Never thought i would have this problem….
There are alot of attractive investment options out there at the moment and i would appreciate insight into directions where people are steering currently for consideration. (avoiding the latest thing or suburb names,…. more recommended asset classes)
I currently have 2 properties (1CF+ and 1 occupied with share tenant) , shares, cash and have good financial structure and routines in place. (thank you quicken)
I happened upon the site and its forum this morning, which is funny because Steve Mcknights first book was the inspiration to my investing beginnings and hoping to learn as much as i can as a new member of the community.
Thank you and look forward to any help you can provide
G’day ChazzWazza, sounds like you’re travelling pretty well. Now all depends on your risk appetite and longer term goals but if I were you I’d be investing more in property (go for a new house build in QLD and get 10K from the State Gov.) and more shares (one’s with solid growing dividends). Thats what we’ve doing – just signed another new H&L in Townsville last night and have been buying as many shares as the wife will let me (dollar cost averaging).
Hi ChazzWazza,
Bit like Alice in Wonderland – which road you take, depends on where you want to go….
Consider your goals, how fast you want to get there, risk tolerance, strategy including tax etc.,
ie., if you have plenty of discretionary time you might want to consider renovations to buy and sell. However this could be affected by your financial situation. If you have little time and a great personal income your choices could be quite different ie., you may choose to build a new property or small development (I'm assuming the $100K is available equity) and hold for at least a few years. So in other words there isn't one size to fit all…..
My personal choice at the moment… I've been investing in both established and new properties for alot of years now and to be honest I'm fed up with tenant problems this year (all of which have been thru Property Managers), I'm progressively taking on the management myself which so far is working out alot better however my strategy is not to hold long term any further properties, in fact have a few on the market at the moment. There are opportunities at the moment to buy properties with development potential at reasonable prices and with current market conditions a great time to build (lots of suppliers and trades keen for work).
In terms of location – I'm not sure where you are, but you have 2 properties already – so I'd recommend some diversity – ie., if you are already in the Qld property market consider Victoria or vice versa.
All the best
Meg
dcwwood wrote:G’day ChazzWazza, sounds like you’re travelling pretty well. Now all depends on your risk appetite and longer term goals but if I were you I’d be investing more in property (go for a new house build in QLD and get 10K from the State Gov.) and more shares (one’s with solid growing dividends). Thats what we’ve doing – just signed another new H&L in Townsville last night and have been buying as many shares as the wife will let me (dollar cost averaging).
Thanks dcwwoodI actually live in qld and have been looking into new build units and houses but have found over inflation in some areas. I recently inspected properties around Bundamba (ipswich) and have seen comparisons of established vs new build close by for quite a difference in price (established winning in the value side). I suppose ive built a prejudice after a couple of tries but will definitely give another look up north. (any good news on cairns? ive read its really come down in value in recent times)
Iv recently signed up to Direct shares (stgeorge) to start a few small buys to build confidence as its been about 10 years since ive been active in the market.
Do you bear much thought into asset allocation when investing in the 2? i.e. net worth 30% property 20% Shares, etc (i dont seemed deterred or worried by it regardless of what i read)
Thanks Meg,
Work alot, in fact will be working over the weekend (theyve given me a key recently) …I get paid an above average salary, 1 property NSW 1 property QLD occupied (70% cash 30% equity). Ive looked into flood affected/fixups but i dont have the skill sets to renovate and am realistic enough to know ill lose my patience quickly and whats left of personal life. The place im living in now was a cosmetic fixer but this has taken me 1 1/2 years to get to a good standard (casual renovating is a better word)
This doesnt sound like a good goal but i pretty much want to work hard (which i enjoy) maintain 80% debt on assets and pump whatever available funds ive accrued out into the financial world and to my fiance, unless interest rates change.
I suppose its a difficult and open ended thread to start, but it sounds like you are in a good place and appreciate your insight into recent movements
Hi Chazzawazza,
From what you've said I'd definately recommend staying off the tools yourself – would cost you more in time (holding costs) and stress than getting in the guys who do this day in day out.
dcwwood made a great point about the current grant that is available in Qld for total value (land and construction) of up to $600K for building contracts signed before then end of January (doesn't have to be built by then). By buying vacant land your stamp duty costs are minimal, you'll benefit from immediate capital gain out of doing the build, costs of building haven't been this good in a long time (suppliers and trades all keen for work), obtain the boost of $10K, depreciation benefits of new home…. list goes on…
Anywhere you turn – opportunities at the moment!
Go for it
Is it $100k cash or equity?
If positive cashflow is your strategy or priority. 20%+ down on 3 cashflow properties. Minimal ongoing contribution and low risk high yield returns in a marketplace where rental demand is assured as apposed to uncertain short term capital growth.
matthew.f wrote:Is it $100k cash or equity?If positive cashflow is your strategy or priority. 20%+ down on 3 cashflow properties. Minimal ongoing contribution and low risk high yield returns in a marketplace where rental demand is assured as apposed to uncertain short term capital growth.
70% cash 30% equity, equity $ figure could have been higher but when i brought 1 investment into the portfolio loan of my occupied premises, the bank asked me the value of the investment during application process, when the value came in higher they went with my quoted value being the lower of the 2. not sure how that works but i have this in an email from stgeorge. Tips for all quote high values to banks
ive found searching for CF+ properties very hard, not only in the search but uncertainty in the areas, and have invested into education with reading steve first 2 books and margaret lomas 20 questions.
any extra tips you can provide would be very helpful.
Hi Chazz,
Some areas that are expected to be good buying (based on some of my own research and hearing other proprerty commentators):
– Hunter Valley NSW (Maitland, Muswellbrook, Cessnock)
– Northern Adelaide suburbs
– Port Lincoln (used by new mines in the SA area)
– Gladestone area (although already risen alot, may not be much left in it)
– Ipswich, Logan City, Brisbane (look for undervalued suburbs, you can still buy houses mid $300k less than 10kms from Bris CBD)
– Perth, one of the biggest declines along with Brisbane, but should still be in good demand in the future
– Western SydneyAreas to Avoid:
– Gold Coast Apartments (huge oversupply at the moment)
– Melbourne (for the short term, it's already seen big gains last year)Of course this is just an overview, and really, you can find opportunities in most cities or towns as long as you follow the infrastructure, make sure there is a wide spread of industries to support jobs in the area and the population growth is significant.
Oh, if you're into shares as well, I would recommend taking a look at Roger Montgomery's "Value.able" book which teaches you how to identify high quality companies and buy them for below what they're worth (intrinsic value). RogerMontgomery.com. Before reading that book, I was investing blindly and even though my portfolio is down in the past 12 months (who's isn't right?) my losses could be alot worse if I had not of start using his advice.
Cheers.
Hi Chazz,
You can borrow a lot more to invest in property which we’ve done but we’ve also got a margin loan for shares, our asset allocation is:
Property: 60%, Shares: 40% – and our shares are all paying solid/growing dividends (yes they have gone up and down but via dollar cost averaging we are well up) which all go into our offset account (on my IP). I like to use both assets together to grow our wealth.I’m not a fan of Roger Montgomery – if he is so good and follows Buffett’s way of investing, why isn’t he Australia’s riches person! Best thing you can do is (like for property investing) learn for yourself – books, seminars, search the web and asx.com.au, mentors, financial planners etc. Another share tip I can give you is research http://www.argoinvestments.com.au/ – they are a listed investment company, learn what they do, what companies they are buying and then buy them and follow their lead – they’ve been around for 100 years and continue to grow and pay a dividend – I’m a massive fan plus I follow their lead in investing in quality companies.
dcwwood wrote:I'm not a fan of Roger Montgomery – if he is so good and follows Buffett's way of investing, why isn't he Australia's riches person! Best thing you can do is (like for property investing) learn for yourself – books, seminars, search the web and asx.com.au, mentors, financial planners etc. Another share tip I can give you is research http://www.argoinvestments.com.au/ – they are a listed investment company, learn what they do, what companies they are buying and then buy them and follow their lead – they've been around for 100 years and continue to grow and pay a dividend – I'm a massive fan plus I follow their lead in investing in quality companies.That's a bit of a lame reason to not be a fan! So you only ever take advice from the richest person in Australia? Buffet's been investing about 40 years longer too…Hmmm….
Hi Chazz,
I wish you well in your hunt for that next investment property, i dont have the answer for you, sorry, although i did notice the Hunter valley mentioned above, if this area is of interest may i suggest you stick close to areas along the coal rail corridor, there are some great suburbs for investment, although there are also suburbs i regularily hear advertised as good investment areas which in my opinion are not, the Hunter valley covers an area of 34,388 square kilometers, there are great buying opportunities although like all areas be sure to do your due dilligence.
thanksGood news
Put an offer in for a property… dual occupancy house going cheap 2 kitchens, 2 bathrooms good size block in a strong location with proposed transport infrastructure development and close by to a university and hospital.
Thanks all for your help, appreciate the input, even though i didnt move in the directions suggested, i did look into them which kept me active and led me too opportunity and out of my state of “i dont know what to do” paralyzation
Why not invest directly into a development project and receive the development margin.
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Thanks dcwwood
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