Assisting expats with moving their money across borders
Getting a better deal on your FX currency transfers is vital. Typically we save $2,000 for every $100,000 transferred.
Manage Currency Risk
Currency moves can be costly. We help you navigate the FX markets and implement hedging instruments to manage the currency risk.
Set up a multi-currency account in as little as 1 business day to help facilitate FX transfers & manage your income & mortgage repayments
We have partnered with the top payment providers and banks around the world to assist our clients when buying properties overseas.
Currency risk when buying a property overseas
When deciding to buy a property overseas it is vital that you consider the effects that Foreign Currency (FX) can have on your mortgage repayments as well as the value of your property should you wish to sell.
How is my mortgage impacted by foreign currency?
Over the past two years, there has been unprecedented volatility for currencies especially against the US Dollar (USD). USD has strengthened across the board against the vast majority of currencies including the British Pound (GBP) and Australian Dollar (AUD). But what does this mean to you?
USD Strength historically this is an excellent time to move your USD salary into AUD or GBP. Below is a chart showing the different costs of sending 10,000 in AUD and GBP a month from 2014 to 2018.
What moves the USD Dollar?
Before making your decision to invest outside of the US, you should consider some of the factors that may impact the USD exchange rate.
The USA is the second largest exporter in the world exporting over 1.45 trillion dollars worth of exports in 2018. America is also the world’s largest importer of goods, and it is this trade balance that has a massive influence on the USD valuation.
Notable Factors in USD Valuations
The foreign currency market is the largest and most liquid in the world, with over 5 Trillion dollars changing hands a day. With these volumes attempting to forecast the movement of the USD exchange rate is tough, to say the least. These are some of the factors that our investors should be aware of:
- The globalization effect – US companies have never been so aggressive as they have now when it comes to global expansion and investment coupled with a certain Presidents approach to foreign policy one thing is certain and that is more uncertainty.
- Upcoming elections – Rarely in recent memory has there been a more tumultuous time for American politics and this looks set to continue over the next decade. With Political unrest market volatility often follows closely.
- Federal Reserve (the Fed) comments – with interest rate differentials between the US and other markets widening over the last year the demand for USD has surged.
- Speculation– 3% of the 5 trillion a day that is traded on the FX markets is for payments such as mortgages and office costs. That means the overwhelming majority of FX is traded by your banks and funds for speculative reasons. When someone like George Soros feels strongly about something, there is very little you can do just ask the Bank of England!
- Flight to safety – USD among other currencies can act as a safe haven play in times of uncertainty.
What moves the Aussie Dollar (AUD)?
The Aussie dollar consistently ranks among the top five most traded currencies in the world. The popularity of the currency is based in part on the following 3 factors:
- Geology – Australia is rich with natural resources and premium commodities including iron ore, oil, and gold.
- Geography – Australia’s proximity to Asia means they are an extremely convenient trade partner to one of the largest consumer of raw materials in the world.
- Stability – Australia’s government generally maintains comparatively high-interest rates and beneficial trade policies.
Top Factors that Influence AUD Exchange Rates
Australia is one of three primary commodity currencies along with the New Zealand dollar (NZD) and Canadian Dollar (CAD). When attempting to predict the movement of the Aussie dollar, particularly as it relates to the US dollar, investors may take into account these country-specific factors:
- Mining discoveries, performance, and regulations
- Economic growth or decline in Asia
- Reserve Bank of Australia announcements
Like many other commodity currencies, the Australian dollar can be volatile. That’s why it’s very important to look at hedging the risks when evaluating an AUD based mortgage. If you’re ready to make a large payment to Australia you should know that banks and other providers make huge profits on foreign exchange transactions, often as much as 4%. Below is a chart showing the last 5 years of USD/AUD, the pairing has moved 10% over the last year alone.
Billion traded in FX volumes a year
Currencies that can be bought/sold
How it works
“I saved almost 3% on my mortgage payments by using UDIS Capital Partner’s Foreign Currency Services”
We take the time to understand our clients
UDIS Capital Partners is a leading investment advisory firm that specializes in helping investors, like you, acquire assets overseas.
UDIS works with the top Banks and FX Brokers around the world helping you achieve not only the best rates when converting your USD into AUD / GBP for the initial deposit but protect your repayments against FX risk during the entire hold of the mortgage.