Who do I ask for help?

Discussion in 'Investment Strategy' started by Michelle T, 14th Feb, 2020.

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  1. Michelle T

    Michelle T New Member

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    Hi All, I'm new to this group and an absolute beginner to the concept of Investment. Im nearly 50 and just plodded along like many paying off my home. Now, along with a recent modest inheritance, I have a bit of extra cash plus equity in my home and am looking at what strategies to use for investment? The problem is I dont know anything and to be honest, I dont understand a lot of what i read on here? I've been to a couple of seminars by Positive Real Estate, and been contacted by another Investment group called Nupath- both which say they will do all the hard work for you, for a fee of course! This includes giving you financial advice, helping buy properties etc. All the feedback on here seems to indicate to be wary of those types of groups but that's what I need? Whilst I'm fine to do the real estate market research etc, I need major help with my investment strategies? So who do I trust? I live in Toowoomba QLD so any local companies (or even in Brisbane) people could recommend would be wonderful! (Please dont tell me just to keep reading etc, Im already doing that and its not becoming much clearer which is why Im asking for professional advice!). Thanks!
     
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    You might be best helped by contacting a financial planner who could discuss all aspects of your financial situation and to develop a strategy. Many have no idea about property as that doesn't pay a commission but many FPs are now independent so you would probably end up paying a fee for service.

    If your deadset going down the path of an investment property, then a chat with a finance broker will give you an idea of what you are able to borrow.
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    watch out for anyone selling properties or courses. You probably should see a financial planner - one that charges by the hour rather than by your asset base.
     
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  4. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Read, Read ,Read!
    the good , the bad and the ugly!
    I hope this helps, and keep posting.
     
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  5. wylie

    wylie Moderator Staff Member

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    I've sent a private message to you with a little more background, but you could give Jason a call. He's good. He's on the coast but we met him once, and now mostly deal with him via email, phone. Screen Shot 2020-02-14 at 11.02.56 pm.png
     
  6. Michelle T

    Michelle T New Member

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    Thank you so much! It's difficult knowing who to trust - accountants, property investment advisors, financial advisors - they all say don't trust each other so it gets confusing! I appreciate the referral thanks!
     
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  7. euro73

    euro73 Well-Known Member Business Member

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    The first thing to understand is that there is no such thing as utopia. Perfection doesn't exist. Any property investment ( well, really any investment of any type ) you make is one way or another, a punt to some degree. It's the same risk faced by every investor... because there is no way to absolutely know what the future holds. Just in the last decade or so we have seen a series of lessons to illustrate this ; interest rates can go up or down. Economies can go well or poorly. Global financial events can affect sentiment, banking systems and credit availability. Regulators can influence events. Elections can influence events. Infrastructure can be announced or delayed or delivered . All of these things can affect the outcomes investors achieve.

    So, first decide what you are trying to achieve. Is it a lump sum profit from growth with the intention of selling, taking the profits, paying whatever CGT is owed, then reinvesting the left overs in some other asset class for an income? Or is the plan to generate cash flow so you can pay the property off and live off its income? Deciding this will help you decide whether you want to invest in lower yielding properties that you feel offer strong growth potential, or whether you want to invest in higher yielding properties where the growth is less important to you than the ability for the property to pay for itself without requiring contributions from you.

    Then, get a budget. Having equity is only one side of the equation. You need to know how much of it you can harvest /borrow against, and what you are able to spend....

    Then... stick to your budget and stick to your plan. You are nearly 50. If you buy for growth, that gives you a good 15 years or so before you reach retirement ...and if that strategy works well for you there could be a handsome profit ready to be harvested by 65. If you buy for yield, 15 years provides plenty of time to pay the debt down- especially considering you are mortgage free and have the ability to make large amounts of extra repayments using the money you used to spend on your PPOR mortgage

    Or... circumstances permitting , you could also consider resi property via superannuation ... at 50, with no PPOR mortgage and no debt , you may be in a position to look at the SMSF route in addition to investing personally, where you can leverage to purchase a resi property using an SMSF, set the loan to P&I and pay the property off that way, leaving a tax free income at retirement... You would definitely need to talk to a planner about that strategy...and a broker to determine borrowing capacity

    So.... talk to a planner and broker about what you WANT to do, get a budget and appropriate advice to see what you CAN do, then DO
     
    Last edited: 15th Feb, 2020
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  8. Michelle T

    Michelle T New Member

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    Thank you so much!! That is super helpful and gives me a few starting things to think about before I go see a planner (who would charge me to tell me the same things ). Thanks again!
     
  9. wylie

    wylie Moderator Staff Member

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    Keep in mind that everyone has his or her own idea of what works. We went the property method because we understand it. We don't understand shares, and they seem too volatile for us, but we acknowledge that we likely would have done just as well had we invested into some type of share fund instead of into direct property.

    And now we are heading into our 60s I'm happy to slowly move from houses into less "hands on" investments. I'll need to see an adviser because I'm clueless about all the share products and schemes I read about here.

    With a paid off main residence and an inheritance, perhaps you can find a balance between property and super/shares?

    So a planner/adviser who at least considers property as part of a plan would be good.
     
  10. euro73

    euro73 Well-Known Member Business Member

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    Herein lies the conundrum...most of them wont talk property.
     
  11. Foxy Moron

    Foxy Moron Well-Known Member

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    Hi Michelle
    Good on you for reaching out for help on this forum.
    I live in your local area and will send you a private message just in case you ever want a general catch up / bounce any ideas around in addition to the paid advice you receive from others.
    Am no expert by any means but have a handful of investments in this region and continue to learn from the gems of advice garnered from smart contributors to this forum over the years.
     
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  12. Shogun

    Shogun Well-Known Member

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    Go to a different forum and advice might be put inheritance into Superannuation or buy something like Vanguard shares.

    Property is a lot of work to make money.

    Let's say you buy another house. You manage to pay it and PPOR off in next 15 years. You then retire. You need cash flow to live. Will buying a house get you this result?
     
    Last edited: 15th Feb, 2020