Hi
Sailor,
We all know how well you've done in property, but you have also accumulated/made at least $350k in shares - that's impressive!
Just wondering what sort of strategy you have for your SMSF?
I started playing...dabbling in the share market about 30 years ago with a couple of friends. Our investment at the time was $500 each. We pooled our funds and had monthly meetings...we were very professional!
One of us did the charting (me cos I could do the math), one of us talked to people (she had connections), and the other one worked for a bank (she was our treasurer of sorts and handled the finances). We had heaps of fun, learned a lot and made a bit of money...which we later spent.
So when I started my SMSF, I contacted our old stock broker, and away I went again...this time solo. I took some advice from the broker, and spent hours with my mate Google, and did lots of research on when and what to buy and when and what to sell.
My strategy was to build up enough money to buy property. That was BEFORE I realised the SMSF was not the best vehicle in which to make money, as I couldn't leverage off anything.
So now I just park the rent, buy shares, and save up for the next SMSF IP. I don't put any other money into the SMSF...it just goes straight into IP's.
I would have thought that having residential properties in SMSF is not the best approach, as resi. IP's are great for leveraging off, and this can't be done in SMSF.
You got that right....and I did eventually!
And although you may have more cash flow type resi. properties here, my feeling has been that commercial property is the better instrument for cash flow, either directly or indirectly via property syndicates or listed or unlisted property trusts - due to the higher returns and they are often more tax-effective.
Yes, I think commercial property does have good CF, but so do my positively geared resi IP's. There's just not enough CG in commercials to leverage quickly into the next IP.
GSJ
