12% return / term deposit 1yr

Viewing 10 posts - 1 through 10 (of 10 total)

The Contrarian
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@the-contrarian
Join Date: 2005
Post Count: 97
February 15, 2007 - 3:12 pm
Hey guys…
Just a little market research here…
How many of you would invest:
$100,000 in a “term deposit” style invest for one year
@ a GUARENTEED 12% return ?
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
February 15, 2007 - 3:32 pm
If it was secure then I would park cash there.
Funny thing is that I believe in a direct relationship between risk and reward.
Simon Macks
Residential and Commercial Finance Broker
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Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Leo Chekhov
Member
@leo-chekhov
Join Date: 2005
Post Count: 42
February 15, 2007 - 6:44 pm
It depends who’s guaranteeing it. At that rate, it’s likely to be one of those meaningless worthless guarantees.
LEO
woodinator
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@woodinator
Join Date: 2007
Post Count: 9
February 16, 2007 - 12:07 am
I would not touch these sorts of offers. Why would these people borrow money from you at 12% when they could borrow from bank at say 8%. It is because the banks have said no to them because they are too risky.
Cheers
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 16, 2007 - 2:18 am
Guarantees are next to worthless. If it is a company, what happens if it goes into administration? If there are personal guarantees, what happens if the person has no assets or goes bankrupt?
12% pa is also not much, there are managed funds that have average over 20% pa for the past 7 years! Some last year have returned 76%.
Terryw
Discover Home Loans
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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ShOw_Me_ThE_MoNeY
Member
@show_me_the_money
Join Date: 2004
Post Count: 80
February 16, 2007 - 2:18 am
Sanjiv, i’ll ask you the same question that others have asked Contrarian. Is it secure? what kind of guarantee can you give?
dare_to_dream
Member
@dare_to_dream
Join Date: 2006
Post Count: 88
February 16, 2007 - 4:47 am
Interesting topic…
Does anyone read FINANCIAL REVIEW – Smart Investor???
They often have companies that offer that exact thing. However, the return is around 9.75% based on a 1yr term deposit with a minimum $5000-$20,000 deposit.
Has anyone dumped money in any of these before???
For example:
Fincorp – http://www.fincorp.com.au
or
Wright Patton Shakespeare – http://www.wpscapital.net.au
or
City Pacific – http://www.citypac.com.au
I think it was the City Pacific PDS that I was reading, but it says no entry or exit fees if the money stays in the term until maturity, however you read the fine print and it has a 3% commision on any profits it makes… That would mean I would be better sticking it in a 6.1% net saver account at the NAB with no risk…..
Has anyone dealt with either or these three companies before??
Any help would be greatly appreciated.
Cheers
Paul[suave2]
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 16, 2007 - 11:56 am
Wasn’t Westpoint a company which was offering these sorts of things? Collapsed owing millions.
Terryw
Discover Home Loans
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melbplumma
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@melbplumma
Join Date: 2007
Post Count: 2
February 16, 2007 - 12:56 pm
spam
HookhamC
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@hookhamc
Join Date: 2007
Post Count: 83
February 17, 2007 - 10:34 pm
Hi all,
Mainly poor people get hit by things like that. What does that tell you?
12% is not hot at all, keep looking.
All the best!
[cigar][cigar][cigar]