Search results

@annz Why do you not use the same leverage for ETF purchase?

@somethingon And ETFs also generate an income from distributions. The main issue with the calculation is using different amounts of capital. Why even do the calculation if you’re going to favour one choice with leverage and the other without.

@annz Why does 14% match a 4% return. Isn’t the 14% return 10% higher?

@danmat777 In regards to tax, if it’s an investment or you wish take make it an investment an offset is much easier to claim more interest as a deduction. If you pay the loan down, to claim more interest for an investment you need to prove your use of funds for investment purposes and a...

@danmat777 Yes it goes down the minute it’s taken out. The same as an interest earning account. With an offset, you don’t pay tax. This makes it’s savings, earn you almost and extra 30% depending on your tax rate. It’s the smartest low risk return.

@annz It’s not hard at all to get IO. If you can’t afford PI maybe you shouldn’t be using leverage. Rental yields on growth properties isn’t near 4-5%. This is also not the net yield. There are many costs associated with owning a rental property. These don’t exist for ETFs. You’re comparing...

@automatiic I invest extra in both. Super for extra retirement funds after 60. Outside of super to allow me to retire earlier if I want to.

@annz You can get loans for ETFs that aren’t margin loans. NAB equity builder is available and interest rates are just above investment property rates.

@annz Why not use leverage for the ETF?

@danmat777 I don’t think they’ve ever said it’s fair. Bank interest is usually the lowest return you’ll earn on your money.

@canuckgramz It is also important to note that you may be able to receive a refund on the annual fee pro rata. Some banks will do this if you ask when you cancel. Eg an annual fee of $120 and you cancel after 1 month, you can get a refund of $110.