Finances while you "wait"

[Scatterling]

I wish I was worring about how to get my money out, without pissing off SARS, Zuma or the Banks.

I'm one of those poor buggers who is still in the que for a good few months wait.

I thought I could use this time to my advantage.

I created my own trend graph of the AUD/ZAR and noticed that between 2000 and (NOW), it has toggled between R4 and R6 for 1AUD a few times. It was recently at the worst ever, R6 (it does not follow the USD by the way).

Note: I am an engineer an not an accountant:

______________________________________________________

In the last two weeks it has dropped from R6 to R5.71 this equates to almost 5%.

If you are taking over R1M , this is R50 000 in the last two weeks.

I suspect that the Aussie drought may have some part to play in the recent decrease.

We could be heading for R4 FOR $1AUD.

Why take the rate at what ever it is when your VISA arrives?

It could make the difference between a 2 bed house or a 4 bed house.

We have some liquid cash assets and access on the bond.

(Yes, even after paying for skills, the agent and IELTS and ALL and ALL.)

I would like to use this to peg the rate.

The rest we get at "whatever", when we go.

Depending on how the trend looks I would like to purchase as I please.

How can I do this without a VISA or ticket?

Maybe our learned expats and "know-it-alls" could advise.

[Springbok]

you could do any of the following, depending on your risk profile:

1. Buy bluechip rand-hedge stocks (e.g. Anglo, BHPBilliton, Angloplat, Remgro, Richemont, Sappi, SABMiller)

2. Invest in Allan Gray Equity Fund, which has a large exposure to rand-hedge stocks

3. Invest in Allan Gray Global Fund of Funds, a rand-denominated offshore fund that provides investors access to Allan Gray's, and its global asset management partner, Orbis', investment expertise. The Fund always holds at least 85% offshore.

There are more sophisticated means like currency futures and options, for this and more, contact any stockbroker of your choice... Investec Securities could be a good option, as Investec also has a presence in Australia. Tel. 011-286-4500 (Johannesburg) or 031-365-4700 (Durban)

Edited May 7, 2007 by Springbok

[Scatterling]

English, please Bokkie...

I'm am engineer, not and bean counter, please bear with me.

Your advise sounds pretty smart.

But, your adivise is suggesting investments ,more inportantly seperating myself from the volitility of the Rand.

I would like to buy straight currency , specifically AUD.

I have checked out HSBC offshore bank website, (who are in Aus), they seem to have some products that may suit me. They do not reply to my questions....

I would ideally like a "bank account" to dump my money / exchanged into AUD.

Then exchange it back into Rand before we go (or have Visa).

Am I smoking my are socks, or are you talking about the same thing?

I want to buy currencies, not shares in Anglo or SAB etc

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I do not know what a Hedge Fund is.

Please answer this or the above.

------

Thanks, your advice is appreciated.

[conroys]

Hi Scatterling,

Here's one suggestion: Any South African over 18 can make a foreign investment of R2mil - you don't need to relocate to a different country to do this. You just need tax clearance from SARS. You can open a bank account while in South Africa. I've opened one with Westpac recently where I can get about 5% on my savings account. The only issue then is that the account is only activated once you arrive in Australia and show proof of identity. Before then you can deposit money but not withdraw any. Apparently you can activate it while still in South Africa, but it is a tedious process.

[Springbok]

Scatterling, i was actually educated as an engineer as well... didn't like the work environment though...

anyway, I thought you justed wanted to hedge yourself against rand weakness, but if you want to buy straight AUD, just follow conroys advice above. e.g. you can open a bank account at ANZ and deposit money into it. If you are currently residing overseas but are planning to move to Australia and wish to open an ANZ account prior to your arrival you can open an account at http://www.anz.com.au/aus/promo/internresaccount. I filled out the forms and sent them to Australia. Got their reply 2 weeks later.

Just note you won't be able to withdraw the funds, as you have to identify yourself in person first.

If you want to know more about Hedge Funds, have a look at http://en.wikipedia.org/wiki/Hedge_fund and http://www.thehfa.com/

English, please Bokkie...

I'm am engineer, not and bean counter, please bear with me.

Your advise sounds pretty smart.

But, your adivise is suggesting investments, more inportantly seperating myself from the volitility of the Rand.

I would like to buy straight currency , specifically AUD.

I have checked out HSBC offshore bank website, (who are in Aus), they seem to have some products that may suit me. They do not reply to my questions....

I would ideally like a "bank account" to dump my money / exchanged into AUD.

Then exchange it back into Rand before we go (or have Visa).

Am I smoking my are socks, or are you talking about the same thing?

I want to buy currencies, not shares in Anglo or SAB etc

------

I do not know what a Hedge Fund is.

Please answer this or the above.

------

Thanks, your advice is appreciated.

[TjaartvdW]

In the last two weeks it has dropped from R6 to R5.71 this equates to almost 5%.

If you are taking over R1M , this is R50 000 in the last two weeks.

I suspect that the Aussie drought may have some part to play in the recent decrease.

We could be heading for R4 FOR $1AUD.

Why take the rate at what ever it is when your VISA arrives?

It could make the difference between a 2 bed house or a 4 bed house.

We have some liquid cash assets and access on the bond.

(Yes, even after paying for skills, the agent and IELTS and ALL and ALL.)

I would like to use this to peg the rate.

The rest we get at "whatever", when we go.

Depending on how the trend looks I would like to purchase as I please.

How can I do this without a VISA or ticket?

Maybe our learned expats and "know-it-alls" could advise.

Hi Scatterling

Dont want to publicly display my ignorance, but your post mentioend that the rand has strengthened in the last week+ and goes on to mention "We could be heading for R4 / 1 Aud..."

Then, my question is, why would you like to "peg the rate" (I assume at a rate close to the current exchange rate)...?

You also mention, in your other post "I would ideally like a "bank account" to dump my money / exchanged into AUD. Then exchange it back into Rand before we go (or have Visa)."

Why is this, if you are of the opinion that the rand is going to strengthen against the Aus$ then why would you take money out of SA at close to R6/Aus$ and then exchange it back to rands before you leave for Aus. (to my mind this is exactly what one would do if you believed the rand would weaken further, between now and then)

Am I misunderstanding something...?

Tjaart

[Scatterling]

Cheers for the advice guys....

Call me old fashioned - but I don't like the idea of having my money somewhere out there, that I can only access when I get to Australia . I really want it to stay - liquid.

I'm not being pessimistic but remember I don't have a VISA yet, and I only intend moving until I have a job.

happens, too often.

You pretty much got it Tjaart - buying right now would be silly - but if it gets to R4, I want to be ready, and not dilly-dally wondering what to do and trying to open accounts, when opportunity presents itself, before its up again.

I will only open an account in Aus when I get there.

I don't believe that ANZ and Wespac have the products/solution I'm looking for.

Surely you can play the currency markets without actually leaving, like people who play the stock market.

You know - buy LO, sell HI.

Pretend I'm not emigrating.

Edited May 8, 2007 by Scatterling

[Pixi]

Scatterling, have you tried to speak to your local bank. I've also been thinking along the same lines as you - be sure that you have at least a certain amount in some hard currencies. I'm with ABSA Private where they have a deal with Barclays Global. I can buy say 10 000 British pound at say R13 and they keep the 10000 pound for me as a investment. You earn very little interest but at least you know you have 10000 pound irrespective of future exchange rates. Then I can sell anytime when I want to at whatever the exchange rate. And its easy because you can work here with people you can see face to face - not some strange voice on the other side of the world So most probably if Absas got it , the other banks also have it. Good luck in speaking to your local bank

[Scatterling]

Sounds like a good, simple and obvious idea.

KISS / maybe I'm expecting this to be more complicated than it is.

[Springbok]

Surely you can play the currency markets without actually leaving, like people who play the stock market.

sure you can, the currency market is the world's biggest financial market and dwarfs the rest, trading in excess of US$1 trillion a day... but you need balls of steel, this is not for Joe Soap. Currencies are for trading, not for investment like the stockmarket.

but give it a shot - www.fxactive.com, they have an option where you can try it out risk-free with $10,000 in a VIRTUAL environment. Before you start, make sure you know what it means to trade on margin. Have fun and let me know how long you last...

[Scatterling]

Thanks for the "Heads up".

I have never really traded stocks, but also I have never studied something as closely as I have AUD/ZAR recently.

Perhaps because I want to feel like I am activley contributing to my gracefull exit, while I WAIT.

I may very well not even execute this option until I leave.

Unless the exchange rate drops and looks like it will shoot up before I depart.

On the recomendation of Pixie, I went into Std Bank today.

After much investigation the consultant has put me onto another Std Bank consultant who can advise on a - "On-Shore Currency Investments", or something like that - I see him next week.

As most expats leaving, the currency IS WHAT IT IS , when they leave.

I don't see why it should be like that if you have time on your side. (& some cash flow).

Will keep you posted..

Regards

Balls of Steel

Edited May 9, 2007 by Scatterling