Maybe I am going to break an unwritten rule here by starting a post about Derivex. However, there are two points I would like to make.
1. I don’t think it’s fair to lock every tread about Derivex. I would agree that some (maybe even most) threads get off topic and turn into a pointless arguments between one or two individuals. However, there is, at times, some helpful and educating discussion/debate.
It is natural, with such a new and different product, that it would attract a lot of attention. People should be permitted to discuss it.
This site offers people a chance to discuss property investing related issues in a friendly and unbiased forum. To initiate blanket rules (such as no discussion about certain topics) destroys the integrity of this site (in my opinion). I must stress. As a moderator, I am not aware of any ‘blanket rules’. However, as an observer, it appears all topics about Derivex get locked.
2. I have remained pretty quiet about the whole Derivex topic. I was just waiting to see if it actually had legs and could get off the ground.
What we know today is:
– That some company has proposed to offer an interest free product for (approx.) the last 6 months.
– No one can really explain how it works (i.e. why they don’t charge interest).
– They have promised certain launch dates, settlement dates, etc but nothing has happened. All have been missed.
– Now ASIC has taken all their documents and they have shut up shop.This seems a pretty good warning to me. This is suggesting that there is something not quite right about these products. However, people continue to support the product. I am all for an open mind but surely common sense applies.
There are many people out there that are keen to take you money. Just be careful and undertake some wise due diligence.
For me the rules are: If a company doesn’t do what it says it will do then I have lost confidence. If the same company is being investigated by ASIC, then that’s enough for me. I’ll stay away. I don’t need too many more warnings.
ASIC doesn’t have an itchy trigger finger. If anything, they are normally too slow to take action (e.g. Henry Kaye).
That’s just my 2 cents.
Cheers
Stu
Hey Stu,
They don’t charge interest to the borrower because it is a ‘variable’ that does not fit their model. They do earn interest on other funds though. The cash flows are the important factor from borrowers. Charging interest also increases the risk in the model.
Surely someone can support an idea even when something is wrong with the implementation and management of the organisation offering it. If a large bank was to come out and offer this product in a few months, would most people be such sceptics? I know for a fact that one of the major four has a team working on replicating the model so there must be some potential. I must assume that all the majors are doing the same thing.
Regarding taking people’s money, I don’t think this was ever a problem even though there . They were going to give a lot more money than they ever took. The idea was like any lender settling a loan where fees etc would be paid at settlement once loan funds are forwarded. How could a borrower lose if this was the case?
My interpretation of what you have written comes down to a lack of confidence in the organisation but still awaiting information regarding the functionality of the actual product. This is a fair position considering they missed so many dates.
Robert Bou-Hamdan
Mortgage AdviserAny topic gets locked as soon as it turns into a chest poking session between two or more people.
If it is non productive then the two people involved should take it offline and either agree or agree to differ.
Starting to get repetitive don’t you think Stuart? I for one would welcome something new but the only new thing recently has been from the Derivex website itself.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If an established lender was offering the product I would have more confidence (even if they missed launch dates, etc.). But here we have an unknown company and an unproven product. The two together equals problems to me. I certainly wouldn’t jump on board until one is proven.
My second point was more aimed at encouraging people to do more due diligence with new lenders, service providers, anyone. It’s not as simple as saying “I have no downside” if you don’t fully understand the model (once again, especially with an unknown company).
You need an open mind. But a healthy dose of scepticism is also very handy.
Cheers
Stu
Stuart..all good points…and I’m happy to let it die a natural death…unfortunatley some people just can’t see the wood for the trees on this topic.
Lets re-group when there is a definitive outcome rather than another false start.
Over and out
Natalie
Originally posted by Nat R:Stuart..all good points…and I’m happy to let it die a natural death…unfortunatley some people just can’t see the wood for the trees on this topic.
Lets re-group when there is a definitive outcome rather than another false start.
Over and out
Natalie
Good call Natalie!
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
My calls are so good I should be a tennis umpire !
I don’t think having one eye makes you eligible!
Robert Bou-Hamdan
Mortgage AdviserOne is better than none….of course two is the ideal outcome.
Knowing the “rules of the game” is also a major plus.
40-15
Ball is in your court
Nat, why do you always try and discredit those who oppose you? Of course I know the rules.
Anyway, regarding having two eyes, can you please provide a single example where you have not been negative regarding an interest free home loan product and where you have not told everyone to stay away? I would put forward that you cannot do this because you cannot open your other eye.
Following from the above, can you please also provide an example where advocates of the product have sent those who follow their advice to blindly jump at this product???
I think you will find that the advocates of this product are treading cautiously and taking risks themselves to protect the majority and to learn enough about the offering to make an INFORMED final decision before discarding it rather than a POOR decision with no grounding.
Robert Bou-Hamdan
Mortgage AdviserHere we go again…..
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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