All Topics / Help Needed! / 12% return / term deposit 1yr

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  • Profile photo of The ContrarianThe Contrarian
    Member
    @the-contrarian
    Join Date: 2005
    Post Count: 97

    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 ?

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    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
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of Leo ChekhovLeo Chekhov
    Member
    @leo-chekhov
    Join Date: 2005
    Post Count: 42

    It depends who’s guaranteeing it. At that rate, it’s likely to be one of those meaningless worthless guarantees.

    LEO

    Profile photo of woodinatorwoodinator
    Member
    @woodinator
    Join Date: 2007
    Post Count: 9

    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

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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
    [email protected]
    Send an email to get my newsletter.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of ShOw_Me_ThE_MoNeYShOw_Me_ThE_MoNeY
    Member
    @show_me_the_money
    Join Date: 2004
    Post Count: 80

    Sanjiv, i’ll ask you the same question that others have asked Contrarian. Is it secure? what kind of guarantee can you give?

    Profile photo of dare_to_dreamdare_to_dream
    Member
    @dare_to_dream
    Join Date: 2006
    Post Count: 88

    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]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Wasn’t Westpoint a company which was offering these sorts of things? Collapsed owing millions.

    Terryw
    Discover Home Loans
    [email protected]
    Send an email to get my newsletter.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of melbplummamelbplumma
    Member
    @melbplumma
    Join Date: 2007
    Post Count: 2
    Profile photo of HookhamCHookhamC
    Member
    @hookhamc
    Join Date: 2007
    Post Count: 83

    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]

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