Other forms of investing ?
- Thread starter Bez
- Start date
Bez, how old are you? Are you still living at home? If still young with few expenses you should be able to put away a sizable chunk of that income each week to go towards your deposit. You could put it into Shares, Managed Funds etc, but if it is going to be withdrawn again for a deposit in a short time, then maybe a high interest bank account, like ING is the go.
There are many many forms...........
Limited example of some common ones in no particular order:
1. Managed Share Funds
2. Commercial Property Funds
3. Commercial Property Trusts (Listed and Unlisted)
4. Residential Property
5. Commercial Property (Office and Retail)
6. Inductrial Property (Clean and Dirty)
7. Shares
8. Derivatives
Cheers,
The Y-man
So in a nutshell how much can you save each week? year?
Where do you find information on the different types of investments?
Lots of links on this site, hard part is finding them.
I thought there was a link to a few but can't find it right now, have to do some work still. only 4:31pm
cheers
quoll
Where do you find information on the different types of investments?
Lots of links on this site, hard part is finding them.
I thought there was a link to a few but can't find it right now, have to do some work still. only 4:31pm
cheers
quoll
Hi Bez
You can start investing today
Invest in your financial education. You don't need a lot of money to get started.Go to the library and get out some of the books that have been recommended by this forum. One that springs to mind is "Building Wealth Story by Story " by Jan Somers.
IMHO, Investing is about understanding how money can work for you instead of the opposite that most folks find themselves doing i.e. working for money. Learn about leverage and LVR's and how to balance the two for a sustainable investment strategy.
The bottom line is it does not matter what investment vehicle you use but it does matter how investment savvy the driver is.
Invest in yourself first.
When I first started out I used to practice doing deals on paper until I had created enough funds that got me into the game.
Simon
you can also invest in growing your own business.
If it goes well you can generate great profits and have the choice of selling the business later for a huge unexpected amount.
Good Luck
If it goes well you can generate great profits and have the choice of selling the business later for a huge unexpected amount.
Good Luck
True
Make an investment in yourself your business and then that business will become an investment for your future wealth
Simon
hi Bez
here is a different way of investing and there are a couple of groups out there that give very different amounts of return.
some use renouncable options or put options
they are called different names in different states.
but this is how its works.
sam needs to buy a presale unit
as a deposit he can use a deposit bond,cash,or a renouncable credit note
for me cash is best so I will for this example use cash
john has 30k and sam needs 30k
so john gives the 30k to sam via a mortgage or what ever is agreed.
sam then gives the 30k to gr me
I give the 30k to a bank st george who puts the 30k into a term deposit with a income of 6%.
with me so far
sam agrees to pay john a 10% per annum for the use of the cash.
so john gets 16% on his money
secured by a term deposit
and the developer agrees to discount the units by a % if sam does not go thru with the purchase
but as a rule the developer has organised the loan on the end product
so unless sam liquidates this is not acted on
and if sam liquidated the developer has the option to sell into the market at full price and pay out the deposit holder
I have not heard as yet of one of these being acted on but some one out there may have.
when you see put option or renouncable offers that what this system is.
the lender like them as they are seen as a form of insurance policy for the presales
and the investors love them as they get a reasonable high return on a term deposit.
the interest rate that sam pays is negotable with john and for the developer is seen as arms lenght.
there are a myriod of different types around but they work the same way.
if you search a couple of my other posts
you will read of a few other out of the square what you would call normal investing.
and as you go up that risk profil line so does return
with regard to building a business and selling it for huge profit thats not always the case three under lying big problems.
1. you have to learn and make a profit and stay in business for longer then 3 years and thats not an easy task from my old days of setting up businesses 95% fail within the first 12 months another 2% the next year and then another 1% the third so thats 2% that get thru that 3 year term
cash flow and cash flow management being the biggest killer with employees being the second biggest hence I have bare min employees on the books)
you can get current figures from the austrade people of this world.
2.once thru that 3 year gap you have to have a very good bottom line and not just surviving alot of business are very good businesses but they are not very profitable when you take out an income for your time or energy and factor in a cost for business advancement.
but lets say you have a bottom line of 60% profit margin and thats a very good business.
3. and this one is the hardest when selling a business, is you have to find someone that wants
A a business in that field,
B wants to invest in that field
C has a risk profil to get into that area, that you have been so successfull in
because if they buy the business from you there is no guarentee that they will be just as successfull hence the reason that franchises are so successful from a concept point of view.
I have had alot more failures with business ideas then any other form of investing ( as I see them as a very big gambling excersise with will this work or not)( and if you think that only small business fail have a read of boston markets in australia over 7 mil into the aust market backed by mac's and did not get thru that 3 year gap long john silver I am keeping an eye on that one as well, backed by kfc or tricon which ever name you like) but on the other side of the coin I also have alot more money with successes but that business investing.
this is just a little warming bell to say it always looks greener on the other side of the fence but its not always that way.
and I am not one for bank account investing
gold under the bed gives better return.
here is a different way of investing and there are a couple of groups out there that give very different amounts of return.
some use renouncable options or put options
they are called different names in different states.
but this is how its works.
sam needs to buy a presale unit
as a deposit he can use a deposit bond,cash,or a renouncable credit note
for me cash is best so I will for this example use cash
john has 30k and sam needs 30k
so john gives the 30k to sam via a mortgage or what ever is agreed.
sam then gives the 30k to gr me
I give the 30k to a bank st george who puts the 30k into a term deposit with a income of 6%.
with me so far
sam agrees to pay john a 10% per annum for the use of the cash.
so john gets 16% on his money
secured by a term deposit
and the developer agrees to discount the units by a % if sam does not go thru with the purchase
but as a rule the developer has organised the loan on the end product
so unless sam liquidates this is not acted on
and if sam liquidated the developer has the option to sell into the market at full price and pay out the deposit holder
I have not heard as yet of one of these being acted on but some one out there may have.
when you see put option or renouncable offers that what this system is.
the lender like them as they are seen as a form of insurance policy for the presales
and the investors love them as they get a reasonable high return on a term deposit.
the interest rate that sam pays is negotable with john and for the developer is seen as arms lenght.
there are a myriod of different types around but they work the same way.
if you search a couple of my other posts
you will read of a few other out of the square what you would call normal investing.
and as you go up that risk profil line so does return
with regard to building a business and selling it for huge profit thats not always the case three under lying big problems.
1. you have to learn and make a profit and stay in business for longer then 3 years and thats not an easy task from my old days of setting up businesses 95% fail within the first 12 months another 2% the next year and then another 1% the third so thats 2% that get thru that 3 year term
cash flow and cash flow management being the biggest killer with employees being the second biggest hence I have bare min employees on the books)
you can get current figures from the austrade people of this world.
2.once thru that 3 year gap you have to have a very good bottom line and not just surviving alot of business are very good businesses but they are not very profitable when you take out an income for your time or energy and factor in a cost for business advancement.
but lets say you have a bottom line of 60% profit margin and thats a very good business.
3. and this one is the hardest when selling a business, is you have to find someone that wants
A a business in that field,
B wants to invest in that field
C has a risk profil to get into that area, that you have been so successfull in
because if they buy the business from you there is no guarentee that they will be just as successfull hence the reason that franchises are so successful from a concept point of view.
I have had alot more failures with business ideas then any other form of investing ( as I see them as a very big gambling excersise with will this work or not)( and if you think that only small business fail have a read of boston markets in australia over 7 mil into the aust market backed by mac's and did not get thru that 3 year gap long john silver I am keeping an eye on that one as well, backed by kfc or tricon which ever name you like) but on the other side of the coin I also have alot more money with successes but that business investing.
this is just a little warming bell to say it always looks greener on the other side of the fence but its not always that way.
and I am not one for bank account investing
gold under the bed gives better return.
Last edited:
Good on you if you can save $200 a week . It's a great start and I agree with investing in your financial education . Buying books , audio , games etc .
I disagree with most of grosses ramblings above about going into business . He is too cynical .
Have a look at network marketing . If you get it right you can turn your ideas in millions and millions of dollars . I have seen my own business make so much money so quickly it is staggering .
It's called Alchemy .
Shawn
I disagree with most of grosses ramblings above about going into business . He is too cynical .
Have a look at network marketing . If you get it right you can turn your ideas in millions and millions of dollars . I have seen my own business make so much money so quickly it is staggering .
It's called Alchemy .
Shawn
$200 a week is about 35% of my take home pay.. I would be able to save up to 40% id say..
I currently dont have any savings
Can you tell me more about Network Marketing ?
A friend of mine recently tryed to sign me up to do my grocery shopping online and get paid for it..
Is that the same kinda thing ?
I currently dont have any savings
Can you tell me more about Network Marketing ?
A friend of mine recently tryed to sign me up to do my grocery shopping online and get paid for it..
Is that the same kinda thing ?
$200 a week is about 35% of my take home pay.. I would be able to save up to 40% id say..
I currently dont have any savings
Can you tell me more about Network Marketing ?
A friend of mine recently tryed to sign me up to do my grocery shopping online and get paid for it..
Is that the same kinda thing ?
Firstly get in the habit of putting that $200+ pw aside & don't touch it. How can you save that much each week if you currently don't have any savings? Maybe you should sit down & do a budget, so you can work out the real amount you can save?
As for Network Marketing. Yes it does work, but is not for everybody. You need to be very dedicated & be someone that others will want to follow. There are many around, some better than others. My personal experience (some 15yrs ago now) is that it is too hard for me to be bothered with. Hubby & I spent countless $$ on much material to grow the business, combined with doing all the right things & being extremely focussed & putting in many hours pw continually for over 1yr & still could not make more than around $100 per month. IMHO there are much easier ways to get ahead. But maybe you are one of the people it will work for, who knows?
As of today I will be saving $200+ a week
I use to save $250 a week (50% of pay) before I bought my first IP, then after that I just lost interest. Its been about 6months since then and I want to get back into it..
I guess what im realy after is other ways I can make money on the side or ways I can use my money to make more money to get enough for another diposit on a IP..
I use to save $250 a week (50% of pay) before I bought my first IP, then after that I just lost interest. Its been about 6months since then and I want to get back into it..
I guess what im realy after is other ways I can make money on the side or ways I can use my money to make more money to get enough for another diposit on a IP..
Well you didn't say that you already had an IP. That's great news. I would put your savings in a 100% offset account linked to your loan. This will reduce your interest payable, but your funds are free for you to withdraw for another deposit or shares, or anything for that matter. As you gain some equity in your IP you can draw on that too, to invest.
I was starting to wonder where my money was going myself lol, i just remembered that I have been paying off the principil of the loan, about $5000... I will probly be changing it to IO payments soon, as iv lernt its not a good idea to pay off the principil..
As for the 100% offset id love to do that but my loan size is to small to qualify for an offset loan package
As for the 100% offset id love to do that but my loan size is to small to qualify for an offset loan package
Going IO will help. Other than getting another job or getting a raise at your current job, the other way is to really analyse your spending. Starting tomorrow write down everything you spend. Coffee, magazines, mints, phone bill, utilities, everything. Then analyse it and see if you can cut anything.
Alex
