GNE - Genesis Energy

[Bobdn]

I borrowed 200k against my house and bought 92500 at $2.16. I fixed the amount at 5.89% for 3 years and the bank was also nice enough to give me $1500 cash for taking the loan out.

Because the dividend is fully imputed, does that mean I can claim any interest back on the loan? I'll check with an accountant.

[brend]

I borrowed 200k against my house and bought 92500 at $2.16. I fixed the amount at 5.89% for 3 years and the bank was also nice enough to give me $1500 cash for taking the loan out.

Because the dividend is fully imputed, does that mean I can claim any interest back on the loan? I'll check with an accountant.

just out of interest did you compare the cash inflows (dividends) against cash outflows (interest) ? was it positive or negative?

[Bobdn]

It's positive, even without off setting the interest. Of course this assumes 16 cents a share dividend.

Now, I haven't received chorus dividends for over a year so bad things can happen. I miss my 25.5 cents per chorus share desperately.

Edit: re Brends post. Interest is 5.89% net dividends 7.4%

[Harvey Specter]

It's positive, even without off setting the interest. Of course this assumes 16 cents a share dividend.

Now, I haven't received chorus dividends for over a year so bad things can happen. I miss my 25.5 cents per chorus share desperately.

Edit: re Brends post. Interest is 5.89% net dividends 7.4%

One potential issue is that imputation credits are not refundable. So if you have no other taxable income, the imputation credits may be carried forward, not refunded.

[brend]

lets hope hes holding the shares in an individual name with other income (PAYE), not a trust with no other income :/

[couta1]

It's positive, even without off setting the interest. Of course this assumes 16 cents a share dividend.

Now, I haven't received chorus dividends for over a year so bad things can happen. I miss my 25.5 cents per chorus share desperately.

Edit: re Brends post. Interest is 5.89% net dividends 7.4%

Your net interest will be 3.95% after you take 33% off 5.89% assuming your on the top tax rate so plenty of fat left over with 3.45% to spare.

[Bobdn]

Cool, thanks for the info Couta

[couta1]

I borrowed 200k against my house and bought 92500 at $2.16. I fixed the amount at 5.89% for 3 years and the bank was also nice enough to give me $1500 cash for taking the loan out.

Because the dividend is fully imputed, does that mean I can claim any interest back on the loan? I'll check with an accountant.

Even if it had no imputation credits you could still claim the interest, you did what I did to buy Chorus shares, Ouch, I think you've made a better choice

[robbo24]

I borrowed 200k against my house and bought 92500 at $2.16. I fixed the amount at 5.89% for 3 years and the bank was also nice enough to give me $1500 cash for taking the loan out.

Because the dividend is fully imputed, does that mean I can claim any interest back on the loan? I'll check with an accountant.

At the end of the 3 years, what are your target gains in terms of divvies and capital gains in light of the interest you're paying?



I'm just flicking through the risks section of the GNE prospectus for entertainment.