Hi all, i’ve being put in a bit of a situation.
I’ve currently got a place in NewZealand and now are looking to buy in the US. I dont have enough funding so my girlfriend and i are looking to form a investing partnership to go halves in a property and to drawn definite line, showing that its not being bought just as a couple. Now the problem is my girl friend and i are both 19 so there is still big influnces from our relationships with our parents and her dad is telling her it is a bad idea and she tells me i have to talk to him about it.
His reasoning is that the american dollar is and expecting raise so it will put us 25% worth off not that buying together is a problem.
of course i have thought about this, but i dont believe it’ll make a big difference. Ecconomic growth leads to capital growth right ?
So i need help to further understand what the implications of a US dollar increase will have, and so i can better explain this to her dad. He’s not really the investing type.
so far
Capital growth
cheaper buy inLook forward to the replies
Cheap and easy way to transfer money overseas.
http://www.tranzfers.com/refer.asp?r=jarred_spriggs%5Burl%5D%5B/url%5DIf you purchase before the US Dollar increases, your purchase price will be less and rental return will be greater in Australian dollars so, if it is positively geared, your net position will be better (if you transfer funds to AUS). This also works in reverse. Transferring funds also costs money.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Linkswhat sort of price are we talking about here ? i just read a recent article on one of the web.
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WASHINGTON (Reuters) – Sales of existing U.S. homes rose 1.0 percent in March to the third-highest level on record as an increase in single-family sales offset a dip in sales of condominiums, a trade group said on Monday.Sales of previously owned homes rose to a seasonally adjusted annual rate of 6.89 million units last month, the National Association of Realtors said. That figure includes both single-family homes and condominiums.
Single-family homes sales increased 1.2 percent in March to a 6.04 million unit rate from a 5.97 million unit rate in February. Condo sales fell 0.1 percent to a 845,000 unit rate from an 846,000 unit pace in February.
Analysts had expected overall sales to climb to a 6.80 million unit rate.
The national median home price jumped 11.4 percent to $195,000 from the same month a year ago, the NAR report showed. That price increase was the biggest since December 1980, when prices rose 11.5 percent, NAR said.
‘The market is very strong,’ said NAR Chief Economist David Lereah. ‘The problem in this country is housing supply. It’s still very lean.’
In March, the supply of homes for sale at the current pace was 4 months’ worth, down from 4.2 months’ worth in February.
‘We still have this awkward balance between demand and supply,’ Lereah said.
Home sales have been bolstered by low mortgage rates for more than a year, but some analysts said the housing sector has begun to show signs of easing. Last week, a U.S. Commerce Department report showed a 17.6 percent plunge in housing starts for March.
The national average long-term fixed mortgage rate was 5.93 percent in March, up from 5.63 percent the month before, according to Freddie Mac.
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so if you have enough cash to put it towards the + flow, then go for it.
otherwise.. you got to work out your circumstantes if dollar raises.
my opinion anyway.
So i need help to further understand what the implications of a US dollar increase will have, and so i can better explain this to her dad. He’s not really the investing type.if he is not the investing type then I would not try and involve him in a foreign property deal. That’s just my opinion. Perhaps you could seek other private finance or try and find an experienced investor willing to do a JV.
It’s probably not fair to even asks the girls dad. Maybe I’m just old fashioned though. If he was an investor and you pitched a deal to him it would be a different story.
Cheers
you could always hedge it of course.
I remember about 10 years ago back in the UK, everyone thought it was a great idea to set their mortgages up in continental currencies with low rates. then the currency moved against them and they lost their house with all the ramifications that followed…
http://www.megainvestments.com.auJohn Carroll
Don and Liz, i’m not saying i’m pitching a deal to him, my girlfriend just mentioned to her dad what she wanted to do. Which was to invest in america with me.
So is our dollar expected to raise against the US, will this have a big effect on investing there ?
Cheap and easy way to transfer money overseas.
http://www.tranzfers.com/refer.asp?r=jarred_spriggs%5Burl%5D%5B/url%5DI was reading this morning that in the event the Yuan is revalued, the AUD is likely to rise in sympathy with other asian currencies against the USD. Others believe our economy is built on a house of cards (read some of the postings by dmichie) and we are set for a fall. either way, the market is driven largely by sentiment and will be afected by events that you can’t possibly predict and it is extremely risky to bet on it IMO.
http://www.megainvestments.com.auJohn Carroll
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