If you’re an Australian expat living in Hong Kong, or a Hong Kong expat living in Australia, you probably know how costly it can be to send money between the two countries.
When you use a bank, you pay in two ways. There are the high fees – often more than AUD20 for a small international transfer – and then there are the exchange rates. While the mid-market exchange rate may indicate one figure, your bank will inevitably give you a rate that is significantly inferior.
This is why more and more people are using commercial Forex firms to transfer money. The table below illustrates the best options for transferring money between Australia and Hong Kong:
Money transfer when buying property in Hong Kong
Real estate is one of the best and most reliable ways to make a passive income.
Real estate costs in Hong Kong are often the subject of speculation. More than almost anywhere else, Hong Kong’s housing industry goes through booms and busts. Prices may rise for several years, then fall rapidly. Some investors take this opportunity to buy houses on the cheap.
But while you may be getting a great price on a house, you might incur unnecessary and exorbitant costs, by making regular transfers to Hong Kong. When you purchase a great property for AUD1m, transfer costs through the bank could come to a staggering AUD20,000 extra! Using an FX transfer firm on the other hand, you’ll more likely spend around AUD5,000.
Australians in Hong Kong – a report
There are approximately 90,000 Australians living in Hong Kong, mostly ethnically Chinese.
There is also a community of non-Chinese Australians living in Hong Kong. They have moved for various reasons, including the huge diversity there. People from all over the world live and work in Hong Kong, providing a great opportunity for Australians to experience global culture.
You don’t need to apply for a Hong Kong Visa if you’re a tourist traveling for less than 3 months. If you plan on staying permanently or working there you must apply well in advance.
Hong Kong citizens in Australia – a report
Approximately 70,000 Australian citizens were born in Hong Kong. There are many more first generation immigrants, although the number is not known.
Hong Kongers move to Australia for job opportunities, to study, and various other reasons. The work climate is considered less stressful in Australia, and it is far less crowded than Hong Kong. Rent and day to day needs are far cheaper in Australia. The similar time zones and seasonal changes make the move a lot easier.
Citizens of Hong Kong require a tourism visa. For those wishing to work in Australia on a more permanent basis, the Australian government provides range of options. Applying to live or work in Australia can be a lengthy process. Find out if any of your relatives have Australian citizenship. It will make the process far easier.
The AUD/HKD pairing
The Hong Kong Dollar (HKD) is the thirteenth most traded currency in the world. The AUD is a much more popular currency trade – the fifth most traded in the world. The exchange rate from HKD to AUD, and from the AUD to HKD, has always been favourable towards the AUD. The price of AUD1 has ranged from HKD4.6 to HKD8.6 over the past 10 years, with an average of HKD6.8. While the HKD/AUD slumped in 2012, it has been making gains ever since.
Approximately 90,000 Australian citizens are living in Hong Kong. As an expat, money transfer fees and exchange rates inevitably play a big part in your life. With banks charging exorbitant rates and offering inferior exchange rates, expats stand to lose high amounts of money. Commercial FX transfer firms charge far lower fees, and are becoming the popular option.
Australia has long been a popular destination for Hong Kong immigration, with 70,000 Australians who were born in Hong Kong. The HKD/AUD pairing is one of relative stability. In the past few years, the HKD has made gains on the AUD.
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