Expat Living 101.com Blog » currency

Currency Exchange Critical to Moving Abroad Success

Paul Allen — Tue, 25 Jan 2011 16:19:13 +0000

So you’ve decided to take the plunge and emigrate. Congratulations! Your next question should be how are you going to make your move a success?

Many people decide to emigrate in order to provide a better quality of life for themselves and their family – the thought of year-round sunshine, more time with loved ones, different leisure opportunities. But whatever your motivations, it is crucial you put yourself in the best financial position possible if you are to get off to a good start in your new country. And to do that, you need to give serious thought and planning to the issue of currency exchange.

OK, so it may not seem as fun as researching all about the sun, sea and sand you can look forward to enjoying. But getting a good currency exchange rate can make a huge difference to the success of your move. And if it helps maximise the budget you have to spend on your dream home abroad that has to be time well spent.

Getting the biggest bang for your buck

For some people, currency exchange may be a key factor in their choice of destination. For instance, countries in Asia, Africa and Eastern Europe with relatively weak currencies can offer great opportunities to make your savings go further.

Alternatively, among those soon-to-be-expats who have already picked their dream location, the issue will be more a matter of how to get the most from your money.

Take buying property abroad. For many expats it means exchanging your savings into the local currency of the country to where you are moving. Exchanging large amounts can be an expensive exercise though, and isn’t to be taken lightly. Therefore, many expats employ a foreign exchange broker to guide them through the process. Others simply bide their time, research the currency market, and exchange when the rate is particularly favourable.

Money matters

Foreign exchange rates are a huge factor when moving abroad – so make sure you address it as soon as possible in the decision making process.

The best advice is to do your research thoroughly. If you want help, consider using a foreign exchange broker. And if not, ensure you shop around to get the best exchange rate possible.

Expat Living By the Book

Paul Allen — Thu, 01 Oct 2009 16:02:34 +0000

It’s been a while since I’ve done any blogging for Expat Living 101. In truth, like so many other expatriates I’ve been hit hard by the financial crisis over the last year – a double whammy of soaring interest payments on our mortgage, and plummeting currency rates when converting my foreign earnings into euros. As a result I’ve had to work twice as hard just to standstill. Not what you want at the best of times, but especially when the sun is beckoning outside!

But now I’m starting up again with a new zeal … for I have just signed a contract with Lean Marketing Press to publish a print version of my book on the pros and cons of living overseas: “Should I Stay Or Should I Go? The Truth About Moving Abroad And Whether It’s Right For You.”

The publishing contract may not come with a $1 million advance and movie tie-in rights as per my J.K. Rowling aspirations, but it’s an exciting prospect nonetheless – one that, hopefully, will help a lot more people get a better handle on the real benefits and costs of moving to a foreign country, and give them a much clearer view on the right path to take. And if it can help readers towards living the lives they truly desire then I will be well satisfied.

This blog then will record the book’s journey to fruition and beyond, as well as being an opportunity to record some of my thoughts and observations on the expatriate life as they crop up.

I hope it proves interesting – and if you have any comments or questions on the way please feel free to add them.

And don’t forget to check out my website, www.expatliving101.com, where you can sign up for my free weekly newsletter. I’ll also be updating and retooling the site with the help of the nice people at Lean Marketing Press for when the book comes out. So please keep checking in.

Hasta luego …

Global Recession and Its Impact on Your Moving Abroad Plans

Paul Allen — Wed, 14 Jan 2009 19:21:12 +0000

For many people Spain epitomizes the moving abroad dream: a country that offers the prospect of year-round sunshine, lower living costs and a more relaxed pace of life.

Not surprising then that year after year Spain has proven to be one of the most popular destinations for expatriates from around the world, with 10% of its 45 million population now made up of foreign nationals.

Yet the beneath the alluring sheen of the Mediterranean sun all is not well.

An article on the BBC website* reported that the country’s industrial output fell 15.1% in November 2008 compared to the year before, the biggest drop on record. This manufacturing slump comes on top of the collapse already witnessed in Spain’s construction sector, showing the country’s woes are spreading across the economy and raising fears of a deep recession.

And there was more evidence of that with the release of figures showing unemployment hit 3 million in 2008, a 12-year high. Not the greatest time perhaps to be relocating to the country.

For anyone considering moving to Spain at present there is a silver lining though, in that the credit crisis has resulted in a plentiful supply of properties and tumbling house prices.

On the flip side however, the strength of the euro means that anyone coming from a non-euro country will now find it relatively more expensive to buy property and live there.

For instance, over the course of the previous year the British pound had a 52-week high of 1.35 euros. At that rate, a 300,000 euro house would have cost approximately £222,000.

But the pound at the time of writing is down at 1.11 euros (having almost hit parity over the Christmas period). So if that same house has dropped even as low as 250,000 euros it would still cost £225,000 for a British buyer.

And the strength of the euro against currencies such as the pound and US dollar has raised the general cost of living in Spain and elsewhere in the eurozone for many expatriates, not least retirees on pound or dollar denominated pensions.

In this sense then it’s a bit of a glum picture. And similar circumstances and scenarios can be found around the world. This recession is of truly epic and global proportions, with apparently nowhere safe from its impacts.

Yet it’s not all bad news for prospective expatriates.

I still read many articles exhorting people to move abroad, bemoaning the parlous state of their home countries and economies, and referencing places such as Australia and New Zealand, Turkey, Costa Rica and Mexico where properties and living costs remain cheaper, and the sun does still shine.

And of course they are right … to a certain extent.

There are always good property deals to be had somewhere in the world. You can always find locations where your food bills or a bottle of wine will be a fraction of what you pay now, and where you’ll be able to soak up some sun while your friends back home freeze their butts off.

But if you are seriously considering moving abroad you should take into account all the lifestyle factors when making your decision. Don’t just base your choice on the latest currency swings or property deals. Think carefully too about how comfortable you’ll feel with the local culture, what health or educational services they have, how far you’ll be from close family and friends.

Consider where you want to be for the long term, not just because of some temporary economic situation. And if that means the timing isn’t right at present to move where you feel you most want to go then don’t be afraid to be patient (as long as it isn’t an excuse for prevarication!). Ultimately it is more important to make the right move later than any old move now.

* BBC News, 9 January 2009, http://news.bbc.co.uk/2/hi/business/7819569.stm