How to hedge currency risk on mid-long term overseas purchase

TangoWhiskey

Frequent Forum Member
Registered
Input sought on risk diversification... I'm considering taking cash overseas (legally, fully declared) and park some in a bank account for liquidity but also buy an entry level low leverage property - you can get fixed 25 yr mortgages in Europe at 2-3 % as a non-resident at 70 % LTV. Good deal for the borrower.

Right now the value of the dollar is crushed thanks to the oil market implosion. In 3 - 5 - 7 years time it may be the reverse. Don't want to buy euros with a weak Cdn $ to see that change when I may need to return capital and end up selling cheap euros to buy expensive Cdn $ with oil at 160 $ per barrel (who knows). That could cost 30-40-50 %.

How do I (cheaply) hedge long-term currency risk on

a) liquid assets ie cash
b) RE

thanks everybody
 

Thomas Beyer

Senior Forum Member
REIN Member
You can’t predictably hedge currencies. If you live in two places with two currencies have businesses in both.


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