fatboy, I would agree with the not investing in something you don’t know. (paying of the ppor would be my choice). There is a lot to learn about the stockmarket and there are many ways tto do it. That is one of the reasons it is so fascinating.
I believe that the stockmarket has ads and disads over property and that it moves at different times to property. I think the biggest disadvantage is with the difficulty to gear in the stockmarket where as with property leverage is pretty easy. I think higher returns are also possible but property provides a better income stream.
BTW phil the new topic is up.
Josh
Hi FatBoy,
No, not from Mackay. Going to Cairns next week to check on the IPs though.
Live on 80 acres – semi-retired, ride an ag quad round this place too, goes well!!!
Anna
If your PPOR has a mortgage with redraw facility (not much chance it doesnt) then I would wack the $150K into that and wait for the right deal whenever that was to come up. That way you are saving 6%pa after tax and have cash on hand to buy whenever you want to. I personally prefer to buy IP near where I live (Bris.) and thus cannot find too many +ve CF IP’s worth buying right now. I dont like the idea of buying these dumps which often have problematic tenants and poor CG even if they are yielding 8-10%pa. I would prefer to go for a better location and aim for neutrally geared or even slighty -ve, but not much.
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