hi everyone thanks heaps for always giving me advice
at the moment im 29 yo and feel like i need to do something
with my money im living in a ppor and owe 45 k and have 89 k
in redraw house valued at 300k i have a car loan of 30k i have
been putting all i can into paying house off i am self employed could
earn anywhere from 300-1300 a week should i start to look at
investing into ip or look into shares really needing some
advice on what to do nextelliptical wrote:…. should i start to look at
investing into ip or look into sharesUltimately you should look to doing both. When you start off (and congratulations for making the decision to do so), you tend to be overbalanced into one or the other – i.e. you get keen on property and end up with 5 x IPs and no shares. Then it is time to rebalance and buy shares too.
thanks and was hoping for a bit more advice what to do should i look into share now or borrowing for shares
thanks was hoping for more advice on what to do next
Hi elliipitical, I would consider getting in to shares, as your income may not high enough to get enough tax deductions to make property viable in the short term. I think the coming months could be an excellent time to buy shares if you want to take a punt. the market is fearful, at a low point,but yeilds are ok 4 to 8 %. Use dollar cost averagging by starting small and if/ when prices fall keep buying. you can get capital protection by hedging with derivatives or options(insurance)
you can gear up not only your capital but also your yeild by using instalment warrants the worst you can do is lose your first instalment payment. When you have a share portfolio you can use this as a buffer for your property portfolio and can be used as colateral for property investing. Property investing can help realize gains made in the share markets while reducing taxation.excellent thanks heaps for your advice now to start learning about shares bit scary not knowing anything but thanks so much
The share market is a totally different mindset so it would be best to get some education there as well.
Not sure where you live but if you are in Melbourne a good place to start is The Educated Investor bookshop in the CBD.
You'll find a heap of places that'll charge to teach you, but best to have a look at a few first and make your mind up from there.
You should also see a broker just to go through your finances and whether or not you can afford that next property…
One thing no one has touched on, a 30k loan on a car isn't the best way to have transport IMO, never finance a depreciating asset. If it can be written off tax wise for work purposes the situation is different. But for your own personal car, see if it's possible to downgrade a bit and have something you own outright. Then when you have a lot of your own money later in life you can buy what ever you like.
the car is a tax write off for work purpose and thanks all for all the advise is very helpful thanks all
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