Managed International Currency Mortgages! Now available in USA!

MANAGED INTERNATIONAL CURRENCY MORTGAGE

HOW IT WORKS:

Through the association that I have built with several large International Banks and because of OUR need to be able to finance property in the United States OTHER then through standard US banks and mortgage companies a need was born for an alternative financing program. The program that we came up with is called:

MANAGED INTERNATIONAL CURRENCY MOTGAGES

This program is available to the INTERNATIONAL PROPERTY INVESTOR. This mortgage provides the facility for you to buy in a number of selected jurisdictions without requiring an existing property portfolio as collateral. (I will be happy to supply the list of jurisdictions to anybody who enquires of such. Of course this can be subject to your credit worthiness as there is NO previous collateral required.) For those with existing property portfolios in the specified jurisdictions, the lenders will also disburse loans in different currencies to that of their income or base asset and take advantage of the lower interest rates, which can significantly reduce outgoings, resulting in increased rental yields. The second objective of reducing capital borrowing is achieved by initially borrowing in a currency considered strong against your base asset, hoping that historic trends repeat and that the currency weakens over time. Guidance on the most appropriate time to switch currencies and make capital savings is vital in this type of financing and it is included in the service provided by our lenders. This then, provides you with the opportunity to pay off the capital owed on the property earlier, resulting in significant savings in interest payments. This type of loan can also be used to release equity in existing properties there-by allowing you to purchase new properties in any location in the world and there-by building your INTERNATIONAL POROPERTY INVESTMENT PORTFOLIO.

HERE IS THE MECHANICS:

Let’s say that YOU or a client purchases an investment property in the UK and borrows 150,000 pounds from the bank. If you were to borrow in the BASE currency of the UK at 6% interest, the monthly payment would be 750 pounds. This is assuming that you have opted for an INTEREST-ONLY MORTGAGE in order to keep costs down and you expect a rental yield of at least 6%. Allowing for agents to manage the property and for some essential maintenance, your yield is actually reduced to 5%, which means that you have to make a contribution toward the property each month. You justify this as you hope for capital appreciation by the time you eventually sell your property.

If however you take advantage of a CURRENCY MORTGAGE, and after some analysis you decide to borrow your funds in SWISS FRANCS and not Sterling Pounds, then you would only be charged 3% for the loan service rather than 6%, and so your monthly interest payment would be 375 pounds, which even after agent’s and maintenance fees means that you are profiting each and every month and the investment is self-sufficient. Taking into consideration the difference between the obligation in the base currency and the selected currency, a perfect hedge has been created against adverse currency fluctuations. You would also be benefiting from dual use of the asset, as not only would you be getting capital appreciation on the property, you would also be getting participation from the savings, creating a new fund that can be used to retire the loan at some stage in the future.

In this particular example, the total cost of the property purchased, if you were to use the traditional mortgage method, would be 425,000 pounds over 25 years (UK Standards), whereas utilizing our philosophy it would cost only 265,924 pounds, and you would have retired the loan IN FULL in only 19 years. (Note: These calculations assume interest rates remain unaltered throughout the term and that you invest 375 pounds per month and receive a modest return of 7% per year.)

PROFIT POTENTIAL:

Here is the caveat of MANAGED INTERNATINAL CURRENCY MORTGAGES: In currency mortgages, you can switch between currencies as often as once per every quarter and therefore take full advantage of the weakening currencies, which in turn will reduce capital borrowings. This gain is part of the service designed for the INTERNATIONAL PROPERTY INVESTOR. The relationship between the British pound and the Japanese yen over the past 10 years has been such that if YOU got the timing absolutely perfect, then as well as reducing your monthly interest payments by 75% against the Sterling rates, you would have also knocked off a staggering 35% of your loan at the same time.

Bear one thing in mind, of course, that currency mortgages can also work against you just as higher interest rates and callable loans can. As such, selecting the proper currency at the outset requires careful analysis as to which currency is the most appropriate both from an interest rate basis and from its strength in relation to your base currency. Furthermore, the whole mortgage package must be managed on a regular basis in order to make sure that both objectives are achieved at all times throughout the loan period. This then will maximize the loan and profits derived there-in.

In today’s ever-changing and innovative financial world, consumers have become used to new and more creative means of making and saving money. This is no different when it comes to BORROWING money. As with any over seas property purchase or investment the use of OFFSHORE COMPANIES or ENTITIES for this investment has become even more popular as it offers you a savings or total mitigation of capital gains taxes as well as inheritance taxes.

So there you have it and alternative to your standard mortgage and a way for you to take advantage of both rising interest rates as well as currency fluctuations to create a double savings in both time and money…..after all TIME IS MONEY!

Please Contact me for further information: David Haahr Rayfieldent@yahoo.com