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Freeman Fox Investor Update MAY 08

Discussion in 'Financial Planning' started by Redwing, 29th May, 2008.

  1. Redwing

    Redwing Well-Known Member

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  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Last edited: 17th Sep, 2016
  3. voigtstr

    voigtstr Well-Known Member

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    Thanks for that, I like his presentation style.
    Spann see's the market moving up over the next 3 to 4 years... is the Navra retail fund likely to be a good fund to take advantage of that? I expect that I will be negatively geared over the next few years, so the income from Navra should be a help as well.
     
  4. voigtstr

    voigtstr Well-Known Member

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    actually cfs geared share is probably the way to go, income and growth...

    Compare Funds

    or last quarter

    Compare Funds

    by the way sim, your compare funds website is awesome.
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Thanks voigtstr - I'm in the process of negotiating data feeds and funding for the site - I'm hoping to be able to offer a more complete set of stats on possibly more than 10,000 funds. That's when things really start getting interesting. I have very big plans for that site.

    One thing to remember with the CFS Geared Share fund is that, being internally geared, it can be very volatile. The long term returns are generally higher, but in the short term it will usually fall by more than the market - and more than conservative (cash heavy) funds like Navra.

    If you were planning on borrowing to invest in this fund - be careful - leverage on leverage increases risk and volatility of returns.

    I hold CFS W/S Geared share fund in my SMSF - I figure 30+ years is enough to smooth out most volatility!
     
  6. TryHard

    TryHard Well-Known Member

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    Spanny / Spanner Crab / The Ol' Spann Man is the first person I have heard recommending to fix 50-80% of your debt at a fixed intertest rate at the current time. What's everyone else reckon ? I've actually got half our debt fixed till 2011 but I think the rest should stay variable.
     
  7. Jenny

    Jenny Well-Known Member

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    Thanks for posting this seminar. I think I heard PS say that property was about 10% of his portfolio currently. Interesting, we have been advised to sell our 3 intestment properties in Brisbane because they are expensive to hold. Obviously everyone's situation is different, and at first I was rather taken aback as I had learned the "mantra" to hold assets thru the rough times etc. We are feeling OK about it now and have taken moves to put 2 on the market.

    Jenny
     
  8. TryHard

    TryHard Well-Known Member

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    The only people I have heard suggesting selling properties are those making commissions from getting you to invest in something else. I haven't considered selling any of ours because it costs a lot to sell, and it costs so much to get back in. With some on variable interest rates the holding costs have increased a little, but rents are also generally on the way up. But like you say everyone's situation is different ... maybe there are good reasons to sell if the alternative investment is too good to pass up.
     
  9. voigtstr

    voigtstr Well-Known Member

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    It might be worth running it past some financial advisors that are more positive about property. Most advisors dont include property because they cant make any commisions on that advice. Navra financial services might better be able to advice on how holding those properties may or may not be profitable.

    If you want some quick and dirty number crunching, let us know the cost of the proprerties, your tax bracket, the interest rates, whether they are interest only or P&I, what the rents are, if there is a depreciation schedule for each property, and what the expected increase in house prices are likely to be per year. There are plenty of people here that enjoy crunching numbers and suggesting solutions.
     
  10. Jenny

    Jenny Well-Known Member

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    It costs $40k pa to cash flow our 3 properties before tax. More, if interest rates move up again:rolleyes:. We are wanting to retire at the end of this year. It has been suggested that capital growth may be found in "growth" managed funds. I confess I will not miss the admin associated with investment property.
     
  11. crc_error

    crc_error The Rule of 72

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    now imagine you put the same $40k into shares each year!!!
     
  12. voigtstr

    voigtstr Well-Known Member

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    How much extra equity do those three houses bring in a year? Imagine investing that equity into shares!!!
     
  13. crc_error

    crc_error The Rule of 72

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    not much cause I would say someone with $40k negative gearing would certainly not afford to borrow more to redraw new equity.