Hi all,
I’m looking for something to do with my savings for the next little while as I am waiting to get finance for a property. Struggling at the moment but I’ll get over it. Someone has bought the place I wanted so I am going to keep looking and learning.Now to the point – has anyone had experience with debentures? – I saw one advertised in the paper the other day returning 9.04%pa if reinvested quarterly. I know I can get potentially higher returns elsewhere (shares etc.) but I would prefer something with a lower risk profile. I have invested in stocks before and made a few good returns, but I feel that at some stage the market has to come down. I have about $15k to play with and would like to know if anyone has bought into debentures or knows of anything else I might be able to do while I wait for my casual employment term to reach 12 months.
Cheers,
SpankAge doesn’t negate effort – you can never be too young or too old.
I am by no means a financial adviser, and this is just my personal opinion, I also dont have much knowledge of the AUS market as I live in NZ….
I would look very carefully at some of the high yielding debentures at the moment, particular where your money is going.
Over the past few months I have noticed a great deal of these high yielding debentures from all these new finance co’s that have been popping up to make the most of peoples current addiction to debt.
There has been a lot of press lately about how a large proportion of the population is taking on too much debt and spending more than they earn and there is obviously a limit as to how long they can carry on doing that before they cannot afford to repay the debt.
Now if this debt has been funded by ‘you’ through a debenture, and it is not secured properly you could stand to lose out.
I would just make sure that the company has been around for a while, and will be using your money sensibly with adequate security, but then I suppose it comes back to how much risk you are willing to take…
Again, just my opinion, but hope it helps
Cheers
Rob[shades2]
I know all the companies that offer these debentures must lodge a prospectus etc, do these tell you what they are going to do with your money? If not, is there a way you can find out – I’m sorry – I have a very limited understanding of these at the moment – pretty much sums up why I’m asking.
Don’t want to get trapped in something I don’t know anything about.
Cheers,
SpankyAge doesn’t negate effort – you can never be too young or too old.
Big tip- get a guaranteed investment return – you need as much of the money as you can get, low risk so you know exactly how much you can withdraw when the timing is right. There are a lot of people out there who have invested into a high yielding product, but ignored the risks!
My advise? – Go the traditional route, go Bank or guaranteed returns in a product you can add to any time, and withdraw without penalty.Chris Durman
Commercial Capital Finance Pty Ltd
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