I"d like to get a mortgage in swiss Currency being Swiss my-self and knowing lots of people there.
The swiss rate is at 3.5% at the moment so great potential to get positively geared house.
Does any one know a way around the fact that I don't have any income in Swistzerland. Could I use a business partner in CH instaead?
Most lenders who offer FC Loans will require you to be earning an income in something other than AUS $ to allow you to borrow in another currency.
In saying this think long and hard about such a loan product as i have seen many borrowers in the UK come unstuck with FC loans in the 80's.
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Also, I as under the impression that you would also be considered a currency trader and as such may need to pay tax on any profit earned as a result of the exchange rate, even if the property itself has not been sold and realised.
MickI recommend FC loans but only on the basis that you are able to switch the currency. I have good experience with a product from Lloyds TSB that allows you to switch across 4 different currencies and you do not need to earn in that currency – excpet they recntly put in resprictions on Yen loans – you need to confirm. I currently have loans in Yen and HKD. Using the low interest rates give me good cash flow on my investment properties and if the interest rate rises i switch to another currency. The disadvantage is the exchange rate fluctuation, you need to be aware of this and watch it carefully. Also they require 35% down payment which skrews up the DMM so according to Steve it would be a bad idea. However if you dont buy marginal deals and are looking for an income not capital growth then they can help you to achieve this. I would recommend including the currency the property is purchased in as one of the loan currnecies in your basket.
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