Looking for some advice on general investment strategies

Miqar_Baqfhied

Cancelled
May 31, 2012
2,442
1,572
AFL Club
West Coast
Other Teams
Swan Districts
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
 
Last edited:

(Log in to remove this ad.)

George Washington

Premiership Player
Jul 29, 2008
4,382
1,885
Melbourne
AFL Club
Essendon
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

Club Legend
Oct 6, 2001
2,352
851
E-Girls
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.
 

quickstraw

Club Legend
Oct 6, 2001
2,352
851
E-Girls
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 shit return.
 

dmc333

Brownlow Medallist
Mar 21, 2006
12,941
9,109
On Deadly Ground
AFL Club
Brisbane Lions
Other Teams
Seagal, Hull, Hibs
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 shit return.
Let's just say Michael Yardney used to be a doctor.
 

Scotland

TheBrownDog
May 5, 2006
52,108
54,708
AFL Club
West Coast
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

Brownlow Medallist
Sep 17, 2006
15,611
29,620
Lord's
AFL Club
North Melbourne
Other Teams
Leeds United
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

Debutant
Feb 22, 2014
56
29
AFL Club
West Coast
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

Moderator
Sep 10, 2000
14,059
557
Perth
AFL Club
Fremantle
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?
 

(Log in to remove this ad.)

Power Raid

TheBrownDog
Oct 15, 2004
63,479
52,153
West Perth
AFL Club
Port Adelaide
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.
 

basashi

Premiership Player
Jun 18, 2010
3,721
4,779
AFL Club
Fremantle
Other Teams
FFC Quay Club
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

Club Legend
Oct 6, 2001
2,352
851
E-Girls
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

Premiership Player
Jul 29, 2008
4,382
1,885
Melbourne
AFL Club
Essendon
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

Club Legend
Oct 6, 2001
2,352
851
E-Girls
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

Premiership Player
Jun 18, 2010
3,721
4,779
AFL Club
Fremantle
Other Teams
FFC Quay Club
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.
 

Power Raid

TheBrownDog
Oct 15, 2004
63,479
52,153
West Perth
AFL Club
Port Adelaide
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

Club Legend
Oct 6, 2001
2,352
851
E-Girls
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

TheBrownDog
Oct 15, 2004
63,479
52,153
West Perth
AFL Club
Port Adelaide
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
 

Top Bottom