[namitrs]

Hello All

This is a really interesting thread.. at work, but couldn't help reading the entire thread and posting as well

Age:26
Work : Tech Specialist
Savings: More then 60k in ING (earning 7% pa)
No Investments yet

Looking to invest in a IP, but getting bit of a cold feet...
But reading what you all guys have done, feel like going and purchasing a property now..

I know all of you would not be very happy to read my situation, thinking I have not done enough... But, I guess better late then never..

Just a quick question.. does anyone think election and the following times (Jan 08 onwards) might push the Real estate value down and may be worth waiting, or its not worth waiting till then....

Thanks guys
Cheers
namitrs

[crc_error]

Originally Posted by namitrs

Just a quick question.. does anyone think election and the following times (Jan 08 onwards) might push the Real estate value down and may be worth waiting, or its not worth waiting till then....

If your planning on investing into IP, get into it TODAY.. no-one knows what will happen tomorrow.

Prehaps take $40k to buy a $300k IP and put the other $20k into managed funds? that way you have the best of both worlds!

[Leandro]

Originally Posted by FrankGrimes

Some of the 860k is in the shares + margin loan on top of that. Don't use a LOC, I just top up the loan depending on valuations

If you don't use a LOC, how do you access the equity to invest in the MF?

[FrankGrimes]

Originally Posted by Leandro

If you don't use a LOC, how do you access the equity to invest in the MF?

Just finance the loan to a higher amount - equity is just paid in cash into whatever bank account you want. Westpac just send out their valuer, providing it all stacks up they just debit the cash and increase the loan balance..

[Leandro]

Originally Posted by FrankGrimes

Just finance the loan to a higher amount - equity is just paid in cash into whatever bank account you want. Westpac just send out their valuer, providing it all stacks up they just debit the cash and increase the loan balance..

Yep, understood. I went the LOC way, as i was pulling equity out of our PPOR and i didn't want to contaminate deductable with non-deductable interest.

[FrankGrimes]

Originally Posted by Leandro

Yep, understood. I went the LOC way, as i was pulling equity out of our PPOR and i didn't want to contaminate deductable with non-deductable interest.

Yep - very important. All mine are IPs so all the interest is deductible anyway. I'd only use a LOC if I had a PPOR.

[vandalic]

A very inspirational thread!

[Bantam Roosta]

Current Situation

Age = 24

Married with 1 child

Work = Defence

Investments = 1 IP ~$300k, $232k owing.

Managed funds/direct shares = ~$100k, $42k owing (margin loan).
(Colonial imputation, Platinum Asia, Perpetual Smaller Companies & Industrial)
(AFI, ARG, BHP, CBA, MLT, NAB, RIO, WOW)
All are reinvested.

Cash savings = ~$30k (sitting in offset)

Super = ~$78k

First investment was $2k in Colonial Imputation when I was 16. Dad sent me to his financial adviser. I've never used one since. Slowly been increasing investment exposure and knowledge (books, forums) since then, but wasn't really serious until about 3 years ago. Silliest investment experience was drawing money out of Colonial to buy a car.

Currently saving 'zip' as since bub was born (Mar 07), been on 1 income and just getting by.

*Goals*

Short term - Hold on to IP at all costs. We won't be letting it go no matter how tough it gets. If need be, some funds can go, but it's not likely to get to that stage.

Continue to slowly increase share base, mainly from MLT and ARG share purchase plans etc, if a decent discount.

Long term - Both of us retired by 40. Keep in current holding pattern until wife goes back to work (in ~7yrs), then pretty much invest every dollar she earns. Thinking somewhere between a 50/50 to 70/30 split (Property/Shares).

BR

[dmale69]

Originally Posted by Bantam Roosta

Silliest investment experience was drawing money out of Colonial to buy a car.

BR

about a year and a half ago i decided to invest my money whilst working part-time to save enough to buy a car that i have wanted since i was 15. i am close to that goal now, and am thinking of selling the shares i have accumulated to buy that car. im 22 and a full-time uni student. although i think it is silly to buy this car as it will be a liability (v. high maintenance costs) but it is the goal i have been working towards. at the same time i have become more investment savvy and realise the importance of builing my asset column (whilst techniccaly a car is an asset, this one will be a liability!)... this is a little off topic, but would i be making a mistake?

[willy1111]

I think so

I have found personally that after achieving the goal, it becomes a bit so what - what next. ie not really a long lasting satisfying effect, that I initially thought it would be.

I have come to find a lot more peace of mind keeping my money in shares (or property or funds) and knowing that I could afford to fullfill that goal if I wanted to.

That security blanket of having the investments there makes me feel better or more secure.

Not specifically directed at you, but I can't understand the general herd mentality that having this car, house, boat, big tv, swimming pool, expensive holiday (insert material thing) will deliver this eternal happiness. I see so many people slogging their guts out with work so that they can buy these material things, in some disillusioned state that they need this stuff to make them feel successful/happy or appear to be doing well to their peers/family. To me a lot of it is ego based.

Sure it is nice to have, but just understand the price you pay - only you can decide if it is worth it.

I'm not saying we shouldn't reward ourselves, but everyone needs to find their own balance.