Kurt Barlow Posted August 8, 2011 Share Posted August 8, 2011 Here in the magical Kingdom the Banks are offering silly Sharia compliant loans of up to 1 Million Riyals (£165K) at 1% APR and the offer extends to Expats. I dunno whats driving it - perhaps the PTB want a slice of printy printy / ponzi action. Anyway I thought at 1% I could borrow say £110K and use my parents various entitlements to make some low risk investments; £50K in Zopa - yield about 6% £30K in Index linked bonds (NSI) yield about 5.5% £30K in Premium Bonds yield about 1.5% Good relationship with parents and they are healthy and financially sorted. Job here stable. I could easily meet repayments on £110K loan from my salary. Exisiting assets easily cover £110K in the unlikely event the above money vanished. Longer term - bottom of the housing cycle I could convert the cash into seed capital for some BTL's. Perhaps 3 years time. Any thoughts as to the risk side? Any views on where Sterling will be relative to the riyal in 2-5 years time. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted August 8, 2011 Share Posted August 8, 2011 Here in the magical Kingdom the Banks are offering silly Sharia compliant loans of up to 1 Million Riyals (£165K) at 1% APR and the offer extends to Expats. I dunno whats driving it - perhaps the PTB want a slice of printy printy / ponzi action. Anyway I thought at 1% I could borrow say £110K and use my parents various entitlements to make some low risk investments; £50K in Zopa - yield about 6% £30K in Index linked bonds (NSI) yield about 5.5% £30K in Premium Bonds yield about 1.5% Good relationship with parents and they are healthy and financially sorted. Job here stable. I could easily meet repayments on £110K loan from my salary. Exisiting assets easily cover £110K in the unlikely event the above money vanished. Longer term - bottom of the housing cycle I could convert the cash into seed capital for some BTL's. Perhaps 3 years time. Any thoughts as to the risk side? Any views on where Sterling will be relative to the riyal in 2-5 years time. Aligning your finances with pre-crash Iceland? Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted August 8, 2011 Author Share Posted August 8, 2011 Aligning your finances with pre-crash Iceland? In what regard - putting the dosh into UK cash markets / bonds or Borrowing from KSA which has a massive trade surplus on the back of 8m bpd of oil exports. I suspect the former. Quote Link to comment Share on other sites More sharing options...
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