Are share instalments worth it for long term investments

[surfer]

with interest part of share instalments ,are SI worth it for a long term hold like 3-5 year.wont interest kill you in the end or will you dividends make up for it.Or are ordinary share just the best for the long term 3-5 year plus.basicaly does the risk compensate the return(not saying can predict what market will do)

[#2]

instalments are usually valid for about a year. on expiry you can roll over into a new instalment, unless the market maker doesn't issue one. you will be paying interest for the entire period (deducted from the value of the instalment). instalments yield better results if they are actively traded, but if you're looking at 3-5 years, then perhaps it would be better to buy the actual share. OMO

[louisg]

One first needs to confirm with SARS if a taxable event takes place every time (I think its every 6 months)one sells the installment. One also needs to clarify if you have to pay capital gains or income tax. If it is taxable , either max 10% for CGT or up to 40% income tax, then your timing has to be close to perfect to make a consistant profit. If your term is longer than 3 years then you will only pay CGT. IMO buy long term and get advice from a tax consultant before you buy.

[surfer]

thanks guys.Not really worried about tax implications but clearly some people are,which makes sense.Just trying to weigh up pro vs cons of riding out this correction or whatever you want to call it.My idea was to keep for long period but inderestimated the effects of interest on SI as difficult to calculate daily .Thinking maybe convertying to underlying

[CrownA]

My theory - ho hum - is if there are no warrants for the underlying, at least you get the gearing and the dividends. You can't get that with a warrant!