i am considering buying a property abroad which is sold in euros,should i borrow pounds then convert to euros ,or borrow euros?help!

Are you paying cash for the property and why would you pay cash for it?

It is not a smart financial move to pay cash for it but if you insist on doing so it really doesn't matter if you borrow pounds and convert to euros or if you borrow euros. In the end it will be the same.

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It is not smart to play it safe but it is safe to play it smart.

I have a friend who operates in overseas investments, and he says the markets globally are waiting for a "correction" - ie, lowering of prices.

The only growth place I can think of that is repeatedly recommended is South America, especially Argentina.

However, do be aware that when exchanging between currencies you are likely to be hit by exchange fees, which you will need to factor into your investor planning.

thanks for reply,the place is in egypt and sold in euros through a dutch bank, i was going to raise the money on my property in uk, is there a better way of doing the deal?

Gary Spicuzza, *SAFE; proudly presents another box rant using 4th grade math and common sense which nowadays requires a college education and 20 years life experience before they "get it."

Where's "The Guy From Boston" when you need him?

You should always pay cash for housing if you're financially able. Whether it's your own home or a rental property. Provided for reader convenience is THIS Mortgage Calculator.

A $100,000 30 year fixed mortgage at 6% has a principal and interest payment of about $600 per month.

$600 X 12 months = $7,200 per year paid for principal and interest.

You would have to earn 7.2% interest GUARANTEED for 30 years on your $100,000 cash just to break even.

Now I'm not suggesting a sharp broker can't earn an AVERAGE of 7.2% per year but no broker or banker will GUARANTEE any investment will pay 7.2% GUARANTEED for 30 years.

GUARANTEE being the operative word.

What about rental property?
This is a no brainer.
$1,000 per month rental income is about average, that's $12,000 per year.

Now the $100,000 cash that was use to buy the rental property is earning 12% per year and the house should be appreciating (in a normal market) at least 3% per year year.

Remember, you can't get out of debt by borrowing money.

This concludes this box rant.

*SAFE = Self Appointed Financial Expert

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Gary Spicuzza, *SAFE
Copyright 1956
No Rights Reserved
*Self Appointed Financial Expert

Have you calculated present and future values on the deal?

just tell me are you paying cash for the property or you take loan against the property.