locodave Posted June 20, 2007 Share Posted June 20, 2007 Hey guys, Selling all my assets Thinking of getting into the property market. You think its a smart idea? I'm 26 and thinking maybe its time to invest somewhere. Any tips or advice? Its the right thing to do right? Someone re-assure me!! Link to comment Share on other sites More sharing options...
netic Posted June 20, 2007 Share Posted June 20, 2007 (edited) Mate are you looking at a long term investment or a short term investment.... Im a consultant to the real estate industry....i train agents on what is happening in the market place throughout the country..... I also do alot of Investment consulting... At the moment for short term returns property is not the way to go, prices will remain steady for a few years yet....but if your looking at a invest for 15 years....and plan to negative gear the property in the meantime it could be a wise investment...... Talk to your accountant and let him advise you..... Edited June 20, 2007 by netic Link to comment Share on other sites More sharing options...
Guest rzep Posted June 20, 2007 Share Posted June 20, 2007 Go for it. Is that what you are after?? In all seriousness I would recomend speaking to a financial advisor on this subject and they will be able to let you know what would be best for you in your current situation. You may find that property is not in your best interests at the moment, there are plenty of good investment opportunities out there. Link to comment Share on other sites More sharing options...
mrmoshe Posted June 20, 2007 Share Posted June 20, 2007 Hey guys, Selling all my assets Thinking of getting into the property market. You think its a smart idea? I'm 26 and thinking maybe its time to invest somewhere. Any tips or advice? Its the right thing to do right? Someone re-assure me!! Dave, this is something you should be discussing with a qualified financial advisor as any thoughts from members who are fisho's is just not going to be sound advice. Financial advisors have the latest info in regards to tax implications and you would be well advised to seek professonal help in this field. Cheers and good luck, Pete. Link to comment Share on other sites More sharing options...
fisherman Posted June 20, 2007 Share Posted June 20, 2007 talk to this guy. his name is todd. im sure he will be able to help you out and answer any questions you have www.whereproperty.com.au Link to comment Share on other sites More sharing options...
Geoff Posted June 20, 2007 Share Posted June 20, 2007 Agree with the others , Financial Adviser is the way to go. The trick is to find a good one who charges reasonable rates. As a guide there is normally a fee for preparing a plan then there are ongoing fees for maintaining your file. F.A. also receive a trailing comission from the fund manager if the money is invested in things like Managed Funds. This is standard industry practice. Have the F.A. clearly explain their fees & commissions. As a guide , a plan can cost $750 - $1000 & ongoing annual fee of .7% of the investment value. Check the web , I recall seeing a site some time back covering "How to select a F.A." Determine your objectivies , goals & preffered investment returns , shout term / long term. This will be an important aspect when dicussing with the F.A. Geoff Link to comment Share on other sites More sharing options...
locodave Posted June 20, 2007 Author Share Posted June 20, 2007 Oh yea I will be talking to other people about it, but just want to see what other people have done, or gone through etc. Link to comment Share on other sites More sharing options...
Geoff Posted June 21, 2007 Share Posted June 21, 2007 (edited) Dave Check out this site http://www.fido.gov.au/advice Also , http://fishraider.com.au/Invision/index.ph...c=15365&hl= Geoff Edited June 21, 2007 by Geoff Link to comment Share on other sites More sharing options...
netic Posted June 21, 2007 Share Posted June 21, 2007 Oh yea I will be talking to other people about it, but just want to see what other people have done, or gone through etc. Mate you gotta understand that something that may be a good investment for me may not be a good one for you....so many factors can come into play...Tax Thresholds...curent assets etc..... See your account or Financial Advisor and he /she should point you in the right direction Link to comment Share on other sites More sharing options...
Geoff Posted June 21, 2007 Share Posted June 21, 2007 Here is an interesting exercise https://www.colonialfirststate.com.au/first....asp?gotFlash=1 Geoff Link to comment Share on other sites More sharing options...
Holmesie Posted June 21, 2007 Share Posted June 21, 2007 (edited) Oh yea I will be talking to other people about it, but just want to see what other people have done, or gone through etc. It's certainly worth talking to people who have invested themselves, AS WELL as your financial advisor/accountant.I own 4 houses in a small country town, bought (borrowed ) when prices were low, and have seen some capital gain already. However small country towns have their disadvantges, but then real estate investing can be tricky wherever you are. You need to have some sort of plan for the next 10+ years in order to make the right decision... Oh and top up your Super if you have the chance, and take advantage of the government contribution - you're never to young too start thinking about Super Cheers Holmesie Edited June 21, 2007 by Holmesie Link to comment Share on other sites More sharing options...
Penguin Posted June 21, 2007 Share Posted June 21, 2007 (edited) There is a book called Making Money, by Paul Clitheroe I recomend it to anyone who has money to invest. I have had meetings with financial planners over the years, and all they seem to wanna do is sell me an investment that makes them the most commision. Im sure they are not all like this but the ones I have met I give a big penguin Edited June 21, 2007 by penguin Link to comment Share on other sites More sharing options...
CR@ZY OS@M@ Posted June 21, 2007 Share Posted June 21, 2007 might just do that penguin . might take me a lot of years though. Link to comment Share on other sites More sharing options...
The Flintstones Posted June 21, 2007 Share Posted June 21, 2007 NO DON"T DO IT! BUY A BIGGER BOAT- YOU WILL BE ALOT HAPPIER Link to comment Share on other sites More sharing options...
Diane Posted June 23, 2007 Share Posted June 23, 2007 Hey guys, Selling all my assets Thinking of getting into the property market. You think its a smart idea? I'm 26 and thinking maybe its time to invest somewhere. Any tips or advice? Its the right thing to do right? Someone re-assure me!! Look at www.somersoft.com.au - this website is for property investors both experienced and new. Lots of good advice and you can learn heaps by reading posts on all the ins and outs of property investing. I think you will find financial advisors will be directing you to managed funds and you might find they do not know much about investment property. As for myself I have been an investor in property for the last 13 years or so and have been very very happy with the results. As you get older and towards retirement property is probably not always the way to go due to being quite involved when wanting to cash in whereas shares are easy to liquidate. One thing I have learned through investing is make sure you have a good spread on your assets - property and shares as whilst one is performing the other is often not. Don't go in over your comfort level to start with, take it one step at a time and you will be ok. Good luck and good on you for having the foresight to think about investing at your age! Diane Link to comment Share on other sites More sharing options...
choad Posted June 23, 2007 Share Posted June 23, 2007 Dave Check out this site http://www.fido.gov.au/advice Also , http://fishraider.com.au/Invision/index.ph...c=15365&hl= Geoff what a classic! a fishing forum with links on finance and investing. by the way, i know this guy who says he has a rash on his ..... any advice????? Link to comment Share on other sites More sharing options...
fishyfingers Posted June 23, 2007 Share Posted June 23, 2007 sell everything ..... buy a charter business and give all fishraiders 90% off !!! Link to comment Share on other sites More sharing options...
The Flintstones Posted June 23, 2007 Share Posted June 23, 2007 I have a couple of clients who belong to an investment club (im a property manager) Here is the link http://www.followmechatclub.com.au/ Link to comment Share on other sites More sharing options...
zip2155 Posted June 23, 2007 Share Posted June 23, 2007 sell everything and go CASHSINO and go all in on black!!! double ur money.!! Link to comment Share on other sites More sharing options...
Diane Posted June 24, 2007 Share Posted June 24, 2007 what a classic! a fishing forum with links on finance and investing. by the way, i know this guy who says he has a rash on his ..... any advice????? Haven't you guys realised yet that there is a huge link between investing and fishing? The earlier you invest, the earlier you are freed from having to work, the more time you can spend fishing!!!! It worked for me Link to comment Share on other sites More sharing options...
inhlanzi Posted June 24, 2007 Share Posted June 24, 2007 All I know is the opposite of INVESTMENT is BOAT ... cheers inhlanzi Link to comment Share on other sites More sharing options...
Geoff Posted June 24, 2007 Share Posted June 24, 2007 (edited) Haven't you guys realised yet that there is a huge link between investing and fishing? The earlier you invest, the earlier you are freed from having to work, the more time you can spend fishing!!!! It worked for me It worked for me also. Retired last year , bought a new boat a year or so back so I can go fishing when ever I like Geoff Edited June 24, 2007 by Geoff Link to comment Share on other sites More sharing options...
pjbink Posted June 24, 2007 Share Posted June 24, 2007 (edited) Don't ignore the stockmarket either. I have tripled my investment over the last 4 years. Unlike property you don't have to borrow huge amounts of money, you don't have to stay fully invested and you can diversify. This why you can't get a 100% loss with shares - with property you can. Also shares are easy to sell, the price is known and you get your money in three days. The cost of a trade is $20 on the internet. The cost of buying or selling a property is huge - as is maintaining it. Using the fishing analogy with shares you can swim with the big fish - but its best to take small bites - leave the big bites to the big fish! Ie don't be greedy by putting too much capital on any one stock. Patience - as in fishing - is another factor in success. Don't over-trade, ignore the short term volatility and let economic growth and the long term outlook grow your investment. Edited June 24, 2007 by billfisher Link to comment Share on other sites More sharing options...
arpie Posted June 24, 2007 Share Posted June 24, 2007 Hi Loco A home unit I bought in the 80's ended up forming 100% of my current superannuation fund. If you are renting, you are basically paying for someone else's mortgage, so, bite the bullet & buy something & pay off your own mortgage! Then any capital gain is yours! Granted, it may take a while to see 'larger' $ improvements, but, a home loan is usually the cheapest loan you will ever get, so make use of it. It is also a long term investment strategy, not short term. Things like Stamp Duty, Laywers fees, insurances, removalist costs etc take a long time to recoup, as most folk 'forget' that it really cost them another $25-30,000 + on top of the asking price of the actual property! Later, as you get more equity in your own home, you can use some of the 'appreciation in price' to either buy another property, or play with the stock market (with care & advise!) boat or whatever. If the property is large enough, get someone else in to rent from you & help pay it off. If you put all his rental into the mortgage payment (as well as your own), you will reduce the period of the mortgage (& therefore, a large amount of interest) by reducing the amount borrowed as well. If your folks let you, rent out both or all rooms & live at home!! Put all the rent into the mortgage repayment! It is the discipline that is required to NOT SPEND THE RENT that makes it a success! Back when I was single, whenever I had $5000 saved up, I would take $3000 off my mortgage. (Miind you, $5000 then was the equivalent of at least $20,000 now!) Worked for me! Cheerio Roberta Link to comment Share on other sites More sharing options...
pelican Posted June 24, 2007 Share Posted June 24, 2007 (edited) Don't ignore the stockmarket either. I have tripled my investment over the last 4 years. Unlike property you don't have to borrow huge amounts of money, you don't have to stay fully invested and you can diversify. This why you can't get a 100% loss with shares - with property you can. Also shares are easy to sell, the price is known and you get your money in three days. The cost of a trade is $20 on the internet. The cost of buying or selling are property is huge - as is maintaining it. Using the fishing analogy with shares you can swim with the big fish - but its best to take small bites - leave the big bites to the big fish! Ie don't be greedy by putting too much capital on any one stock. Patience - as in fishing - is another factor in success. Don't over-trade, ignore the short term volatility and let economic growth and the long term outlook grow your investment. This is not financial advice I'll spell it out Get up to date independent advice from several sources and get it in writing before you go any further. All books you read will soon be out of date as tax rates change etc etc. It is a changing investment landscape for the next couple of years with tax thresholds changing. 15 years ago property investment was a great tax advantaged investment as banks would only lend against property to any Jo Blow based on negative gearing and a 48.5 threshold at $50000. Threashold in 2007-8 will be over $125000 so if you aren't earning that think twice. Stamp duty, insurance and management fees all make property a uphill unless you pick or develop a property with very high capital growth. Tax office is coming down on allowable expenses. Now banks will lend to anyone and allow a wider range of security such as shares. I feel history won't repeat in regards to property investment. Everyone thinks they know property!!!! How can I lose?? Mate I live in one I know it all to well in this area then the stupid plods go buy a Queensland property off the plan that their accountant put em on to and got a fee for??? Shares aren't foolproof but they are definately lower taxed, no insurance fee, don't wear out, lower fees and more liquid if you are required to sell and you can start investing through a fund with a low start up amount. Later if you enjoy it you could decide to take some of the investment decisons on yourself but you never have to if you don't have the interest skill or motivation. Basically if anyone can explain why property curently would be a good investment when in comparison you can do shares with no stamp duty, benefit of franking and trade smaller amounts and manage your risk I'll be surprised. At some point as as always happens with over exhuberance in any market the banks will have to reign in their lending practices and up their credit hurdles. I'd rather be holding easy to sell shares than a lump of property that incurrs stamp duty etc etc and may take months to sell. Of course if you can ride it out if you have the cashflow and assetts but many will not in the next down turn. Best investment is paying down debt on your own house. Next best is Super Property investment is a business so make sure you approach it as a business and the books will change their view on property investment in the next 18 months I'm sure. Pelican Edited June 26, 2007 by pelican Link to comment Share on other sites More sharing options...
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