Managed Funds Investment plan.

Discussion in 'Shares & Funds' started by shouldisell, 20th Sep, 2007.

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  1. crc_error

    crc_error The Rule of 72

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    So you have most of your money tied up in IP's?
     
    crc_error, 27th Sep, 2007
    #61
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    When I started, yes - but not anymore - my margin loan is substantially larger than my IP loans now!

    Once I am comfortable with buying a PPOR, the balance will probably start to swing back towards real estate, but overall I'd be happy with a 50/50 split between the two.
     
    Simon Hampel, 27th Sep, 2007
    #62
  3. crc_error

    crc_error The Rule of 72

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    Cool. I'm actually considering a IP at present (due to Michaels comments!), but still trying to convince myself to get one again. I'm considering getting one which in the future can be a PPOR for me.

    Have you considered direct commercial property? What is your view towards property potential over the coming years, since interest rates are going up?
     
    crc_error, 27th Sep, 2007
    #63
  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    I very nearly did buy some commercial property a few years back - but the capital required put me off - I didn't want to have so much cash tied up in a risky investment (in that tenants are not guaranteed and can be hard to replace) - despite the high yields.

    I consider commercial property to be a very specialised area, and I'd rather outsource that to a professional manager (via LPTs or a property securities fund).

    I'm not that bullish on property over the medium term - even though short term signs are positive ... I think we'll see interest rates go quite a bit higher before they start to fall, and that will have quite a negative impact on real estate (particularly residential). Long term I still think real estate is an excellent investment (if you can afford to hold it!!)
     
    Simon Hampel, 27th Sep, 2007
    #64
  5. shouldisell

    shouldisell Well-Known Member

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    shouldisell, 27th Sep, 2007
    #65
  6. crc_error

    crc_error The Rule of 72

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    I'm not that bullish at IP either.. maybe for the moment I'll hold all my managed funds, and consider IP in a couple years time..
     
    crc_error, 27th Sep, 2007
    #66
  7. DaveA__

    DaveA__ Well-Known Member

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    for CG this might be an issue, however this is just going to push up yields as if they cant afford to buy they have to rent.... More demand = higher rent..

    so the first few years might be hard while its negative, if it gets in to positive territory then there shouldnt be many issues.....

    Just a bit of a blanket statement though

    However in say that, the program looks fantastic, i cant wait for it to be realised...

    Thanks for a constructive conversation guys...
     
    DaveA__, 27th Sep, 2007
    #67
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