Next 6 months - How to Invest

Discussion in 'Property Market Economics' started by danwatto, 19th May, 2015.

?

What will be your primary new investment next 6 months?

Poll closed 18th Jun, 2015.
  1. More Properties (Australia)

    49 vote(s)
    40.5%
  2. Share Market or Business (Australia)

    15 vote(s)
    12.4%
  3. International Investment

    4 vote(s)
    3.3%
  4. Pay down debt and reduce LVR / build cash-buffer

    53 vote(s)
    43.8%
  1. danwatto

    danwatto and TT

    Joined:
    4th Dec, 2008
    Messages:
    568
    Location:
    Sydney, NSW
    We've been thinking about this lately, as it is an interesting time with conflicting information out there and a lot of warnings about the property market or the economy.

    I'm curious what others are thinking - property, shares, or cash & pay down debt.

    We are building a cash buffer and access to more line of credit, but are hesitant to invest anywhere at the moment. However with a pay rise I may end up making another buy and hold investment to reduce tax in a few months, but shares or property I don't know.
     
  2. BayView

    BayView Member

    Joined:
    2nd Feb, 2007
    Messages:
    12,129
    Media:
    9
    Location:
    Mornington Peninsula
    We only have the resources to decrease debt in next 6 months.

    Bring on the rate drops!!
     
  3. jerrybee

    jerrybee Member

    Joined:
    1st Aug, 2013
    Messages:
    1,182
    Location:
    melbourne
    I've hit my serviceability wall and only have a few hundred k to play with from my LOC, so the share market is the only choice I have.
     
  4. hugh72

    hugh72 Member

    Joined:
    7th Apr, 2010
    Messages:
    723
    Location:
    FNQ
    I don't see the need to make any changes, continue to pay down debt/increase funds in offsets, salary sarifice into super, buy more shares on market dips and maybe purchase a couple more properties this year in Adelaide. Just no more loss making boxes or at least ones which will be positive cash flow fairly quickly by reno/increasing rent or by just paying down debt.
    I am not hesitant at all as I'm not looking in Sydney presently, I would like to but I'll wait for a period of maximum pessimism whenever that may be In the future
     
  5. HiEquity

    HiEquity Member

    Joined:
    18th May, 2008
    Messages:
    3,178
    Location:
    Australia
    How about a new PPOR instead? :(
     
  6. ellejay

    ellejay Member

    Joined:
    17th Feb, 2014
    Messages:
    268
    Location:
    Kununurra
    I'd be tempted to have yet another look at international property. Stamp and LMI is insane. I'm more conservative and prefer not to pull out equity so it takes me forever to save a deposit for something half decent.
     
  7. r3ckless

    r3ckless Member

    Joined:
    31st Aug, 2013
    Messages:
    236
    Location:
    Sydney,NSW
    im a mixture of sharemarket/pay down debt.

    Goals:

    1 - Currently have around $15k of non-ded debt to be repaid
    2 - Building up share portfolio thru margin lending
    3 - increasing LOC against three property

    1 - wife and my salary, portion is sent to 0% interest rate credit card each pay
    2 - using margin loan to build up equities. Just purchased around $15k over 3 x stocks in the last week, will continue to do so
    3 - since acquiring our 3rd and most recent investment property, have just been every 6 months reval each property and increase the LOC. Just did this cycle and will have $230k in LOC which is currently undrawn to be utilised in the future possibly 5 years to buy more property.

    1 - this goal to finish in 2-4 months
    2 - will be a continuing book build
    3 - as long as the market keeps rising, we will keep on re-valuating and converting equity into LOC at call
     
  8. see_change

    see_change Apprentice Timing Lord

    Joined:
    26th Apr, 2001
    Messages:
    6,379
    Media:
    43
    Location:
    location
    We paid down debt earlier this year when we downsized so now is our time to buy more and get the debt back up .


    Cliff
     
  9. willair

    willair xx

    Joined:
    23rd Jan, 2003
    Messages:
    6,850
    Media:
    3
    Location:
    fibro humpy..
    Just waiting for the numbers too line up,have not sold any property in a long time,but with the ASX I did sell a small amount of Banking equities
    a short time ago,those same units are now down over 17% ,and still trending downwards,so just waiting ..
     
  10. Deltaberry

    Deltaberry Member

    Joined:
    25th Sep, 2009
    Messages:
    4,893
    Location:
    Melbourne, Victoria
    Buying opportunities
    China tier-1 city properties. High-yielding blue chip resources stocks. Oil. Pay down some debt, but keep powder dry in case a good opportunity comes up (irrespective of how hot the market is, except for Sydney which is probably stay away for the moment).

    Selling opportunities
    Tier 2 properties certainly in Syd and maybe in Melb, bank shares, all Chinese and Hong Kong shares, all USA shares, AUD

    As I always say, there are opportunities scattered all over the world. But as a property tycoon once told me, you run out of money before you run out of ideas.
     
  11. S1mon

    S1mon Member

    Joined:
    22nd Jul, 2012
    Messages:
    75
    Media:
    1
    Location:
    ACT
    Good question watto

    was going to buy 1 or 2 more properties .....but lending changes might stop that. I hate the concept of bracket creep so wanted to buy a few with some depreciation to negate it.

    Will just continue with my 10 year share plan (to get to 30k divs year with reinvestment and small capital injections), and build up cash buffer
     
  12. Ace in the Hole

    Ace in the Hole Don't compete, Dominate !

    Joined:
    30th Sep, 2002
    Messages:
    2,180
    Media:
    18
    Location:
    Sydney
    Pay down debt and build businesses.
    Nothing else appeals at the moment, but will have some nice cash reserves for the next play, whenever that may be.
     
  13. Richard Feynman

    Richard Feynman Mortgage Broker

    Joined:
    17th Jun, 2012
    Messages:
    1,550
    Location:
    Sydney, NSW
    Acquiring more properties and creating a positive cashflow from my portfolio in the process.

    Also working on other passive and active income streams.
     
  14. danwatto

    danwatto and TT

    Joined:
    4th Dec, 2008
    Messages:
    568
    Location:
    Sydney, NSW
    Sounds good mate, I am thinking of starting a similar 10year share accumulation for diversification reasons.

    When property stops growing, can still get some growth from shares. Evens things out over time.

    Will try and get a bit of equity out to invest, if my serviceability passes!
     
  15. danwatto

    danwatto and TT

    Joined:
    4th Dec, 2008
    Messages:
    568
    Location:
    Sydney, NSW
    Other income streams sound good.

    I'm looking at some possible side business ideas, not immediately profitable but I'm hoping to learn enough to eventually replace my day job.
     
  16. Classclown

    Classclown Member

    Joined:
    28th May, 2014
    Messages:
    30
    Location:
    Brissie
    Tinking I'm gunna make sum muffins and sell them at my local market
     
  17. ej89

    ej89 Member

    Joined:
    8th Dec, 2014
    Messages:
    402
    Location:
    Sydney, NSW
    Got my property for the year now it's time to work on business and doubling my income within 3 months. I set the same goal last year and did it so looking to do the same whilst also adding a passive income stream through business as i'm self employed. After that hopefully will have enough cash to get married and buy a couple properties next year.
     
  18. C-mac

    C-mac Member

    Joined:
    12th Feb, 2011
    Messages:
    434
    Location:
    Sydney, NSW
    For me, I too am at serviceability walls. Mainly, stashing savings into the offsets, whynot.

    Considering some small investments into some specific share categories/verticals, and possibly precious metals (gold, silver etc.)

    As for ppor.. Sure I'd like to buy one and although I'm born and bred sydneysider (never lived anywhere else long term), and though my family/friends live here.. I'm questioning if I really want to stay here too much longer... And its actually not all to do with unaffordable housing! Its other things... I don't think I like what this city is turning into, culturally. But that is a whole other topic and I digress.

    My ppor for tax purposes is still here in sydney, maybe a reno between tenants just long enough to get some bills back in my name, to by myself 6 more years on the 6-year tax rule.

    Any way, until I have time for more economics DD, its all about making the offset account fatter than Santa Claus' belly.
     
  19. Rixter

    Rixter $uper Investor (Retired)

    Joined:
    15th Mar, 2001
    Messages:
    9,335
    Media:
    12
    Location:
    Highton Vic.
    Looking to purchase a house in the next few months.
     
  20. Rixter

    Rixter $uper Investor (Retired)

    Joined:
    15th Mar, 2001
    Messages:
    9,335
    Media:
    12
    Location:
    Highton Vic.
    For those experiencing DSR issues or about to be, remember, property investing is not about property. Its about finance and always looking to place one self in a position to continue accessing funds for future investment/business and/or pleasure. Otherwise you paint yourself into a corner and have to sit and wait for it dry before moving on.