Any1 investing in index funds or shares here ?

Discussion in 'What to buy' started by showtime94, 12th Oct, 2018.

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  1. showtime94

    showtime94 Well-Known Member

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    Whos investing in shares or index funds here ?
    Do you prefer investing in shares over property? Or property over shares and why ?
    Do you think most people get in property over shares because they can just use equity for property and cant save up to put a good amount in shares ( say 50-100k cash in shares ) or they just go with property?
    Just curious
     
  2. marty998

    marty998 Well-Known Member

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    Yes - mix of shares and property.

    Cannot say I'm an expert at either so just having a bob each way. A little in shares, a little in property and a little in cash (offset accounts).

    It's a good thing I've got the negative gearing on property to offset the positive income from shares - helps manage the "problem" of paying tax on dividends and distributions.

    I just invest in a bog standard index fund (VAS - ASX 300 index).
     
  3. KayTea

    KayTea Well-Known Member

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    Works for me, too
     
  4. PandS

    PandS Well-Known Member

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    both but I am now more into stock market as it easier for me to make the money and a lot less hassle. I do a bit more than just buying shares so I say stock market

    still looking at properties for my kids as PPOR when they come of age but I get them on to shares once they grown up and have their first job.
     
  5. showtime94

    showtime94 Well-Known Member

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    Cool., how long have you been invested in the asx 300 made any returns ?
     
  6. Never giveup

    Never giveup Well-Known Member

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    Does anyone know/invest in wrap accounts?
     
  7. wategos

    wategos Well-Known Member

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    Any way you look at it it is not "good" to be negatively geared.. you are losing money. Even or positive is better, even though you pay tax. Negative gearing just softens the loss.
     
  8. skater

    skater Well-Known Member

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    Considering this is a Property Investing Forum, most people are here to talk about property, however there are some good threads in the "Other Asset Classes" section.
     
  9. PandS

    PandS Well-Known Member

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    Wrap account is just fancy portfolio construction wrap into one.

    Financial planners loves them cos they get good commission selling them.

    You can do the same picking shares, managed fund or lic or etf etc...
     
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  10. Never giveup

    Never giveup Well-Known Member

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    Thank you @PandS

    Just to clarify does Wrap account declare their holdings etc?

    I will research further on this but I will really appreciate if you can share any resources if you have on this.
     
  11. wombat777

    wombat777 Well-Known Member

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    Index funds, LICs, banks and growth stocks (ASX300) in my Super. Speculative small cap stocks outside of super.

    Maintenance on my aged investment properties is tiresome. The hassle! Patient with them though as the yields are respectable. They both have scope for development ( units or townhouses ) so would like to do this down the track.

    Long-term would prefer to be holding shares/LICs/ETFs and near-new investment properties.
     
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  12. Fargo

    Fargo Well-Known Member

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    Nonsense. You have rocks in your head if you don't have some negative gearing. You can be cash flow positive and negative geared. Just because you haven't liquidated profits doesn't mean you haven't made money. I have used LOC s 5 years ago to buy shares when the serviceability for property changed. Secured LOCs against properties claimed the expenses on the property, just love the depreciation benefits. The shares have tripled what the value of the property was. Half of the property has doubled in value, and hence so has the yield as it is commercial. The other half is up about 20 % with a 30% increase in yield. While the properties are at least cash flow neutral now I still pay little tax. I have grown my property assets by well over a million dollars, and have access too what was 800k in shares ( which hasn't had tax paid on yet and I will only pay tax when or if sold) if I want to use money . After reporting season 3weeks ago I took out 100k to fund another property in the next global boom city Clark Admittedly it dropped Thursday dropped 70k thursday pfft who cares. it regained 20 k on Friday. The point is you can make a lot of wealth by being negative geared , leveraging and compounding your money, instead of being generous to the ATO. I could sell the shares and pay of the property and pay a **** load of tax. but that would be silly, I am much better of claiming expenses and doubling my assets, than giving half away in tax.
     
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  13. Sackie

    Sackie Well-Known Member

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    As a blanket approach, That's an extremely simplistic and somewhat niave way to view a negatively geared situation.
     
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  14. Never giveup

    Never giveup Well-Known Member

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    I need a crash course from you @Fargo
     
  15. marty998

    marty998 Well-Known Member

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    Hi... sorry about the lateness of my response.

    Yes I understand that neg gearing is still losing money.

    After four years my IP is still neg but is on the cusp of being positive (after tax) because of depreciation/ cap works deductions.

    I've been solely in index funds for 3 years now. Though I'm down quite a bit this week it's still well in the black.

    Returns from property have been much higher though
     
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  16. PandS

    PandS Well-Known Member

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    There are many Wrap accounts combo, each bank or institutions offer different platforms and different make up of the construction of the wrap account.

    usually the financial advisers work with you on what you want to achieved and what you like as part of investment then they construct that sort of wrap account for you so you should know what in your wrap account holding.

    Personally I don't think it worth it, a lot of people are clipping their tickets from you when you use wrap products.

    The platform provider, the advisers all have their cut.

    If you risk adverse ETF or LIC will provide you with similar sort of diversification or if you know your stuff you can buy a bunch of shares and have ETF and LIC that doesn't covered those shares etc..

    Lot of ways to get what you want in the shares market, it just come down to your risk profiles and how you want to go about constructing it.
     
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  17. wategos

    wategos Well-Known Member

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    Your strategy depends on capital growth. I invest for income, negative gearing is just not a good long term investment strategy, it might suit someone leveraging up in the hope of capital gains, but its something I try to avoid, I like to make a profit instead. Definitely don´t have rocks in my head avoiding making ongoing losses. Yes you might be able to mitigate cash flow losses with depreciation but depreciation is not a free deduction, eventually you've got to replace these things you´ve been depreciating all those years (new roof, paint, bathroom, etc...).
     
  18. kierank

    kierank Well-Known Member

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    Term Deposits are a great way to avoid capital gains and one does make a profit (before tax and before inflation) ;).

    But TD are not my preferred investment class :D although I do have some cash parked there at the moment.
     
  19. bashworth

    bashworth Well-Known Member

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    I'm in cash at the moment.

    Decided to stand out when the Trumpster started to go stupid on taxes on imports.
     
  20. wategos

    wategos Well-Known Member

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    I prefer shares, and property, both positively geared, not negative, although they have at times been in the past. Why some think negative gearing is better than positive is beyond me. Save some tax but more than lose out on cashflow.

    Negative Gearing Is For Dummies - Aussie Firebug