Where will be your next investment?

I voted overseas for VGS Index fund

 

Voted Melbourne

 

I'd select Hobert if I knew where that was

 

I voted Regional and am looking at my next purchase being in Ipswich. Have been very happy with my last one there and there is still the opportunity to buy well. Although less than 12 months ago.

 

I don't think The Swich is regional any more than Parramatta MB.

 

Syd/Melb no longer make sense for me generally speaking. Putting aside a few unique opportunities I'm looking at (off market development sites), for standard investments I am looking in Asia. Much better value there're.

 

good suggestion Terry : ), maybe I should have a option called "Shares, commodities or bonds" I think this would cover 99% of all investments. A bit too late to add that now.

 

There is also a lot going in Melbourne South around the Officer/Clyde North. The land price has been creeping up despite being 40-50kms from CBD. Only concern there is still farms galore so not sure in the long term if the rises will be maintained. Same with Northern corridor Mernad, Doreen, and with the anouncement of the train line extension to Mernda in the short term will see some increase again long term might be a different story.

 

Shares via a debt recycling strategy

 

Properties via debt recycling strategy. Superior to shares - higher LVR. No margin calls. Lower rates.

65K of cash or equity will cover 12% + costs for a dual occ in regional NSW ( 4 bed + 1 bed detached granny flat ) which will produce 8-10K CF+ after tax income. ie 65K buys you 12 - 15% return on equity. If I compare that to shares, thats the same as generating 12- 15% fully franked dividends on 65K invested.

Then reinvest the 8-10K towards debt reduction, for a further compounding return. Improve your borrowing capacity as a result of the debt reduction. Repeat. ie deploy another 65K and buy another 8-10K of income. Repeat as many times as you are able to. Just like dividend reinvestment in a share portfolio, except it's far more potent.

 

Hey euro, do you have any past examples of this, sounds attractive.

 

Sure. I have been employing NRAS and dual occ to do this for a very long time. Both options provide between 8-10K CF+ per dwelling. That surplus cash flow can then be used to reduce debt. Many PC members are clients of mine, and are doing the same....

I have written many very detailed posts on the subject over the past few years, which include detailed calculations and screenshots of the debt reduction outcomes. So rather than repeating them here, just do a quick search - they'll be very easy to find.

I have clients who are what you might call "numbers people" with a very keen interest in the share market, and even they concur that the results just cant be replicated in shares, and they have migrated towards this strategy rather than shares.

Its fairly simple in the end - you cant leverage as high with shares - resi loans allow far higher gearing than margin loans . You cant leverage as safely - resi loans arent at call, margin loans are. You cant get the same ROE consistently - shares dont routinely deliver year on year 12-15% ROE just from their yields/dividends. And the other biggie- capital preservation...share market can have you up one day, down the next. resi property just doesnt tend to be that volatile.

PM me if you would prefer to discuss specifics re your circumstances

 

ASX and other forms of small investment are becoming appealing
Basically, I've hit "the financial WALL"
So any so called extra funds l now come accross will be invested in the stock market (l dont see them performing as well in an offset)
Right up to the point l have enough to support the next property, then out of shares to hit "the wall" yet again.

(Buy and hold )

 

I just don't seem to have much luck with stock, I know a few who have invested their vast amount of money and time with mediocre results. I started with half RE and half shares and now I have almost completely divested from shares. Maybe some days I might go back to it, but I have yet so see any role models in my friends and family circle that have done well enough for me to follow.

 

I am out of Australian market for now

We just purchased a 35,000 sq foot commercial property in Boston, 3rd hottest market in USA at auction

Plan is to look at converting building into condos, retain ground floor commercial/retail. Rents very high in Boston, while demand is pushing prices north

 

So ladies and gents, based on this poll (135 votes), it seems that Melbourne is on par with Brisbane. We'll call it a PC indicator

 

Me neither $130k down at last count
But swings and roundabouts

 

Voted Regional (Geelong) and in fact got one under contract at Newcomb earlier this week. I can only afford cheapies now but to me Newcomb has great potential due to its proximity to Geelong CBD (only 3km) and neighbouring suburbs have all creeped up. The deal is a 2 bedder house on 520sqm corner block with potential to turn into a 3 bedder.

If budget is not an issue I would jump into Melbourne but otherwise look at jumping on the Geelong boat which seems to be also on the rise. That's after having bought 4 in QLD which are all very yield focused though

 

Brisbane was leading by a large margin until the Debbie hits QLD. It kinda reminded not to put too many eggs in one basket. oh well, a bit too late now... fingers cross for now.

 

According to domain:
http://www.domain.com.au/product/wp...79_Domain_Rent_House_Report_December_2016.pdf

Sydney is 1.1m
Melborne is 795k
Brisbane is 540k

Will see, in 5 years, which will gain the most in % terms. My bet is still with Brisbane, hopefully it this will start to materialise within the next two years.