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[hiphophorray123]

$15k in shares.
$200 in ING.
$2.36 in bank account.

yo cyph im thinking of putting that much in shares somewhere, is it worth it?

 

[doe]

yo cyph im thinking of putting that much in shares somewhere, is it worth it?

if you can hold for a few years it is. you could put all your money in and have 10% of it wiped out the next day and it might be six months or a year before you get it back, but over the long term you should win. you should read the book "a random walk down wall st" or at least look into index trackers.

 

[pete_mate]

yo cyph im thinking of putting that much in shares somewhere, is it worth it?

its well known that shares average over 10% some say 12%, but this is in the long term 1-2 years

if you have a portfolio it should average that, better than ING then ing guys take your money and invest it in shares anyway and take the 5% differance as profit

the australian stock exchange was one of the best performing in the world in the last few years. you might say that it can only get worse then, not true,

commodity prices can only go up with china's massive economic growth and being our 2nd alrgest export partner

 

[Cyph]

yo cyph im thinking of putting that much in shares somewhere, is it worth it?

Not atm, IMO.

The market is taking a bit of a battering at the moment it seems - bull market could be coming to an end as the bear market kicks in. I was up to $20k at one point in time from my initial capital base of around $15k. I've lost all my gains.

I am thinking about pulling my money out and looking at options trading, or shorting shares (you make money when the share price goes down this way).

 

[hiphophorray123]

i just think investing in a unit or house is too much of a risk thats why im thinking of doin shares and stocks.

at one point i was htinking of buying a unit in aukland for 250,000 and the return was like 300 a week, im not sure if thats the best kind of return u can get for a unit. U reckon 300 a week for 250,000 is a good deal?

 

[pete_mate]

i just think investing in a unit or house is too much of a risk thats why im thinking of doin shares and stocks.

at one point i was htinking of buying a unit in aukland for 250,000 and the return was like 300 a week, im not sure if thats the best kind of return u can get for a unit. U reckon 300 a week for 250,000 is a good deal?

if thatt includes the capital growht, its only 6.24% per year, not great
but if thats merely the rent, then it might be alright

 

[Kirsti]

From what i hear if you can get more than 0.1% of the purchase price in rent each week then it's usually a good buy. In general, property prices expect to double in about 10 years (as a mean value, some less some more) so as long as you can cover (or nearly cover) the repayments you'll end up making a good profit
Is it in AUS or NZ $ ? Conversion isn't great

 

[doe]

i just think investing in a unit or house is too much of a risk thats why im thinking of doin shares and stocks.

at one point i was htinking of buying a unit in aukland for 250,000 and the return was like 300 a week, im not sure if thats the best kind of return u can get for a unit. U reckon 300 a week for 250,000 is a good deal?

it is for residential property. over the long term tho, land is what goes up in price, the buildings go down in price ... so apartments arent the best, because they have a smaller land content. they are better than nothing though! you can easily pay $400,000 for an apartment in sydney, and it wont be anything too flash.

you usually assume you'll have four weeks a year vacancy, so ..

$300wk * 48 weeks a year = $14,440

($14,440/$250,000) * 100 = 5.76%

not a bad yield really, at the moment in sydney yields are about 3% - 3.5%.

the nz market is very "hot" at the mo, i would guess its near to peaking ... i dunno though really. they are experiencing a boom of people from overseas (australia) looking for better investment opportunites than here.

after a hot period, capital growth (the increase in the value of the property you own) tends to drop and then stay level for a few years. prices are dropping in sydney, about 10% - 15% and might well drop some more, as there are still some (imo) very overpriced properties on the market.

imo, its not a great time to invest, unless you have the time to go looking for "bargain" stocks.

i dunno what to do either i think im just gonna put everything in a cash account and bide my time ... do some more reading

i know those ING accounts are linked to an existing account, are the other ones? i have a cheque to cash and for some reason i just like going into a physical bank to cash it. say if i opened an account with esanda, how would i cash that cheque? would i have to post it? or is it linked to an existing account?

 

[Slidey]

I have $15,000 or so saved. Hope to keep saving at least $5K per year while at uni, so that I have about $40 to $50K when I finish. Should set me up nicely.

 

[doe]

would you believe i have just been reading a book on investment property! i think i have read most of them by now. this one is good http://www.dymocks.com.au/ContentDynamic/Full_Details.asp?ISBN=0958567255

 

[doe]

I have $15,000 or so saved. Hope to keep saving at least $5K per year while at uni, so that I have about $40 to $50K when I finish. Should set me up nicely.

yeah saving is good. when i was at uni i had 2 bank accounts, one that i got paid into and one for "daily" stuff. i didnt have an atm card for the one i got paid into. every week i would transfer a set amount into my daily account using online banking, and that is all i would spend that week. that way i could go out drinking now and again or save up for toys and not feel bad about wasting money. worked really well. every few months re-assess how much you transfer etc. for me it was usually about $75 - $100/week. i still do the same now.

 

[pete_mate]

you said apartments depreciate? depreciation is tax deductable in australia, which is a bonus

then you can negatively gear it etc. and pay less tax