Hi
Do any of you know of anyone bringing in overseas money at low interest rates and then lend it out at higher rates?Is there any way that I could also borrow money from overseas at low rates? and maybe use my properties here as security.
FYI read some of the litigation against various banks in the 1990's which did this – borrowed at very low rates, then the dollar dropped through the floor. Borrowers were stung in a big way because the banks did not inform them of the additional risks due to the source of funds being subject to currency fluctuations.
Yes, just go and work overseas. If you worked in Japan for example you could borrow money at around 2.5% to buy property in Australia.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
The strategy above probably will not work because exchange rates adjust for interest differentials as well and also you expose yourself to currency risk!
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