I am a 24yo and purchased my first property a year ago and just purchased another. My first 120k, returning 180 per week and second 169k, returning 220 per week with 10% deposit. There are no 50k properties in my area so are negative geared. I live and work abroad intending to move back to oz eventually. I buy in Newcastle as my father, a builder is there to do any work to the properties saving me large amounts.At the moment I am not bothered about making money, more for accumulating for the future with the values inflating while others are mostly paying my mortgage for me. I have another 15k saved in an overseas account and save about 2,700 per month. Should I be buying another property or putting the cash into my off set mortgage account.
Also if I do not work in oz and therefore do not pay any tax, can I claim anything against the property.
What about some hedge funds, I have heard these are good as well for a one off long term investment. Does anyone know of anyone offering these at the memnet. The last I heard of were Westpac but they ended a while ago.
I would appreciate any advice anyone could give.
Nicole
I’m currently looking into hedge funds myself. I hope you like maths and stats cause the reports are quite technical (which suits me). Hedge Fund of Australia is a company that is a “Manager of Managers” infact a lot of the hedge funds are the same. go to hedgefunds.com.au for more details. A cheaper option is colonial 1st state global hedge fund. also HSBC is setting one up. Its all quite new in Australia (but has been going on in Europe and USA for 50 years). So the data is at best 3 years old only. Still the philosphy of “absolute returns” as opsed to beating an index (which is propbably -ve) is what apeals to me. Typically a hedge fund aims for 12-15% return after fees and perfomance bonuses.
also go to investerweb.com.au for more reports on such funds.
Nicole,
Checkout omstrategic.com.au – I have invested a small portion of our assets in these and other hedge funds – with an emphasis on ‘small’. Note, most hedge funds set up companies in tax havens like the Cook Islands, to avoid tax on investment profits – my understanding is that the Aus Tax Office is happy just to leverage CGT on the profits once you redeem your units.
You may need to supply an Australian address to permit you to invest in these or any Aus based hedge funds – not sure why, but it is likely to do with differing reporting and prospectus requirements in each country.
If you want more info on OM I can email you my take on them as a hedge fund marketer/manager. Also I can include an example of my experience with them.
Cheers.
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