interestng to read of the history of borrowing abroad...
sounds like a risky move as has been pointed out already
(that is, what if rates move the other direction?)
--> why not simply trade currencies if one was so confident to be able to predict it's movement?
FYI, I'm at the "planning 1st property purchase", so I need to answer the following for myself (these are not questions for people to answer, merely a FYI into my background):
1) Do I take out a fixed / variable loan --> what is the implication upon refinancing for further properties - i understand it is a challenge to refinance fixed rate loans.
2) Can I afford my repayments at 30% reduced rental + 100% increase in interest rates? Is my entry to property investment worth this risk (however low the chance of occurance)
3) What will be the real effect of interest rate movements on property values? .. I.E, if rates do rise - to what extent will property drop (all things remaining equal)?
Cheers,
CoolStyle