Another "What would you do?" question.

[taz_1891]

Hey Guys,

Im new to this forum but love the content it contains. I currently have 2 IP's in Brisbane northern suburbs (within 8k of CBD), some shares and trade options also.

My 2 cents regarding buying shares. Many people don't realise this but you can 'insure' particular shares by utilising options. Buying 'puts' will allow you, if the market goes against you, to sell your shares at a predetermend price. Or you could write covered calls and earn 'rent' each month on the shares you own. Ofcourse, this can't be done on every type of share and there are rules etc.

Every investment strategy contains risk.... I definately belive in diversification in your investments and evaluting/utilising the best risk V reward strategies.

Nice to be apart of this, keep up the good work everyone.

Thanks

Brad

 

[Dean1337]

You get 7-8% return tax free and risk free. Potentially shares can give you more, but you carry a bigger risk. If you realy want to take on th risk then the debt recycling approach as above will give you a better return for the same risk.

That's an excellent point, Dis and 7-8% return tax free is certainly not something to sneeze at. Currently I put away $500 a month towards shares and anything remaining after I pay the interest on the PPOR and monthly expenses stay in the offset account. I use $500 a month because my sister and I made an aggreement to regularly pay out that amount for the purpose of buying shares. It's great way to motivate yourself when you are starting out but it can be a little inflexible at times.

 

[Dean1337]

Mel, brad

Do you guys know where I can find good reading material on warrents and options?

Thanks
Dean

 

[taz_1891]

Hey Dean,

I would highly recommend a book called "The secret of writing options" by Louise Bedford. She explains options quite well and it is an easy read. You still might need to read it twice but it also assists with the 'lingo' that is involved with the options market.

There are more books i recommend but that one is a great start to your options journey

 

[Dean1337]

Going back to the whole house mate issue. Can you ask a convencying solicitor about the legal ramifications of doing this or do you need an entirely different solicitor for this?

 

[Shirley]

FHOG and a tenant

It is quite legitimate to take on a boarder when you have received the FHOG. Our daughter received the FHOG plus stamp duty concession and took in a boarder for the second bedroom in her unit straight away. This was perfectly above board.

She purchased her first property back in 2002 so maybe the rules have changed since then, but I don't think they have.

Cheers
Shirley

 

[alexlee]

Shirley, what do you mean when you say "this was perfectly above board"? Did an OSR person or do you have an OSR rule that specifically states it's ok to have boarders?
Alex

 

[Dean1337]

Shirely,
I'm fairly certain that you really can not taken on boarders without paying at least a partial amount back to the OSR. I called the OSR in regards to this and they told me that it was't legitimate and they referred my to a document that state this. I've provided a link to the document eailier in this thread. Whether this was changed in since 2002, I have no idea.

 

[Shirley]

FHOR and tenant

We did check at the time by phone and were advised it was OK (this was 2002). Kathryn showed rent received as income on her tax return and was able to claim half of all expenses. Maybe the rules have changed since then. We wouldn't have allowed her to do this if we thought it was dodgy.
Shirley