property is beginning to look more attractive.
in short, at 24, i have saved up about $250K
Each has it's pros and cons, however I think property is more suited to the "typical aussie".
Another thing.
Let's say you have $100k in the bank.
You can leverage property at 80% without paying LMI. Your $100k will get you $500k worth of property. Property doubles on AVERAGE every 10 years, so your $500k property is now worth $1m; you've turned your $100k into $600k.
Leverage with shares varies between nothing and 50%. At 50% leverage, you would need to generate an average annual compounded return of 13.35% to turn $100k into $600k. At no leverage, you'd need to generate 19.62%. Possible? Of course. However, if you look at the historical returns of most of the professional managers, very few achieve it.
With shares and leverage, you also need to have cash reserves or be prepared to sell at a loss if margin called.
No such thing with property.
i did a bachelor of science with majors in pure and applied maths.
i am now studying actuarial sciences through the institute of actuaries (so basically teaching myself). i'm half way through part 1, still got about 3-4 years to go, although I should be able to nab a job in the industry in 2012
My $50 says that if you buy in a reasonable location, over my investment timeframe (MINIMUM 10 years, preferably don't sell at all) you'll do well.
It's time IN the market, not timing the market that counts.
Same here - I have a BSc majoring in applied maths. Upon graduation I found work for an actuarial consultancy so they pay for my studies. Mostly finished Part I and going to start Part II next year (would've started Part II this year had baby not come along!)
Hubby and I have ambitions to get out of the rat race by age 35 yo. I'm 25, so we have 10 more years to keep buying investment properties with a view towards living off the rental income. We're in it for the long term - no quick flips for us. We have a spreadsheet detailing our plan, and even with conservative assumptions (rents increase by 2% pa, capital growth of 3% pa, interest rates 10% pa), for us, property is the way to go. You can leverage into property but with considerably less risk of losing all your capital (eg. shares and margin calls). Of course there are certain risks associated with investing in property - eg. property downturns and negative capital growth - but you have to do your research and mitigate your risks.
I highly recommend the SS forums if you are interested in property - I post a lot there and don't know where I'd be without the inspiration that I get from there!
Good luck
im sure i heard off one of my friends who is an actuary? that both PWC and earnest & young hire people still in uni, or not yet finished the degree..
Not sure if that help at all
Yep ill agree with that
i just think the current market is way overheated
Im in the post code 5163 there are hardly any share houses in that post code and im undercutting them all.
My best advice would be to visit Somersoft Property Investment forum. .
Been mentioned before by someone, but here it is again:
Somersoft Property Investment Forums
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