You may be one of many Australian expats living in the UK, or similarly high number of British expats living in Australia. If so, you should know by now that transferring money from the UK to Australia, or from Australia to the UK, can be a costly endeavor.
For most people, their bank is the most trusted and easily available option for Forex transfers. However, the banks are actually the most costly option. You’ll generally pay more than £20 for a small international transfer to the UK. When you’re constantly moving money between the two countries, this adds up to a not-so-small fortune.
Using the table below, you can get an idea of the best way to transfer money between these two countries:
Money transfer when buying property in the UK
Many Australians are investing money in the UK. The strength of the pound makes the idea of a passive income especially appealing. Real estate is one of the most popular options.
Real estate costs in the UK are increasing by the day. The average house in the UK now costs upwards of £300,000. An average house in a prime suburb of London will cost you more than £620,000. Usually, it’s worth it for the profit – around £3,000 every month.
However, this will mean that Australian residents are regularly transferring money from the UK to Australia. Even if you’re living in the UK, you’ll constantly have to transfer funds from Australia to pay for the property.
If you’re using a bank, you could end up spending more than £12,000 all in all!
If you use an independent money transfer company, the rates will be closer to 0.5%, equalling £3,200 in fees. Plus, the exchange rate will be more in your favour, with no sneaky costs worked in there.
Australians in the UK – a report
According to the latest census, there are 113,000 Australians living in the UK. A large proportion of these expats live in London. This is a significant drop from the 200,000 Australian expats estimated to be living in London alone just ten years ago.
The reasons are mainly to do with economics. Ten years ago, the British economy was booming while the Australian economy struggled. Young Australians would go work in London, earning pounds, for the opportunity to travel around Europe. But with the Australian economy, and the AUD, much stronger now, working in the UK no longer has the same attraction.
Australian tourists don’t need to apply for a UK Visa. Getting a work visa is not difficult for Australian citizens, even though the rules became more stringent in 2011. Make sure you apply in good time, and you shouldn’t face any problems.
Australia has long been a popular destination for British expats. Some of the reasons include the good weather, growing economy, and what used to be a cheaper cost of living.
However, sources report that only 1 in 4 British expats choose to stay in Australia. Many find it tough to adapt to the culture. And over the past few years, it has become harder to find jobs, and the cost of living has risen far and beyond that of the UK.
Citizens of the UK do require a tourism visa. If you wish to work in Australia or stay on a more permanent basis, make sure to do extensive research with plenty of time to spare. Applying to live in Australia as a permanent resident will always be easier if you have a close relative who is a citizen.
The AUD/GBP pairing
The GBP is the fourth most traded currency in the world, while the AUD is the fifth most traded. The exchange rate from GBP to AUD, and from the AUD to GBP, has favoured the GBP, which has made the UK an attractive destination for young Australians wishing to make some quick money. However, over the past few years, with the Australian economy growing, the AUD has made significant gains on the GBP.
Approximately 113,000 Australian citizens now live in the UK, significantly less than just ten years ago. Expats, as well as buyers of UK real estate and other investors, money transfer fees and exchange rates can be extremely costly. Banks charge exorbitant rates, and offer exchange rates far worse than the mid-market rates. The fees charged by FX transfer firms, on the other hand, are minimal. They will also provide the mid-market exchange rate, rather than their own calculated values.
Australia has long been known as a popular destination for UK citizens. However, the trend is dying down, with many British expats leaving Australia.
The GBP/AUD pairing is one of relative stability, with the GBP consistently stronger. However, the AUD has made gains on the GBP, with the Australian economy’s recent growth.
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