Join our investing community

What to invest in ?

Discussion in 'General Investing Discussion' started by Bez, 30th Nov, 2007.

  1. Bez

    Bez Member

    Joined:
    30th Nov, 2007
    Posts:
    8
    Location:
    Newcastle
    Hey guys,
    I purchsed my first IP in April this year and now I want to start investing again.
    The property is a 2 bedroom unit located in Taree (not counting on much capital growth :( )
    Purchase price - $125,000
    Loan - $115,000
    Current loan - $109,000
    Rental income - $155 p/w
    The property costs me roughly $50 a week out of my pocket.

    As for my next investment iv been thinking about shares or managed funds, I only earn $34,000 a year so comming up with enough money to cover the costs of buying property is pretty hard.

    Iv been thinking about getting a $25,000 loan and buying a Share pack from commsec..

    Im a bit lost at the moment, sometimes I think maybe I should pay off my IP loan some more then somedays I think i should throw all my money into shares..

    What do you guys think my next investment should be ?

    Thank you :)

    PS. I am currently renting and have no other debts..
     
  2. samaka

    samaka Well-Known Member

    Joined:
    30th Sep, 2007
    Posts:
    308
    Location:
    Sydney
    After paying all your monthly costs (including the holding cost for the IP) - how much do you have left to invest?

    Rather than buy a share pack - why not buy an ETF? What is your time frame for this investment (not the current IP). Do you want to hold for a year and then use it as a deposit for another property - or is this a buy and hold strategy and you don't intend to sell it ever?
     
  3. Bez

    Bez Member

    Joined:
    30th Nov, 2007
    Posts:
    8
    Location:
    Newcastle
    I can invest about $500-$600 a month id say...

    My time frame is probly 5-10years ? but thats not set in stone..
    Id like to try and double my income in 5 years.
     
  4. The Stig

    The Stig Well-Known Member

    Joined:
    3rd Dec, 2007
    Posts:
    190
    Location:
    Central Coast NSW
    I think it is good to get a balance of property and stock market.
     
  5. Simon

    Simon Well-Known Member

    Joined:
    17th Sep, 2005
    Posts:
    520
    Location:
    Newcastle
    if you want to stick with your current portfolio size then pay down the unit.

    If you want to grow your portfolio then buy the shares.

    I choose to grow and will keep going till I reckon I have enough - that may never come :eek: