Hello from a new investor based in Melbourne

Discussion in 'Introductions' started by Dropout, 23rd Sep, 2020.

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  1. Dropout

    Dropout Active Member

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    Hi there,

    I'm 35 living in West Melbourne with my wife and a daughter. Own this property with 400k mortgage with 200k in offset waiting from last 18 months.
    I own a small Panel shop in North Melbourne. Wife works full time as a Immigration consultant.

    I have been looking for an investment property from a long time close to my shop like Ascot vale,Flemington, Kensington or North Melbourne. Haven't found anything attractive or under the value.

    It has been a long time looking for a property but no luck so far so i have come to a conclusion from lot of people's experience that i should start putting some money in stocks. Yeah so here I am. I'm thinking of putting 100k in stock market slowly and build a nice portfolio from there. I have some more savings sitting in separate accounts waiting for an opportunity but don't know what to do with it.

    I think I'm too scared to loose this money as we worked too hard for it so looking for help here any suggestions are more than welcome.
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Hi Dropout,

    It really sounds like you're nervous about investing and worried about loosing your savings, which I imagine took a lot of hard work. It's easy to over analyse and not be able to make a decision. Being in the middle of a pandemic also creates a lot of uncertainty in any investment class (property, shares or anything), but personally I think that good property will utimlately do very well overall.

    It might be helpful to speak with a buyers agent and get them to help purchase a suitable property. I've done this myself and had great results. On your side of town I'd recommend:

    Jacqui Middleton
    middletonbuyersadvocates.com.au
    0404 136 937

    A lot of people from this forum have used her services to assist in buying a property and are very happy with the outcomes. It would be worthwhile having a chat with her regardless.

    Regardless of what you decide to invest in, it might be worthwhile getting some advice from your accountant around splitting your loan and debt recycling the money in your offset account before you use your savings for investment. This might make the difference between getting some extra tax deductions moving forward.
     
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  3. Trainee

    Trainee Well-Known Member

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    Especially for shares you really have to understand how you would react if it fell 10, 20% in a few days.

    maybe put a small amount in just to test your own reactions?
     
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  4. The Y-man

    The Y-man Moderator Staff Member

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    Why not expand what you already have knowledge in - Buy a commercial prop?

    The Y-man
     
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  5. The Y-man

    The Y-man Moderator Staff Member

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  6. Dropout

    Dropout Active Member

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    Thanks for your reply
    You got that right Peter too nervous to invest in anything during this pandemic
    I'll give her a call tommorrow
     
  7. Dropout

    Dropout Active Member

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    Yes that's the plan
    There's so much to read and learn
    I wonder should i connect with some Financial planner who can guide me or show me the right path?
     
  8. Dropout

    Dropout Active Member

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    I'm not ready for buying a commercial property yet as it needs a big capital and far more risk than a residential investment property.

    The only commercial property I'm interested in is the shop where my buisiness at. I have asked owner of building so many times though but he doesn't wanna sell because of CGT. He bought it too cheap 20 years ago and now it is gone up 10 times. so i just got 15 years lease signed from him for a safe side.
     
  9. Dropout

    Dropout Active Member

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  10. The.Night.King

    The.Night.King Well-Known Member

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  11. Dropout

    Dropout Active Member

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  12. geoffw

    geoffw Moderator Staff Member

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    That's a glass half empty view.

    Let's say he makes $1M capital gain, he will pay at most $250K CGT.

    So instead of "I'm going to make $750K" he looks at it "I'm going to lose $250K". And so would never sell, and would never realise the profit.
     
  13. Dropout

    Dropout Active Member

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    That's true. He is in early 80's. I think his kids want to sell but he doesn't. Good man though, very nice & polite
     
  14. jaybean

    jaybean Well-Known Member

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    Here!
    Now that's a shock!
     
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  15. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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  16. Dropout

    Dropout Active Member

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    Thanks Kate Ashmore