Buy to Let Mortgages
Oct 31st 2009, 8:51 pm
#1
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Buy to Let Mortgages
With the AUD at such great heights has anyone looked at investing in the UK property market? Just how difficult is it to arrange a buy to let mortgage from Oz? Are there any other pitfalls in my cunning plan to make the best of a crazy situation in the market right now?
Oct 31st 2009, 11:12 pm
#2
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Re: Buy to Let Mortgages
Buy while the rate is strong ie 1.75 but what happens in 5 or so years when the rate is say 2.4?
1000,000 / 1.75 = 571k
571k x 2.4 = 1,371k
40% increase in liability simply due too exchange rate
Pitfall 2
Repayments if rental does not cover interest and other outgoings
High risk for that high return
Oct 31st 2009, 11:36 pm
#3
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Re: Buy to Let Mortgages
Good pitfalls GG but if I ringfence the investment leaving both potential profits and losses in the UK so avoiding any FX issues....
Oct 31st 2009, 11:40 pm
#4
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Posts: 4,079
Re: Buy to Let Mortgages
so long as you dont need to bring back the funds (or send across). Same buying principles apply in all countries.... location, location, location.
Good luck
