NAB Equity Builder - too good to be true?

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by BPhil, 27th Nov, 2017.

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  1. hydroboy

    hydroboy Member

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    Certainly not! Sounds like you should be sorted in a week or two. I'm assuming you didn't provide pay slips or ID copies with the initial application?
     
  2. Chris21

    Chris21 Well-Known Member

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    My NAB EB facility got approved today for $250k. Thank you everyone in this thread , i almost gave up the hope after seeing the waitlist !
     
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  3. Chris21

    Chris21 Well-Known Member

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    Now - Need to decide how to best use this leverage- I got 10 yrs loan - thinking of focusing on growth - so US index fund like IVV or VTS? NAB EB allows 70% leverage in IVV and 80% in Aussie bluechips but Aussie bluechips are more divided oriented, may not beat US index over 10 years timeframe for growth. Any thoughts or suggestions?
     
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  4. Redwing

    Redwing Well-Known Member

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    This was a good introduction to it

    Podcast - NAB Equity Builder - Aussie Firebug

    I'm sitting around this at the moment, dividends go back into the account

    upload_2022-1-20_21-23-25.png

    They had a change in December which allowed for your ASX-listed investments (ETF's, LIC's, etc) to be registered in your own name with National Margin Services Pty Ltd acting as your sponsoring participant.

    The previous version required that all ASX-listed investments be held on your behalf by NMS Nominees Pty Ltd (NMS Nominees).
     
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  5. DanW

    DanW Well-Known Member

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    Good timing of approval with the ASX 200 down 2.5% today, it's erased 6 months of gains recently although there was some nice dividends.
    I sold out of VGS at Christmas, should've dropped A200 as well but was more worried about the US...

    If you buy with that loan now you're almost as good as investing 6 months ago.. but who knows what will happen this year, could be a bit volatile..

    @Redwing - did you have to change over your Share Registry settings after they moved to own name? I chose the option as well but haven't noticed anything different so far, dividends still got paid into same account etc but I'm not sure the exact date it switched over.
     
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  6. Redwing

    Redwing Well-Known Member

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    @DanW haven't noticed anything yet either
     
  7. Jcha

    Jcha Well-Known Member

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    Hey all

    I am still on EOI and doing some planning. Got a question - I recently took out $50k from my IP to invest in shares. From reading this thread I could do the below:

    Invest the $50k now to VDHG while waiting to be approved. Once approved to EB, use the $50k VDHG as deposit to borrow up to 80% LVR (in this case borrow $250k). Since I borrowed to invest, would the interest from both $250k and $50k (original equity cash out) be both tax deductible?

    Thanks
     
  8. Eggman

    Eggman Member

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    I bought more NDQ today, 10% correction from ATH too good to miss.
     
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  9. Baker

    Baker Well-Known Member

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    Where did you park this $50k equity release?

    80%LVR with $50k deposit means you can borrow $200k, not $250k.

    $200k probably.
    $50k depends.
     
  10. Jcha

    Jcha Well-Known Member

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    Thanks,
    Still in IP loan’s redraw at the moment. Planning to lend the $50k to my trust then transfer to the trust broker account then buy shares
     
  11. Baker

    Baker Well-Known Member

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    Read the threads in here about on-lending to trusts.
    Pay for professional advice before you do anything.
     
  12. Jcha

    Jcha Well-Known Member

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    Yep will do thanks. In this scenario, would the $50k be a tax deductible debt?
     
  13. Baker

    Baker Well-Known Member

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    In theory, if the purpose of a loaned amount of money is to invest in an income-producing asset, then yes. But (I'm not the expert) there are steps you must carefully take.
     
  14. Chris21

    Chris21 Well-Known Member

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    Thanks.

    Has anyone invested in direct US equities using NAB EB ? Do you need to have an account with NAB trade (i use stake but plan to move to IBKR soon).

    How long it takes for NAB EB to execute an order once you transfer then the 20% ?

    The market is very volatile right now and likely to continue like this for some time. Can you do DCA with NAB EB ? Like 20% on VTS now , 40 % when it goes down even more ?


     
  15. DanW

    DanW Well-Known Member

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    NAB EB doesn't do direct US equities, it's only Aussie mutual funds or a small list of shares/ETFs. You can buy a US focussed fund or ETF though. The list is here Approved Investments - NAB Margin Lending
    Make sure to click on the middle tab, it sometimes selects margin lending when it refreshes.

    NAB Executed my order on same day as when I sent the form, though I've only ever done 3 transactions (my initial shares I purchased elsewhere and transferred in).

    Regarding IBKR - I'm also transferring to them from SelfWealth for US shares. IBKR brokerage and exchange fees look extremely cheap, selfwealth were hitting me with 0.6% for forex between AUD-USD or back again. Not very good if you like to rebalance things regularly!! Those expensive forex fees made the $9 brokerage not so pretty anymore..
     
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  16. Chris21

    Chris21 Well-Known Member

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    Hmm. But it does show US equities along with allowed leverage (typically 60% in bluechip chips like Apple etc) in approved list of investments.

    Separate question, can we do broker to broker transfer when you move from 1 smsf to another ? I am with stake smsf , planning to move to icare smsf + IBKR combo
     
  17. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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    Where?? I couldnt see any for NAB EB. You can invest in US equities with a margin loan.
     
  18. Chris21

    Chris21 Well-Known Member

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    My bad. I was looking at ML investment options ( default filter). I will stick to IVV or VTS for US exposure then.
     
  19. DanW

    DanW Well-Known Member

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    VGS is also an option for global.
    I'm looking at the QUAL ETF since I sold though, since quality factors tend to defend better against inflation/interest rates. I'll probably buy a bit of both though since VGS is going to be alot cheaper when the market opens today.
     
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  20. Eggman

    Eggman Member

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    Less than 2% change, not too bad.