Servicability issues.

I wish I could have more confidence in the share market, but it's like Russian Roulette ...

 

I have been building up a share portfolio as of late.[/QUOTE]

Where would one start to get some knowledge in this area too?

 

Hi all,
I invest in the sharemarket for dividends not capital growth. I have shares that are returning a 6.2% return plus fully frank tax credits.

Where to start? There are some really good forums online that are share marked focused.

 

Guys,

I was wondering as serviceabilty issue become common these days thanks to APRA, has anyone still use Cash Bond to purchase serviceabilty?

I remember in the past @Rixter shared his knowledge, and would like to know wether this still applicable today?

Or is it better wait on the side line?, as we know that this low rates will go up in the future.

Let say I still have $150k, but knowing I will be maxed out after this. Thought?

 

They were a poor use of capital then and even worse now. If you use up your equity to buy an instrument paying a smidgen over interest rates you're likely to decrease your serviceability.

 

Where to start? There are some really good forums online that are share marked focused.[/QUOTE]

Thanks. I'll check it out.
Any good books?

 

Thanks. I'll check it out.
Any good books?[/QUOTE]
Check out Louise Bedfords books - they're a good intro to charts and risk management which is pretty much the most important thing in the sharemarket.

 

@D.T. , sorry I dont 100% clear how this will decrease my serviceability.
Because I buy cash bond (CB) for annuities, so bank/lender can see & accept that as part of my income stream. Any number/calculation to help me make it clear ?

I'm guessing that you means LOC interest rate vs return rate of CB ?, which you right, the return of CB usually lower than LOC. But once you overcome the serviceability issue, you can cancel CB anytime according to PDS.

 

I thought t he share market is currently dropping so wouldn't we wait a while before buying shares?