Gearing not for everyone
Article Abstract:
Borrowing money to use for investments has rewards and drawbacks. The most common method of borrowing is a home mortgage. Three types of loans are offered: margin lending, margin lending with a fully protected loan and "dripfeed" lending. In margin lending the loan cannot exceed usually 60-70% of the investment value. If a protection loan has been purchased the risk lies with the lender. In a drip-feed loan, a 50% investor and loan match is made available each month to dollar-cost-average thus limiting costs.
Publication Name: Personal Investment
Subject: Personal finance
ISSN: 0813-2992
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Credit where it's due
Article Abstract:
Few Australians know if they have a good credit rating when applying for a credit card or a loan. Although investing and saving money are important, financial institutions look for people who have a good history of repaying their debt. Individuals looking to borrow money should check their credit file, show that they are willing to repay the loan, and provide lenders information about spending habits, salary, material possessions, and others.
Publication Name: Personal Investment
Subject: Personal finance
ISSN: 0813-2992
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Fast track to a fortune
Article Abstract:
Australians are gearing, that is, borrowing money to invest in the share market or in property they can use as a tax write-off with the hope that it will produce large profits. Many people are redrawing on their home mortgage or participating in margin lending schemes. Even stockbrokers and fund managers are creating products especially to meet the needs of these types of clients.
Publication Name: Personal Investment
Subject: Personal finance
ISSN: 0813-2992
Year: 1998
User Contributions:
Comment about this article or add new information about this topic: