Loans in USD or Euro

Viewing 7 posts - 1 through 7 (of 7 total)

cata
Participant
@cata
Join Date: 2005
Post Count: 559
May 21, 2006 - 4:23 am
Just curious,
Can you get loand in US dollar or Euro?
I understand that the AU dollar goes up and down. but if you are fluent in currency trading, could you refinance between US and AU and use your loans to currency trade.
This could reduce your debt without paying for it and increase your LVR. But it could also go against you.
Dose anyone do this?
CATA
Asset Protection Specialist
[email protected]
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
May 21, 2006 - 7:56 am
Yes it possible and a few banks offer it.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888
Richard Taylor | Australia's leading private lender
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
May 21, 2006 - 8:00 am
Hi CATA,
As Richard says it is possible and offered by the major banks. Typically the conditions are maximum LVR of 75%, you will be required to keep the LVR below this if currency fluctuations cause the LVR to go above.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
cata
Participant
@cata
Join Date: 2005
Post Count: 559
May 21, 2006 - 10:23 am
Do the repayments have to be in USD and I assume that they fluctuate with the exchange rate.
What are the set up costs?
CATA
Asset Protection Specialist
[email protected]
grossrealisation
Member
@grossrealisation
Join Date: 2005
Post Count: 1,031
May 21, 2006 - 12:05 pm
hi cata
if you look at the yen or rmb loans you can take out the loan at a very low interest rate and then drop the first 12 month into an offset account at that bank and that does get away from currency fluctuations as you are paying the loan in yen there.
there are alot of hoops that you need to jump thru but they are currenty pushing for these types of loans out of asia.
and the yen/rmb loans are lot less rates of interest then a usd loan.
they can be done from here but are better done from there.
unlike Australian lending the higher the loan the lower the rate as they want you to lend more. I will forward an email to you for a wa broker that does this type of loans
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Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
May 23, 2006 - 4:58 am
Cata,
I should add that a number of currencies are available but you typically need to be earning in the same currency as your loan. Your repayments will fluctuate with the currency changes so you are effectively playing the foreign exchange market using your property as collateral. If you are borrowing in a currency with particularly low interest rates, such as yen, this risk is partly offset by rate difference. I hope this helps.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
grossrealisation
Member
@grossrealisation
Join Date: 2005
Post Count: 1,031
May 23, 2006 - 9:53 pm
hi Mortgageman
thats true but you can mitigate this by using a offset account in that counrty and the interest is draw out of that account in there currency.
hence no currency problems the only worry is the exchange on the loan amount but if a long term loan then this can be managed
here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]