Is it wise to invest in the UK when the Aussie dollar is high?
There has always been a strong relationship between the UK and Australia as the two countries have a deep intertwined history. Over the years many Brits and Australians have enjoyed passing between countries working, traveling or in many cases relocating for a couple of years or permanently.
Currently as the British economy struggles, many Brits are looking for a change and there has been an increase in them migrating to Australia. With a great climate, beautiful country side, a strong economy and an abundance of job opportunities, what’s not to like?
When traveling or moving from one country to another, there are always different opportunities that arise. They may be as simple as finding cheaper products, new services or foods that aren’t available in one country or the other. There can also be great financial based opportunities such as real estate, trading and banking.
Over the last year the Australian dollar has reached and sustained historically high levels. This has opened the door for those earning the Australian dollar the ability to take advantage of opportunities that hasn’t existed before, especially from a buying power perspective.
When looking at potential investments in the UK there numerous opportunities to consider such as:
Currency trading: Whilst the pound is weaker and the Australian dollar strong, purchasing and trading on this unusual or unique circumstance may be worthwhile.
Bonds: Compare product offerings between countries and distinguish best value based on short or long term investing.
Banking Products: Compare banking products to see which may provide a better return on your money. In addition, there may be certain financial products that are unique to the UK which might be worth investigating. For example; in the UK certain lenders offer tax free savings accounts called an isa. Whilst Australian banks may have their own versions of this type of an account, it’s definitely worth comparing.
Shares: A strong Australian dollar makes it easier to purchase those British shares which may have been a bit out of reach when the dollar was weaker.
These are some of the more popular financial investments to consider when thinking about investing overseas. It really comes down to recognising opportunity, calculating risk and return and then acting on educated decisions. Whether it is wise or not to invest in the UK at the moment, really comes down to individual, their research and strategy.