What to start to invest in!

Discussion in 'Share Investing Strategies, Theories & Education' started by TROM, 9th Oct, 2007.

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  1. TROM

    TROM Active Member

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    WA
    Hi everyone can you please give me some advice. I have the option to either buy another property next year but will be losing alot through negative gearing or i could borrow $50,000 and invest in some shares or managed funds.

    Or i could start off with $1,000 saved and invest reguarly each month what do you think?

    Can't really afford to hold another property.

    thanks for any advice on what is out there!
     
    TROM, 9th Oct, 2007
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    If you can't afford to hold another property, then that's probably a good reason why not to buy a property right now!

    I'd suggest saving your money and investing it until you have enough cashflow available and THEN buying property.

    That's just one option to consider.
     
    Simon Hampel, 9th Oct, 2007
    #2
  3. crc_error

    crc_error The Rule of 72

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    Invest into some geared share funds like CFS geared australian share fund or 452 geared australian share fund... and keep the dividends rather than re-invest to pay interest on re-draw from your property.
     
    crc_error, 10th Oct, 2007
    #3
  4. Glebe

    Glebe Well-Known Member

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    Mate I think you've answered your own question... ;)
     
    Glebe, 10th Oct, 2007
    #4
  5. Lam Thieu

    Lam Thieu Well-Known Member

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    Hmmm...I see a lot of people here cash in their distributions.......????....is there no one here reinvesting their managed fund disributions

    I just invested in the CFS geared australian share myself but choose the reinvest option......does it really matter either way with this particularly fund. Hidden secret???? anyone.
     
    Lam Thieu, 11th Oct, 2007
    #5
  6. samaka

    samaka Well-Known Member

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    I think those people generally do it to pay down 'bad debt' - i.e which you can't claim as a tax deduction (such as their own home).
     
    samaka, 11th Oct, 2007
    #6
  7. voigtstr

    voigtstr Well-Known Member

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    I'm reinvesting until we purchase the next house, we will then want the distributions to meet negative gearing costs.
     
    voigtstr, 11th Oct, 2007
    #7
  8. Simon

    Simon Well-Known Member

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    I reinvest because at this phase I don't need income, so I DRP to build that capital base up for later.
     
    Simon, 11th Oct, 2007
    #8
  9. crc_error

    crc_error The Rule of 72

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    The OP suggested he is having trouble funding his IP's so keeping the dividends can help offset interest.. Normally yes, I re-invest everything.
     
    crc_error, 12th Oct, 2007
    #9
  10. Bantam Roosta

    Bantam Roosta Well-Known Member

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    At this stage I reinvest everything. When I start needing the income, or I get a large enough base that it becomes worthwhile to use the income to offset IPs then I will take the distributions/dividends as cash.

    BR
     
    Bantam Roosta, 12th Oct, 2007
    #10