From a PDF I was reading and mentioned earlier
Any comment?
Also, for those contemplating finance in the US, just be wary what would happen if the AUD crashed back to its normal rate.
Your $50,000 usd loan could now be worth $90,000 aud worth of debt and the deal will not be quite as sweet as you thought. ( I think I got that right)
Any comment?
I will also give words of warning to Australians contemplating buying semiexpensive properties in America as these houses come with a whole set of different problems.
If you purchase your property with mostly cash, there is a very good chance that you will have difficulty getting your cash out of the deal later.
US mortgage companies won’t lend money if property a is valued for less than $50,000.
This seems fine in theory but what if you happen to have a house worth $40,000 and you are trying to sell?
Your potential American buyer can’t get a loan to buy the property because the minimum loan size is $40,000.
So people won’t be able to buy your house, the families from the poor neighbourhoods are unable to save $40,000 and they can’t get a loan so you are left with a house that you can’t sell to get your cash out.
Now the only person who is going to save you and cash you out is the investor but the investor is not going to cash out for $40,000; he’s going to take you out at $20,000.
Also, for those contemplating finance in the US, just be wary what would happen if the AUD crashed back to its normal rate.
Your $50,000 usd loan could now be worth $90,000 aud worth of debt and the deal will not be quite as sweet as you thought. ( I think I got that right)