At HomeSec, we are often asked by investors about what sort of returns are normal to expect. It used to be that investors were happy, if they were getting around 7% p.a. returns. This was fine, when our inflation rate was sitting at around 2-3% pa. Now more than ever, however, with our inflation rate being at 7% p.a., it is crucial that your investments perform above this. We would say, however, that sophisticated investors seek returns that are above 10% on most of their investments.
In the recent past this has been difficult with interest rates being so low. A lot of everyday investors have struggled to get high returns on their term deposits especially. Now, after three rate rises by the RBA things are only just looking better. As usual the big four banks have been quick to increase mortgage rates but are reluctant to pass much on to those with term deposits. Currently, you can expect to receive around 4-5% on your term deposits depending on the length of your term, how much you invest and who you invest with etc.
HomeSec has just celebrated its nineteenth year in business this year, and we can proudly say that our investors have always enjoyed above 12% returns per annum. At HomeSec we are not a pooled-funds lender. So, when a deal comes up for you to invest in and you decide that you are happy after you have done your due diligence, you then co-fund the loan with us. At no stage do we ever hold your money. This is a very important point. Your money is never just sitting there earning no interest, while you wait for something to invest in. This means, you can have your money in a term deposit, or you can trade shares etc. and then when the deal is ready with HomeSec, you can invest with us.
At HomeSec we also know that not only do our investors enjoy very strong returns above 12% p.a. but investing with us is also safe or prudent. As we said before, we have been operating for over nineteen years. So, we have been around through all the highs and lows of the last two decade. We are very proud to say that we have come out of all of the lows like the GFC and COVID, more wiser and experienced for our investors and clients. We are a lender with a lot of experience across a variety of business sectors.
There is not much we haven’t seen and dealt with, when it comes to short-term business loans. Whether it’s lending to construction companies, developers, retail businesses, start-up businesses, people who have a property that is about to go into recission…we have seen and dealt with it all. Both directors have also come from business backgrounds too as opposed to banking backgrounds, and we believe that this puts us at a great advantage.
We are an Australian owned family business with credit on our books. The returns with us are fantastic and stable, because we are not a pooled funds lender. This means that every deal is on its own merit. Sometimes we actually think that the process is so simple that people almost want it to be more complex. It is as though they think…”I’m too sophisticated for this…I need to opt for bank bonds…or the latest hyped new start-up that lacks credibility…” Quite often though simplicity over so-called complexity is a much better way to go. This is definitely the case with HomeSec.
You can be assured that as you are co-funding with us, there is nothing that we would ask you to invest in that we are not investing in too. We are also a founding member of ASTLA. The role of ASTLA is to ensure that lenders act within a code of conduct to ensure ethical and professional lending. The best bit is that you get to sit back and relax and let us do all the hard work.
In real estate, over the long-term, the average price of your property might go up around 7% p.a.. Then you have a lot of potential problems as the owner, like maintenance issues, for example, if the hot water service breaks down. Then you have things like land tax to consider, which is on the rise throughout Australia at the moment. Especially in Victoria this is an issue for investors who have multiple properties.
At HomeSec, we take care of it all for you, and there are no nasty surprises or extra costs. It really is great passive income for you without the headaches. So, if earning exceptional returns that are above 12% on safe investments sounds good to you, be sure to get in touch with HomeSec today.
