I’ve got $40k to invest and have it currently sitting in ING gathering 5.25% interest.
I’ve opened a “A better Deal” account which gains 6.00% interest for the first 12 months.A friend pointed me to Rick Otton’s Wrap website http://www.webuyhouses.com.au/newsite/invest2.htm
He offers 15% interest on $20k so i’m ready to hand over my $40k for a year.
Can anyone see a reason not to enter this deal?
Is there other ways to invest $40k for a year that offer similar returns with similar risk?The reason it has to be short term is because I want to buy a PPOR once my fiance starts working next year (we will be able to borrow more on dual income).
Feel free to email me if you wish your comments to remain private.
Mark
is your money secured for 15%?
Byronent
Adelaide SAOriginally posted by MRK25T:He offers 15% interest on $20k so i’m ready to hand over my $40k for a year.
It sounds as though your mind is already made up. I hope you are prepared to kiss your 40k goodbye. No matter what guarantees anyone gives you, a 15% return is obviously going to involve a good deal of risk so you would want to have confidence in the individual you entrust with your cash and the investment strategies…
Mr Otton is pretty high risk, and wrappers are susceptible to falls in house price. When prices are going up, the wrapper keeps any capital gain if a wrappee defaults. If prices fall and the wrappee walks, the capital loss is handed back to the wrapper (unless the contract is particularly unfair enabling the wrapper chases the loss through court – hello ACA / Today Tonight!)I can get you 11% paid quarterly no entry/exit fee’s, but there is always a catch!
We are all made from Stars
Originally posted by Salubrious:I can get you 11% paid quarterly no entry/exit fee’s, but there is always a catch!
We are all made from Stars
What is the catch?
foundation: I havent made my mind up yet, that is why i’m asking here on the forum if it is a risk worth taking for a better return that the banks.
I may even just accept the 6% and park it there for a year.From the link posted above…..
Rick, How Does ‘We Buy Houses’
Secure My Funds?· We do this a number of ways
1. Firstly, we keep the title of the house in our name until our applicants sell or refinance and pay us and you out.
2. Second we don’t create more than 80% debt on the property, so for example a house of $300,000 has no more than $240,000 attached debt.
3. Third we provide you with a Registered Consent Caveat, which is fully explained, in our Loan Agreement that you can download here for $45. (The $45 is refunded together with your first electronic interest payment.)
4. Fourth you are the only investor in the property as ‘We Buy Houses’ only permits one investor per property.
5. Fifth…In case I happen to fall over a balcony during property inspections… I always carry $3,000,000 in life assurance with AMP
Keep smiling
Felicity
Foundation,
You are wrong!YOU SAID When prices are going up, the wrapper keeps any capital gain if a wrappee defaults.
Not so under the law. If a wrappee defaults, the wrappee is still entitled to any equity earned above the contracted price.
YOU SAID If prices fall and the wrappee walks, the capital loss is handed back to the wrapper.
The wrapper owns the house before the contract is made and would still own it if the wrappee fails to complete the sale. What capital loss are you talking about??????????…………..
…….if you don’t complete a sale, there is no loss. You would be no worse off than if you were plain renting or even living in property.Your post shows complete ignorance about wraps and general property and YOU even quoted ACA as a reliable source of fair information………what the…?
If you are going to pick flaws in something, get your facts straight.
P.S. I have no connection to We Buy Houses at all.
Live, Learn and GrowLifexperience
You must be logged in to reply to this topic. If you don't have an account, you can register here.
