Forum Archive Index - May 2001

["Chris Donald" <cdonald@hotmail.com>]

Another thing that we do is invest money in finance scheames (typically HP's).  These provide a gross yeild of roughly 19-21%, By the time you take tax (less expenses) off it you get a net return of 13.5%.

So, borrow money from the bank at 6.7% and lend it out again at 13.5% giving a difference of 6.8% per year.

This also works in reverse ie if you have hire purchases or credit cards, pay them off before you increase your payments on the old mortgage.

Oh year, forgot to say, I am an Accountant.

Chris

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