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Greetings, all :)

Discussion in 'Introductions' started by hobo, 15th Feb, 2013.

  1. hobo

    hobo Moderator Staff Member

    12th Dec, 2012
    Hi, everyone.

    Found this forum a couple of months ago and have come across many interesting threads so far.

    A little about me/us:

    Have been an active investor for many years, although at a fairly low level (some fairly standard blue-chip shares, residential property etc). Had the great fortune to grow up with parents who were extremely motivated and very open with their own finances (and structures), so have always been able to have good discussions with them. We treat our kids the same way.

    I am also lucky to have a partner who shares my interest in finance/business/investments, so we are both on the same page re our goals and how to achieve them.

    We are in our very early forties and have a primary goal of establishing a stream of passive income via investments, hopefully by about 15 years' time. As part of that, our most recent investment was in a commercial property, so I have been reading any and all commercial property investment threads with *great* interest. :)

    While I'd like to think I have a reasonable understanding of "investing" as a whole, I am hoping to learn more about the many specific forms of investment out there, over the next period of time. (Of course, whether or not we participate in them, is another matter. Case in point - SMSF. I think we'll get there, but not quite yet.) LICs, REITs, ETFs, bonds.... I'm aiming to gain a deeper understanding.

    I look forward to participating more in the future. :)

    Last edited by a moderator: 15th Sep, 2016
  2. GregR

    GregR Well-Known Member

    13th Jul, 2009
    Berwick Vic
    It sounds as if you had a great background to understand the investing to create wealth concept.
    I look at investing as part of a life cycle, while you are young or commencing investing, you want to conserve your own cash so use interest only (IO) loans with an offset for the first property whether it be your own home or an investment property (IP).
    Once you have built your portfolio in terms if a sufficient asset base, then look to start paying down debt. This may come in mid life or or in the pre-retirement stage depending on whether you have kids and/or partner stops working which you need to preserve your cash. Once you are in a stable position and sufficient income generating assets, then start reducing debt.

    Commercial property can return greater yields but at a higher risk depending on the type of property. I would not recommend it for new investors but experienced investors that could absorb 6 months or longer of vacancy. Often there is a lower growth component than residential property.

    The use of a SMSF should be based on 2 elements, cost and independence of investment choice. It would be unusual that anything less than $250k balance would be cost effective against an industry fund, that said if your interest in managing your own asset choice is important then there may be compensatory benefits, i.e greater returns. If you wanted to invest and borrow for residential property, I would be reluctant to suggest that to anyone much under 50 years. There are too many restrictions about what you can do, cannot use a revaluation and refinance strategy for instance, so investing using a gearing strategy usually works better outside a super environment.

    The right time and the right property can add substantial end value to a SMSF for retirement, as long as the rules don't change too much, which is always going to be an unknown.

    Let me know if you need anything else or check some of the other forum topics.
    Good luck with your investing future.