Recently I saw an advert in Money magazine by Eurofinance Capital Limited (website address http://www.eurofinance.com.au , phone 1800 468 370) stating that they offer (1) 8.75% p.a. over 5yrs, paid on maturity (2) 8.5% p.a. over 5yrs and 7.65% p.a. over 1yr, both paid monthly.
That’s not bad considering all you have to do is just sit on your bum and get a reasonable return without any worries whatsoever [?] …… [8D] [8D] [8D] [8D]
Does anyone have any information on Eurofinance Capital Limited. I understand from their advert that they invest in Secured 1st Mortgage Debenture Stocks i.e. “Property”.
how are they any better than Australian Capital reserve who advertise on TV all the time? surely you watch tv?
Could you please explaaaain – I’m relaively new to Property/Sharemarket investing. What do you mean by “how are they any better than Australian Capital reserve who advertise on TV all the time?”?
Regards – Johnny [
]what I meant was, you sound amazed at the return they offer, but I have seen the ACR ad on tv like a thousand times, and they offer the same or higher returns. just wondering how you could have missed it.
Hi JOhnny,
The Australian Capital Reserve offers 8.75% over 5 years and about 7.25% for 1 year i think, can’t quite remember, they have adds on the tv all the time“Sit back, relax, and watch your money grow”
Well that is their slogan they use on the tv
Hope I’ve helped, fudge111
what’s the money tied up in ? will you have any left after 5 yrs? i’d doubt it was capital guaranteed.
some of us remember Pyramid and other building societies that offer great returns. sadly they went bust loosing the depositors funds.
i’d check it out carefully before putting in one cent. How are they making a profit? by lending it out at 18% ? we know what type of people have to pay that much for their money.
westanI know the people at Eurofinance, we use them for finance all the time. Euro use these funds to lend out for their asset lend product which is 9.5% pa interest.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks CRASHY, FUDGE111&BROZ00, WESTAN & TERRYW for your advice. [
]To WESTAN – I have already asked Eurofinance Capital to send me a Prospectus on their product so I’ll get back to you when the info regarding “what’s the money tied up in ? will you have any left after 5 yrs? i’d doubt it was capital guaranteed.” etc, becomes available.
I too am wary (hence the – [?] & [8D], in my original posting)
Regards Johnny [
]Here are some of their products. They may not be extremely competitive but depending on strength of the client they avoid using LMI unless 90LVR and over.
FAST – EUROFINANCE Home Loan Rate Sheets
Products Interest Rates
Eurofinance Asset Lend – Residential From 9.0%
Eurofinance Asset Lent – Commercial From 10.0%
Euro Term Loan 6.49%
Euro Power 6.59%
Euro Term Loan – Lo Doc 7.24%
Euro Power – Lo Doc 7.34%Fixed Products Interest Rates
1 Year Fixed 5.89%
2 Year Fixed 6.04%
3 Year Fixed 6.19%
4 Year Fixed 6.24%
5 Year Fixed 6.34%Thanks for the info – GEORGE. [
][]hi guys
am i missing something, are these guys paying 8.75% for the money for five years and lending it out at 6.34%.
this doesn’t sound like a very good business plan. Do you think we should tell them ?
Better still how about we borrow off them and reinvest it with them and make the 2.41% profit ourselves. It doesn’t make sense to me. they must be sourcing their money for their cheaper rates from somewhere else and using the 8.75% money for the higher risk clients?
those fixed rates are great value.
regards westanI would rather earn 8.75% on a $200,000 property I put down 10% on, than $20,000 of my own money.
Westan
Yep, they get the funds for the cheaper loans elsewhere. It is the Asset lend loans that are their own products.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Golden investing rule no. 1: The higher the return, the higher the risk. Seems trite, yes. But I have seen it proven true a dozen times over the years.
Consider this: $20,000 of your money as deposit on a small $100,000 unit with capital growth at the 100 year long term Australian average annual growth of 8%pa.
After two years it’s worth $116,640. You still only owe $80,000 so $36,640 is yours. Not bad afte 24 months and the tax treatment is way better. Your 8.75% will be taxed at your top marginal PAYE rate. Your capital growth is only taxed on half its value after the first twelve months.
THIS is why property is the only known (honest) way of middle class wealth creation.
I agree with Enduser – the higher the risk, the higher the return.
Sure these are finance companies. But they’re smaller outfits without the same level of financial security as the banks.
What is the worse case scenario? Interest rates go up, property prices crash. People who borrowed money from them can’t service their loans and default. But when the secured properties are sold, there is simply not enough to cover the loan. If enough of these incidents happen within the same period, the company could well go to the wall.
That’s why they’re offering a higher interest rate.
Don’t agree? When you get your hands on the prospectus, have a look through the “Risks” section. Something similar should be there.
Cheers
MYesterday I received Eurofinance’s prospectus and spent many hours last night reading the voluminous document.
Having read it, I have both some GOOD NEWS for everyone and also some BAD NEWS.
The BAD NEWS is that all those people who said that “The higher the return, the higher the risk” (and you know who you are [
]) were probably right, but the GOOD NEWS is that in the latest copy of Money Magazine there was another advert on p65, from another company, claiming that you can “earn 11.25%p.a.” so I’m going to put all my life savings into that one instead.You see how “just sitting on your bum” can make you money. I’ve made an extra 2.5% over and above the rate I would have got if I had just jumped in head first.
I’m not going to tell you the name of the company who is offering that rate – so you’ll just have to go and buy your own copy of the magazine. (NO – I don’t work for Money Magazine, or Paul Clitheroe). [
] [] []Best of luck!
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