Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

listed property gearing

Reply
Not applicable
Someone told me of a company that will allow someone to borrow funds to purchase listed property. Does anyone know of such a company? I can't find the thread anymore
0 Kudos
4 REPLIES 4
Alonzo7
Frequent Contributor
Re:listed property vs buy to let by Zettie on 18 Jul 15:42 Skaaptjop, deposit minimum R500k (= 40%); loan amount = 60%. Prime -0.5%. Visit the website: www.3pm.co.za follow link Geared Investments
0 Kudos
Jughead
Contributor
Or buy some RDFSTB installments with almost 3x gearing a CFD is also available.
0 Kudos
Not applicable
Thanks Alonzo! Jughead, there is a massive difference between the two types - 3pm gears you and your interest payment is pegged to the original loan. CFD's and installments on the other hand charge you interest on the total exposed amount, so as your portfolio value increases, so does your interest. The strategy for long term gearing in property is that your portfolio increase, and the yields, will eventually grow to a point where they cover the loan repayments. You will never accomplish that with a CFD or installment.
0 Kudos
Jughead
Contributor
Thanks for telling me this. Funny how the banks shy away from telling these facts in their glossys.
0 Kudos