When currency markets change, existing vacation rental home owners can certainly do a lot to cash in on the strong USA Dollar.
Non USA residents can play the FOREX game to their advantage by adopting some smart strategies for financing their homes, either permanently or temporarily, in order to make use of those favorable exchange rates.
Andy Scott, from International Mortgages explains more about the many overlooked investment strategies that can make owners money, while the sun shines on their overseas properties.
Today we are focusing on two types of NON USA national home owners;
NON USA Residents that haven’t a mortgage
Things have certainly gone well for investment plans, and you are the proud owner of a mortgage free property here in Florida!
Why on earth should you take out finance that you don’t need?
In simple terms, to take full advantage of low interest rates and a very strong USA economy that has favorably affected the buying power of the Dollar.
In other words, you can finance your USA home with a dollar based mortgage, transferring considerable gains to your home currency bank accounts.
You can use the additional funding for your other real estate investment projects, or bank it until the FOREX swings into a favorable state, then paying off the mortgage loan at a future date, giving you a second opportunity to profit from FOREX, if you wish.
NON USA Residents that have a mortgage in their home currency
Switching your property loan from your local domestic currency to a dollar based loan has very much the same effect as the example shown above.
In a way, you are repaying your domestic currency loan at a discount (thanks to the advantageous exchange rates)
Important Considerations Before You Finance or Refinance
As always, seek advice and do your own research before changing any financial arrangements. Your Florida home is no exception!
Here’s a cautionary points from the International Mortgages team
- Watch out for early repayment fees, that may offset some of your gains
- Have a plan for your newly released capital and make sure that it can be used gainfully, or accessed easily should you need it again.
- Interest rates are low right now, making refinancing a good opportunity, but always consider that interest rates can go up. Make sure that the FOREX advantage is significant enough to cover the cost of borrowing.
- If you would like to talk about options, just reach out to;
Andy Scott – International Mortgages
Telephone: USA +1 352 708 4084
Cellphone: USA +1 407 668 6736
Telephone: UK +44 (0)208 144 5466
More Articles from Our Ask the Expert Series
Reunion Resort Insurance Advice – Ask The Expert – Doug Fudge
Strong Dollar – Opportunity to Refinance – Ask The Expert – Andy Scott (this article)