annuity programs

Hi Cashpoor,

I know people use cashbonds, for purchasing IP, though still, you have to come up with the money in time. Most people who use this type of bond will use it on an OTP purchase which will not be built for a few years at least.

Though my understanding of annuity program is that you have a contract, but you have to pay a set amount of income anually, though this will depend on the policyholder, while their alive, not putting it bluntly but i dont know how well these will go down. Most annuity prgrams are designed for a retirement plan income.

Though back to the bonds and OTP, the idea is that they will sell the IP in time, when there is capital gain and use those funds to self fund their retirement. (self funded retirees)

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

Cash poor,

Check out http://www.navra.com.au
Your talking about using equity not deposit cash bonds are’t you?

MJK

Somebanks will take annuities into account wehn assessing your income. The trouble is you have to be able to borrow to buy the annuity in the first place. You might as well use low doc loan instead.

And SIS, I think you have mixed it up. You pay the lender a sum initially and they give it back to you monthly plus interest.

The theory goes something like this:
You have $500,000 worth of borrowable equity, you borrow this and buy a $500,000 annuity over say 5 years. You will be repaid $100,000 per year plus interest, so maybe $105,000 per year. Some lenders will accept this whole amount as income – even tho it is mostly just your own money.

Terryw
Discover Home Loans
North Sydney
[email protected]