I've grown up my whole life hearing that property only goes up!

No investment ever only goes up, even the best performers have had bad days

 

Colombian necktie perhaps ..

 

I dumped my last IO loan for P&I this week for a nice interest rate discount

I had 3 loans that were supposed to roll over in 2020, the "P&I cliff". None my IO loans exist any more. Just sayin'

 

Heh heh, yeah, Im a lucky barsteward !
No skill, just lucky I guess. I did hear once that you can make your own luck....how do they do that?

 

Dunno about you but our property investments did !

 

@Perthguy do tell... what rate

 

4.09% fixed for 5 years. It's probably high but I can't be bothered refinancing and it's not that long ago I was paying over 9%. Seems cheap to me.

 

A bit of mischief on the title of this thread:

I have a granddaughter who has “grown up her whole life hearing that her grandfather‘s share portfolio only goes up”!!!!

She was born a week ago . Yep, last week was a great week in so many ways.

I asked her father (my son) if my new granddaughter bought any shares yet. His response was that she doesn’t have any money.

I reminded him that we bought him his first shares (Westfield) when he was 6 months old and he better lift his game as a parent .

BTW, he is now 32 and still owns those shares. A bit of a B+H investor like his old man .

Better get back on topic .

 

Yeah but you were just a lucky baby boomer, the tax environment has changed since then and expecting to be able to replicate your results by doing the exact same thing is naive! Kids can't have investment income more than $416 or they get taxed punitively!
END JOKE - in case it is not clear

Cheers,
Inertia.

 

Actually, serious question. If one were buying shares for one's kids today, presumably getting something that focuses on growth instead of dividends would make sense... Any suggestions on ETFs, LICs, that focus on growth? Maybe I should just go some BRK-B

Cheers,
Inertia.

 

I am so “naive” that I plan to push my “luck” this week. I am going to keep my shares and expect them to go up every day.

If they don’t, I will blame my new granddaughter and remove her from my Will .

 

When our kids were young, we wanted them to own shares in a company that had a physical presence and contributed to the Australian economy. Hence, we bought Westfield.

Every time we went to a Westfield shopping centre, we would show our kids the “bricks” that they owned. It worked and they felt they owned part of those shopping centres.

In fact, we would get chastised if we ever visited a non-Westfield shopping centre . Even today, at 34 and 32, they poke fun at us and point to “their bricks” .

Interesting my son has another daughter who is four. They bought her shares in Westfarmers (for the same reasons we chose Westfield for him). She already knows a lot of the Wesfarmers’ businesses such as Bunnings, Coles, KMart, Target, OfficeWorks, etc and “forces” her parents to shop at the businesses she “owns” .

When my son comes home from work and tells her she had a good day on the sharemarket (that is, WES went up), she yells “Don’t sell them yet, Dadda!!!”.

Another B+H investor in the making and she is only FOUR. When Wesfarmers demerges Coles, her share portfolio will gain another shareholding .

Back to your question:

Probably LICs and EFTs make more sense from a financial perspective (diversification, etc) but they don’t directly own any that one can touch and feel.

But I would definitely go for growth and use DRP to increase the number of shares owned. We did and our son does.

We love the way our kids and grandkids feel they actually own something.

Definitely NOT advice.

 

Out with the old:
- Australia is different
- Prices may plateau but they invariably keep going up
- These people are so smart, they bought in blah blah and blah and now the prices have gone up in blah blah and bla
- You need to scrape up every penny and get in now or you will never get into the market

In with the new:
– Australia house prices are not overly special to the rest of the world or at least to property cycles and reality
– Some Australia property prices are getting hit hard and may do so for many months yet
– Prices will not keep going up if wages don’t keep up & the gig economy prevails over long term job security
– Prices will not keep going up forever if bank lending keeps tightening
– Australia is not a get rich quick property scheme

 

The last time I looked prices have already fallen back
I guess we just dont know how far? Or how long?

APRA worked, put the brakes on

Just wander when credit squeeze eases

 

Yep - from yellow bedroom - khaki green bedroom - purple/orange lounge - pink dining room - to something a little more acceptable. We left the blue kitchen as it looked okay ... now I'm not so sure, but it will do for tenants.

Was so ******' hot in near 40 degree heat!

Before:



After:

 

Gorgeous col

Gorgeous colour choices .
Very prestigious look

 

That's beautiful, @Lizzie. Did you get to do it this time with any Air con and power connected?

 

Looks amazing! I love the great/white combo. It looks really smart.

 

Power was on but no aircon ... 2 blocks from the beach so usually doesn't need it.

Advised by agent today that asking rent went up by $50/wk due to paint ... $2,500/yr for 4 days work and a few hundred dollars

 

Would you say this even for areas outside Syd/Mel ? i.e. say a region centre that has modest/ok growth.