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To calculate the yield correctly you must compare apples with apples. 1. Yeild on 5 year term deposit with Bankwest is 4.5% p.a 2. Property investment return must be net yeild to compare apples with apples a the term deposit would be 4.5% p.a net. To do this you must calculate the net...

It suits the purpose; he is happy, allows hims to recuperate during his off time from the rig, and allows him to enjoy his favourite hobby (surf), and at the same time doesn't eat too much into his cash reserve. Well done Trey for not being influenced and trying to keep up with the Jones. Keep...

Best of all your friend can sleep well at night, even if the sky falls. As he builds up his nest egg, he may get more confidence and look at other investments outside of houses. And then he can become what is a true "sophisticated investor".

Or the other option, as is popularly promoted here, is he can aim for the stars with borrowed money.... If things don't go perfectly to plan, then he will be broke , having no benefit of ever working up at Gorgon.. Investing is a game, it requires strategy and rational thinking, not just bravery.

From his other posts, he has said he is working up on the Gorgon Projects, and work is likely to dry up in 3 years time... Given he is offshore most of the time, and doesnt need a PPOR, maybe the best strategy would be to save as much as he can so that when he is 27 years old (and no longer on...

Please don't get me wrong. I am just testing the theory and calculation to see if it is correct. From my initial analysis it seems flawed. As an investor it is only prudent to do so.

The first step is to learn how to protect it. Having $300k cash in the bank shows he is far wiser than Joe Blogs jumping in buying the first house or investment they see. Is he truly sophisticated yet? Probably not. But at least he meets one of the criteria set by ASIC, which I'm not...

Hi Singo, I'm not sure that is what he is trying to achieve. I think he is doing the most wise thing, protecting his nest egg first and for most, and at the same time trying to educate himself. Jumping into an investment straight in without understanding the mechanics behind it would...

Sophisticated investors buy and sell assets and wait for good opportunities, which requires considerable liquidity. It is not good to call yourself a ignorant idiot, a young grasshopper is better.

Hi Michael, being a sophisticated investor (in your terms, not ASICs), can you please answer the following questions. 1. Your 3% interest is based on a term of how long? If it is only 6 months, then you will need to adjust your yield calculation of the house purchase with a entry and exit...

Keeping my eyes on the street and eyes to the floor, watching like a hawk :)

Keeping $300k in savings does not mean someone does not know how money works. It is merely a strategy, possibly a prudent strategy given the current market. His strategy may be to be ready waiting for the right deal to come along. To attack that strategy and say that a person with that...

Says the man who is not financially savvy..