Change of strategy

We started investing in 2005, after too long of analysis paralysis. We now have a few IP's, all on the Sunshine Coast. They are doing really well so far, especially with the recent rent increases. It has probably gone too smoothly as there have been no significant problems with any of them. We are currently building another 4 bedroom IP (frame is now up) on a site located near the new Sunshine Coast Hospital (to be completed 2014). This will be rented later this year.

The original plan was to keep buying a property every 1-2 years but we have now had a rethink. I started buying direct shares back in March and so far they are doing really well. I now plan to gear more into shares and top these up with DRP's. They will be bought with a LOC rather than a margin loan; this will be at the same IR as the property loans plus, if the market does take a downturn, we won't be subject to a margin call.

With the properties and with shares, the plan is to buy & hold long term (20 years+).
 
I agree with Rixter. This is how I diversify. Different asset classes.

Do the Noah approach. Buy two of everything.
 
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True... we're not ruling out property long term and definitely not selling current properties (one tenant just asked if the IP she is in was for sale). Just going into the share market over next next month. Next year, we will reassess again and see where we think the property market is at.
 
We started investing in 2005, after too long of analysis paralysis. We now have a few IP's, all on the Sunshine Coast. They are doing really well so far, especially with the recent rent increases. It has probably gone too smoothly as there have been no significant problems with any of them. We are currently building another 4 bedroom IP (frame is now up) on a site located near the new Sunshine Coast Hospital (to be completed 2014). This will be rented later this year.

The original plan was to keep buying a property every 1-2 years but we have now had a rethink. I started buying direct shares back in March and so far they are doing really well. I now plan to gear more into shares and top these up with DRP's. They will be bought with a LOC rather than a margin loan; this will be at the same IR as the property loans plus, if the market does take a downturn, we won't be subject to a margin call.

With the properties and with shares, the plan is to buy & hold long term (20 years+).

We started our investment portfolio with direct residential property. Then, moved some of the profit to the stock market (MF, direct stock and options). Last year, we also started to invest in metals. There is always something moving up and something moving down. The whole portfolio is approx. 70% in direct property and we are still increasing it though, after it reaches certain size we plan to focus more on the stock and metal sites of the portfolio till it balances up at around 50%. Some more years of work and fun ahead.
The more we invest the more we realise that the fundamentals of investing are basically the same no matter what's the underlying asset. However, I have to admit that the low volatility and greater gear ratio of property makes it a safer asset to invest in.

Cheers,
James
 
The more we invest the more we realise that the fundamentals of investing are basically the same no matter what's the underlying asset. However, I have to admit that the low volatility and greater gear ratio of property makes it a safer asset to invest in.
Agree about the fundamentals being similar. Maybe it is an entertainment thing for me?
It's a bit of fun logging on each day & seeing the stocks rise & fall.
 
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