Margin Loan Simulator (Beta)
Summary
- Your scenario was: You have cash to invest and want to gear the investment to a specific LVR
- You had $10,000 of cash to invest
- You bought $20,000 worth of STW
- Your initial loan was $10,000 at an LVR of 50%
- Start date was 2nd September, 2009, end date was 30th June, 2010
- The maximum LVR for the investment was 70% and there was a buffer of up to 10% above this allowed
- LVR got as high as 51.1% and as low as 43.5%
- The average interest rate on the loan was 9% and you elected not to capitalise interest
- Your total interest expense was $745
- Your total distribution income was $314, of which you received none in cash, choosing instead to reinvest it all
- You received no margin calls during this period
- The investment grew by a total of -2.2% over the period
- Your equity grew by a total of -4.3% over the period
- Final value at the end of the period was $19,565, with a loan of $10,000
- If you sold the investment at the end of the period, you would receive $9,565 back (your equity)
- If you had chosen not to gear up, your original capital or investment would have been worth $9,783
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