not to mention.. spot price dropping...
thats just throw everything out of the window..
thats just throw everything out of the window..
SliderC said:Im no math wizard and Im sure there holes in my logic but ill give it a go.
Assuming Aussie home mortage of around 300k (most would start higher) and assuming your paying interest only with an offset account, your yearly interest may start around 15k (@5~%). 15k/365 = ~$41.10 a day interest to begin with.
Now lets say you had $2750 worth of discretionary income that could either go into the offset or into metals and lets say interest and spot doesnt change and no capital growth.
$2750 x 12 = $33k in discretionary income per year.
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Option A: Offset.
> After 1 yr, interest on 267k (300k-33k) (@5%) would be around $36.57 a day.
> After 2 yrs, interest on $234k (267k-33k) (@5%) would be around $32.05 a day.
# 66k in offset equity
# Saving ~$9 a day on your initial interest payments = $3285 saving a year (now paying ~$12k p/yr interest)
# 234k worth of debt.
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Option B: Silver
After 2 years - Still interest only.
# 66k worth of silver 3348 ounces @ todays spot
# No savings on interest (~15k per year)
#300k worth of debt
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Obviously no capital growth, no change in spot and no change in interest rates are ridiculous and its the guys who can predict these factors that will ultimately be able to come out ahead here. However for me, I think the lowest risk play would be to pay into the offset...I do like my shinies though!
