G'Day folks, looking to see if anyone has a calculator or something similar to plug some details into to work out which one will offer a better return over say 10 years. I bought a property in 2009 and used it as PPOR. In 2011 I moved out and it turned into an IP. I have now sold it and settlement is due next weekI am trying to work out what to do with the funds from the sale A) Purchase new IP with minimal funds and slap balance into 100% offset
Purchase few new IP's and carry on renting myself C) Carry on renting myself and throw cash into a few different Managed Funds I understand I wont be taxed on the cash in the offset but will be taxed on the profits made by the managed fund but if the managed fund returns say 20% per year, paying the tax might well work out better I understand this is a property investing forum but would think some of you would have gone through this before Thank-you in advance for any feedbackHi beans
Nobody knows for certain what the outcome of an investment will be. It's a bit the same as asking for the tattslotto numbers. It's about measured risk. Identifying the factors that stack the odds in your favour (or against, as the case may be).
In property, there are certain things you look at to satisfy yourself that the property will perform. Things such as:
– The proximity of the suburb to major employment centres or capital cities
– The number of major employers in the township
– The public transport
– The road infrastructure
– Forthcoming infrastructure projects
– The demand for rental housing
– The presence of things such as universities and hospitals that keep people residing in the area
Similary with shares and managed funds, it is a measured risk. You could take into account past track record of a stock or fund, but ultimately you are allowing someone else to decide how your money is to be spent. In the case of a Managed Fund, a fund manager will decide which stock to purchase, and if and when to sell it. That Fund Manager might be good at his job, but he might resign at some stage and a new manager might come along that isn't so flash. With direct stock ownership, you won't be getting invited to the board meeting to have a chat with the CEO about how things are going and to voice your ideas and concerns for the company.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Purchase few new IP's and carry on renting myself C) Carry on renting myself and throw cash into a few different Managed Funds I understand I wont be taxed on the cash in the offset but will be taxed on the profits made by the managed fund but if the managed fund returns say 20% per year, paying the tax might well work out better I understand this is a property investing forum but would think some of you would have gone through this before Thank-you in advance for any feedback
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