New figures show that Australian house prices grew at their fastest rate for seven years throughout 2016.
The latest CoreLogic RP data shows that property prices in Australia’s eight capital cities increased by 10.9 per cent last year – the highest annual growth since 2009. However, there was a huge disparity in price growth throughout the capitals.
For example, the Western Australia capital, Perth, saw house prices decrease by 4.3 per cent in 2016. Meanwhile, on the east coast of Australia, Sydney posted gains of 15.5 per cent. Melbourne (13.7 per cent) and Hobart (11.2 per cent) also posted double digit growth, while property prices in Adelaide and Brisbane were up by 4.2 per cent and 3.6 per cent respectively.
If you’re planning on emigrating to Australia in the near future, and therefore planning to buy an Australian property, then it is essential to get the best possible deal on your currency deal – especially given the rising Australian house prices. No easy task given the uncertainty that has surrounded the Pound since Brexit.
When exchanging large lump sums for emigration purposes, only a small change in the market can have a significant impact on the amount of money you could be potentially starting your new life with. And, as has been well documented, Brexit has caused some larger than normal moves in the currency exchange market.
Just prior to Brexit (22nd June) £1 would have purchased you AUS$1.965. However, within a few weeks of the Brexit outcome this rate had plummeted to £1=US$1.775 (5th July). On an exchange of a substantial amount, say from the sale of your UK property prior to emigrating, such a fall has a massive impact on the amount of money you’ll have to start your new life. For example, if exchanging £150,000 the difference in Australian Dollars received would have been AUS$28,500. In just a matter of weeks.
Since the Brexit announcement, the value of the Pound has continued to remain low, and as more details regarding Brexit start to be announced, has fallen lower. On 30th December the rate was £1=AUS$1.699 – but it had been as low as AUS$1.589 in late October.
Currency specialists Halo Financial understands 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. This could give you the best chance possible to negate the impact of rising Australian house prices.
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 3rd January 2017