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Borrowing money from overseas

Discussion in 'Finance & Banking' started by crc_error, 10th Oct, 2007.

  1. crc_error

    crc_error The Rule of 72

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    Since interest rates are dropping in the US, is there a way to borrow money from the US at their rates?
     
  2. handyandy

    handyandy Well-Known Member

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    What about when the USD starts going the other way?

    Back in the '80 a lot of people went bankrupt from doing exactly this but in the case mainly swiss franks.

    Cheers
     
  3. AsxBroker

    AsxBroker Well-Known Member

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  4. AsxBroker

    AsxBroker Well-Known Member

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    PPSS I think Japan has lower rates, if you know anyone that lives in Japan :)
     
  5. crc_error

    crc_error The Rule of 72

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    I don't think Japan actually charges interest does it? lol
     
  6. AsxBroker

    AsxBroker Well-Known Member

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  7. DaveA

    DaveA Well-Known Member

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    Yes but none of them were hedged. Hedging would be alot eaiser in todays market places than back in the 80s....

    Why do you think Rams were doing so well. They borrowed cheap in US and sold it here at 3% + margins. Shame their cash rate when up and it has caused the end of them...
     
  8. handyandy

    handyandy Well-Known Member

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    The hedging might be true for the 'Rams' of the world but for you to venture out and organize it yourself (which is the only way your going to get the 3%) and then organizing the hedge yourself (and continually monitoring it) is a little beyond the average IP investor.:eek:

    Mind you I would be quite happy to have some lesson in the process for a $3 mil loan secured against MF's.:D

    Cheers
     
  9. crc_error

    crc_error The Rule of 72

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    Buying a currency hedge shouldn't be any harder than buying a option or a futures contract.. so I don't think it should be hard for a private investor.. however would a overseas bank deal with a australian citizen? Since the margin is getting larger and larger, it may be worth while looking into it.. as before the margin was small, so probably not worth it..
     
  10. evisional

    evisional Well-Known Member

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    So, has anyone known where to borrow money from overseas yet?
     
  11. MrFairGo

    MrFairGo New Member

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    How about these hedges then?

    I have an offer to lend me money from a private investor in the US, and I'd like to learn how to use hedging to protect both his investment and my repaying.

    Can someone please point me to a website where I can learn how to do this?

    Thanks
     
  12. Tropo

    Tropo Well-Known Member

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    A Beginner's Guide To Hedging
    ;)
    ALSO : Profiting From Carry Trade Candidates
     
  13. MrFairGo

    MrFairGo New Member

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    Thanks Tropo.

    Clearly a lot to learn, but necessity pushes me, so, on and upward!
     
  14. Tropo

    Tropo Well-Known Member

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    Yep....learn as much as you can...but do not be pushed by necessities.

    A bit of history....
    Brit pound lost 15% of its value within days in Sep 1992, and 25% in about two months. 18 months later, the currency was quoted at the same level.
    In Sep 1985, the US$ was exchanged for 3 deutsche marks.
    In the long term - 10 years later the US$ could fetch only 1.34 deutsche marks, or less than 50% of its old value.
    Hedging is like double edge sword. Should be considered along with the type of currency and the view of the specific currency. Used alone, and the time factor may be unreliable.
    Good reading = “Trading in the Global Currency Markets “ by Cornelius Luca.
    :cool:
     
  15. MediLend Finance

    MediLend Finance New Member

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    If you are going to consider borrowing money from the US you also have to consider the exchange rate, which could have a positive effect or negative effect to the overall picture. I would stick to Australia and fix for the next 2 - 3 years.

    Take care
    Pascali
    MediLend
     
  16. Rick888

    Rick888 New Member

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    Lending off shore

    Did anyone,find out how to ,get a foriegn currence loan?(sort of hope you didn`t,with the change in exchange rate)
    I`m picking soon ,will be a good time to take a USD,or Yen loan.
    But i`m not having much luck,finding a lendor.Any Suggeations,please email me :confused:
     
  17. Chris C

    Chris C Well-Known Member

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    Most international loan providers seem to require that you earn an income in the loan currency, ie if you don't earn your money in USD then they are not willing to give you a USD loan.

    St.George Brokers - Foreign Currency Home Loan
     
  18. Sacko

    Sacko Well-Known Member

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    Would they lead it to you if it was used to purchase a cash flow positive investment in the respective country?
     
  19. Chris C

    Chris C Well-Known Member

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    Well most of the ones I have looked into really were only offering to lend for the purchase of property.
     
  20. Sacko

    Sacko Well-Known Member

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    With the @rse having fallen out of the US property market, wouldn't there be an opportunity to pick up a cash flow positive property over there?

    In addition, I also recall reading somewhere that the US also allows loans to be fixed for much longer periods than are available here...

    [I think I have just convinced myself to look into this further...:cool:]