Precious metal backed loans?

Dale

Dale

Member
Hi Stackers, hope you are all doing well!

Bit of a random question regarding a loan.

Short background , I have a vacant block of land in Vic thats been valued at around $350k (99k mortgage), which I would like to build on. (would like it to generate some income rather than sitting vacant).

I have 200k in savings to spend on the build (currently in some assets that I would sell to fund the build), but cost of construction will be approx $290k.
I'm not really keen on going through the bank again for just another 90k, also not keen on selling all my assets (metals, shares etc).

Is there somewhere that would give out say a 3-4 year loan with shares/metals as collateral without selling the lot? I would be able to get $500 per week rent for the property once built so seems like a no brainer.

I don't even know where to start. I have a very good credit score, just income isnt that great at only 50k.

Cheers :)
 
Dale said:
Hi Stackers, hope you are all doing well!

Bit of a random question regarding a loan.

Short background , I have a vacant block of land in Vic thats been valued at around $350k (99k mortgage), which I would like to build on. (would like it to generate some income rather than sitting vacant).

I have 200k in savings to spend on the build (currently in some assets that I would sell to fund the build), but cost of construction will be approx $290k.
I'm not really keen on going through the bank again for just another 90k, also not keen on selling all my assets (metals, shares etc).

Is there somewhere that would give out say a 3-4 year loan with shares/metals as collateral without selling the lot? I would be able to get $500 per week rent for the property once built so seems like a no brainer.

I don't even know where to start. I have a very good credit score, just income isnt that great at only 50k.

Cheers :)
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nowhere mainstream offers that, youd have to find a pawn shop or similar that will charge rates through the nose. Maybe @spannermonkey can help with this?
 
Going to give this a little bump.
Appreciate the responses so far!

Still looking, might just simplify what I am looking for. Surely someone out there that this suits :)
I give someone 50-100k of silver as collateral and they lend me that amount of cash for 12 months. After 12 months I retrieve my silver and I pay the amount + 10%.

Thank you all, Cheers
 
I have a pawn shop, the interest on our large loans is 25% per month. Usually against cars/boats/motorcycles. We would loan 40-60% of the items resale value.
In your case, large loan with non-depreciating (hopefully, but not guaranteed) collateral, that’s easy to store, you could probably find a pawnbroker willing to do the loan for 10% per month. (Shop around, be pleasant to deal with)
10% per annum is not at all possible. We could instead, loan the money to other customers in small amounts at 35% per month, totalling 420% per annum. This is the standard pawnbroking business model in Australia.
These loans really should only be used as an absolute last resort, short term option.
Some people can become trapped in a cycle of debt, especially if the collateral is sentimental to them like jewellery, bullion, coins etc.
I’m happy to have a chat if I can be of any help.
 
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@Dale you’re being foolish. You are buying a hard asset. Sell your stack and buy the property. Instead of repaying a sizeable loan, just use the money to stack again. The maths indicate that this is a lot cheaper. Another benefit is that your new stack can be devoid of rubbish, only buy 10oz bars and nothing else.
 
sammysilver said:
@Dale you’re being foolish. You are buying a hard asset. Sell your stack and buy the property. Instead of repaying a sizeable loan, just use the money to stack again. The maths indicate that this is a lot cheaper. Another benefit is that your new stack can be devoid of rubbish, only buy 10oz bars and nothing else.
Click to expand...
Yeah Sammy Silver all the way, make no sense paying interest on a dead asset depreciating by 2% p.a
If the price of your collateral deep dives you may get called and with BTC eating into Gold's Market cap there is an unacceptable chance this could happen.
Also your crazy building anything now with high labour rates and extremely high priced short supply building materials.
If you can wait 24 months by all accounts a major credit bubble correction is due, then you also have excellent liquidity to negotiate cheaper prices on everything.
Your cash rich, stay that way for the time being.
When markets crash,CASH for a short time will be KING
 
@Dale Personally , I wouldn't rent or loan my PM.
What bidding contract from the rental / lease that they will hand you back all your Hard Asset?
It is just like you loan your $$$ to them, I don't think it is very secure.
As the company goes bust, you likely will not recover them back.

Take Care.
 
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