Other Options when the NZ Dollar is Strong against the Pound

The NZ Dollar to UK Pound currency exchange rate fluctuates a lot over time, and a few months can make a big difference in the amount of Dollars you can get for your Pounds.

Traditionally the strong Pound has made it much easier for Brits to settle in New Zealand with a comfortable financial cushion. But there are some strategies that may help you to reduce the impact of poor exchange rates if the Pound to New Zealand Dollar exchange rate isn't great when you are thinking about emigrating to New Zealand:

1. Remember that you don't have to change all of your money at once - a better strategy at the moment may be to change only as much as you need for your immediate needs. Please see the article on our UK website for more information on how much it costs to emigrate to New Zealand.

2. Using a foreign exchange broker rather than a bank to change your money and will get a better rate for your Pounds, and you'll also get free expert advice. For more about their services, check our article on changing your Pounds into New Zealand dollars.

3. If you're leaving money in the UK, it may be best to hold it in a high-interest bank account. Make sure you complete a P85 form when you leave the UK (and let your bank know) so that any interest you receive can be paid to you without tax being deducted. If you qualify as a Transitional Resident you will not have to pay NZ tax on the interest you receive for 4 years. The transitional Resident tax exemption also applies to other types of investment income held offshore, such as stocks and shares.

4. You may need to think about renting a house in New Zealand rather than buying one while you wait for the exchange rate to improve. If you really want to buy a house, it may be better to get a larger New Zealand mortgage rather than converting your Pounds into New Zealand Dollars at a poor rate - a variable rate mortgage that you can afford comfortably would be our recommendation for most migrants.

5. Remember that our preferred New Zealand QROPS for UK pension transfers both allow you to keep your transferred pensions in Pounds while you wait for an exchange rate that you are happy with, a facility that has been of great benefit to our clients.

The greatest ally that anyone can have when they are contemplating exchanging a large amount of money is time - if you don't need to change your Pounds into New Zealand Dollars by a certain date you will have more flexibility. A couple of extra weeks or months can make all the difference.

Please contact us to discuss a suitable currency exchange strategy for you.

At Broadbase International we specialise in helping British migrants make a confident start to their new lives. Please contact us if you have any questions about the financial side of life in New Zealand, and don't forget to order your free copy of our comprehensive New Zealand Guide.