Sourcing International Funds

Viewing 8 posts - 1 through 8 (of 8 total)

DonnyTrumpe
Member
@donnytrumpe
Join Date: 2004
Post Count: 2
April 6, 2004 - 9:26 am
[cigar]
Japanese and American banks are presently giving their clients 0%-2% interest on deposits.
Does anyone know any way to access these funds directly, and offer 4%? (p+i loan)
Currency fluctuations can bring your project down, so would hedging with currency futures contracts nullify the damage?
I’m very interested in reading responses from members who have actually attempted, or succeeded going down this path. Cheers, D.T.
DonnyTrump
pelican
Member
@pelican
Join Date: 2003
Post Count: 454
April 6, 2004 - 11:21 am
Donny,
A very interesting theory…. Banks in Asia will do it, but as soon as there is a currency movement, you have the potential for a margin call…. i.e. making sure % wise you have enough equity in the deal…..
Risky stuff, but you can do it with Forward cover contracts…. the issue is the cost of the contracts aren’t cheap…..
Have yet to do the somes…….. as I think it’s a little too risky / costly.
I’m actively looking for A$ finance in Asia, offering 6-7%, as most banks are offering .5% – 3.8% on term deposits….
Cheers
Scott
Pelican Investments
http://www.pelican-invest.com
DonnyTrumpe
Member
@donnytrumpe
Join Date: 2004
Post Count: 2
April 6, 2004 - 10:11 pm
Many thanks Scott. I’ll try another method. Keep me informed if you have a breakthrough in Asia. Cheers.
DonnyTrump
RussH
Member
@russh
Join Date: 2004
Post Count: 342
April 7, 2004 - 4:09 am
Citibank is offering 5.4%at call.
Russ
So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
animal53
Participant
@animal53
Join Date: 2003
Post Count: 2
May 30, 2005 - 12:21 pm
I work in Hong Kong and borrow Japanese Yen from Australian Banks there to purchase Australian property.Interest rate of 1.55% pa at the moment.It makes cashflow +ve a breeze.I don’t know why banks in Australia don’t offer it domestically. Maybe if enough borrowers asked , they would relent.
pelican
Member
@pelican
Join Date: 2003
Post Count: 454
May 30, 2005 - 12:51 pm
Animal,
How do you manage currency changes ?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
May 31, 2005 - 2:07 am
I have looked at Aussie banks in Japan like the NAB. They will lend in Yen for property in Australia at about 70% lvr. rates around 2%. But if currency moves, you may be required to pay the loan down to keep the LVR less then 70%. They also wanted you to be working in Japan and earning in Yen. If you were ever to leave, they could call in the loan.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
animal53
Participant
@animal53
Join Date: 2003
Post Count: 2
June 4, 2005 - 11:13 pm
Pelican,
I get 2 free currency switches per year all done with a phone call at short notice.
Terryw,
Banks can call in any loan at any time. If you return to live in Australia , as long as you are servicing the loan , they leave you alone.
Cheers , Animal