What is your current asset allocation

I feel different, but well hedged!

22% gold
34% cash (mostly foreign)
18% property (mostly foreign commercial)
26% shares


0% LVR - debt is only good when you believe you will earn 10%+ with it. At the moment, I don't know that I will.
 
Nathan
Something tells me you're fudging the figures :D

Hehehe,

The numbers are a true reflection as the debt must equal a negative amount to a cash holding :) I am sure the numbers would be a lot scarier then this but its in the right directed.

Debt with cashflow and assets which are getting inflated. :)
 
90% property (will decrease as my shares increase)
7% cash (will increase to about 10% over time)
3% shares (significantly increasing as fast as I can afford to)

I'd like share portfolio to be about 40% of total in the next 10 years. I can't see myself buying any more resi IP unless something like an adjoining block opportunistically comes up for sale.

At 47% LVR pretty happy with how things are progressing
 
5% Cash
25% Precious Metals
70% Precious Metal Related Stocks

LVR around 15%

Yes I put my money where my mouth is ;)

Not expecting to make too many changes in the next 12 months, however I am looking to move back into property at some point...

Hobo-jo, you have over 700 posts on a Property Investing forum...and have no property.

Did you sell it ALL?
 
Hobo-jo, you have over 700 posts on a Property Investing forum...and have no property.
Did you sell it ALL?
I only ever owned 1 property which was a PPOR which my partner and I intended to later develop (was large enough for subdivision), sold that earlier this year, so yes I guess I did sell it all :D

I like the idea of investing in property and after our PPOR purchase in 2006 I did make some offers in early 2007 for a second property, but was unsuccessful and after Adelaide's 2007 boom the numbers stopped adding up.

I have the capital & income to buy multiple (if leveraged)...just waiting for those numbers to work.
 
I have the capital & income to buy multiple (if leveraged)...just waiting for those numbers to work.
Edit: hobo-jo I now see that you've got most of your money invested in shares which is not a bad thing but your gearing is low.
I know that the example below does not apply in your situation but won't delete this post in case some of our new members find it useful

So if I understand you correctly you've got your money placed in a term deposit earning 5% or so, which after tax is equal to a little over inflation and are waiting for property prices to go down.

In the above scenario and assuming that property prices go up only following inflation levels and not the 8 and 10% they've been doing in recent times then IMO you'll never be able to catch up.

If you think that property prices are too high, you've got to consider the cost of replacement because if prices are close to replacement value, or the mortgage repayment is the same amount as paying rent (or lower) then property prices won't be coming down.

Inflation takes it's toll as well.
If you recall a few years ago we used to pay $2 for a cup of coffee.
We're now paying minimum $3.
If we were waiting for the coffee price to come down to $2 we'd be waiting forever. It just won't happen.
Even if the price of the coffee beans comes down this won't flow through to the consumer who is now conditioned to the current price of $3
 
Personally:

94 % property (40 % LVR)
6 % ca$h

SMSF:

96 % property (zero LVR)
4 % ca$h

Looking to either create my own bank (available cash) thru offset or a potential harvest of one IP to liberate funds and then go shopping :D
 
Interesting thread. I assume that when people include the value of their property portfolio, they look at their gross worth rather than the net worth? Because this would change the percentages substantially.

My ratios would be
Managed Funds 0.4% - decreasing
Direct shares 1.6% - decreasing
Property 91.7% - increasing
Cash 6.3% - decrease

This is excluding super, so my actual exposure to equities would be greater. Nevertheless, am looking to pick up another IP soon-ish, hence property % would increase and cash % would decrease (although the amount in the buffer would stay the same)
 
~90% Property
~1% Artwork
~3% Cars, household goods and consumer junk.
~6% Super in Shares/Cash/Int. Bonds

@ ~50% LVR

= ~100% Stuff we "own"
 
debt is only good when you believe you will earn 10%+ with it. At the moment, I don't know that I will.

Agreed.

You guys must spend a lot of time counting your money. :eek: I've got a bit of everything including art, a tinnie and a motor bike (are they assets?). No idea on percentages or LVRs though, don't care and wouldn't tell.
 
I'll answer in the same format as my previous posts to make comparisons easier (except I'll merge the income/growth type managed investments) :)

http://www.somersoft.com/forums/showthread.php?t=23692


Net Equity

Direct Residential Property: 70%
Direct Shares: -20%
Managed Investments: 11%
Cash/Gold: 24%
Super: 15%


Gross Value

Direct Residential Property: 67%
Direct Shares: 0%
Managed Investments: 6%
Cash/Gold: 17%
Super: 9%



Note: the Direct Residential Property includes PPOR.

Cheers,

The Y-man
 
Edit: hobo-jo I now see that you've got most of your money invested in shares which is not a bad thing but your gearing is low.
I know that the example below does not apply in your situation but won't delete this post in case some of our new members find it useful
My gearing is low because that's the way I choose to play the game currently. I don't want to deal with margin calls and the hassles/expenses that come with a geared portfolio so I am keeping the debt relatively low. On top of this Gold shares should provide leverage to the Gold price...if Gold increases $150 that might only be a 10% increase on the current Gold price, but for a miner it could be a much larger increase in profit. e.g. Gold miner with total cash cost of $800poz is currently making around $600 per ounce, increase in the Gold price of 10% equals approximately a 25% increase in profit for this miner.

You assume that property prices will just increase by inflation in your post...I don't believe that will be the case, I don't expect a crash however.

Comparing the price of coffee to housing? I've never heard of a First Coffee Owners Grant :D, that analalogy is rubbish in my opinion.
 
96% property - pause for now. Will increase next year
3% shares - increasing
1% cash - increasing.

Cheers,
Oracle.
 
Player
OMG...you're unleveraged

You're right BV..........I am woefully underleveraged :eek: as it relates to other investors, however at the moment it is the prudent thing for my situation, servicibility, and most importantly SANF. ;)

I have been ambivalent for a while to just buy more for the sake of exposing myself to another cap growth cycle (in a general sense, hence encapsulating a 10 year period) and thwarting my cash flow. At the end of the day, I have ample resi stock to still give me that pleasure.

What I need, is to enhance my CF position, whether that is by sucking out some equity to park into offset and look at CF assets or actually potentiallly harvest one (recently retrieved clear title) which is (by current valuations) manifesting a very very ordinary yield. It has had very juicy growth. :D

Those funds would then be teflonised in a trust and a CF asset (CIP or multi unit block) purchased with a more flexible income distribution and the other benefits of the familty trust.

When banks start throwing money at folks again, I will create my own bank in that trust by setting up LOC or offsets against that clear title and have more choices.

We are in interesting times folks. I've been sounding like a broken record for the past 12 months about keeping LVR's conservative (within the context of everyone's own personal situation) and, I don't see any evidence to the contrary to make me change my mind.

If I elect the offset route and don't sell just yet, my LVR will still be less than 50 % on personal portfolio. Our super fund has no debt, however I am not averse to doing a warrant lend such as you have BV for the right asset.

I trust I don't sound too bleak. I am a realist and consider we are not out of the woods by a long shot with global volatility and some local prospective events relating to our inept government still to pose obstacles.

Where there is doubt.........stay out. Uncertainty is often best used to reflect and take stock of one's own situation and make strategic moves to buffer/hedge current position and look for opportunities to unfold. There is no rush (for me, at least) to buy more right now.
 
Shares roughly 45% (and rising)
Residential Property roughly 45% (and declining)
Cash: negligable
Business: 10%

debt: around 45%

Net cash flow from passive assets: around $120k
Net cash flow including business: around $250k

Years to repay debt on current cash flow: 8

These are round about approximate figures only
 
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