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High income stock market trader

Discussion in 'Property Finance' started by yipman, 29th Nov, 2015.

  1. yipman

    yipman Member

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    Gold Coast
    Hi folks,

    Ive earned $350k in this tax year so far from trading the stock market.

    Last year was next to nothing.

    How can i borrow for a property?

    Will anybody lend to me? Or do i have to form a company first with me as a PAYG employee?

    Many Thanks
     
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  2. Omnidragon

    Omnidragon Well-Known Member

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    Set up a hedge fund and draw a fixed salary from it.
     
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  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You could possibly borrow. Even if averaged out over 2 years it would be good income.
     
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  4. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Should be a couple of lenders that will take a look at you :)

    Nice returns, btw.
     
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  5. KayTea

    KayTea Well-Known Member

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    I would love to know how you've managed to select your stocks - they've provided really well for you. Were they bought and sold this year, or have they been a long term hold that have just performed well this year?
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    In your own mind and heart, how duplicateable is the income in future years ?

    ta

    rolf
     
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  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    What Rolf has said is really important - even if a lender would lend you based on a $350k income, if it's not replicable you won't be doing yourself any favours and could easily get yourself in hot water.

    Why was this year so successful when last year wasn't?
     
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  8. Omnidragon

    Omnidragon Well-Known Member

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    The market averages 11% return per annum over the long run. If you have $3m equity investment you should in average make $300k. If you have an edge over the average retail investor you should make 15-20% return meaning you'd need $1.5m-2m to make $300k per annum.
     
  9. MTR

    MTR Well-Known Member Premium Member

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    this is long term though?
     
  10. MTR

    MTR Well-Known Member Premium Member

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    how do you do this, sorry I know very little about this, but like more information:)
     
  11. Beelzebub

    Beelzebub Well-Known Member

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    With those returns why would you buy property? Is it for a PPOR?
     
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  12. mrdobalina

    mrdobalina Well-Known Member

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    Is that this financial year? Considering we are only half way through this financial year.
    Sounds like day trading, or options trading. Highly volatile - win big, but can also lose big.
     
  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I have more than one client that does ok with this stuff consistently, even forex.

    There is def an art to it

    ta
    rolf
     
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  14. Bayview

    Bayview Well-Known Member

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    Just pay cash with yer $350k. It'll be a cheapie, but all good.
     
    Last edited: 30th Nov, 2015
  15. yipman

    yipman Member

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    Thanks for the replies. I've turned $50k into approx $370k since July 1 with no leverage. I mostly trade small to mid caps and some move 5% in a day. I have compounded much of my gains.

    I cannot buy a house with that as my tax bill is currently standing at $120k. I already have PPOR on the way in my other half s name. I wouldn't want to even if my tax bill was zero. Leverage is the name of the game.

    But back to my question of whether a bank would lend on this at the end of the tax year even if i didn't earn another cent?

    Would a low doc loan lender suffice with a sign off from an accountant?

    Thanks
     
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  16. yipman

    yipman Member

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    I guess it depends on the future. I we see a bear market then gains could disappear. This is another reason why i wish to borrow asap.
     
  17. Beelzebub

    Beelzebub Well-Known Member

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    You need to inform me on where I go to learn the information I need to pull this off? I'm Very curious.
     
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  18. yipman

    yipman Member

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    Hi Jess. I simply wasn't trading last year. I can place down a 20% deposit on an IP so the loan would be serviceable as almost cash flow neutral whether i continued to earn $70k per month gross or not.
     
  19. willair

    willair Well-Known Member Premium Member

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    Is that after Tax,just working out the trading days this year so far,,.
     
  20. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Why use cash at all?