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Discussion in 'Introductions' started by The Social Investor, 16th Sep, 2015.

  1. The Social Investor

    The Social Investor Active Member

    Joined:
    15th Sep, 2015
    Posts:
    28
    Location:
    Williamstown Victoria
    Hi All
    There is an element of loneliness to investing...when you talk with non investors they just roll their eyes. Thats why forums are great places to talk with like minded people.
    So, thanks for having me and I hope I can contribute in a positive way
    My investment history remains a work in progress
    We should never accept that our knowledge is complete...there is always another strategy that may better suit our requirements.
    When I was perhaps 10 or 11 years old my Father said "you have to buy land" with a sort of fervour that I never understood. It was only as I started earning money that I realised that I was pretty keen on investing and it was about 8 years later I bought my first house.
    Lesson 1, land is no good without an income producing asset
    I was off an running on the very interesting road that is property investing
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    6,803
    Location:
    Adelaide, SA
  3. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    3,745
    Location:
    Mornington Peninsula
    Welcome TSI.

    This is the best place to be to speak property with like-minded folks.

    Dunno about anything else though!! :p

    Nah; seriously; the arguments are there, but mostly the vibe is good.

    Keep yer skin thick and you can't go wrong.

    Cheers, BV
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,695
    Location:
    Melbourne, Nationwide
  5. Redom

    Redom Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    1,031
    Location:
    Sydney
    Great attitude!

    Was talking today about how PI can be a difficult topic to talk about (money conversations!). Can lead to some serious eye rolling if you tell people you have substantial holdings, lots of debt, etc.

    Welcome! :)
     
  6. The Social Investor

    The Social Investor Active Member

    Joined:
    15th Sep, 2015
    Posts:
    28
    Location:
    Williamstown Victoria
    Next on the agenda...interesting question.
    I have a typical structure whereby I use an offset account to offset the interest on my own home. I am reevaluating the effect of low interest / low offset situation.
    I am researching syndicated developments with larger companies to achieve a better gain.
    My offset is at 4.23% net and if I can get better elsewhere I will....gains will be paying down the loan. any thoughts?
     
  7. The Social Investor

    The Social Investor Active Member

    Joined:
    15th Sep, 2015
    Posts:
    28
    Location:
    Williamstown Victoria
    Thanks Peter
     
  8. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    6,803
    Location:
    Adelaide, SA
    Note that this return is essentially after tax.

    EG compare online savings account that was paying you 4.23% - you'd pay tax on this and it'd work out to say 3% after tax. In your case, it's preventing you from spending tax paid (ie your salary) on ppor repayments, therefore "grossed up" works out to nearly 6%.

    So to compare it to another investment, it'd need to be earning 6% after tax or probably about 9% afterwards. Not really possible in the same risk category as your homeloan (ie nil). You're far better off using equity rather than cash for investing further.

    Does that make sense?
     
  9. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,333
    Location:
    Perth, WA
    Yes - you should read some of the tax tips on this forum so you don't do anything silly like take money out of that offset account to invest (if you don't have to).