Lately, some Aussie property investors asked me if it is advisable to take out a loan in SGD since the AUDSGD has plunged to below 1.0000 on several occasions. It remains to be seen if the AUD will rebound in the short term. Analysts from major banks and even bloomberg has given some indications and as far as I am concerned, I feel there is still pretty much a lot of uncertainty in the market.

To make an objective statement; if you are savvy with how financing in an alternative currency works and you are confident of keeping a close watch on the market and you have strategies to know when you should switch, then go for it. If you are a professional who is busy with daily work routines and meetings, the last thing you want is for the banks to call you for a margin call.

Banks in Australia has taken some initiative to safeguard their position given the volatility of the market. e.g. some banks have lowered their LVR to 65% in the light of the AUDSGD fluctuations. This is strictly for residential properties only.

If I am first time investor, I would settle my property with 75% LVR in AUD. With an expected rate cut in Nov by another 50 basis points, interest rate is coming down. There is very little risks since AUD has taken a dive and with a weakening global economy and weak commodity price, it is quite prudent to take up an AUD loan. Once the dust settles, I would switch at an appropriate time. I cannot be more conservative….

I have written an ebook to help some of investors to tide through this period with some strategies. It’s the first version and at the time of writing this blog post, I am already preparing for second version of the ebook. If you wish to know more about the opportunities and risks involved in multi-currency loans, do drop me an email with your name.

I will advise the steps accordingly so that you can download the ebook.