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Discussion in 'Introductions' started by Bantam Roosta, 7th Feb, 2007.

  1. Bantam Roosta

    Bantam Roosta Well-Known Member

    Joined:
    7th Feb, 2007
    Posts:
    115
    Location:
    Canberra, ACT
    Hi guys,

    I've just come across from SS.

    I'm 24, married with a bub due in March. I work for the RAAF and have just been posted down to Canberra for 3 years.

    I have 1 IP in Ballina, NSW and a small amount of shares/managed funds, about 60% ASX, 40% Asia.

    Just thought I would say hi to any of the people that don't know me.

    Regards,

    BR
     
  2. TakeStock

    TakeStock Well-Known Member

    Joined:
    14th Aug, 2005
    Posts:
    140
    Location:
    Sydney
    Hi BR and welcome! It sounds as though life is about to become very busy for you in March (assuming this is the first bub).

    How long have you had the Ballina IP? I believe they have had great growth up there and that the market is still reasonably active.

    Enjoy Canberra.

    Cheers
     
  3. Bantam Roosta

    Bantam Roosta Well-Known Member

    Joined:
    7th Feb, 2007
    Posts:
    115
    Location:
    Canberra, ACT
    Yep, first bub. Really looking forward to it. It's going to be different, but I'm ready for the challenge.

    Bought the Ballina IP early 2005. The market has been moving along alright, but I have no idea what growth I've had and won't find out until I get a LOC next year sometime. I don't know if it's a good idea or not, but I don't really worry about following how much gains I've had, because it doesn't really matter. Whether it's made -10% or +50% I'm not selling it so I don't bother keeping track.

    BR
     
  4. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Congrats on the imminent arrival! I can assure you it will be great fun!

    You say you don't follow the gains :eek: . How will you know when you can milk the magic cow for spare equity? Get it revalued when you get the LOC. Query though why you're waiting until next year?

    In my view revaluation should be an annual event. It's a bit like the annual harvest. :D

    Welcome to InvestEd!

    Cheers
    N.
     
  5. TakeStock

    TakeStock Well-Known Member

    Joined:
    14th Aug, 2005
    Posts:
    140
    Location:
    Sydney
    I'm with Nigel here.

    If your intention is to only purchase one IP and not push ahead in the investment arena - fair enough. However, I think you would have much to gain by keeping track of spare equity and putting it to work. It could serve as a deposit for another IP or could be put to use in managed funds or direct share investments. For me, the fun is progressing along the investment road and to constantly increase my asset base. However, if you purchased it as a holiday home for the future and don't wish to invest further, then I can understand your situation.

    Cheers
     
  6. Bantam Roosta

    Bantam Roosta Well-Known Member

    Joined:
    7th Feb, 2007
    Posts:
    115
    Location:
    Canberra, ACT
    When I bought the IP, it was about 97% LVR. Until I get below 80% I can't get a LOC and I know the IP hasn't appreciated that much yet. That is why I will wait until next year to find out. Also, we have gone from 2 wages to one, plus the addition of another mouth and I will need a bit of time to work out what I feel comfortable with. I currently don't have enough cashflow to support another IP. I already have a margin loan which is currently at about 35% LVR but my wife doesn't feel comfortable with shares and I had to work to get a margin loan at all.

    So basically, I'm just kicking back, buying shares when I can afford, letting time do its thing, so that I can get another IP, but you are right, I should atleast know what my IP is worth so that I can plan when the time will come for the next step.

    BR
     
  7. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Ah...fair enough. Sounds like a plan BR!

    You've identified one of the key issues when investing. Borrowing only within your comfortable servicability limits. I emphasise your limits because they don't always align with reality according to the bank. :rolleyes:

    Keep up the good work.

    N