Young Investors (<30) Thread

Probably not - I'm more confident with shares now that I know more.. But when I first started I really knew nothing about shares. You can leverage alot more with property and I was alot more confident about doing so.

Even now my share component is pretty small compared. But the two really aren't that different IMO. The key is using borrowed money while working to buy quality assets which increase > inflation.. Property and shares both fit the bill nicely.

Shares are alot simpler though... Especially with listed managed investments...

 

Hey Frank,

Looks like you are doing great financially!

I noticed that your LVR for your properties was at 75%. Is that correct, or is the 130k in shares obtained via a LOC making the debt you have higher?

cheers

 

is your father a investor? thats great having a dad encouraging you into investing..

 

Some of the 860k is in the shares + margin loan on top of that. Don't use a LOC, I just top up the loan depending on valuations

 

Yep, he started well but has done some things that have put him in a bit of trouble.. ie buying holiday house, buying units off the plan.. stuff like that

Learnt alot from Books and Dad, but I have learned the most from forums. My advice to anyone new is just read the forums until your head hurts!

 

I don't like the idea of buying a holiday house, but what about the units? I would assume if he held onto them long enough they should come good?

Prehaps your dad can learn from you lol!

 

Holiday house is pointless IMO unless you have enough $$ for it to be just a holiday house. It does not make a good investment.. Rents are very sporadic and CG not much better!

The unit is in Hervey Bay in regional QLD. While I'm sure its a lovely place I don't think its the ideal investment.. Anyway, that's his choice..

Capital cities are the way to go (I know I have a place in Wollongong). I wouldn't bother with anything else.

I joke with Dad saying I'm going to overtake him

Anyway, I'll stop hijacking this thread!!

 

I agree completely! And then once you've started doing the right things you can add back to that volume of knowledge and in doing so refine your strategy.

But the forums have such a powerful body of knowledge already from real people taking real action, that it beats a book or a single personal acquaintance hands down.

Read til your eyes bleed. What, you think I spend half my waking hours on investment forums because I've got nothing better to do?

Cheers,
Michael.

 

Well, we werent going to say anything, but....

 

agree.. everyone discusses their views on matters, and this might give you another BFO (spanns blind flash of the obvious)..

There are no right or wrongs in investing, so long as you do SOMETHING!!

 

Hello All

This is a really interesting thread.. at work, but couldn't help reading the entire thread and posting as well

Age:26
Work : Tech Specialist
Savings: More then 60k in ING (earning 7% pa)
No Investments yet

Looking to invest in a IP, but getting bit of a cold feet...
But reading what you all guys have done, feel like going and purchasing a property now..

I know all of you would not be very happy to read my situation, thinking I have not done enough... But, I guess better late then never..

Just a quick question.. does anyone think election and the following times (Jan 08 onwards) might push the Real estate value down and may be worth waiting, or its not worth waiting till then....

Thanks guys
Cheers
namitrs

 

If your planning on investing into IP, get into it TODAY.. no-one knows what will happen tomorrow.

Prehaps take $40k to buy a $300k IP and put the other $20k into managed funds? that way you have the best of both worlds!

 

If you don't use a LOC, how do you access the equity to invest in the MF?

 

Just finance the loan to a higher amount - equity is just paid in cash into whatever bank account you want. Westpac just send out their valuer, providing it all stacks up they just debit the cash and increase the loan balance..

 

Yep, understood. I went the LOC way, as i was pulling equity out of our PPOR and i didn't want to contaminate deductable with non-deductable interest.

 

Yep - very important. All mine are IPs so all the interest is deductible anyway. I'd only use a LOC if I had a PPOR.

 

A very inspirational thread!

 

Current Situation

Age = 24

Married with 1 child

Work = Defence

Investments = 1 IP ~$300k, $232k owing.

Managed funds/direct shares = ~$100k, $42k owing (margin loan).
(Colonial imputation, Platinum Asia, Perpetual Smaller Companies & Industrial)
(AFI, ARG, BHP, CBA, MLT, NAB, RIO, WOW)
All are reinvested.

Cash savings = ~$30k (sitting in offset)

Super = ~$78k

First investment was $2k in Colonial Imputation when I was 16. Dad sent me to his financial adviser. I've never used one since. Slowly been increasing investment exposure and knowledge (books, forums) since then, but wasn't really serious until about 3 years ago. Silliest investment experience was drawing money out of Colonial to buy a car.

Currently saving 'zip' as since bub was born (Mar 07), been on 1 income and just getting by.

*Goals*

Short term - Hold on to IP at all costs. We won't be letting it go no matter how tough it gets. If need be, some funds can go, but it's not likely to get to that stage.

Continue to slowly increase share base, mainly from MLT and ARG share purchase plans etc, if a decent discount.

Long term - Both of us retired by 40. Keep in current holding pattern until wife goes back to work (in ~7yrs), then pretty much invest every dollar she earns. Thinking somewhere between a 50/50 to 70/30 split (Property/Shares).

BR

 

about a year and a half ago i decided to invest my money whilst working part-time to save enough to buy a car that i have wanted since i was 15. i am close to that goal now, and am thinking of selling the shares i have accumulated to buy that car. im 22 and a full-time uni student. although i think it is silly to buy this car as it will be a liability (v. high maintenance costs) but it is the goal i have been working towards. at the same time i have become more investment savvy and realise the importance of builing my asset column (whilst techniccaly a car is an asset, this one will be a liability!)... this is a little off topic, but would i be making a mistake?

 

I think so

I have found personally that after achieving the goal, it becomes a bit so what - what next. ie not really a long lasting satisfying effect, that I initially thought it would be.

I have come to find a lot more peace of mind keeping my money in shares (or property or funds) and knowing that I could afford to fullfill that goal if I wanted to.

That security blanket of having the investments there makes me feel better or more secure.

Not specifically directed at you, but I can't understand the general herd mentality that having this car, house, boat, big tv, swimming pool, expensive holiday (insert material thing) will deliver this eternal happiness. I see so many people slogging their guts out with work so that they can buy these material things, in some disillusioned state that they need this stuff to make them feel successful/happy or appear to be doing well to their peers/family. To me a lot of it is ego based.

Sure it is nice to have, but just understand the price you pay - only you can decide if it is worth it.

I'm not saying we shouldn't reward ourselves, but everyone needs to find their own balance.