Looking for some advice on general investment strategies

[Miqar_Baqfhied]

Hi, just looking for some general advice on smart investment strategies to look into given our pretty modest financial situation.

Just looking for some general advice or ideas on making some smart initial investments.

We have enough savings to potentially invest in some shares (can commit around $4000 to $5000).

We are also open to the idea of moving house and leasing our current house.

We both come from economically conservative families and have no idea where to start.

Any other ideas or advice would be appreciated!

Thanks

 

[George Washington]

I imagine the best thing you could do at the moment is pay down that car loan as fast as possible, after that probably into an offset account on the mortgage.

In the meantime you want to try and educate yourself as much as possible, perhaps try and get your hands on a copy of this book which I think is a good place to start, perhaps your library might have a copy! https://www.motivatedmoney.com.au/store.php

I'm sure others will have other books they would recommend to start with as well.

 

[quickstraw]

Education.

Start with this: Robert Kyosaki - Rich Dad, Poor Dad

It's a pretty light weight book and doesn't get into any specific nuts and bolts but really does display how to invest money in general. Perfect for a starter. And a good motivational book.

At some stage you will need to decide between property or stocks/bonds and other financial products. Maybe you read some books on both but be aware, as a conservative you don't want to be trading shares, options, CFDs, or Forex. That is trading, not investing. It's for experienced people. You want to be doing buy and hold with either property or stocks using negative gearing.

Tip: this is really important: don't under any circumstances take advice on property investing from financial adviser or stocks guy. It's a totally different investment class and the philosophies to investing are different. Unfortunately stock fanbois are so arrogant they think they can simply apply the same rules as stock investing. Not true.

Property investing is easier and much more simpler to understand. Stocks right now have a better short term and probably medium term future in terms of growth. I would suggest starting in shares and once you have a deposit ready, consider a switch. For a buy and hold strategy property can usually get better returns.

You should consider reading this books for a blueprint on how to invest in property:

Michael Yardney: How to build a multi million dollar property portfolio in your own time

Tip 2: also really important. Property investment is DIY. It's quite simple. Don't under any circumstances sign up with a company to hold your hand (inc. Yardney's Metropole). They aren't giving their time for free and it's not stuff you can't do yourself if you have over 100 IQ.

Tip 3: Ask someone to recommend a beginners book on stock market investing.

 

[dmc333]

I wouldn't give any money to Michael Yardney given his history.

 

[quickstraw]

I wouldn't give any money to Michael Yardney given his history.

What's his history?

As an expert on real estate he's always on the money. I've never heard anything positive or negative about Metropole and his property mentoring programs. What do you know, what have you heard etc?

I suggest following his advice by reading his books, just don't give him or any other property spruiker any money - property is pretty easy and it's DIY. If you need to pay someone to hold your hand then you should be just putting your money in a term deposit for a s**t return.

 

[dmc333]

What's his history?

As an expert on real estate he's always on the money. I've never heard anything positive or negative about Metropole and his property mentoring programs. What do you know, what have you heard etc?

I suggest following his advice by reading his books, just don't give him or any other property spruiker any money - property is pretty easy and it's DIY. If you need to pay someone to hold your hand then you should be just putting your money in a term deposit for a s**t return.

Let's just say Michael Yardney used to be a doctor.

 

[Scotland]

quickstraw sez:

Tip: this is really important: don't under any circumstances take advice on property investing from financial adviser or stocks guy. It's a totally different investment class and the philosophies to investing are different. Unfortunately stock fanbois are so arrogant they think they can simply apply the same rules as stock investing. Not true.

I sez: be very wary of any advice on property investment that comes from someone with a vested interest in property investment.

quickstraw is right, property investment isn't rocket science. It's also an 'investment class' filled with self interested dickheads and people who made a killing when any idiot could do it that have nothing to offer beyond 'property doubles every 7-10 years, look it did for this 20 year period so it has forever and will forever the end'.

You only need to look at the real estate section in the paper or real estate sections on the news. 'Boom suburbs' according to property developers with significant land holdings in said suburbs, articles about how it's a brilliant time to invest just because interest rates are low. Etc. Pass.

Do plenty of research and learn how it all works, then look at where you might want to invest, what you're looking for etc.

 

[Pykie]

quickstraw sez:



I sez: be very wary of any advice on property investment that comes from someone with a vested interest in property investment.

quickstraw is right, property investment isn't rocket science. It's also an 'investment class' filled with self interested dickheads and people who made a killing when any idiot could do it that have nothing to offer beyond 'property doubles every 7-10 years, look it did for this 20 year period so it has forever and will forever the end'.

You only need to look at the real estate section in the paper or real estate sections on the news. 'Boom suburbs' according to property developers with significant land holdings in said suburbs, articles about how it's a brilliant time to invest just because interest rates are low. Etc. Pass.

Do plenty of research and learn how it all works, then look at where you might want to invest, what you're looking for etc.

It's not rocket science but there's a huge difference between doing it, and doing it well.

It takes years of experience, knowledge and a knack for knowing what people want and how to do it.

Any mug can buy a property and rent it out.

Not anyone can do developments and not anyone can generate equity within properties inside of a few weeks.

 

[Ted Nugent]

quickstraw sez:



I sez: be very wary of any advice on property investment that comes from someone with a vested interest in property investment.

quickstraw is right, property investment isn't rocket science. It's also an 'investment class' filled with self interested dickheads and people who made a killing when any idiot could do it that have nothing to offer beyond 'property doubles every 7-10 years, look it did for this 20 year period so it has forever and will forever the end'.

You only need to look at the real estate section in the paper or real estate sections on the news. 'Boom suburbs' according to property developers with significant land holdings in said suburbs, articles about how it's a brilliant time to invest just because interest rates are low. Etc. Pass.

Do plenty of research and learn how it all works, then look at where you might want to invest, what you're looking for etc.

Why bother quoting someone if you're just going to repeat what they said?

 

[sabre_ac]

It's not rocket science but there's a huge difference between doing it, and doing it well.

It takes years of experience, knowledge and a knack for knowing what people want and how to do it.

Any mug can buy a property and rent it out.

Not anyone can do developments and not anyone can generate equity within properties inside of a few weeks.

Is it overly cynical to suggest that people who generate equity within a few weeks are taking advantage of the Mug's you referred to earlier?

 

[quickstraw]

Is it overly cynical to suggest that people who generate equity within a few weeks are taking advantage of the Mug's you referred to earlier?

Nope. Some people buy property at market value and create equity with sub divs and renos. it's a skills that doesn't have to have any victims.

 

[benchwarmer5]

A couple of informative reads
One up on wall st
Intelligent investor

 

[Power Raid]

Hi, just looking for some general advice on smart investment strategies to look into given our pretty modest financial situation.

Just looking for some general advice or ideas on making some smart initial investments.

We have enough savings to potentially invest in some shares (can commit around $4000 to $5000).

We are also open to the idea of moving house and leasing our current house.

We both come from economically conservative families and have no idea where to start.

Any other ideas or advice would be appreciated!

Thanks

what industry do you work in?

It is always helpful to invest in things you understand and are passionate about.

 

[georgenelson]

First of all settle your home and start the next level. Before investing my advice is to get some expert ideas through Infrastructure Banking.

 

[quickstraw]

First of all settle your home and start the next level.

That you Grandpa?

 

[basashi]

For a buy and hold strategy property can usually get better returns.

I don't think the evidence is there to support that. Maybe the beauty of property is that you can make a bigger investment relative to your income due to the LVR.... but 500k in property vs 500k in shares over the long term? No you can't put property ahead.

 

[quickstraw]

I don't think the evidence is there to support that. Maybe the beauty of property is that you can make a bigger investment relative to your income due to the LVR.... but 500k in property vs 500k in shares over the long term? No you can't put property ahead.

Not understand why you are removing the advantage property has over stocks and then claiming shares gets better returns? Why are you so obviously biased? The reality is an investor with $500k wouldn't go out and buy a $500k property. They'd leverage it and buy $2m/2.5m worth.

Now go do the sums.

<why are guys who invest in stocks such arrogant delusional f*** heads?>

 

[George Washington]

Not understand why you are removing the advantage property has over stocks and then claiming shares gets better returns? Why are you so obviously biased? The reality is an investor with $500k wouldn't go out and buy a $500k property. They'd leverage it and buy $2m/2.5m worth.

Now go do the sums.

<why are guys who invest in stocks such arrogant delusional f*** heads?>

Don't think you can compare leveraged returns against non leveraged returns.

 

[quickstraw]

Don't think you can compare leveraged returns against non leveraged returns.

But you can compare leveraged returns with both. Property wins for buy and hold strategy. Stocks are for traders or retirees who want an income. People who want to build wealth over the long term via buy and hold will get better returns with property due to better LVR rates. And yes, I know it's possible to get 80% on some blue chips but lenders don't always offer it to investors without a lot of experience, and then with a balanced PF the LVR will go down.

 

[basashi]

Not understand why you are removing the advantage property has over stocks and then claiming shares gets better returns? Why are you so obviously biased? The reality is an investor with $500k wouldn't go out and buy a $500k property. They'd leverage it and buy $2m/2.5m worth.

Now go do the sums.

<why are guys who invest in stocks such arrogant delusional f*** heads?>

I didn't realize you were not being serious. You are a time waster.

 

[quickstraw]

I didn't realize you were not being serious. You are a time waster.

At least make an effort to compare apples to apples. Real apples, as in leverage apples.

 

[Power Raid]

Not understand why you are removing the advantage property has over stocks and then claiming shares gets better returns? Why are you so obviously biased? The reality is an investor with $500k wouldn't go out and buy a $500k property. They'd leverage it and buy $2m/2.5m worth.

Now go do the sums.

<why are guys who invest in stocks such arrogant delusional f*** heads?>

I invest in both and found properties for rent are too much hassle (10% yields), property developments are good especially if you sell house and land packages (but get out before the build - 30% yields), convertible securities provide low risk and low hassle 30% yields and stocks 40%.

So I guess it depends on ones risk return appetite and time.

 

[quickstraw]

I invest in both and found properties for rent are too much hassle (10% yields), property developments are good especially if you sell house and land packages (but get out before the build - 30% yields), convertible securities provide low risk and low hassle 30% yields and stocks 40%.

So I guess it depends on ones risk return appetite and time.

Tell me about these buy and hold stocks (because that is the discussion you entered into) that yield 40%.

 

[Power Raid]

Tell me about these buy and hold stocks (because that is the discussion you entered into) that yield 40%.

I wouldn't call them buy and hold stocks rather trading stocks.

By buying listed stock off market at 20% below market prices and trading is a no brainer. Buying unlisted stocks and taking them to the market normally generates 4 times return but sometime 20 times return.

Then you have special situations stocks that are about to do something that gets the market excited.

One that I had a windfall on recently was cassini

Since 1997, our fund has generated on average ~38% pa with the worst year generating ~32%pa

 

[benchwarmer5]

20% off market prices ???? What kind of rort is this