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  • Profile photo of DonnyTrumpeDonnyTrumpe
    Member
    @donnytrumpe
    Join Date: 2004
    Post Count: 2

    [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

    Profile photo of pelicanpelican
    Member
    @pelican
    Join Date: 2003
    Post Count: 454

    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

    Profile photo of DonnyTrumpeDonnyTrumpe
    Member
    @donnytrumpe
    Join Date: 2004
    Post Count: 2

    Many thanks Scott. I’ll try another method. Keep me informed if you have a breakthrough in Asia. Cheers.

    DonnyTrump

    Profile photo of RussHRussH
    Member
    @russh
    Join Date: 2004
    Post Count: 342

    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

    Profile photo of animal53animal53
    Participant
    @animal53
    Join Date: 2003
    Post Count: 2

    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.

    Profile photo of pelicanpelican
    Member
    @pelican
    Join Date: 2003
    Post Count: 454

    Animal,

    How do you manage currency changes ?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    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 / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of animal53animal53
    Participant
    @animal53
    Join Date: 2003
    Post Count: 2

    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

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