|
Mortgage News
Foreign currency mortgages 'could yield long-term gains' - 21/11/2007
Email this page to a friend
|
Foreign currency mortgages offer long-term benefits, it has been noted.
Chief executive officer of Alexander Associates Group David Alexander said that taking out a mortgage in a foreign currency may appeal to investors looking to make gains over a sustained period.
He said that the typical foreign currency mortgage borrower would hope to clear their debt after 25 years, looking for an annual reduction in debt of about five per cent.
Mr Alexander explained that the nature of mortgages is that they are a long-term debt, so people looking to make gains on long-term mortgages should understand that currency fluctuations may render short-term effects unlikely.
"You wouldn't go into one currency in the hope that you might make money by having your mortgage devalued - because of course currencies go up and down all the time against each other," he remarked.
"What you have to do is understand that it's a long-term, not short-term investment - just as a mortgage is a long-term debt. And over the long term you should always do very well," the expert added.
Established in 1995, Alexander Associates Group offers financial management services to individuals and companies in the fields of planning, mortgages, property, insurance and legal services.
© Adfero
Back to Index
|
|