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Investments (pg. 2)
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| Krypton |
| quote: | Originally posted by Beat Blog
Uh...this is the Australian share market we are talking about. |
Almost all of these companies are international. EXM is Greek. PTR is Chinese. AUO is Taiwanese. TKC is Turkish. ESEA is Greek. TNE is Brazilian. HIMX is Taiwanese.
From my own lists, no Australian company is at the top. The only ones I'm thinking of are the commodities sector of Australia. Like BHP and Rio Tinto. Currently, commodities are going through a recession after explosive growth. If one is to invest in Australian mining companies, be careful you don't pay too high of a price. |
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| pkcRAISTLIN |
| quote: | Originally posted by echosystm
For the future... is real estate or stocks the better investment, in general? A few considerations:
- We have tax imputation in Australia
- I'd have to take loans for real estate ($interest!), whereas I can just use idle funds in shares
- I'm pretty risk averse
- I cbf watching stocks for 4 hours a day
Cheers. |
shares have outperformed property in australia over the last decade. but not by much.
definitely property, for reasons i said before. it might be nice making 15% on your shares, but if you only have $10,000 invested, that's still pretty small fry when compared to 8% growth of say, $370,000.
the advantage of property is that you can easily borrow heaps of cash to invest in it. taking a long enough viewpoint, property always goes up. property in tasmania has doubled every 9 years since 1972.
i bought a unit in 2006, and its already got about $50K equity. one of my best friends became a millionaire in 6ish years from investing in property.
shares are great if you have the necessary $$ to play around with. if you dont, buy some houses! there's all the small tax incentives with property too. analysts have said that given australias population growth, there simply isnt enough homes for everyone, meaning rent and property price increases over the longer term. |
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| jonSun |
| quote: | Originally posted by Krypton
PTR |
I bought them when they were at $158 a share. :( |
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| Krypton |
| quote: | Originally posted by echosystm
For the future... is real estate or stocks the better investment, in general? A few considerations:
- We have tax imputation in Australia
- I'd have to take loans for real estate ($interest!), whereas I can just use idle funds in shares
- I'm pretty risk averse
- I cbf watching stocks for 4 hours a day
Cheers. |
Stocks have always outperformed all other investments you could buy over the long-term.
| quote: | Originally posted by jonSun
I bought them when they were at $158 a share. :( |
When did you buy? January? If I were you, and this is my opinion, I'de tell you to hold it for 5-10 years at least. To be honest $158 isn't that bad of a price. You will be collecting an almost 4% dividend yield, which isn't bad at all. Reinvest those dividends, and your loss can be more than made up for with 10 years of dividend reinvestment at lower prices, and capital appreciation over that 10 year time tframe. Think long term. Don't le short term market movements drive you insane. |
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| Lilith |
| quote: | Originally posted by echosystm
For the future... is real estate or stocks the better investment, in general? A few considerations:
- We have tax imputation in Australia
- I'd have to take loans for real estate ($interest!), whereas I can just use idle funds in shares
- I'm pretty risk averse
- I cbf watching stocks for 4 hours a day |
Managed accounts are a crock for the most part unless you're sticking a great deal more than 30k into them.
At some point in your life you'll have to take out a loan and its nothing to be overly scared of doing provided you don't waste the money, I'd revise that at the 2year mark rather than now as interest rates are quite high due to the US shooting themselves in the face, at present I'd forecast that they'll be in a mess for at least another 3-4 years from now before things settle down and get a bit better.
If you cant be bothered managing your money in a share market then stay away from it, the alternative there is to get a broker but you're taking a gamble with them as well.
Real estate is a slower game which takes slightly longer sometimes to develop money out of and it really depends where/what you invest into as to how much.
Cheap property where no one really wants to live won't ever appreciate in most cases so pick where you buy very carefully.
Throw money down and move in for awhile on a small unit for a year or two and while you're working it'll be worth it, don't think that you should carry that property for the life of the loan, soon as it appreciates in value past the point of interest rate repayments and into a decent enough profit you may as well sell it. Or you can have it on the side as an investment property and lease it out, plus use the net worth to buy something else more substantial a bit later, your parents might also be interested in investing in a property and if they own a property could use that as security when it comes to the time of the loan and reduce its interest rates.
I'd also remind you that properties also cost money in terms of rates, maintenance into their upkeep when you're factoring in what you can afford per-annum in repayments.
I started buying property when I was 20-21, its a much better dumping ground for cash than spending it on crap that most morons seem to end up lashing out on (expensive cars, tv's, clothes, world trips etc) might mean you have to live fairly frugal and work very, very hard for a few years but later on when you're secure it all makes sense. :)
Make no mistake though when I said work very hard... may as well do it now while you're young and healthy. |
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| Beat Blog |
| quote: | Originally posted by Krypton
Almost all of these companies are international. EXM is Greek. PTR is Chinese. AUO is Taiwanese. TKC is Turkish. ESEA is Greek. TNE is Brazilian. HIMX is Taiwanese. |
Very few of those are available on ASX, provided the codes are the same. TNE is the only one I could find.
I agree with pkc in that property is a superior investment to shares, especially in times of economic hardship.
Negative gearing is a load of crap though. :p
If you can afford it, it's always good to diversify though. I spent the last two years buying up shares and all my current savings from 2008 are going into a high interest account to buy property at some stage next year. |
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| tubby |
rental yields are the best they've been in a long time. increasing rents along with decreasing or static value. and you can borrow on shares just as well as with property, just the value of shares is more volatile.
gold has been an incredible performer over the last 10 years. I was working on a pre-purchasr study on a gold mine in 1998, where the lowest price model was based on $300, and the top model on $350, at a time when it was trading at 280. Now it's about 900 and likely to keep climbing.
back on topic, how much risk are you willing to take with your money? shares will go up over time, but maybe not much in the 2 years you are looking at until you want to take your money out again. Even professional investors such as fund managers have lost money in the last couple of years.
So you could put in a cash account at 8%, and come out with $12,000 or so (depends on how much you add over that time), or invest in shares and come out with anything from $8-15K. |
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| pkcRAISTLIN |
yeah, what lilith said.
| quote: | Originally posted by Lilith
soon as it appreciates in value past the point of interest rate repayments and into a decent enough profit you may as well sell it. |
this is the only bit i didnt quite understand. why would you sell it if it wasn't costing you anything? why not leverage it to buy something else? |
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| jonSun |
| quote: | Originally posted by Krypton
Stocks have always outperformed all other investments you could buy over the long-term.
When did you buy? January? If I were you, and this is my opinion, I'de tell you to hold it for 5-10 years at least. To be honest $158 isn't that bad of a price. You will be collecting an almost 4% dividend yield, which isn't bad at all. Reinvest those dividends, and your loss can be more than made up for with 10 years of dividend reinvestment at lower prices, and capital appreciation over that 10 year time tframe. Think long term. Don't le short term market movements drive you insane. |
It was sometime in may i think. I think it might have been $155 or $156. I sold 2 days later after it dropped about $8 a share. I had 110 shares too. :( |
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| Krypton |
| quote: | Originally posted by Beat Blog
Very few of those are available on ASX, provided the codes are the same. TNE is the only one I could find.
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Here in the states, foreign companies are able to be listed on our domestic exchange through a process called American Depository Receipts (ADR)...CLICK
Australia doesn't have a similar system? Also, where are you going to look at the Aussie market? |
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| pkcRAISTLIN |
| quote: | Originally posted by Beat Blog
Negative gearing is a load of crap though. :p
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no way! every little bit helps ;) |
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| pkcRAISTLIN |
| quote: | Originally posted by jonSun
It was sometime in may i think. I think it might have been $155 or $156. I sold 2 days later after it dropped about $8 a share. I had 110 shares too. :( |
:stongue: sorry, thats too funny. |
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