When it comes to investing, there are so many different types of investments to think about and to feel like you need to keep up with for that matter. Whether it’s the usual ones like shares and property or some of the latest buzz ones like cryptocurrency and NFTs, it can be overwhelming getting your head around it all.
Greg Norman, the former world number one golfing legend and very successful investor, always used to say, when people would come to him for advice on investing and whether or not they should be pursuing all these other investments that people were getting into, was this…stick to what you know. The truth is, it doesn’t matter how good the share market is or whatever investment scheme you’ve been recommended is, if you don’t actually understand it.
Investing your hard-earned money is scary enough, let alone when you don’t understand what’s going on. Investing in the share market especially can be very stressful when things happen that sort of spook the market and you see a lot of the herd mentality in investors. For example, if a major bank decides to leave an insurance company and goes to a different one and the share prices go down immediately, because people freak out and then everyone freaks out, and it can be a bit of a nightmare.
It certainly makes life a lot easier on you with fewer headaches when you invest in what you actually have experience with and what feels natural for you. A lot of people prefer real estate as an option because you are investing in something that you can see, taste, and touch. It affects us all because we all need somewhere to live, and so most of us can get our heads around the property market because it’s an asset that we understand.
As we will soon get into, investing in real estate still has its drawbacks, and so we would like to present you with another option that is very similar in nature, and that is investing in mortgages. When you invest in mortgages with HomeSec, you actually are the lender. In a nutshell, it’s like owning a house but instead, you have a mortgage on the property. As we have already discussed in our recent blog, why pooled funds lenders are not always the safest, we do not pool funds at HomeSec. This means that when you fund a loan with us, and it is secured against a property, it is your property. So, whether the property is in Port Melbourne Victoria, in Broadbeach Queensland, Bondi New South Wales, or Scarborough Perth…you are on the title. It’s not cross-collateralized, like it is with a pool funds lender, so your risk is not all intertwined with other properties and other loans. It is your loan, so instead of owning a property, you have one as security against a short-term business loan that you are funding, and you are on the mortgage of that property.
The great thing about investing in mortgages is that you don’t have all the headaches associated with owning a property. You don’t have to pay stamp duty when you buy the property or pay things like insurance and rates. You don’t have to worry about land tax issues like some states in Australia do when you have multiple property investments that are not your own place of residence. You also don’t have any of the hassles, like replacing the hot water services on a property or getting new tenants in at the end of a lease. The other factor to consider with real estate is that it is typically a longer-term investment, so you are looking at having your money locked in for at least five years.
So, instead of all the headaches of property investment, you can become a lender and have property as your security with HomeSec. You can lend money to people who are wealthy and quite often asset-rich, who need money to grow their business by leveraging against real estate. So, this is a win-win scenario for both the lender and the borrower. You get to enjoy great returns, and they can access the funds that they need to grow their business.
When you come on board with HomeSec, you do not need to pay any joining fees or any kind of fees at all for that matter. You come on as a joint, co-investor. This means that your money goes directly to a mortgage not to HomeSec. It is very straightforward, you help us fund a short-term loan for a business, secured against real estate and earn well above average returns. Since you are co-funding with HomeSec, you can confidently know that we would not ask you to fund something that we ourselves are not also willing to fund too.
The best bit is, it is as safe as real estate, but as a lender, you enjoy superior returns. Our investors enjoy returns that are well above 10% pa, it’s actually just above 12% p.a., while knowing that it is safe because we do not pool funds. We have been operating for over nineteen years now, and we are very proud that we have ridden all the highs and lows of the past two decades, so you are in good hands with us.
When you consider also that if you reinvest your returns with us, your money is now compounding substantially over a period of time and can lead to some very good wealth creation indeed. The bottom line is that there are so many benefits to this kind of investing without the hassles and headaches that a lot of other investments inherently have. It really is straightforward, so much so that some people think that it is too good to be true, but it isn’t, it’s just transparent. This is an investment that you can easily understand and so be comfortable with, and that means you can actually enjoy the process instead of stressing out because you don’t know what you are doing.
So, if you would like to find out more about this, don’t hesitate to give us a call, and we will be happy to answer any of your questions and take you through it.
