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What would you do now scenario?

Discussion in 'General Investing Discussion' started by ynot2009, 12th Jul, 2009.

  1. ynot2009

    ynot2009 Member

    Joined:
    12th Jul, 2009
    Posts:
    6
    Location:
    Sydney, NSW
    Hi all,
    I am a new member and am looking for some advice, basically a "What would you do now?" scenario. I have a basic understanding of finance principles but do not have enough nous or confidence to follow my gut instinct.

    I bought my home approximately 2 years ago for approx. $450k. Borrowed $344k. I have split the loan into P&I and IO, 50%-50% fixed-variable. To date, myself and my partner have paid approx. $80k. This $80k is in effectively an offset account.

    I own approx. $30k in shares and have approx. $5-10k in the bank. We own our car. I have an approved margin loan account available of $50k with my shares as collateral. To date, this account has not been used.

    My partner's salary services the loan with approx. $1k to spare. She earns approx. $65k before tax. I earn approx. $80k before tax (in my own small pty. Ltd. company. The company earns more than this, around $15k, but i only pay myself this figure to stay within the 30% tax bracket).

    Possibly looking to start a family within 2-3 years (we will then be on my wage only for around 6 months before my partner goes back to work p/t) and purchase a car later this year for approx. $50k (in the company name (or do i lease?)). When we do start a family, i will also pay my partner a wage to do the books etc. from home therefore lowering my taxable income by as much as possible.

    I would like to purchase an IP later this year, if not earlier, yet don't really know if this is the right action? I would then like to get a 3rd then 4th IP as soon as practical in the future. Would using my margin loan be a better response? Should i debt recycle-how though?

    What i really like to know is "what would you do if you were in my shoes"? Potentially i will receive different responses from this thread, and i know there are different ways to skin a cat so to speak, however, i will be looking for a common thread in responses where possible.

    My investment timeframe would be 5-10+ years and consider myself to be not scared of risk but obviously not a risk cowboy. I understand that risk and return are generally inclusive of eachother.

    By accountant is not much help unfortunately and my financial advisor has gone AWOL.

    Any sound assistance / advice would be greatly appreciated. I understand it is only advice that will be provided, but i am sure that your advice will be from past experience which can only assist me.

    Thanks again in advance.
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi Ynot,

    I'd be getting an appointment with a financial planner as you have many different goals which they can help you with.

    Cheers,

    Dan