Monday, 8 December 2014

New Investment on the Horizon

There has been a few products on the market recently that gives wonderful yields of 17%,18% and 36%. Thats a very very big wow! right? There was a wonderful product giving 75% yield a few years back growing peppers and its doing very well now. The investors must be grinning from ear to ear.

Lets see. :

17% - Pilbara - developers financing for pilbara housing. This company has been operating this financing scheme for the last 2-3 years, offering 17% return for a 2 year period. A few companies which includes IPINglobal and wealth revolution group are marketing this product.

18% - Par Vue - developers financing plus property in Bundoora. This is to finance a property in Melbourne Bundoora region. The company offering this is future estate, check them out.

36% - Kalimantan mine - now this is interesting. Investors fund the buying of coal at bulk price and agents sell the coal. The returns can be 3% per month. 

Interestingly, I spoke to some investors sometimes, I asked them why they put money in Pilbara. They said 17% is very good yield. I told them I have 36% yield and they were scared and backed off.

As a principal, as a levaraged investor, I do not find Full Cash Investment enticing anymore. I want leverage and through leveraging, achieve higher cashflow and capital gains. It will be hard to beat 36% a year or even 17% a year but as a leveraged investor, I would like my favouritest bank to share the risk with me and for them to do their due diligence. I may not earn 18% a year but I'll be comfortable in my sleep.

I blogged about 12% yields in an earlier post explaining that 12% might be the magic figure to make people part with their money. It seems that game has been raised to 18% and this figure will continue to appear in future investment products. We are watching...

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