Where do i even start!

Discussion in 'Investment Strategy' started by Macca7, 9th Oct, 2019.

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  1. Macca7

    Macca7 Member

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    Hey,

    I am after some guidance as to where to start my investment journey.

    Current situation:

    Investment Unit in Taringa Brisbane - Purchased in 2014 for $400k but probably only worth $375k now. Current rent @ $375 p/wk. Loan amount is $420k, fully offset (so not paying any interest/repayments).

    SOP:
    Cash in offset - $430k
    Cash in business - $200k
    Personal savings - $50k
    Super - $200k

    Income:
    Net business Income $30-60k p/mth
    Personal income (salary) $120k p/annum

    Expenses:
    - Rent $1k p/wk
    - Living $1k pwk

    Options/ideas floating around inside my head are:

    1) Buy most expensive PPOR i can afford, and then pay down as quickly as possible
    2) Start putting surplus cash (circa $30-50k p/mth) into shares (don't even know where to start with this...!)
    3) Buy more property and stick surplus cash in offset
    4) Find a super switched on financial adviser and let then make the decision for me

    Thank you all in advance for your feedback.
     
  2. Trainee

    Trainee Well-Known Member

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    If you have excess cash of 500k a year, why do you need help?
     
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  3. Morgs

    Morgs Well-Known Member Business Member

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    With business income like that you've clearly done something right!

    You could parallel investing with starting & growing a business. There are countless different ways to go about it, and you can get a million different opinions (expert or otherwise) on what to do.

    I think the key is having a vision of what you're looking to achieve in terms of goals, and then coming to your own conclusion on an appropriate strategy for your situation as to how you're going to get there. You also need to put the plan into action, and you'll learn alot along the way. Our strategy for instance has evolved significantly from when it started almost 20 years ago.

    To help expiate that process there are plenty of great posts on this forum and successful people here with which you can take stock from, good luck with it!
     
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  4. Macca7

    Macca7 Member

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    Clearly a sarcastic question but on the odd chance it’s not....I’m young, immature (in a business sense) and just want to make sure i invest in a way that gives me the best foundation to grow my wealth outside of my core business.
     
  5. Trainee

    Trainee Well-Known Member

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    Not really. The point is with that sort of income you dont need much growth (which has more risk) just preservation. Your investment plan should be tilted towards safety. The other thing might be, is the business something you can sell later on, and if so are you holding it in the appropriate entity? If you have a partner and kids, there might be other benefits.
     
  6. Beano

    Beano Well-Known Member

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    1) Buy most expensive PPOR i can afford, and then pay down as quickly as possible


    Buy the cheapest house you are happy to live in (with no or small mortgage) . Invest the rest (or borrow using your PPOR as security)
     
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  7. Fargo

    Fargo Well-Known Member

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    If you want to live in an expensive house rent. Buy commercial property, invest surplus equity/cashflow in shares. This will give growing revenue. The more a house costs the more expenses such as rates maintenance and opportunity cost. will esculate.
     
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  8. Hari

    Hari Active Member

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    With that income, you should be looking to seek investment advice via financial planners. I don't have experience with them, but hopefully, they know what they do.

    If you want to get exposure to shares/commodities/etf's/bonds etc, there are a few investment firms who do this with decent track records for clients with more than 200K investment, with varying risk profiles.
     
  9. Sackie

    Sackie Well-known cafe bum of the East Premium Member

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    I bet my bottom dollar many FAs and FPs need advice themselves on wealth creation.
     
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  10. The Y-man

    The Y-man Moderator Staff Member

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    Good on you. The question was definitely not sarcastic - the money you are putting aside per month is equivalent to what many people put aside per year and it is great you see that you may need to invest elsewhere rather than back into the business.

    The Y-man
     
  11. Sackie

    Sackie Well-known cafe bum of the East Premium Member

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    Imho most of the successful people I know do this via self education at first, then network with other successful investors. Whatever area you choose, educate yourself on it first. It's really common sense yet many fail to do this.
     
  12. Carol M

    Carol M Well-Known Member

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    Hey, give me your money and I will invest it for you. Or not :)
    I would be sure to diversify, whatever you do, to spread risk.
    And I have to ask, what business makes you such a grand income, my friend.
     
  13. Big A

    Big A Well-Known Member

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    Hey @Macca7, well done for getting yourself in a position to be earning those sort of numbers.
    I was personally one of those people who would only ever invest in resi property only a few years ago. Then I discovered shares , property trusts, mortgage funds. Now I’m reluctant to accumulate any more resi property.

    First I recommend you go over to the shares section of this forum and read everything. That should give you enough info so you have some idea about shares. Don’t be afraid to ask questions in any of the posts or topics that grab your attention. It’s also not a bad idea to speak to an adviser. The hard part is finding a good adviser. Again you will find some guidance on advisers in the shares section on this forum.
     
  14. Ace in the Hole

    Ace in the Hole Well-Known Member

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    We were in a similar position a little while ago.
    Went with option 3) Buy more property and stick surplus cash in offset
    I guess it worked out OK, could have been better, could have been worse.
     
  15. Lindsay_W

    Lindsay_W Well-Known Member

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    The answer was in your question :)
    I assume you have a good accountant already.