Aussie Dollar Falls, Good News for Migrants

The value of the Aussie dollar has dropped steeply since nearly equaling the US dollar in July.  The outcome of the global financial crisis has been share market volatility, price falls in the commodity markets and dramatic decreaes in interest rates.

Currently, one Aussie dollar is approximately 0.508 euros.

The Australian Reserve Bank is having to defend the Aussie dollar as best it can as a response to the current market pressures. 

To the potential migrant from the Euro zone, its good news.  The euro is very strong against the dollar.  In a conversation with a client last week, like to other property sellers, they may have to sell their Irish home at a reduced price given the downturn in the property market however the upside is they could look forward to affording a very nice family home for themselves in Tasmania, the Australian state they are migrating to.

Apart from the process of obtaining the acutal visa that will facilitate living in Australia, the second biggest concern for a migrant is the process of selling off assets to fund the eventual move to Australia.  Timing is everything.  The Department of Immigration’s strongly advises visa applicants never to dispose of any assets until they have the visa in hand, and as a migrationa agent, I fully support this recommendation.  However, in my experience, I’ve come to know of people who despite the advice have gone ahead and sold houses and moved into rental property while awaiting a decision on their visa application. The decision to sell mainly being based on receiving a good offer for the property and not wanting to pass up the opportunity to sell for a good price…understandable despite the good advice from their agent or the Department.

Any migrant, whether a business or skilled migrant, no matter what stage they are at in the visa application, needs to be aware of what is happening with the Australian dollar, what the trends are as well as any predictions about what its going to do in the future and where its stands in relation to their home currency.

There can be a high cost to transferring money to Australia, particular large amounts.  There are banks and money transfer companies all vying for a piece of the migrant fund pie.  So there is lots of competition to win the client.

Here a hints when planning out a strategy balancing the act of applying for a visa and eventual move to Australia:-

1. Start your visa application process, most skilled and business visas can take up to 12 months

In the meantime…..

2. Each month, make some time to read some Australian newspapers, particularly finance and property section.  Print off material and start a file so it’s easy for you to compare changes.  You can use this time to also research possible settlement locations, schools for the kids.

3.  Open up an Australian bank account.  The Commonwealth Bank and the Westpac Bank have Migrant banking sections set up in London to facilitate this process.  You don’t have to wait until you get to Australia to open an account.  You may consider transferring small amounts to the account to start building up a deposit.

4. Make an appointment to speak with a Financial Advisor at your bank, other banks and money transfer companies to understand how they can facilitate you moving money to Australia and what are the likely costs.  Ask them for their opinions about current trends in the Aussie dollar and how it compares with the local currency.  Ask them for recommendations if you want about when they think is the best time to transfer money.  You don’t have to follow the suggestion but its a good way to gage if they know what they are talking about.  They are supposed to be the experts and should offer their opinions and suggestions confidently.

5.  If you are going to be selling property to fund your move to Australia, speak to 2 or 3 experienced estate agent in your area.  The point of the exercise is to establish what the property trends are, this will help you form your own expectations about what you can expect your property to be sold for in the coming months.  Again ask for opinons and recommendation of the estate agent. 

6. Once your visa is approved, revisit points 3 and 4 choosing the agent/advisor that you found to be well-informed and cooperative.  Plan an actual schedule around your intended departure date and refer to this in your discussions with them.  Obviously the sale of your house will determine when you will be in a position to transfer your funds, hopefully the prevailing market conditions will favour you.

All the Best,

Mege Dalton