What to invest in ?

[Bez]

Hey guys,
I purchsed my first IP in April this year and now I want to start investing again.
The property is a 2 bedroom unit located in Taree (not counting on much capital growth )
Purchase price - $125,000
Loan - $115,000
Current loan - $109,000
Rental income - $155 p/w
The property costs me roughly $50 a week out of my pocket.

As for my next investment iv been thinking about shares or managed funds, I only earn $34,000 a year so comming up with enough money to cover the costs of buying property is pretty hard.

Iv been thinking about getting a $25,000 loan and buying a Share pack from commsec..

Im a bit lost at the moment, sometimes I think maybe I should pay off my IP loan some more then somedays I think i should throw all my money into shares..

What do you guys think my next investment should be ?

Thank you

PS. I am currently renting and have no other debts..

 

[The Y-man]

As an alternative to borrowing money for shares, you might also have a look at geared share funds eg Colonial First State Geared Share fund, 452 Capitla Geard Fund etc. The advantage for these is that you don't need to pay interest as they are completely offset by dividend income.

Cheers,

THe Y-man

 

[willair]

Iv been thinking about getting a $25,000 loan and buying a Share pack from commsec..

It would depend on what shares you invest in,do you spend the whole 25k on one company,or spread the money out over several companies,maybe work out what is value for money, but in the top end blue chips you don't buy much for 25k,what companies do you intend to target and why?
willair.

 

[Bez]

Ill have a look into the Geared funds

The commsec share packs include 6 different bluechip companies, they choose them for you.

 

[willair]

The commsec share packs include 6 different bluechip companies, they choose them for you.

imho..
Bez,can you post the list of the 6 blue chip companies,why not just find a broker, study the market and control everything yourself..imho.willair..

 

[Bez]

Yesterdays picks were

Capital Growth Pack
A.B.C. LEARNING FPO
AMP LIMITED FPO
BHP BILLITON LIMITED FPO
BRAMBLES LIMITED FPO
PUBLISHING & BROAD FPO
SUNCORP-METWAY. FPO

Income Pack
ANZ BANKING GRP LTD FPO
GOODMAN FIELDER. FPO
TABCORP HOLDINGS LTD FPO
TRANSURBAN GROUP STAPLED
TEN NETWORK HOLDINGS FPO
WESTPAC BANKING CORP FPO

Market Leaders Pack
BHP BILLITON LIMITED FPO
BRAMBLES LIMITED FPO
COMMONWEALTH BANK. FPO
COCA-COLA AMATIL FPO
WESTPAC BANKING CORP FPO
WOOLWORTHS LIMITED FPO

Tax Effective Pack
BORAL LIMITED. FPO
COMMONWEALTH BANK. FPO
MACQUARIE INFRA. STAPLED
ST GEORGE BANK FPO
TABCORP HOLDINGS LTD FPO
TEN NETWORK HOLDINGS FPO


Your right, iv thought about just chooseing my own companies... Could be a better option, would end up paying more in broker fees but realy whats $200 if you are investing $25,000..

 

[yo yo ma]

As an alternative to borrowing money for shares, you might also have a look at geared share funds eg Colonial First State Geared Share fund, 452 Capitla Geard Fund etc. The advantage for these is that you don't need to pay interest as they are completely offset by dividend income.

I agree... You can start some funds (eg CFS) with a minimum of $1000 & the minimum regular investments are $100 per month. They are a good way to start slowly in the share market.
Steve