Have just read advice to the effect that one should invest in a capital guaranteed insurance bond, and then borrow from a bank against it, to fund ones property investment. The advantage is that any growth from the bond over say 10 years, is tax free (maybe 4%) and you can borrow up to 90% against said bond.
Borrow from a major bank.
This advice was published in 2001, and may not be valid in 2005.
Can anyone shed any light on this strategy???
I have about $120k to use in the most effective way.
Is this a more effective method than simply using the 120k as deposits??Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hi, Giddo
Could you please post the name of the issuer of this Capital Guranteed bond?
Does the artical suggests who lends against these bonds? and do banks lend against the maturity value or teh current value?
JimHi Jimoan,
It was a book I was reading which was published in Dec 2001 – that is why I was a bit concerned about the currency of the info.
Book is called Wake Up To Wealth By Paying Yourself First – by Harold Bodinnar . Looks like it was self Published – there is a website to get updates thru http://www.webwidepress.com.au
Harold advocates investing in a capital Guaranteed Insurance Bond and then getting a bank loan against it.
he says the insurance bond will be tax free after 10 years and you may borrow 90% against it in the meantime.
CheersGiddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
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