Author Topic: Have your cake and eat it too  (Read 2506 times)

marty998

  • Walrus Stache
  • *******
  • Posts: 6249
  • Location: Sydney, Oz
Have your cake and eat it too
« on: August 07, 2013, 04:18:53 PM »
Think you can't invest and pay off the mortgage at the same time? Well blow me down with a feather someone has come up with a product to solve the conundrum.

http://www.aspirehomeloan.com.au/

A portion of your mortgage repayments are funnelled into an ASX300 index fund with the earnings on that helping to pay down your loan in future. There is partial capital protection (covering the gap between the value of your index fund investment and your mortgage), with associated fees of course.

It's not for me, I prefer the flexibility of conventional loans and investments, plus having my finances with a bank that in all likelihood will not fall over. But I can see the appeal and there are certain times in history where this would be a truly outstanding choice to make.

KingCoin

  • Pencil Stache
  • ****
  • Posts: 783
  • Location: Manhattan
  • Achieved FI @ 30
Re: Have your cake and eat it too
« Reply #1 on: August 07, 2013, 06:19:18 PM »
Seems interesting, but we all know there's no free lunch. This is definitely a case where you'd want to read all the fine print. Of especial interest would be the fees they're taking out on your investment portfolio. I'm guessing this falls into the category of suboptimal, but an interesting forced savings plan for those who are disinclined to save.

It would be interesting to compare the practical differences between person 1 who gets an Aspire loan, and person 2 who gets an interest only loan, and invests the difference in the market himself.

superannuationfreak

  • Stubble
  • **
  • Posts: 123
  • Location: Melbourne, Australia
Re: Have your cake and eat it too
« Reply #2 on: August 07, 2013, 08:40:14 PM »
The Product Disclosure Statement and interest rates don't seem to be up yet.

I suspect the killer will be the details of fees and rates for the products but until they are provided on the website there's no way to evaluate the value provided by the product

marty998

  • Walrus Stache
  • *******
  • Posts: 6249
  • Location: Sydney, Oz
Re: Have your cake and eat it too
« Reply #3 on: August 08, 2013, 02:27:16 AM »
The Product Disclosure Statement and interest rates don't seem to be up yet.

I suspect the killer will be the details of fees and rates for the products but until they are provided on the website there's no way to evaluate the value provided by the product

Yes I suspect so too. Would also like to know who is behind the whole operation.

Kudos to them though for the innovation. The idea can only be refined and bettered from here.

AdrianM

  • Stubble
  • **
  • Posts: 158
  • Location: Queensland , AUS
Re: Have your cake and eat it too
« Reply #4 on: August 21, 2013, 06:10:10 AM »
Just reading through the site and came across the disclaimers page

http://www.aspirehomeloan.com.au/disclaimers

Also found their other website.
http://www.wealthmakerfinancialservices.com.au/disclaimers

My favorite paragraph is

No Guarantee
Neither WMFS, nor any of its representatives, or associates guarantee the performance of any investment nor the repayment of any principal amount invested in any financial product that it is associated with.