Dear Financial Wizards

ripoffrock


Joined: 05/08/2008
Posts: 255

Message Posted:
27/04/2010 04:32

Interest rates, do you think they will ever recover to what they were a couple of years ago or is the future set at 6 % a bit%

wearytravellers



Joined: 27/04/2007
Posts: 250

Message Posted:
27/04/2010 05:15

They gonna get worse before they settle.....The boom times are OVER

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
27/04/2010 07:46

First you can get closer to 8% if you shop around.



Second, the good times are over for interest rates here. With Turkey gaining some control over inflation and their economic outlook is good then there will be no need for high rates.



Best think positive though, far better than the 1% and less in UK.

wearytravellers



Joined: 27/04/2007
Posts: 250

Message Posted:
27/04/2010 08:20

Invest your money in Australia YTL is making 15% PA......go speak to Scott Kennedy at FMA financial Services, he will keep you right.

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
27/04/2010 08:28

15%pa??? I'm no financial wizard but anything promising that kind of return is extremely high risk. "Is making" is a common phrase to mean "once in the far distant past", as in "our property portfolio is making high returns."

catalkoykid


Joined: 15/02/2009
Posts: 1190

Message Posted:
27/04/2010 09:41

http://www.rba.gov.au/ there official rates in aus i would worry if someone was giving me 15%





Cash rate 4.25% Inflation rate 2.1% thats the going rate lol

catalkoykid


Joined: 15/02/2009
Posts: 1190

Message Posted:
27/04/2010 09:43

http://www.anz.com/aus/ratefee/interestrates/rates.asp

JohhnyLee


Joined: 25/04/2009
Posts: 2495

Message Posted:
27/04/2010 11:24

Message 2 and 4 Sorry I do not mean to be rude but you say the Boom times are over, but then you say Australia will give you 15%



I would also be very concerned, HOW ?



I would give you 18% Tax Free for the next 4 years fixed rate But wouldn,t you may not get your lump sum back in tact.

JohhnyLee


Joined: 25/04/2009
Posts: 2495

Message Posted:
27/04/2010 11:34

Sorry bottom line should read but you may not get your lump sum back in tact

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
27/04/2010 15:02

Don't agree.......Interest rates will rise later this year, kept artificially low at the moment to help global recovery....can't stay this low forever, Australia has put up interest rates and i would expect others to soon follow suit...Governor of BoE has his hand hovering over the interest rate button, just waiting for the right moment to push it.

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
27/04/2010 19:23

Maybe someone from FMA will respond here.



There were some doubts raised in the press ealier this year as to their legallity of certain of their operations.



I agree with all above, 15% is not a reasonable rate to offer anywhere in the world and there must be some doubts rearding the risk level. If it sounds too good to be true it probably is!!!! There is no such thing as a free lunch. Both are favourite economic sayings that are worth bearing in mind when investing.



Eager, you may be right that rates may rise but only at small point levels and there will be no rise to levels previously seen across the globe in the foreseeable future

BillyB


Joined: 19/05/2008
Posts: 436

Message Posted:
27/04/2010 21:30

Your best bet is to put your money into TRNC property. I was told by my estate agent I would double my money in months. It must be true as it was confirmed by my developer and my Kyrenia lawyer.

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
27/04/2010 21:31

David,

It is my understanding that the 'concerns' raised in the press were based on the Central Bank's total misunderstanding of how FMA act as financial advisers and not as a bank. They do not take deposits and they do not offer percentage returns. They do put you in touch with financial products which offer the rates of return mentioned in their adverts.



Their advert is what the bank took exception to rather than any of their dealings.



Having escaped the worst of the global banking crisis, because Australia has stricter investment regulation than most other westernised financial centres, they are well placed to ride out the storm.

catalkoykid


Joined: 15/02/2009
Posts: 1190

Message Posted:
27/04/2010 21:42

groucho so you saying they can pay 15% and weather the storm sounds more like Iceland all over again

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
27/04/2010 21:44

I agree with eager in that rates will rise - but not much. Economists are predicting that the bank base rate will be:



1% this year

2% next year

3% in 5 years



I hope they are wrong!

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
27/04/2010 22:03

You will not get 15%pa plus your investment back. One of the ways you will get 15%pa is that, if for example you invested £100000, you will be paid £15 000 but it will consist of £3 000 profit made by the company investing your money and £12 000 taken from your original investment, leaving £88 000 in your account.

Brinsley


Joined: 04/04/2009
Posts: 6858

Message Posted:
27/04/2010 22:15

Australia exports vast quantities of its natural resources overseas earning huge amounts of money, in particular, coal to China to burn off enormous greenhouse emissions of their product but in another Country. No wonder their 'clean air-carbon emission' bill was not passed into law today!



Richard

wearytravellers



Joined: 27/04/2007
Posts: 250

Message Posted:
28/04/2010 08:16

Geezo.......Lot's of financial experts on here eh ??? Tell you what to do.....next time you heading into town, go speak with Scott, ask him about the product I mention it's 15% per annum on YTL and 6% per annum on GBP. What do you have to lose ? Nothing !!!

ripoffrock


Joined: 05/08/2008
Posts: 255

Message Posted:
01/05/2010 03:30

I guess there is no harm in asking but it does sound to good to be true.

catalkoykid


Joined: 15/02/2009
Posts: 1190

Message Posted:
01/05/2010 07:54

dont see TL or GBP would make any difference if its in aus so why 15% and 6%, dont talk to money experts it was those that told me a endowment mortgage was the way to go lol, and we all no what happened there

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
01/05/2010 08:19

mess 18 - what do you have to loose ??



What about ALL OF YOUR MONEY for a start...............



For FMA to offer 15% on your savings, they must be lending it out at 22%-25% - the base rate in Australia is below 5% - so who, other than a "sub prime" borrower would pay FOUR times that rate to borrow money ??



Borrowing money is all about the risk of the borrower - someone willing to pay 4 times the base rate, isn't likely to be a blue chip borrower.....



I've listened to several friends who have moved their savings over to FMA and my honest opinion is that they are being blinkered......



Or as my old Uncle Percy would say "Yow'll learn".......



My opinion (which i'm entitled to) is that its too risky an investment........

parkview



Joined: 12/03/2009
Posts: 1123

Message Posted:
02/05/2010 14:21

Nick

FMA do not offer 15% on your savings - a company trust investing in residential and commercial property in Queensland, Aus will currently offer a 13.9% return on a 12 month contractual investment. Investment funds are ringfenced, and one is protected by Aus legislation - possibly a better bet than theUK or TRNC?....



Aus is currently strongest economy in world - no recession - and one bemefits from very strong Aus Dollar versus TL and sterling - hence rates on offer for guaranted 12 month periods



I hope this helps understanding



Laurence

wearytravellers



Joined: 27/04/2007
Posts: 250

Message Posted:
03/05/2010 04:48

message 22,



Now your talking, that's what I have been trying to say.....Contractual investment over 1 year. I still believe that FMA have great products to sell that beats the crap out of anything else Ihave seen. However, if anybody knows where I can invest 50K GBP that gives a greater return.....Puleeezzz let me know ?

catalkoykid


Joined: 15/02/2009
Posts: 1190

Message Posted:
03/05/2010 07:51

Aus is currently strongest economy in world - no recession - and one bemefits from very strong Aus Dollar versus TL and sterling - hence rates on offer for guaranted 12 month periods









if this is the case why would they need to pay such high interest rates

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
03/05/2010 08:04

I go back to one of my original little sayings - if it sounds too good to be true, it probably is.



Unless you have money you can afford to loose keep well away from this sort of investment. You may be lucky, but...........



Because of this one small company being regualrly plugged by one poster ONLY I also have some doubts to their reasons for posting. No disrespect wearyguys but you do plug this on every possible occasion.

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
03/05/2010 13:47

Last question to wearytravelers.



When your 12 months investment period is up perhaps you can returen here, tell us what capital you invested and how much you actually receive at the end of the term ie remaining capital and interest.



Then those that have questioned the invetment can be made to look silly....... or not!!

parkview



Joined: 12/03/2009
Posts: 1123

Message Posted:
03/05/2010 17:41

I know of 3 people who decided to re-deem their contract at end of 12 month period and have received 100% of original capital returned

I was offered same on 3 seperate contracts that have matured, but decided to roll them over albeit on a lower rate that reflects the evolving lower rates globally

These investments are not for everybody, because you are locking your funds in for a 12-36 month period, and investing in the Aus property market for this period of time, plus you are linked to the rate prevailing between the Lire and the Aus $

If you feel the Aus$ is about to collapse, then steer clear. If the Lire weakens against the Aus $, then you gain each month on the exchange rate. I know my view on this issue..



I hope this helps - I am not selling the product, because as I say, it is not for everyone

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
03/05/2010 18:52

Perhaps the next UK government can take out an IMF loan of about £2000bn at 3% and then invest it all in the above scheme at 13.9% and then pay of the national debt? Trouble with some schemes (not the above of course) is that new money pays the maturing investors' interest. They rely on a continually growing number of investors. Another problem with a multitude of schemes offering high returns on property price increases is that they inflate property prices until the bubble bursts; which is one of the reasons why UK house prices crashed. In the case of the UK it was the buy to let schemes and this is why Paul Kemsley of the Apprentice went bust. It's good while it lasts.

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
03/05/2010 20:20

Malsancak,



What FMA put one in touch with is definitely not a Ponzi scheme... What you describe in sentence two is a Ponzi scheme. There is no truth in the idea that it is only new investors money that enables them to pay earlier investors interest or capital return.



It is firmly based in the Australian commercial and residential property loan market which still has a shortfall in property which buoys-up the market for loans.



I suggest you do some reading before casting aspersions upon FMA or the fund management schemes they deal with.



http://www.lmaustralia.com/

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
03/05/2010 22:41

Groucho, I suggest you read my post carefully before you accuse me of casting aspersions, i.e. the bit where it says "not the one above." I'd like to read the delayed 2010 financial data when it becomes available, I'd perhaps be more convinced then. However, a quick look at http://www.lmaustralia.com/downloads/financials/2009/fmif_annual_2009.pdf makes interesting reading: $79m income, $40m expenses and only $39m paid to unitholders (p.8)??? Only $39m paid out to unit holders on $630m invested (p.4). Admittedly that was just a quick scan, and only the first annual financial statement.

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
03/05/2010 22:57

actually Groucho, I am a bit more impressed having read that the $39m payout was based on on a $390m unitholder investment (p.24) - 10%. But that was 2008-9. I wonder if these figures hold up for 2009-10? The trouble with the $40m expenses is that they might remain static despite a fall in overall profit.

wearytravellers



Joined: 27/04/2007
Posts: 250

Message Posted:
04/05/2010 03:19

Re message 26.

Sure I will plug FMA, they sell good products, the guy who is the director (scott) is very well up to speed with investments, they can provide low risk as well as high risk investments, Insurances etc etc.....they are a good family run business.....and Helluva nice people !



Check this out for fast profits. http://www.ipinglobal.com SECURED exit strategy.....21,500 STG to "buy" into it.

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
04/05/2010 08:40

Malsancak



You have made the same mistake that you accuse me of... read my sentence again. I didn't say you had cast aspersions, I did say before you do...



It's very easy to ruin somebody's business with innuendo on a public board. I'm not suggesting you are doing that, it's just a watchword for everyone. Be sure of your facts.



Legal Note. Goodwill and reputation are taken very seriously here in the TRNC. If you make unfounded accusations and as a result it can be proved that you damaged their business you face a gaol sentence should they feel inclined to take you to court.

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
04/05/2010 08:41

As for the returns, if you are prepared to invest in TL then the rates are somewhat higher to reflect the higher risk. It depends on your comfort, however if you invest half and half and hedge your bets re end values of the currency down the line then you will achieve the mid-point between the STG and TL rates.



As long as the whole business does not go down.



Given their track record and the financial controls they work within this seems very unlikely

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
04/05/2010 15:05

Grouch, "Legal Note. Goodwill and reputation are taken very seriously here in the TRNC. If you make unfounded accusations and as a result it can be proved that you damaged their business you face a gaol sentence should they feel inclined to take you to court. "

and yet the TRNC allegedly allows developers to place mortgages on property the owner has paid for in full and then when the developer goes bankrupt the owner loses everything. If this were to be true then this would be a country where businesses rule and consumers beware!

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
04/05/2010 15:06

... for that reason, I'm out!

Tenakoutou



Joined: 27/07/2009
Posts: 4110

Message Posted:
04/05/2010 15:26

Mal/Msg 36: Out of what, or where......... ???

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
04/05/2010 16:39

Dragons den

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
04/05/2010 19:43

I don't see what point you are trying to make by the way. It's got nothing to do with builders or loans in the TRNC. Just a simple fact of business life... if you make unfounded accusations that damage a business financially you can expect to be sued anywhere in the civilised world... If you damage somebody's reputation the same applies.



As you might expect, where this place falls short of your expectations in other respects is somehow not high on the list of those doing the suing.

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
04/05/2010 21:55

I'll put it another way, you can lose a lot of money here and you'll find you have no legal protection, e.g. using the construction industry as an example, the Aga Saga. That is why I wouldn't invest money here.

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
04/05/2010 22:02

It's not invested here! It's invested in Australia. That's why I don't get your point...

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
05/05/2010 08:34

So where do you pay your income tax related to this business Groucho?

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
05/05/2010 10:40

Oh when did everybody's tax liabilities become any concern of yours? It's very presumptuous of you to try ask such a personal question on a public forum.



No matter where you pay your taxes, it's the viability of the financial product we are discussing.



People need to make their own minds up. Blackening the name of companies with a good reputation is just not fair and lacks judgement.