Strategy for high income earners with little deposit/savings

Discussion in 'Investment Strategy' started by B-Mac, 1st Apr, 2016.

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  1. neK

    neK Well-Known Member

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    Chasing capital depreciation to offset income is no different to buying a heavily negatively geared property to get a tax deduction.

    It's silly and should not be the focus.

    The property investment should be picked on its ability to generate income / capital growth or both. Chasing it for tax reasons is asking for trouble.
     
  2. hammer

    hammer Well-Known Member

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    Keep that up and you'll become very rich!.....seems to me like you have everything to lose rather than the other way round.

    I'd be investing in some good advice.
     
  3. radson

    radson Well-Known Member

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    A bit of a late start after a wayward decade of spending in my 30s :)
     
  4. Bran

    Bran Well-Known Member

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    I'm in the same boat and posted the same thing exactly 12 months ago - I had no cash, equity or buffer.

    Since then, I've managed to pay most off a 100k bad debt last year with 'savings', buy two houses and accrue a few months buffer.

    We spend nothing and live modestly. I drive the crappest car in the workplace, suburb, maybe city. Time will hopefully change the lack of wealth!
     
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  5. JDP1

    JDP1 Well-Known Member

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    You can pretty much pi $$ it all at the casino every week and make more the following week than most members here combined...who are you kidding.. :);)
     
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  6. Angel

    Angel Well-Known Member

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    you must be jealous
     
  7. Bran

    Bran Well-Known Member

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    I was driven home in a brand spanking BMW M3 tonight. No way would I fork out for that over my version of a car.
     
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  8. bythebay

    bythebay Well-Known Member

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    Start. Saving.
     
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  9. Ted Varrick

    Ted Varrick Well-Known Member

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    Hi B-Mac,

    There are a heap of other suggestions here, but nobody has actually suggested, so I might as well, keep doing what you are doing, and find a bank/2nd tier/3rd tier lender that will lend you a truckload of coin, hock yourself up to the eyeballs, and (after careful consideration) speculate on the Sydney residential property market. Another thread will advocate how it will never go down, but some caution should be taken, given the consequences of a belief in a "sure thing".

    Alternatively, Winx has had a great run of late for for Chris Waller, why not think about diversifying your bets?
     
  10. sash

    sash Well-Known Member

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    I know a person who was exactly in your shoes....

    They started by borrowing on a personal loan..and then buying a place with the savings. But the advice below is true:

    1. Spend more than you earn - MISERY
    2. Spend less than you earn - HAPPINESS
     
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  11. Sackie

    Sackie Well-Known Member

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    In my opinion whether your on an average income or high income isn't really the issue. Higher incomes only increase possible investment strategies that may be available to you but doesnt necessarily mean that by adopting one of those strategies will make it the 'quickest option' for you to achieving FF and indeed may be the quickest path to bankruptcy.

    Your strategy should take into account your goals, level of commitment, financial capacity, risk and investment knowledge.

    You ask what i presume to be the 'best/quickest strategy for high income low savings to financial freedom'?

    I would be saving like an obsessed mad man, flooding my brain with property investment basics via books (there is a ton to learn here), forum, networking, working on strengthening my mindset and then taking informed action as soon as financially possible.
     
  12. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    I echo all the posts above that advise to start saving now. There is no way around it and it holds the key for all future strategies. So at the risk of sounding like a grumpy old fart "suck it up princess" and start saving. In the short term how you do this and what it is invested in is irrelevant. It is the habit that will change your life.

    Great post, great honesty. Be 100% ok with where you are at. You are 24, and have had your travel/party experiences. Nothing wrong with that at all. The fact you are here asking these questions means you want something more long term. Stay with that - feel the nature of the question you are asking and realise the profound truth that what you want can be achieved but will require different inputs that what you have achieved thus far.

    Yes personally I would lean towards "active" investment models for someone young, high energy, high income. Will discuss below.

    This is a great post, save and learn is best advice for the next 6 months. This will give you the foundation for starting everything else.

    NOW - lots of people advise new units in capital cities for high income earners. If you want a hands off long term investment that is fine but the returns tend to be smaller. If you want speed of growth and max wealth I suggest older homes, on large blocks, in current growth markets, suitable for redevelopment in the future. You get great growth now, small tax savings now, and max upside in medium term when you build, then you get really BIG tax savings for many yrs after construction plus all the growth. No downside except it is cash and time intensive when you actually do the development. But if you get a couple of sites under your belt now, then you can save and live and cross that bridge when you get to it in a few yrs or so. In terms of what markets to consider, I would suggest a few ripple markets out of Sydney but I am biased, heaps of discussion on the forum about viable markets that are primed for short term growth right now.
     
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  13. ZachAnsel

    ZachAnsel Well-Known Member

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    I just thinking outside the box, you can partnering/joint venture. Also how about parent's guarantee for deposit, and you paying the interest.

    Regardless which one, always seek legal, tax adviser on top standard due dilligence
     

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