Financial Guidance for My Current Situation?

Lsomeguycalledpaul on 28/08/2016 - 16:22
Last edited 29/08/2016 - 10:03

Hi there,

I’d like some guidance. I understand that providing financial advice over a forum is not really appropriate - but I wouldn’t mind some point of views or guidance as to how to best proceed from here.

Our situation:
  • Male(Me) - Aged 33 - Income ~$240,000

  • Female - Aged 33 - Income ~$147,000

  • Superannuation - Combined - $220,000

  • Cash in bank (Combined) - $300,000
  • Debt - $0
  • My partner has a investment property with probably $100,000 of equity in that she split with her sister.
  • I have no investment properties nor have I ever owned a home.

Current Living situation: Rent Approx $2000/month

  • Married - not yet.
  • Kids - not yet (1.5 years away maybe?)

The long-game here for us to have a nice 3BR property in an area such as Port Melbourne. We’re finding that based on the current market, that would range from $1.1M-$1.5M.

We’re a bit confused about what we should do here.

The strategies available to us are:
0) Do nothing and keep saving
1) Enter into a large mortgage now — the fear of overcommitting big
2) Find something in a lower price point and live there for a bit (avoid capital gains), then look to buy a second place and rent the first place out.
2a) In the area we want to live, which means apartments (i fear oversupply issues in Melbourne)
2b) In a high growth area, probably somewhere we wouldn’t want to live long term.

So what advice can you give us?

If you can recommend a financial planner in melbourne please message me!
Financial

Comments

  • virhlpool on 28/08/2016 - 16:27
    +27

    I would like to congratulate you both. You seem to have done amazing for yourselves. Do you mind me asking what you and your partner do for living? The income levels definitely look quite ('a lot' - I am shy) high for 33 yrs old. You must be doing some interesting stuff.

    • StewBalls on 28/08/2016 - 16:43
      +33

      A lot of people would be wondering the same thing…I suppose the real question is whether 'troll' is classed as a profession or a trade now???

    • someguycalledpaul on 28/08/2016 - 16:44
      +11

      Hi,

      Thanks virhlpool - we both work in Technology; Corporate Strategy / Business Analysis

      • Kangal on 29/08/2016 - 08:25
        +13

        Kogan, is that you?

        • illumination on 30/08/2016 - 00:03
          +6

          Looks like it's some guy called Paul!!

          We shall call him: Paul Kogan

        • hashtagbargain on 31/08/2016 - 15:45
          +1

          @illumination: I'd like his first name to be Hulk…

      • Blottski on 30/08/2016 - 17:34
        +7

        hang on a minute, not wanting to sound like a jerk (i'll put my neg coat on now) you both do strategy and analysis for a living but can't work this out for yourselves?

        Really?

        • jenkemjunkie on 30/08/2016 - 19:02
          +3

          These days people become highly specialised, that they become useless in so many other areas…I've even met engineers paying for dry cleaning because they didn't know how to use a washing machine…but this could be also attributed to them growing up with mummy doing everything for them.

          People need to be more like Renaissance men like the geniuses of the past

        • abb on 31/08/2016 - 12:33
          +5

          @jenkemjunkie: Ain't no "jack of all trades" getting paid $240k though

      • Alfonso on 01/09/2016 - 00:02
        -1

        Well I think you're a really bad saver. 240k a year and you combined only have 300k savings without a full mortgage.. What have you been spending your money on?

        • Zachary on 05/09/2016 - 14:55

          Maybe he just got lucky and scored this job high paying job a sometime ago? Or maybe he spent it on hookers and gambling? :P

  • Google Chrome on 28/08/2016 - 16:35

    Our situation is definately quite similar, I think you should go with option 2 and find some investment properties. I'm not really a fan of renting so I think you should invest the money elsewhere if possible. Although our combined income is only 300k, we have been quite lucky with our investment properties.

    • virhlpool on 28/08/2016 - 16:36

      Incidentally, my above comment applies to you as well, GC! :)

    • someguycalledpaul on 28/08/2016 - 16:50

      Hi GC,

      Thanks. Out of interest, what tools do you use to find/qualify which investment properties?

      • Google Chrome on 28/08/2016 - 17:04
        +1

        I work in banking so I have access to this system where it tracks growth/potential growth areas (even though the system isn't supposed to be used for this purpose) . But these are just predictions and so I only use them as "advice". It also helps that I get monster low investment rates as well :)

        • ozbd on 29/08/2016 - 07:53

          Do you get low investment rates because you work for a bank? If you dont mind me asking, what rate do you get?

        • Google Chrome on 29/08/2016 - 10:03
          +2

          @ozbd:
          I get around 2.9% but it gets reassessed at every year depending on my performance.

        • [Deactivated] on 29/08/2016 - 22:07

          @Google Chrome:

          Nice - do all employees get this rate or is it something special for executives/other high ranking employees?

          Do you have to get a certain rating or meet a target to keep the rate?

        • Google Chrome on 29/08/2016 - 22:33

          @sp00ker: You have to work there for at least 3 years before you can get the base rate of around 3.82%. From there its based on % distribution of revenue generated. The guy that brought in the most revenue is getting like 2.41%. I'm sitting around the top 10% mark.

        • [Deactivated] on 29/08/2016 - 22:35

          @Google Chrome:

          Seems like a very nice FBT-free perk :)

        • Google Chrome on 29/08/2016 - 22:37

          @sp00ker: It makes people work harder, because if you don't keep up with everyone else, you'll quickly drop down to the junktime rates.

        • ozbd on 30/08/2016 - 10:47

          I know a few people who work for banks and none of them get good discount on loan rates.

      • Lets Make Sandwiches on 31/08/2016 - 06:19
        +1

        Convert to a self managed super fund and combine all balances. Invest in a positively geared property that has high rental yields as tax benefits are reduced (can't claim full negative gearing as the super fund owns the property - however you can deduct the depreciation on a new property against the tax taken from additional contributions). On the other point, make sure you're each sinking 25k into super to get the 15pc marginal tax rate on contributions.

        Invest in new property - claim 2% depreciation on the property for 40 years and get a quantity surveyor to estimate the accelerated depreciation on fixings and kitchen, etc. Make sure you then fill out a PAYG withholding form to reduce the tax your employer takes out monthly. The other side of the equation is if you haven't already, get a 55 day credit card and pay off the whole balance each month in full.

        The beauty of SMSF is the trust setup. When you pass these income generating assets to your children, they won't pay capital gains on the assets as they are trustees / beneficiaries of the fund.

        The name of the game is to have your money always working for you and in your pocket. Use the banks and tax man to do this.

        In terms of where you buy - for your SMSF buy in an area with higher yield and lower capital gain. For property purchased through yourselves, you can lean a bit further the other way.

        I also wouldn't compromise too much on your own home. Buy something that you will both be happy with and don't worry too much about overcapitalising if you'll be there a long time.

        Lastly - don't touch units, especially in Sydney and Melbourne. Target city fringes with decent size blocks

    • niiko on 28/08/2016 - 16:51
      +18

      Just 300k annually? I thought Chrome makes much more money for Google considering its popularity :)

      • illumination on 30/08/2016 - 00:06
        +1

        It's an imposter. Check out the pirated Firefox logo/avatar!!!

    • ialam99 on 30/08/2016 - 19:50
      +1

      Ok google chrome and paul kogan, this is what you should do. Google, you buy the house that Paul wants to live in and Paul should do the same. Then you rent out each house to the other. Make sure your rental includes utilities, phone and Internet so its all deductible. That way everything is deductible including interest. End of story. Now about my financial advise fee…

      • stonkered on 31/08/2016 - 09:44
        +2

        You waived any potentially fee when you typo'd 'advise'.

      • someguycalledpaul on 01/09/2016 - 09:13
        +1

        I'm sure plenty of people have rental syndicates like this going down!!

    • stonkered on 31/08/2016 - 09:42
      +1

      Only 300k? Oh well, you'll manage somehow I guess. :p

  • StewBalls on 28/08/2016 - 16:38
    +20

    I understand that providing financial advice over a forum is not really appropriate

    Check, nice to see we're on the same page.

    but I wouldn’t mind some point of views or guidance as to how to best proceed from here.

    Easy - if you're as well off as you're bragging about, just use some of your big bucks to pay for proper accountancy/financial advice, quit wasting time asking randoms on the internet.

    /thread.

    • someguycalledpaul on 28/08/2016 - 16:46
      +12

      Hey.

      I value input, hence asking in the forums. Not sure I gain much insight or value add from yours though! Unless you'd like to recommend me a Financial planner?

    • 86boy on 28/08/2016 - 17:08
      +13
      1. Maybe the OP values the opinions of Ozbargainers more than an accountant.
      2. I don't see how this post is considered bragging, all the statements are facts?
      • RocketSwitch on 29/08/2016 - 09:45
        +3

        Yep, plus it would help others to also see a decent pool of opinions and to see what other people would do. I always value reading experiences from others.

      • Binchicken22 on 30/08/2016 - 18:46
        +1

        It's called the art of 'subtle bragging' lol.

        Honestly, I don't know if this bloke is or not, as none of us really do.

        However I can't see it being wise for a couple with $400k/pa combined income taking the financial advice of an internet forum, especially one as unrelated as ozbargain.

        I'm sure there are specialised forums for this sort of thing, if that is the route he wants to go.

    • niner on 28/08/2016 - 21:59
      +1

      Dude, most people here are willing to help. I would not expect anything more from a moron who asked people to google 'dick extension'.

      • Kangal on 29/08/2016 - 08:31

        dcksout for Harambe!!
        Sorry… couldn't help it.

        Although I see how people can see this as a "bragging thread" (aka penis measuring contest).
        Why?
        Because members that do need financial advice are members who live in a household with a combined income of <$80k, and a savings of <$50k. Because they have some options, but none of the luxuries the OP has access to.

    • jellykingdom on 29/08/2016 - 09:54
      +36

      I consider myself pretty relaxed and non-confrontational as far as internet forum users go, but I actually kinda agree with StewBalls. You're making a crap tonne of money, so I don't really understand the point of posting on a bargain hunting forum for financial advice. You should be looking for a real financial planner. Your income puts you in the top 1-2% of the country, there'd be almost none of us are in a position to usefully advise you on a similar circumstance

      And not meaning to be rude, i'm sure you have your reasons, but I'm also a bit confused how you have so "little" money saved with such high income, and such a low super balance. But let's ignore that for now

      ……
      apologies for this, i kinda threw my thoughts up onto my keyboard then tried to reconstruct in a logical manner
      ……

      To "keep saving" is insane, you'd be better off getting a bunch of shares at least. Long term averages for shares are better than property and cash money is useless right now. Set a dividend reinvestment plan and just set and forget. You'll get reinvestment AND capital growth

      I understand the fear of oversupply in apartments, and as they say, if the apartment market tanks, so does residential housing. I have been trying to convince some of my Sydney friends to just bite the bullet and buy something. I blame the media in no small part - every 2nd article is talking about how the prices will DEFINITELY ABSOLUTELY TOTALLY crash by various amounts and due to various mechanisms, then every 3rd article is about how it hasn't happened and they just keep going up. I don't think there will be some magical time to buy in the next few years in Sydney and Melbourne. The interest rates are too low and we've just locked in another 4yrs of a government that isn't going to try to curb investors.

      BUT…that is really only a concern if you plan to sell ASAP. If you're going to buy a family house to raise kids in, then you would be looking to hold for probably 5-10years. By which time, and short term fluctuation in the market has long since passed, and you'll have made some money (or at least not lost any). This was a big concern for us as well when we bought and i did a lot of research from every reasonable source I could find. Very hard to make a cohesive argument however since it is all contradicting itself. The moral I could glean from it was…

      "nobody really knows what is going to happen, they just pretend to. Just keep living your life within your means". You're an analyst, I would imagine you get the first part ;)

      Re Option 1/2b, my wife and I (28 and 30) came to the decision that over the next few years we want to have kids and also would not be going out for dinners and drinks etc as much (not just because of kids, but also because of how your social life changes as you get a bit older and don't just out clubbing). So living the suburbs makes sense. And i figure that you're more protected from price reversals in those areas as people always want houses in good areas, regardless of what happens to the apartment market. And Melbourne's suburban areas (north for eg) are absolute bargains!

      Is somewhere like Pt Melbourne is considered suburban? Regardless, buying here (or the other side of the river, which i hear is a great up and coming area) is never going to be a bad deal. Correct me if i'm wrong people, but do ANY of those waterfront areas ever go down in value? Other than a major storm or king tide event. I don't think anyone has ever regretted a long term decision to buy waterfront property on a money basis.

      Interest rates are at a record low. You'd borrow $1m. You'll definitely get a rate of <4.00%pa. Thats $1k per month repayments, i.e easily achievable on your salaries.

      My honest opinion re housing (and this contradicts literally all of my logical engineering brain) is that it sometimes needs to be a heart felt decision. To me it wasn't just about making long term money, its about having a home to live in and share with my wife and future family. If you can afford it as you obviously can, i don't see you ever turning around and regretting buying your own home.

      /end word vomit

      • someguycalledpaul on 29/08/2016 - 10:33
        +1

        Hi,

        Cheers for your honesty and word vomit. I do appreciate it. Re super and savings, I agree. Everyone's life experience is different, and there are factors which have driven this result in my case. These factors have built life experience but not net wealth.

        • jellykingdom on 29/08/2016 - 10:35

          I was assuming that it was travel and fun related. Hardly begrudge anybody that! Why else have the money - you can't put it in a pyramid like a Pharaoh

        • geoffs87 on 29/08/2016 - 11:40

          @jellykingdom:

          you can't put it in a pyramid like a Pharaoh

          But you can try!

      • [Deactivated] on 29/08/2016 - 22:11
        +1

        Interest rates are at a record low. You'd borrow $1m. You'll definitely get a rate of <4.00%pa. Thats $1k per month repayments, i.e easily achievable on your salaries.

        Do you mean like $5k/month?

        Don't forget that council, water, maintenance, etc will easily make it 6k/month.

        • jellykingdom on 30/08/2016 - 09:20

          Yeah….and they'll be earning roughly $20k/month. Seems pretty doable to me

        • [Deactivated] on 30/08/2016 - 10:39
          -2

          @jellykingdom:

          Try 12k/month after tax.

          Doable yes - not sure it's everyone's cup of tea.

        • jellykingdom on 30/08/2016 - 10:47

          @sp00ker: Huh??? I don't want to get into an argument about tax but how on earth is it 12k?? That would be $150k per year take home, out of nearly $400k salaries.

        • [Deactivated] on 30/08/2016 - 10:55

          @jellykingdom:

          My bad - had a mistake in my calc.

        • jellykingdom on 30/08/2016 - 11:07

          And yeah oops I did mean $1k per WEEK haha

    • activ8newbs on 29/08/2016 - 16:21
      -2

      Stewballs, Please don't get hurt in the behind side….and don't get jealous.

      No reason for your negativity. Move along please mate.

    • stonkered on 31/08/2016 - 09:45

      Lol at /thread! Whatever you reckon boss.

  • Marcsie on 28/08/2016 - 17:21
    +3

    With your income, I just wondering why you haven't got any investment property at all ? I would have at least 3 investment properties if I was you :)

    • someguycalledpaul on 28/08/2016 - 17:29
      +2

      If I'm being completely honest, its because I feared the collapse of the housing market / debt deflation. I now regret how much I've spent on rent during this period, but at the end of the day thats why I'm reaching out here to see what OzB think!

      • Kangal on 29/08/2016 - 08:41

        Sounds like you haven't spent much on rent, if you're essentially spending $250/week (plus ammenities).
        Or maybe you've just being paying $500/week (plus amm) for years and your partner has moved in with you somewhat recently.

        Anyways, did you always have a high-paying salary?
        Or did you only recently get an increase in the last year or two?

        I can sympathise with you if you've been grinding it yourself on a $50k salary up until recently to your new salary, and you should congratulate yourself on getting there.
        Otherwise, you have just been lazy and let the last real estate boom pass you by.

        You have to realise two things with money:
        1- You can have nice things (like travel the world, buy a new BMW 3, and get a $1M house).
        OR
        2- You can start investing (buy multiple $200k homes, rake in rent and investment returns, etc etc).

        It's upto you to decide what you want to compromise in terms of luxuries, and what you want to keep in terms of investment/future.

  • whooah1979 on 28/08/2016 - 17:36
    +2

    you may get some tips from this couple.
    https://www.ozbargain.com.au/node/249798.

    • someguycalledpaul on 28/08/2016 - 17:45
      +1

      perfect. Have private messaged them.

      Thankyou!

      • Janko on 28/08/2016 - 19:15

        yes, perfect.

  • Aust on 28/08/2016 - 17:48

    Given your income Go see your banks financial planner.

    • someguycalledpaul on 28/08/2016 - 17:54
      +14

      I am very cynical when it comes to banks providing any unbiased recommendations. Banks push their own products, life insurance, TDs, managed investments.

      That said, happy to see some independent / unaffiliated planner and pay for it…. But alot out there say they are unaffiliated then start to push MLC life insurance, rental apartments on the gold coast..brr!

      • Janko on 28/08/2016 - 19:09
        +1

        Agree about the bank's recommendations - you need to be talking to those who are/were in a similar situation to you.

        Same with corporate strategy actually :)

      • JimB on 28/08/2016 - 22:28
        +4

        I'm a financial adviser, CFP qualified.

        Apart from life insurance, I don't get paid more or less than recommendating one product over another.

        MLC isn't my preferred life insurer today, nothing wrong with the product just too $$$ for most of clients.

        I do call bullshit on any qualified financial planner pushing apartments.

        I'm fortunate that who I'm licenced through has little influence on what product I recommend. Certainly no financial benefit for me to recommend one product over another (other than insurance, but the commission has no influence on which insurer I recommend as they pay similar amounts).

      • ronnknee on 29/08/2016 - 12:23

        They probably are unaffiliated but those products may yield the highest commissions for them haha.

    • Dacs on 28/08/2016 - 21:36
      +7

      I strongly disagree with this. The most expensive advice is free advice.
      See an independent financial planner who you pay for their advice instead of them being influenced in their advice by the financial product that pays them the highest commissions.
      Here is some more info about independent financial planners*.

      Also see "Choosing a Financial Advisor"

      *I consulted that company for a financial plan, but ended up choosing to do the execution and ongoing management myself as I felt their projections too optimistic and their fees would have taken a fair chunk out of the returns. Besides, I enjoy managing the investments myself.

      • canon1989 on 29/08/2016 - 12:09
        +2

        Replying to this just so I can refer to it in the future. Cheers

      • someguycalledpaul on 29/08/2016 - 12:37

        Will take a look at this. I will probably go down the same path. I'd like someone to get us on the right path, but I'd like to have control over the investments.

      • knowwhat on 30/08/2016 - 19:43

        +1

  • Mad Max on 28/08/2016 - 17:57
    -4

    Age 33 and combined income $387,000 with $300,000 in the bank, $220,000 in super and $100,000 equity in an investment property.
    If you don't mind me asking what are you doing on a site like ozbargain? Haven't you got anything better to do? No offence…
    We are battlers on this website…;-(

    • someguycalledpaul on 28/08/2016 - 18:04
      +19

      I love this site!

    • niner on 28/08/2016 - 21:30

      We are battlers on this website…;-(

      That's not true. lol
      What is stopping someone who earns $200k from coming on this site? Wealthy people can be just as frugal as a battler.

      • virhlpool on 28/08/2016 - 22:35
        +4

        Correct. But, on a lighter note, even $200k sounds battler when OP is referring to his household income of almost $400k a year.

        • Mad Max on 29/08/2016 - 17:49
          +2

          That is exactly what I meant even though many people did not agree judging from the - votes. Clearly ozbargain is full of people on $200k plus incomes…
          I find it odd that someone on OP's income would spend time looking on how to save $10 on a bottle of whisky or how to get a lot of points out of a credit card or something similar.

        • [Deactivated] on 29/08/2016 - 22:17

          @maxi:

          I think the OP bought 10 of these: https://www.ozbargain.com.au/node/239653

        • hahaboy on 29/08/2016 - 22:47
          +1

          @sp00ker: he must be broden

  • derek324 on 28/08/2016 - 19:08
    +1

    With this level of income and savings you are seeking advice here. Interesting to see how many will actually believe it.

    • someguycalledpaul on 28/08/2016 - 19:20
      +23

      this site is full of people who are smart with their money. I think this is a great place to ask to be honest.

      • Tyrx on 29/08/2016 - 02:01
        +18

        I'm not sure if I'd go that far. We folk spend all our money on hoarding eneloops… Perhaps investing in eneloops is a sound strategy?

        • Kangal on 29/08/2016 - 08:50
          +1

          I feel like with the rise of Tesla's cars…. the Eneloop Kingpins are going to make a killing in the Australian market.
          Al Capone all over again.

        • esosite on 29/08/2016 - 15:48

          investing in lithium ;)

  • chazfg on 28/08/2016 - 20:53
    +1

    With the deposit and the level of income, you can afford to purchase multiple properties, so I would suggest option 2.
    Buy in the area that most convenient and less commute for you to live in now. Look for good potential rental return later and close to CBD within $500k range. At the same time, buy another property in the area you want to live in the future once you start planning for kids. Look for older property that you can renovate/build later in a high growth area.

    • someguycalledpaul on 29/08/2016 - 10:05

      Thankyou.

      We actually commenced looking with this strategy. There is alot of competition for free standing dwellings inner city in Melbourne for this reason. With that in mind perhaps we should revisit this with a suburb a little further out.

  • LakeVostok on 28/08/2016 - 20:53
    +6

    I am a big fan of the Barefoot Investor Scott Pape for his down-to-earth, sensible financial advice. check him out:
    https://barefootinvestor.com/

  • dandandan on 28/08/2016 - 21:05
    +1

    Based on your ages and current incomes, your combined super balance doesn't add up.

    You say no debt but there is an investment property.

    • someguycalledpaul on 28/08/2016 - 21:13

      Hi,

      Not sure what you mean about the super balance. If anything I think it should be higher. But I worked overseas; plus wasnt really paying attention to it through my 20s, was all over the place.

      Re no debt - i was trying to state no credit cards/personal loans. But yes. You are right.

    • poboy on 28/08/2016 - 21:56

      I'm assuming his super is about $120k. Which if anything is a bit on the low side given his income and the likely progression to that income from the early/mid 20's.

  • niner on 28/08/2016 - 21:56
    +11

    You seem very savvy when it comes to money. I am not sure I can help much, but here it goes. I'm a simple man with a high-stress, but stable job.

    I bought a 3 bedroom apartment when I was young in a high growth area. A year before I got married, I sold it and upgraded to a 4 bedroom house thirty minutes away from the city. Looking back, I wish I had kept the place and rented it out. I could not be bothered dealing with property managers and bad tenants.

    I made my decision based on what was best for my future child and I wanted my wife to be comfortable in a house we could raise our children in. We found a nice suburb with a good private school, close to a major hospital and a 4 bedroom house that cost 5 times our combined income. Our combined savings was similar to your amount. The commute to work was an extra 20 minutes as a result of this move.

    Sometimes you just have to do what is best for your family and not treat your life like a business. Living in the city is overrated.

    If I was you, I would get use to a longer commute and just buy a house now. After you settle down, you can probably think about buying an investment property.

    • The tiger on 29/08/2016 - 07:41
      +5

      I am an oldie ,aged 76; had plenty of property experiences when young. Go and own your own house like what Niner above advised. Nothing will go wrong for owning your own house considering your present financial position. Your house is your kingdom.. Remember even those birds have their own nests.Once you have your commitments intiellectuals like you two would be able to solve whatever future problems facing. I wonder why many young intellectual people are lack of guts facing challengs.

      • Typical16-bitEnjoyer on 29/08/2016 - 09:56
        +2

        Nothing can go wrong…except for another GFC, job loss or property market downturn. Just ask any non-baby Boomer about a decade ago.

        • niner on 29/08/2016 - 11:18
          +1

          That is of course a valid point, but I don't think that should weigh into a young family's decision to buy a house. The OP is quite well off, so he could probably get through it. Many people in this thread are telling him to borrow and invest into multiple properties, further plunging him into debt. I thought my suggestion was very conservative, safe and level headed. lol

    • jellykingdom on 29/08/2016 - 09:56

      Amen buddy

  • chowmanly on 28/08/2016 - 22:21

    I would invest 100k in property and 100k in equities (shares) - check out motley fool share advisor. I have been doing very well following their inexpensive advice. And keep 100k dry. When you are ready to make a move this money would have worked a lot harder for you then sitting at record low interest rates.

    • ahly92 on 29/08/2016 - 00:22
      +6

      check out motley fool share advisor

      no! Worst advice ever…these guys have a very bad record (google them) they basically buy into shit stocks, pump it up by making their subscribers buy it then sell it so they make a profit.

      if you want share advice I recommend this fb page. Although it's made for a particular stock, there is a thread there where you can ask for advice and the mods their are very technical and helpful :)

    • JIMB0 on 29/08/2016 - 03:41
      +2

      Is their service really as good as they say it is? I signed up for a Port Phillip Publishing newsletter once and found out that the few winners they always spruiked about were more than offset by the losers they were holding onto.

  • Molebag on 28/08/2016 - 22:49
    +1

    Enjoying your annual tax bill? Agree with the above that you should go with a couple investment properties. Get the ATO and tenants to be your business partners!

    I'd personally avoid buying a million dollar property as a residence. Why not just rent a nice place (if you aren't already)? annual interest you pay the bank on a $1m loan is about the same pricewise. You aren't committed for the next 30 years as well.

    • someguycalledpaul on 29/08/2016 - 10:08

      tax minimisation is definitely a needed commodity.. not sure property holds all the answers, but I'm all ears!

  • mungicide on 28/08/2016 - 22:52
    +3

    Once you reach $250k pa, you will qualify as sophisticated investor s708 and you can access wholesale big instos opportunities not available to normal retail investors, ie capital raising at discount etc…

    • [Deactivated] on 29/08/2016 - 22:31

      Lol - a s708 certificate just gives the investment promoter a license to pull the wool over your eyes. The usual PDS/FSG regulations don't apply.

      Also, a wholesale investment typically has a 250k/500k investment minimum. Even if the op is making 250k pre-tax, it's like 3 years of savings to have 250k to invest, which is a big ask, because the investments are typically high risk - not advisable to put 3 years of savings in 1 basket like that.

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