Young Investors (<30) Thread

Discussion in 'Share Investing Strategies, Theories & Education' started by Lam Thieu, 4th Nov, 2007.

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  1. coopranos

    coopranos Well-Known Member

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    Although not my cup of tea, Richard Branson says in his book that he was using credit cards to keep his company afloat while it was effectively trading insolvent for a while.
    It is clearly fraud, but if it works, people call you a hero, if it doesnt work people call you a crook!
    Would sure make for an interesting ride though!
     
  2. Glebe

    Glebe Well-Known Member

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    Central Coast NSW
    Polina,

    I don't know your financial situation too well, but my gut feeling is that you are going to have to rent out your PPOR in the not too distant future, with you and your partner living down the road in something more modest until you can pay down more of that debt.

    Time will tell huh...

    Edit: I just read that you will be selling some units. Ok things are making a bit more sense now...
     
  3. samaka

    samaka Well-Known Member

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    Most people probably do know (and use) LOE here - however I think most wouldn't go to the extremes you have :)
     
  4. Polined

    Polined New Member

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    I agree, it does take a lot more guts then common sense :eek:
    We just struggled for so long to explain to people around us how it is better to be earning $300k in equity a year then $100k in salary or business, I thought at least on Investor's forum I won't need to explain myself. But I guess I didn't write up our strategy clearly enough and concentrated on the obstacles more then on the returns, my bad.
     
  5. voigtstr

    voigtstr Well-Known Member

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    I'm watching this thread for inspiration as well.. I'm 39 and only got switched on to finances in the last two years. Its only in the last two years that my net worth has been positive as well (since buying the house and paying down consumer debt). I am so making sure that my kids (when we have them) learn about using debt only for appreciating assets.
     
  6. voigtstr

    voigtstr Well-Known Member

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    I bought a 2001 moto Guzzi V11 Le Mans in 2002 for 21800. Its now worth about 10k.

    I wouldnt be buying a new car if you didnt have to. Perhaps buy an older car where the depreciation has slowed down. (and you already know its a classic)
     
    Last edited by a moderator: 9th Dec, 2007
  7. DaveA__

    DaveA__ Well-Known Member

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    i wouldnt say people are knocking you, id say they just you have a higher risk tolerance. People here are concerned about your weekly cash flow. However your exactly right. If you sold your assets at the end of year one, youd be 200% ahead than if you worked. Id say hats off to you...
     
  8. bdang007

    bdang007 Member

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    Since everyone is having a go, heres mine:

    age: 26
    investment: nil
    savings: 30 dollars as of today
    super: under 10k
    plans: none at the moment
     
  9. samaka

    samaka Well-Known Member

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    Don't worry at age 65 that $30 will be worth $420 (at 7%). :D
     
  10. bdang007

    bdang007 Member

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    hahaha that is funny!! With the rise of inflation, when i'm 65, $420 will be just enough for me to eat dinner.
     
  11. nathanb1985

    nathanb1985 New Member

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    Hey everyone,

    age 22

    live at home

    have minimal savings currently,

    6 ips in west sydney (all owned 100% in my name)

    small amount of shares ($5k)
     
  12. TechMan

    TechMan Well-Known Member

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    Hello Nathan,

    That is fantastic. Do you mind mentioning what suburb your ips are in and a gross value of the porfolio?

    Cheers
     
  13. nathanb1985

    nathanb1985 New Member

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    nsw
    there in hebersham x 2, tregear x 2, cranebrook x 2.

    no reason for 2 each suburb, just noticed it then.

    values 1,400,000 conservative

    total loans = 950,000

    looking at shares now for next move, maybe 1 more prop in sydney next year.
     
  14. Glebe

    Glebe Well-Known Member

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    Nathan,

    You're gonna be a star by the time you're 30.

    How do you manage to cover the shortfall between your rent and your interest bill?

    Might wanna do the maths on future interest rate rises and your repayment ability before you buy more property. Perhaps look at cashflow positive investments too. Not that I know your financial situation, you could be an exec at Macquarie Bank for all I know... just wouldn't want to see you swallow too much too soon.

    Play it right, like you seem to be, and you'll be buying a Ferrari for your 30th.
     
  15. nathanb1985

    nathanb1985 New Member

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    thanks for the kind words.

    i live at home, have a fairly high paying job, and keep all expenses to minimum. i have 5 yr fixed rates, and if rates go up my rent will hopefully be increasing aswell (considering rates are all fixed bar 1 between 7-7.9%)

    i try to be conservative. this year i had a little spending spree.

    i am going to focus on lower cost purchases in future, as well as focusing my engery on shares.
     
  16. TechMan

    TechMan Well-Known Member

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    That is fantastic! When did you start purchasing?
     
  17. Sparksy

    Sparksy New Member

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    What a great topic to read as my first for the website. I've been reading forums for a few years but only stumbled over this one after acquiring $1000 worth of NAB shares for my 21st birthday.

    My current position:

    live at home

    Car with no finance - even though i hate it, its good enough i guess. (previous post)

    Have minimal savings currently

    A small amount of due to 3 oversea's holiday before the age of 21. Now ive got the travel bug out of me its time to start investing.


    Short term goals:

    Pay off debt before uni - the majority of the debt came because the last trip wasn't expected

    Find a new job - sick of working for telstra

    Save $200 per week while in my final year at uni (This cant be hard with 2 days a week of uni can it?)

    Mid term goals:
    Work for myself and be rewarded for the effort you put into your job.
    Purchase my first IP the last quater of 2009.

    Long term:
    Invest invest invest. I know very little of the ways to invest because since school i haven't had much money to invest as this was not a priority for me.

    Ryan
     
  18. Lam Thieu

    Lam Thieu Well-Known Member

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    Melbourne, Australia
    Hello all.....just an update on where i'm at now....a couple months on...in bold

    ===============================

    ***Current Situation***

    Age = 23 (about to turn 24 in Jan)

    Work = Permanent Full-Time

    Investments = 4 x Managed Funds = Total = $35k (invested $40k, though net value at the momment is $37kish thanks to the dive the past couple of months)

    * Macquarie Small Companies Growth Trust
    * BT Imputation Fund
    * Colonial FirstChoice Geared Share
    * Challenger China Fund

    Investments = BHP Shares totalling $3,700

    Cash Savings = $11k (now with BankWest soon...though cash savings down thanks to the BHP purchase, holiday tickets, christmas shopping and a new LCD TV)

    =========================================

    **Goals**

    After my holiday in March, I want to start looking around for an IP....still undecided between an apartment or house, though leaning more towards house (my original goal was to do this by 25).

    On the first update, I said I was still thinking about direct investment into shares....now a couple months on, I own BHP shares...yay...bought them the week before Chirstmas when the market was really dodgy.

    Though still thinking about margin loans...don't know if i want to do this when the market is this bad and interest rates are ridiculous.
     
  19. samaka

    samaka Well-Known Member

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    Sydney
    This is exactly what's stopping me from buying either an IP or increasing my current margin loan (which is 20k at the moment).

    EDIT: Might as well state my current situation:

    Managed Funds:
    CFS Index Australian Share - $10,000 now worth $9,565
    CFS Global Resources - $15,000 now worth $14,722
    CFS 452 Capital Australian Share - $10,00 now worth $9,569
    CFS Index Property Securities - $10,000 now worth $9,074
    CFS Asian Share - $10,000 now worth $9,767

    CFS Margin loan of $20,000 with interest capitalised at 9.15%

    Shares:
    TLS x 150 worth $708
    IIN x 275 worth $577
    SFY x 60 worth $3,596
    SLF x 200 worth $4,000

    500 shares in local Bendigo Community Bank - paid 500 x $1 - no idea what they're worth at the moment.

    Property:
    Nothing... yet :)

    Savings:
    $30,000 with Bankwest earning 6.75%

    Minus $10,000 for trip next year
     
  20. markv

    markv Member

    Joined:
    18th Jul, 2016
    Posts:
    7
    Location:
    granville
    my situation

    Interesting thread,

    I thought ide post myself after reading all.

    Current
    age 23

    work fulltime 60k
    got a car under salry sacrafice so the income is down 10k pa

    1 ppor - 320K loan 272K
    1 investment property 353k loan 343K renting 320/wk

    120k navra 68k loan

    savings in offset 10k

    goals:
    1/increase income
    2/ increase the equity in ppor
    3/ create more cashflow

    at the moment i got just enough to live and do what i need to do day to day,
    and the buffer is there jsut in case things go a bit sour,
    I also have bonus adn tax deductions which come in at the end of the year and this determines my yearly overseas trip :)

    any extra growth or cash added will go towards increasing my current portfolio for the future.


    blackjack.