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Brit expats in UAE taking advantage of sterling crash to repatriate savings
| Published: | 31 Jul at 6 PM |
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Tagged: Currency, Moving, Property Abroad, Buying Property, UK, Canada, Citizenship, UAE, Money, Exchange Rates, England
Due to the unprecedented fall in the sterling exchange rate, a good number of UAE-based Brit expats are sending money back to the UK.
British expats living and working in the UAE are now moving savings and spare cash back to the UK, thus taking advantage of the worst exchange rate in a decade or more. As sterling sinks ever lower on the threat of a broken economy due to a no-deal exit from the EU, increasing numbers of British expatriates are cashing in on the once-in-a-lifetime opportunity. For British professionals who arrived in the emirates some 10 years ago when the exchange rate was at 6.3 it’s a no-brainer, as today’s rate gives a 20 per cent better return.
Expats working in the financial sector believe the pound has further to fall, but are taking steps now rather than waiting until later this year. Another option for many is to purchase a buy-to-let UK property with savings, thus gaining the chance of capital gains further down the line. Unfortunately, for expat professionals being paid in sterling it’s loss-making time, but moving savings back to the home country will at least make up for less convertible currency in the pay packet.
For those wishing to keep their savings overseas for whatever reason, taking advantage of stocks as well as buying property is the only way forward, especially as staying positive and hoping for a Brexit miracle is no longer on the cards. When asked, several expatriates expressed concern about British citizens being unable to afford summer holidays overseas due to sinking sterling, adding the situation is cyclical, as it always is with currency exchange rates.
British expats living and working in the UAE are now moving savings and spare cash back to the UK, thus taking advantage of the worst exchange rate in a decade or more. As sterling sinks ever lower on the threat of a broken economy due to a no-deal exit from the EU, increasing numbers of British expatriates are cashing in on the once-in-a-lifetime opportunity. For British professionals who arrived in the emirates some 10 years ago when the exchange rate was at 6.3 it’s a no-brainer, as today’s rate gives a 20 per cent better return.
Expats working in the financial sector believe the pound has further to fall, but are taking steps now rather than waiting until later this year. Another option for many is to purchase a buy-to-let UK property with savings, thus gaining the chance of capital gains further down the line. Unfortunately, for expat professionals being paid in sterling it’s loss-making time, but moving savings back to the home country will at least make up for less convertible currency in the pay packet.
For those wishing to keep their savings overseas for whatever reason, taking advantage of stocks as well as buying property is the only way forward, especially as staying positive and hoping for a Brexit miracle is no longer on the cards. When asked, several expatriates expressed concern about British citizens being unable to afford summer holidays overseas due to sinking sterling, adding the situation is cyclical, as it always is with currency exchange rates.
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