Overcoming Pound’s Weakness to Expatriate and Live Abroad

‘Britain is still in recession’ screamed last week’s incredulous headlines: and yet everyone actually living in the UK is increasingly well aware that the media hype and frenzy behind the British economy is all rubbish anyway.  Of course the nation is still in recession, and it’s likely to remain so for a considerably long time.

The pound has been devalued by almost a third, the government has bailed out bankrupt financial institutions and printed money, the jobless total is continuing to rise and there is absolutely no good news on the horizon that could lead any Brit to conceivably believe that their nation is anything other than financially screwed.

So many Britons are despairing about their country that a recent survey from a travel insurance company reveals 37% of Brits taking extended time away from the nation are doing so because they are “escaping gloom and doom in the UK.”  If you want to follow in their footsteps and get out, this report is about overcoming the pound’s current weakness so that you can expatriate and go and live abroad…

Britain is likely to be the last ‘leading industrialised nation’ to leave recession behind – but what’s probably more embarrassing is the fact that now Britain’s economy has fallen behind Italy’s – a nation with a long history of economic issues!  Of course, the Italians are saying that this is because their economy is so strong – but we’d like to counter that and suggest that actually no, it’s truly because Britain’s economy is so deeply flawed at this point in time!

The trouble is, whilst there is great satisfaction to be gained from slating the British economy and damning the current government’s abysmal handling of it, things are unlikely to improve any time soon, no matter who gets into power at the next election.  Additionally and more importantly however, slating the government and the economy doesn’t actually help those Britons who have had enough and who want to get out and go and live a better quality of life abroad.

Until incredibly recently it was fairly ‘simple’ for the average Brit to expatriate – they had equity in their homes, there was an active market for property for sale in the UK so that they could free up that equity, and for those who didn’t want to sell their British base, there were equity release products on offer from a multitude of banks.  The pound was relatively strong against most international currencies, meaning that a Briton’s buying power overseas was healthy.  This meant that the cost of living seemed affordable, relatively speaking, and property was also affordable in many nations around the globe for Brits.  With the crash in the economy in the UK has come a crash in the housing market, a crash in the mortgage market and a crash in the value of the pound…and many Britons who had planned a new life abroad are left wondering what to do next.

Well, there are still active options available to Brits wanting to move abroad.  Those who are in no active hurry can wait to move, they can spend the time improving their home so that it sells well when the market rebounds, they can work on options for their income when they move abroad – whether this be aligning their investments for greater returns or working out ideas of a business that can be run overseas perhaps.  They can work on learning the language of the nation their moving to and spend more time researching the country and deciding on the best place for them to move to.  Then, when things begin to improve in the UK, when there is consistent life visible in the housing market and the pound begins to regain ground, a plan can be put into action to leave Britain’s shores. 

For those who are absolutely disillusioned with Britain or perhaps for those who have reached retirement and want to leave sooner rather than later, waiting is not an option.

For such individuals a reality check has to be considered – firstly, it may not be possible to sell your British home – however, it may not actually make sense to sell your British home either.  For a start, your British home will sell and give you a profit (hopefully) in pounds.  These pounds will buy you less abroad, so it may make sense to keep your pounds in property for the time being.  This may mean that you rent your British home out whilst you move overseas.  This can be a good option for those who feel that the housing market will rebound and that when it does, they will be able to get more for their property when it goes on the market.

Naturally this will likely mean you cannot buy a home overseas – this is also not horrendous news though, as it means you can rent abroad and get to know the country and the region you’re in even better, allowing you more time to decide where it is you really want to live abroad. 

Those who have sold a property in the UK or who just have the money in their British account that they want to use to buy a home overseas should speak to a reputable currency specialist to see how they can perhaps future proof the value they will get for their pound when it comes time to transfer it all abroad.  And those who will be receiving an income in the UK that they will want to move abroad can also ask about getting a contract in place that will fix the amount they get for their pound for a given period of time.  This can work out well for those who need to budget – they will know exactly how much their British pounds are going to buy them monthly for a set period of time.

Your dreams of moving abroad may not feature you having to budget, rent a property and live frugally – but see this as a temporary measure until the British economy straightens itself out, your property is saleable again, and your pounds are worth more against other currencies.

For those who are already living and working abroad, as well as for those who are planning on going overseas to work and earn an income, you need to seriously think about how you save and invest your money.  Interest rates in the UK are very low at the moment, also, is there any sense in you earning in one currency and saving back in pounds onshore in the UK?  Chances are you should be taking the expatriate advantage with your money and making the most of the offshore saving and investment options available to you.  Whether you could benefit from an offshore pension such as QROPS, or you could wrap all your money up in a portfolio bond is something for you to discuss with an expatriate financial adviser…but make sure you do explore your options otherwise you won’t necessarily be doing the best for your wealth whilst you are living abroad.

Finally, remember that a goal without a plan is just a wish – so get a plan of action in place and stick to it, you can move abroad and you can have a better quality of life than you have in the UK.  You just need to ensure you have all bases covered and you’re aware of the issues facing you at the moment.  If you remain realistic and you keep your goals realistic, you will achieve you wish!