Property ratio

Discussion in 'Investment Strategy' started by Zimplestiltskin, 15th Aug, 2020.

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  1. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    I am wondering how people diversify their portfolio here.

    What % of investment is in property, shares, crypto, bonds, etc?

    Does anyone here use property equity to buy more liquid assets?
     
  2. mikey7

    mikey7 Well-Known Member

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    100% property
     
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  3. Beano

    Beano Well-Known Member

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    Spread over 95 tenants
     
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  4. Fargo

    Fargo Well-Known Member

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    Yes, 35% shares 3% REIT's , 65% Direct property. Yes again. As far as I am concerned the whole point of property is to secure protect and grow your capital while enabling access to capital and growing more liquid assets in a tax efficient manor. A property should be able to fund growth assets. Not enslave you for decades to fund a growth asset. The property is high because it was bought unconditionally from the sale of shares which is leveraged to buy more shares.
     
    Last edited: 15th Aug, 2020
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  5. PropDir

    PropDir Well-Known Member Business Member

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    I focus purely on property investments. Zero investments anywhere else except superannuation which is diversified across different stuff.
     
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  6. The Y-man

    The Y-man Moderator Staff Member

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    65% resi
    20% shares
    15% comm

    The Y-man
     
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  7. kaibo

    kaibo Well-Known Member

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    include or exclude PPOR from the pie?
     
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  8. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    Thats a good question. I'd say include. PPOR is an investment.
     
  9. Spiralkut

    Spiralkut Well-Known Member

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    I have all my available cash sit in Shares/crypto with a 30/70% ratio I then pull out what I need when I purchase my next property rinse and repeat.
     
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  10. mkbonline

    mkbonline Well-Known Member

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    Barefoot investor (Scott Page) suggest putting bigger chunk in Index funds rather than property because net return after interest in property is much lower over period of time (10+). Index fund 7% pa versus property 3-4% pa. Shouldn’t it be 70/30 split share/property during starting years and use gains from stocks to buy property as debt free as possible closer to your retirement.Any counter views on that ?
     
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  11. Robbo80

    Robbo80 Well-Known Member

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    You need to factor in leverage. Say if you put a deposit of 100k and buy a nuetrally geared 500k prop then a 4% pa gain on that prop equals a 20% gross return on your deposit.

    Index funds are ok for the time poor investor but it has several issues, the main one being you miss out on the initial growth phases of great business stories like a2 milk, afterpay, tesla and more recently kogan, marley spoon, selfwealth, quickfee etc so I do recommend to atleast venture some of your capital into small cap land to achieve some life changing returns.
     
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  12. The.Night.King

    The.Night.King Well-Known Member

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    80% Property
    10% Bitcoins
    10% Precious Metals

    Might also venture into ASX as part of a Debt Recycling Strategy.
     
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  13. Jamesaurus

    Jamesaurus Well-Known Member

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    In my accumulation phase:
    85% resi
    10% shares (in & outside super)
    5% speculative (crypto & VC)
     
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  14. Skinman

    Skinman Well-Known Member

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    Do you base it on current asset value? Or original purchase price of assets?
     
  15. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    Current value.
     
  16. Skinman

    Skinman Well-Known Member

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    70% Resi Prop
    20% Shares (inc super)
    10% Cash and bonds
     
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  17. The Y-man

    The Y-man Moderator Staff Member

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    ... and on current asset value or equity?

    I have done mine on equity (nav)

    The Y-man
     
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  18. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    Value probably makes more sense for this
     
  19. MTR

    MTR Well-Known Member

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    Me too

    However, I wish I had diversified in other asset classes. I guess its never too late
     
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  20. C-mac

    C-mac Well-Known Member

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    I guess the bulk of Australians would have a super fund that is spread across stocks and possibly other asset classes? So, if including all of your own assets and investments (including super) almost everyone would have some degree of shares in their portfolio I'd imagine?