £150,000 – say from the sale of your UK home – then this would equate to a difference of AUS$18,900 in less than a month.
However, yesterday £1 was worth AUS$1.808, meaning an exchange of £150,000 would have netted you AUS$271,200 – AUS$10,650 more than you would have received on 10th September but AUS$8,250 less than you would have receive on 2nd October.
Fortunately, you don’t have to be a financial whizz kid to make sure you get the best exchange rate – that’s what companies like Halo Financial are there for.
Foreign exchange companies understand why the exchange rates are moving and just what impact this has on your currency transaction. What’s more, they can also explain how to make your money go further and give you a range options on exactly when you wish to exchange, and how much you should exchange at a time.
To find out how you can make sure you can get the best exchange rate possible, and take advantage of positive fluctuations in the markets, visit www.halofinancial.com
Article published 26th November 2014