To convert money now or wait?

[RedRose55]

We sold our house as we are moving back to US next year. We have a large amount in the bank (close to £500k) from house sale and other savings. We will be using this money to buy a house there and invest any left over money in a rental property (US).
Sterling-USD conversion rate is pathetic right now. While DH and I are panicking, friends are advising us to hold out until early next year. They think we are at our lowest point, it’s only upwards from here.

Would you convert now?

No, I think it will go back up

Sorry, my vote question:

Am I being unreasonable to CONVERT NOW?

The markets hate uncertainty - I think your friends are right

I think it's no where near bottom yet!

Hedge. Convert half.

If we knew what was going to happen we'd all be making money trading currency.

It might recover in three or six months. Or it could still fall further.

No one can predict what the pound or the dollar will do. So much is dependant on Brexit, the Fed, China deal etc and it’s all unknown. Fwiw I think that the pound will remain low until early November at least, and will go lower during October, but who knows. I have US dollars which I’m planning to convert to sterling in October.

I'm hoping the pound will fall further as Im selling my house in Europe to buy my home here....

It's a gamble either way but I suspect we will ultimately leave the EU and the pound will tumble even further. You could really cash in if it's No Deal. I'd sit and wait if you can.

Oh wait, sorry, you're converting from GBP to US Dollars...in that case I'd do it now.

For an amount that high you really ought to seek advice from a professional financial advisor. It may be about more than just timing it.

But hedging is not bad advice. Just watch that extra fees for extra transactions don't wipe out any likely gain you'd make, or exacerbate any loss.

Seek IFA as we don't know your full circumstances. However, I'd be tempted to convert what you need to to fund your purchase in the US now, then hold out on the remainder for the rental property for a while longer (assuming you won't be reliant on those funds for the next couple of years).

I hedged when I converted other way. 1/2 early on & 1/2 right before house purchase.