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View Full Version : When is the interest rate not the interest rate?



fungus pudding
14-06-2008, 10:12 AM
I hear some crowd of fleecers advertising the usual wonderful investment package of accomodation units in Queenstown. Assured capital gain and all the trimmings. Land prices start at $149,000. The interesting thing is they will provide finance at 8.9%, BUT if you provide your own you will get a 10% discount off the price. So real price is approx 134,000. This makes cost of finance a hell of a lot more than 8.9%. This sort of rubbish is obviously in breach of the credit contracts act and also the fair trading act. I wonder how long it will be before someone pots them? I'm watching with interest. :D

foodee
14-06-2008, 12:10 PM
Being of suspicious mind I would guess that the buyer who use this finance would be paying the cost of the fleecer's financing and for that priviledge the fleecer will take $15000 from the buyer-thank you; oh yes nearly forgot - the fleecer will also charge you 8.9% on that 15grand!!!:eek:

Steve
14-06-2008, 07:30 PM
Sounds like they are offering a carrot out of desparation...