Will this work?

• 7 August 2010

• #1

M

Mike4x4

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Hello, i am curious with my idea if this would work or not.

Me and my girlfriend are looking to buy a house and land package for $350000 AUD and the payments are $500 a week. But before we do this i am thinking if i save up $45000 and put it into a savings account (4.5%) interest, this would give us just over $500 a week from our interest, so which means we are paying nothing just by keeping the money inside the account.

What are your views on this, would this work?

 

• 7 August 2010

• #2

S

stockGURU

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Hi Mike,

It looks like you've calculated your interest incorrectly.

$45,000 earning 4.5% a year will earn you $2,025 a year or $38.95 a week before tax. This is a long way from your anticipated $500 a week in interest.

I am, of course, assuming that I have understood your post correctly.

 

• 7 August 2010

• #3

M

Mike4x4

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oh yes, damn i thought the interest was monthly, but i misread it is per anum.

 

• 7 August 2010

• #4

The_Snowman

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from HERO to ZERO in 9 minutes....... IF it was that easy, we would all be doing it

 

• 7 August 2010

• #5

Logique

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Mike4x4 said:

Me and my girlfriend are looking to buy a house and land package for $350000 AUD and the payments are $500 a week. ....What are your views on this, would this work?

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Mike, financial advice can't be given on this forum, it's the law. Bearing this in mind, I'd say in a general sense, I think owning the roof over your head is the best investment anyone can make.

 

• 7 August 2010

• #6

skc

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Logique said:

Mike, financial advice can't be given on this forum, it's the law. Bearing this in mind, I'd say in a general sense, I think owning the roof over your head is the best investment anyone can make.

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That is ridiculous. Don't mislead people like that. It all depends on the circumstances.

 

• 7 August 2010

• #7

drsmith

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There's no such thing as a free lunch.

If it looks too good to be true, it usually is.