monty python and property bulls, page-22

8% on a term deposit of 12 months.

Yes...its an option for some.

But why would u do that?

If the bank can offer me 8% p.a on a 12 month term deposit by lending my money out to others then why not just lend it out yourself as a mortgage?

You get the startup fees and extra interest all to yourself instead of giving it to the bank.

Its really not hard to do with a little education.

e.g

Say u have 200k in the bank term deposit at 8%

= $16,000 p.a

Instead ledn it out yourslef at say 9.5% p.a

"funds available for private first mortgages "

charge an application/establishment fee....say $2000 monthly management fee of $12 month.

End of 12 months you have $21,144 as apposed to $16,000.

Return on investment 10.5% in 12 months.



Sure not everyone has the means or knowledge to carry out such a thing but it really is quite easy.

Why pay the bank to manage your money?

The "same people" who you think have bad lending practices and lending to people who cant afford yet you invest your money with them.

Put your hard earnd where is gives you the best result and or the most benefit to you.

And the Gov guarantee...well thats just a wank.

Anyway just putting it out there as a way to make more than the lousy term deposit returns.