Jump to content
House Price Crash Forum
Sign in to follow this  
Kurt Barlow

Borrowing In Foreign Currency - To Invest

Recommended Posts

Here in the magical Kingdom the Banks are offering silly Sharia compliant loans of up to 1 Million Riyals (£165K) at 1% APR and the offer extends to Expats. I dunno whats driving it - perhaps the PTB want a slice of printy printy / ponzi action.

Anyway I thought at 1% I could borrow say £110K and use my parents various entitlements to make some low risk investments;

£50K in Zopa - yield about 6%

£30K in Index linked bonds (NSI) yield about 5.5%

£30K in Premium Bonds yield about 1.5%

Good relationship with parents and they are healthy and financially sorted. Job here stable. I could easily meet repayments on £110K loan from my salary. Exisiting assets easily cover £110K in the unlikely event the above money vanished.

Longer term - bottom of the housing cycle I could convert the cash into seed capital for some BTL's. Perhaps 3 years time.

Any thoughts as to the risk side? Any views on where Sterling will be relative to the riyal in 2-5 years time.

Share this post


Link to post
Share on other sites

Here in the magical Kingdom the Banks are offering silly Sharia compliant loans of up to 1 Million Riyals (£165K) at 1% APR and the offer extends to Expats. I dunno whats driving it - perhaps the PTB want a slice of printy printy / ponzi action.

Anyway I thought at 1% I could borrow say £110K and use my parents various entitlements to make some low risk investments;

£50K in Zopa - yield about 6%

£30K in Index linked bonds (NSI) yield about 5.5%

£30K in Premium Bonds yield about 1.5%

Good relationship with parents and they are healthy and financially sorted. Job here stable. I could easily meet repayments on £110K loan from my salary. Exisiting assets easily cover £110K in the unlikely event the above money vanished.

Longer term - bottom of the housing cycle I could convert the cash into seed capital for some BTL's. Perhaps 3 years time.

Any thoughts as to the risk side? Any views on where Sterling will be relative to the riyal in 2-5 years time.

Aligning your finances with pre-crash Iceland?

Share this post


Link to post
Share on other sites

Aligning your finances with pre-crash Iceland?

In what regard - putting the dosh into UK cash markets / bonds

or

Borrowing from KSA which has a massive trade surplus on the back of 8m bpd of oil exports.

I suspect the former.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 331 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.