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Your Current Asset Allocation

Discussion in 'Property Finance' started by kierank, 3rd May, 2016.

  1. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    1,028
    Location:
    Brisbane
    There is a lot of discussion on PC and in the media about increasing one's property portfolio, about decreasing one's property exposure, about getting more into shares, about reducing debt, about building up cash reserves for the 'dark times' ahead, etc.

    Given all of this, I am interested in what other PC members' current asset allocations and LVRs are. Obviously not in dollar terms but as a percentage.

    To keep it simple and to try to standardise across responses, I would suggest we use the following four asset classes:
    1. Property (including PPOR, IPs, unlisted property trusts, etc)
    2. Shares (direct, managed funds, domestic, international, etc)
    3. Cash (bank accounts, offset accounts, etc)
    4. Other (non-investment items such as home contents, cars, toys, etc)
    For LVRs, I was thinking of using the following two ratios (where debt is Total Debt including PPOR loans, IP loans, car loans, credit cards balances, etc):
    • Total Debt as a percentage one's property portfolio
    • Total Debt as a percentage against one's total assets (sum of 1 to 4 above)
    Obviously, one age has some relevance as well.

    I trust others might be interested as well.
     
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  2. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    1,028
    Location:
    Brisbane
    I am happy to kick the thread off with mine.

    Age: 60​
    1. Property: 65%
    2. Shares: 25%
    3. Cash: 8%
    4. Other: 2%
    • Total Debt as a percentage one's property portfolio: 48%
    • Total Debt as a percentage against one's total assets: 31%
     
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  3. wylie

    wylie Moderator Staff Member

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    Location:
    Brisbane
    Should you have a category for superannuation?
     
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  4. EN710

    EN710 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,143
    Location:
    NSW
    Age 28

    Property about 70%
    Cash 25% ish
    Super 3-4%
    Share 1%
    Something like that

    Debt on portfolio about 82% and hoping to reduce this
     
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  5. kierank

    kierank Well-Known Member

    Joined:
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    Posts:
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    Location:
    Brisbane
    To me, Super is not an asset class. It is an owner of assets, like all other trusts.

    I put my assets in Super under Shares, Property and Cash as listed in OP
     
    Last edited: 3rd May, 2016
    wylie likes this.
  6. scienceman

    scienceman Active Member

    Joined:
    23rd Feb, 2016
    Posts:
    34
    Location:
    Sydney
    For me it's age 52 and:

    Super 8.5%
    Property (PPOR only) 35.5%
    Cash 52.4
    Shares 1.1
    Other 2.5

    Total Debt: Zero

    With no debt and a fair bit of cash I could upgrade to a better home without borrowing and / or buy some more shares (have done very well in the past with shares).
     
    kierank, ellejay, Xenia and 1 other person like this.
  7. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    784
    Location:
    Adelaide
    Estimated.. age 24..

    Property (equity - cant count the banks share) : 42%
    Other: 8%
    Shares : 13%
    Cash: 37%

    Debt vs Total Asset Value: 61%
     
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  8. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,949
    Location:
    Brisbane
    Age 55 (joint with hubby).

    Property 80%
    Shares (held in super) 20%
    Debt = 20%
    Cash buffer "nil" (because we have access to a LOC or super we can draw on if we really need to)
    I never count "other" (cars etc)
     
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  9. Bunlee

    Bunlee Active Member

    Joined:
    18th Jun, 2015
    Posts:
    37
    Location:
    Sydney
    Age: 55

    Total debt as % of estimated property value: 15%
    Total debt as % of income producing assets: 12%

    Cars, appliances, furniture, etc not counted as assets

    Allocation of income producing assets:

    Property: 78%

    Shares: 22%

    Cash: Not counted as asset until placed into income producing investment - may be directed to consumption over time.

    Regards
     
    kierank likes this.
  10. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    1,714
    Location:
    Brisbane..
    Age,60..

    Property ..67%..

    Cash..10%..

    Asx listed and IPO'S..23%..

    No debt on anything,just always pays to have a cash buffer and adapt..
     
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  11. Vanillascent

    Vanillascent Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    51
    Location:
    Brisbane
    Age 27

    Property: 90%
    Cash: 1.5%
    Super: 5.5%
    Shares: 0%
    Other: 3%

    Total Debt as a percentage one's property portfolio: 87%
    Total Debt as a percentage against one's total assets: 78%

    Bearing in mind I have a $70,000 HECs debt haha. I also just paid all of my major bills for the year so cash has gone down significantly.

    Also for those that like tracking this stuff, I highly recommend www.anzmoneymanager.com - you don't need to be with ANZ to use it and it has great finance tracking and graphing that shows you how you are going over time. It spit this information out for me and automatically updates my assets daily by pulling in data from my various banks, super, awards programs etc.

    Benita
     
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  12. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,566
    Location:
    Melbourne, Australia
    Aged 30 - Wife and I (1 child - aged 1.5 years)

    Property: 70%
    Cash: 2%
    Super (90% shares/10% cash): 15%
    Shares (outside super): 3%
    Other: 10%

    Total Debt as a percentage one's property portfolio: 57%
    Total Debt as a percentage against one's total assets: 40%

    However this will drastically change in the next couple of months I feel...
     
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  13. JameZ

    JameZ Active Member

    Joined:
    18th Jun, 2015
    Posts:
    29
    Location:
    Sydney
    Age 30

    Property: 94%
    Shares: 2%
    Cash: 2%
    Other: 2%

    Total Debt as a percentage one's property portfolio:83%
    Total Debt as a percentage against one's total assets: 80%

    Diversify you say? What's that...
     
    kierank likes this.