making my next leap

Hi there everyone, this is my first post!!

Having built a resonable portfolio already in only a few small years, (Property and shares) I am thinking of really excelerating it all in the next few weeks! exciting stuff I know but theres still alot I want to know.

I want to release some of the 250K or so, in one of my IPs. These funds I will then divide into my share portfolio, and a large sum I will put into my two managed funds. (my views are for the more longterm.)

I want to stay away from Margin loans, due to what happened this past month,
does anyone have any ideas, horror stories etc to think about with using the equity from an investment property??

I am looking at capital protection insurance ect.. but I figure if I can get a gain of say 10-15% on the funds, and my bank interest rate will be about 7%... it all sounds relatively straight forward. its a good time to buy more stocks at the mo.


am I close???
would love to hear some ideas!!/ views.

Thnx heaps.

Jase

 

to others on this forum.
if margined in Navra at 50% during the recent stock market dip, how close to a margin call you be. If margin called what percentage would you need to add?

 

Hi Jase,

For an idea, you can have a look at Perpetual Protected Investments Series 2 Perpetual Protected Investments - Series 2.
This has the capital protection with 100% lending available.

Let me know what you think...

Cheers,

Dan

This is not advice to invest in PPI2, only showing sorts of things are out there. Before making an investment decision speak to your FPA registered Financial Planner, Accountant or Tax Adviser.

 

Hi meakinmaster, where are your IP located?

 

Could you give us a quick run down on it. Like is it interest rates substantiually higher than a ML, do you have the same form of choices as normally with perpertual. Does it include he geared fund? What happens after 5 years if you want to see out? And is there potential to capitalise interest at all????

 

Hi Dave,

You should read the PDS, this is a geared platform.

The 3 interest rate options of variable, fixed for one year or fixed for the whole term indicative interest rates are given in the PDS. These rates include the cost of the protection.

Which normal perpetual? Perpetual have WealthFocus and InvestorsChoice platforms...This platform is made to be geared, hence there are only "growth" options, no cash funds and no income funds.

You can "see out" in five years. The protection is European, which means it is only valid on the maturity day. If you redeem before then you don't get the protection. You'd probably only do this if your funds were above the borrowed amount because you'd crystalise a loss.

I think for the first year they'll let you capitalise interest. I don't think they would be too keen for you to capitalise anymore as they would be taking on more risk. You should really read the PDS to get a better idea.

Cheers,

Dan

The above is information available in the public domain. Speak to your FPA registered Financial Planner, Accountant or Tax Adviser before making an investment decision.

 

Hi, voigtstr,

The link below will take you to one of Sim's spreadsheets which will hopefully answer the first part of your question, but from memory, I think you'd need a fall of about 35% to trigger a call.

http://www.invested.com.au/83/market-drop-before-margin-call-7610/

As far a part two of your question, perhaps someone else could answer that one.

Cheers

Jayar

 

Not even a blip on the radar mate.

MJK

 

Margin loans are one of the best investment tools around if managed correctly. You should not dismiss them so quickly.

If your equity grows you dont have to refinance, you simply get more money. try a conservative LVR. Its a pure asset lend. No Doc if you like.

MJK.

 

Hey Dan, will do thanks for that, there sure is alot of options out there, I will check out thta site thx,
Jase

 

3 in perth metro area, 2 overseas.

 

This is why I wanted to know the percentage drop in Navra before a margin call would happen. I think the consensus is that Navra is a pretty safe bet.

 

Excellent resource, thanks for posting that Jayar (and thanks for creating it Sim).