All Topics / Overseas Deals / Au $ – 1.07 – predictions

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  • Profile photo of worldinvestorworldinvestor
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    Nice….. the Au $ looking good, anyone like to comment on whether will be it continue to rise??

    Good time to buy in US. I have been purchasing anywhere from 94 – 1.05.

    WI

    Profile photo of jbelmorejbelmore
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    WI

    If I knew which way I’d be rich!

    Very difficult to call when increased confidence in the US results in a higher $A due to traders taking bigger positions in higher risk currencies.

    It appears to be good time to buy with a US loan. Then if the Aussie dollar goes really high pay out the loan and if not you’ve got US cash flow to repay the loan.

    Cheers David

    Profile photo of kylermricekylermrice
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    I was always under the impression it will stay strong backed by your mining industry

    Profile photo of EngeloRumoraEngeloRumora
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    I think Aussie $ will stay strong for the next few years so no need to rush in and buy.

    EngeloRumora | Ohio Cashflow
    http://ohiocashflow.com/
    Email Me | Phone Me

    "Make a PASSION an OBSESSION and you'll never work a day in your life"

    Profile photo of USinvestnoobUSinvestnoob
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    I say you have to decide on whether or not your happy to pay circa $46kAUD for a $50k US property.
    There is a higher chance of the AUD to drop than there is of the AUD riding higher.
    Ie. How much higher do you think the AUD can go up to? VS
    How low can the AUD drop?

    People are now starting to say that the AUD can run up to the 1.50 and. Parity against the Euro…
    Is this possible? Definitely… If China is still strong and Europe doesn’t fail.

    But if The Eurozone collapses (which is what I believe will eventually happen) than Chinas export will reduce as Europe is one of Chinas largest trading partner, if China slows down than their appetite for commodities will reduce and if commodity demend reduces so will the Aussie dollar. This is because the AUD is know as a risky currency and has a strong correlation with commodities.

    If it drops where will it go down to? During the peak of the GFC, the AUD just below $0.60.
    If Euro collapses, it’s going to hit the world hard.

    So this comes back to your thoughts in the present, the right here right now situation.

    My thoughts… It’s a good time to get your first capital investment/deposit transferred from AUD to USD.
    $1 for $1 isn’t bad.
    If AUD rises, great buy some more properties – transfer more AUD or borrow in the US at lower rates.
    If AUD drops, great transfer some money back OR borrow in the US and use the rental return to buy more.

    At the end end of the day if the AUD drops that $50k property is goin to cost you $90-100k – how you going to feel about that?

    If you find a property now:
    A) do it now rather than trying to pick the high
    B) lets me know where this property is so I can look into properties in the suburb :)

    Bit long winded but hope that helps!

    Cheers
    Ex-FX dealer

    Profile photo of worldinvestorworldinvestor
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    USinvestnoob wrote:
    I say you have to decide on whether or not your happy to pay circa $46kAUD for a $50k US property. There is a higher chance of the AUD to drop than there is of the AUD riding higher. Ie. How much higher do you think the AUD can go up to? VS How low can the AUD drop? People are now starting to say that the AUD can run up to the 1.50 and. Parity against the Euro… Is this possible? Definitely… If China is still strong and Europe doesn't fail. But if The Eurozone collapses (which is what I believe will eventually happen) than Chinas export will reduce as Europe is one of Chinas largest trading partner, if China slows down than their appetite for commodities will reduce and if commodity demend reduces so will the Aussie dollar. This is because the AUD is know as a risky currency and has a strong correlation with commodities. If it drops where will it go down to? During the peak of the GFC, the AUD just below $0.60. If Euro collapses, it's going to hit the world hard. So this comes back to your thoughts in the present, the right here right now situation. My thoughts… It's a good time to get your first capital investment/deposit transferred from AUD to USD. $1 for $1 isn't bad. If AUD rises, great buy some more properties – transfer more AUD or borrow in the US at lower rates. If AUD drops, great transfer some money back OR borrow in the US and use the rental return to buy more. At the end end of the day if the AUD drops that $50k property is goin to cost you $90-100k – how you going to feel about that? If you find a property now: A) do it now rather than trying to pick the high B) lets me know where this property is so I can look into properties in the suburb :) Bit long winded but hope that helps! Cheers Ex-FX dealer

    Thanks for comments, just toying with the idea of bringing the money down especially if it gets to $1.10 , am waiting on suitable property to come along.

    Am buying in Atlanta and have purchased 6 to date while the AU $ has been so strong.

    I would not be buying in US if the AU $ dropped back to traditional levels, as the returns would not stack up.

    I see interest rates have stayed the same today, it was predicted that if the interest rates fell .25% the AU $ would fall back.

    Be interesting to see what happens over the next week.

    WI

    Profile photo of staceymacstaceymac
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    Yep I agree with the Ex-FX dealer. Not bothering to wait and try and pick a high. Whilst it is now good its time to buy. Come on lets be realistic anywhere near $ for $ is pretty good you would have to say. Rather get the right property deals in a high $$ than have to rely on the $$ and then find properties – thats not my focus. Anyway thats probably just me.

    I have made a killing on some Cashflow Properties here in Australia. They all are getting me some great + $$ and have experienced some exponential growth in the last 3-4 years. So I am now in the lucky position where I can get maybe 4 USA properties for around that $40-50K range.

    Sorry to show off I am just excited about the trip and the opportunities that maybe available. :)

    Off to the USA next month to buy up the USA. :)

    Stacey

    Profile photo of worldinvestorworldinvestor
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    staceymac wrote:
    Yep I agree with the Ex-FX dealer. Not bothering to wait and try and pick a high. Whilst it is now good its time to buy. Come on lets be realistic anywhere near $ for $ is pretty good you would have to say. Rather get the right property deals in a high $$ than have to rely on the $$ and then find properties – thats not my focus. Anyway thats probably just me. I have made a killing on some Cashflow Properties here in Australia. They all are getting me some great + $$ and have experienced some exponential growth in the last 3-4 years. So I am now in the lucky position where I can get maybe 4 USA properties for around that $40-50K range. Sorry to show off I am just excited about the trip and the opportunities that maybe available. :) Off to the USA next month to buy up the USA. :) Stacey

    I agree, I have usually just transferred the money over on purchase, however now that the AU $ is so good, think I will just bring it over prior to purchase as it makes sense. I am purchasing on average $60K per property.

    So where are you purchasing? Will you be sourcing your own deals?

    WI

    Profile photo of staceymacstaceymac
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    Sorry WI. I dont seem to get any email notification from here??

    Looking at Texas at the moment.

    Will see. At the moment I am just going to absorb as much info as I can. I have access to a wholesaler whilst I am in the USA.

    Profile photo of Alex SCAlex SC
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    staceymac wrote:
    Sorry WI. I dont seem to get any email notification from here?? Looking at Texas at the moment. Will see. At the moment I am just going to absorb as much info as I can. I have access to a wholesaler whilst I am in the USA.

     Stacey
    '
    Been Reading you post what attracts you to Texas.  This is one market in the USA investment markets I have not visited but do see quite   bit of investors buying their.

    I am in the states so been actively visiting the different markets here the last few years.

    Alex 

    Profile photo of worldinvestorworldinvestor
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    Interesting times, when I first posted in Feb Aus $ at 1.07 now we are around 98, with stock market going south and prediction of another interest rate drop perhaps we will see further decline. 

    So for those investing/buying property in US what is your cut off point, I know investors who purchased when the Aus $ at 85.

    For me I am now looking at transferring funds from US to Oz.

    WI

    Profile photo of KnoxOffKnoxOff
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    worldinvestor wrote:
    staceymac wrote:
    Yep I agree with the Ex-FX dealer. Not bothering to wait and try and pick a high. Whilst it is now good its time to buy. Come on lets be realistic anywhere near $ for $ is pretty good you would have to say. Rather get the right property deals in a high $$ than have to rely on the $$ and then find properties – thats not my focus. Anyway thats probably just me. I have made a killing on some Cashflow Properties here in Australia. They all are getting me some great + $$ and have experienced some exponential growth in the last 3-4 years. So I am now in the lucky position where I can get maybe 4 USA properties for around that $40-50K range. Sorry to show off I am just excited about the trip and the opportunities that maybe available. :) Off to the USA next month to buy up the USA. :) Stacey

    I agree, I have usually just transferred the money over on purchase, however now that the AU $ is so good, think I will just bring it over prior to purchase as it makes sense. I am purchasing on average $60K per property.

    So where are you purchasing? Will you be sourcing your own deals?

    WI

     if you move the money to a US account and let it sit there, what intrest rate will you get ??

    .
    if you have the cash here you can leave it in a high intrest term deposit at say 7% per annum
    if you are drawing down on a line of credit loan you will be paying 7% PA   to move the money accross

    so will the AUD fall 7% against the USD in the next year ??

    .

    also   what  about  the  state  of the US Banking  system
    what  if their  banks  run  into trouble  again  with all  your money  siting in them

    Profile photo of worldinvestorworldinvestor
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    No point leaving cash in US banks as the interest is zip.

     I will be transferring funds to OZ while Aus $ below US.

    Profile photo of streamlineinvestingstreamlineinvesting
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    When we purchased property in the US, obviously financial fluctuations played a big part in it, we were hoping to be able to get US dollars while it was weak so it would be another way to make profit.

    But at the end of the day, we just figured in the long term, we should be satisifed with anything over parity, so obviously around 1AUD = 1.07 USD is great, but I believe most of our dollars we got for around the 1AUD = 1.02USD mark, so we were still delighted, we are in this for the long term so not too concerned about short term fluctuations, and we believe the long term is for the AUD to go back to where it historically was.

    Looking just now, the exchange rate is around 1AUD = 0.98USD, so already we have made a couple percent profit on our investing! Happy days so far. That being said, we do intend to purchase a whole lot more properties in the future, but hopefully we will be able to use the rent collected from our existing property to get more properties, and not have to transfer across more australian dollars.

    Profile photo of Scott No MatesScott No Mates
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    Since the first posts the AUD has traded down to parity and now back around $1.04

    How is everyone traveling as the $ is still above parity.

    Is buying just as good or are they bouncing back a little?

    Are you waiting for the fiscal cliff?

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
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    Yen dropped from 79-81 per aud several months ago to 84-86, hovered for awhile, and now at 88-89. Our clients (and me, piggybacking on their transfers ;)) have been moving funds to Japan continuously over the last 2 months, even if no immediate purchase in sight, even if just to capitalize. good few hundreds/thousands to be made on those fluctuations when they happen, as long as you can afford to wait and aren't using funds you'll need in a hurry anytime soon.

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of FreckleFreckle
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    BOJ is printing yen to infinity. What makes you think there is a dollar in buying Yen now when it's clearly loosing value against the AU$

    Jap economy is nearing the end of its ability to borrow internally. It will soon be forced to borrow internationally at higher interest rates. The end is in sight for the Yen as we know it. Japanese currency collapse is now seen as real possibility. 

    The Jap economy is now between a rock and a hard place with no way out. Foreign investors holding Jap assets will loose their shirts when confidence in the Yen falters.

    If your intent is to play the fluctuations then your dancing on the edge of a cliff.

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
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    My intent (and that of my clients) is not to play fluctuations, but to make the best of any situations as they arise. As for the state of Japanese economy and its future, your opinion and attempts at crystalballing the future is one of many, as previously discussed here time and time again.

    Forgive me if I don't enter another argument with you, freckle, but your way of conducting them doesn't sit well with me. I find you aggressive and offensive, and I've got better things to do with my time, as well as more civilized people to have debates with.

    all the best.

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of FreckleFreckle
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    zmagen wrote:
     I find you aggressive and offensive,

    You do realise this forum is a part of cyberspace called Kiddies Corner don't you. It's the most protected, uber sensitive, politically correct nanny place one can imagine.

    How anyone can define any content published here as offensive and/or aggressive will need explaining to me because I'm mystified.

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
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    Look back through your posts, I'm sure you'll work it out, you're a smart guy. You also might be able to work out what "I've got better things to do with my time" means. If not, ask someone else because, as mentioned, I've got better things to do with my time. 

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

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