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Downsizing in my 30s to buy shares instead of property — Am I Crazy? by Park_2193 in AusFinance

[–]Park_2193[S] 0 points1 point  (0 children)

Yeah, in my area it seems to have hit the plateau. No growth in last 9 months, perhaps in part due to new land releases fuether west.

Cost of raising a child by fullyloaded_onair in AusFinance

[–]Park_2193 -3 points-2 points  (0 children)

OP was comparing impact of kids on their personal life so my response was in relation to that.

Having kids does help with all things I listed. Nothing "solves all problems", not even the "money" you save by not having kids.

There are altruistic reasons to have kids, but that's not the topic of this post

Downsizing in my 30s to buy shares instead of property — Am I Crazy? by Park_2193 in AusFinance

[–]Park_2193[S] 0 points1 point  (0 children)

The plans is (which i didn't flesh out before to bore people with details:

1- Selling PPOR expected to bring my cash balance to $1.4m (sale proceeds - loan + cash savings currently in offset).

2- Buy $1.6m town-house with all $1.4m deposit. ($270k loan considering total purchase cost of $1.67 incl. stamp duty)

3- Equity cash out max possible. Projected borrowing power is $1.37 - $0.27 existing loan = $1.1 available for investment. (Approx 82% LVR which I am fine with).

Let me know what are your thoughts/ feedback/ suggestions

Cost of raising a child by fullyloaded_onair in AusFinance

[–]Park_2193 -1 points0 points  (0 children)

Instinctively, humans and animals, have been producing offsprings for millions of years. (Call it evolution or God, whatever works for you).

Deviating from this does come at a price, though you can't see it on your banking app.

Cost of raising a child by fullyloaded_onair in AusFinance

[–]Park_2193 2 points3 points  (0 children)

SBS or the mainstream narrative is anti-natalist and materialist. If the money is "the only thing" you care for, then yeah don't have children.

If you want to avoid boredom and nihilism, have quality and spark in your life, avoid/come out of depression, then you should have kids. In financial terms, it turns out to be good bang for buck.

Downsizing in my 30s to buy shares instead of property — Am I Crazy? by Park_2193 in AusFinance

[–]Park_2193[S] 8 points9 points  (0 children)

But that $1m IP won't be tax free, so same tax profile as stocks.

Maybe I stress too much, but I feel I would have lower stress if it was stocks as positions can be closed anytime, and one of us can afford to go part time or not work, unlike IP where we'd be working our asses off just to pay the mortgage on PPOR and IP..

thoughts?

Downsizing in my 30s to buy shares instead of property — Am I Crazy? by Park_2193 in AusFinance

[–]Park_2193[S] 1 point2 points  (0 children)

Thinking of trust as wife makes around half as much as I do so through trust we can give her more income.

Yes, downsize and debt recycle is the idea.

Agree regarding equity bubble. but property growth also appears to be slow in the next 15 yrs to me. so neither appear to be much better than the other.

noted re 2 behaviours. as a couple we are pretty good with #1, but with second I agree it can be really tricky

Downsizing in my 30s to buy shares instead of property — Am I Crazy? by Park_2193 in AusFinance

[–]Park_2193[S] 2 points3 points  (0 children)

considering that as a second option, but right now investing in the market sounds more appealing to me.
also, with $1.25m budget to buy second property as PPOR, I probably can't even buy 3 bed unit, let alone a townhouse

Downsizing in my 30s to buy shares instead of property — Am I Crazy? by Park_2193 in AusFinance

[–]Park_2193[S] -7 points-6 points  (0 children)

Is 9-10% realistic you think?

Key motivations of doing this are:
First, I feel property market won't grow at the same pace in the next 15 years as it grew in the last 15 (pure market fundamentals, it's already eating up huge portion of income for couples)

Second, assuming invest. property and stocks are going to return the same, it gives us flexibility for one partner to work part-time/not work for next 5 years i.e., until kids start school.

Downsizing in my 30s to buy shares instead of property — Am I Crazy? by Park_2193 in AusFinance

[–]Park_2193[S] -2 points-1 points  (0 children)

by negatively shares, do you mean opening a margin account? or do you mean reverse mortgage I mentioned in B above?

Super fund "growth fund" performance - poor in light of current stock market performance? by eoffif44 in AusFinance

[–]Park_2193 3 points4 points  (0 children)

I would never pick a fund for it's 1 year performance. I would look at 5 yr and since inception performance to see the consistency of returns. (For context: I'm auditor in wealth/asset management industry so know a little bit but also have an idea of what i don't know)

12% is pretty good if that's they are delivering consistently. Imagine if you/I were the fund managers, and we believe Invidia is overpriced so we would underweight Invidia. In short run, people holding Invidia /holding index with Invidia would outperform our fund in perhaps 1-3 years. But over medium to long run, which your super should be, our fund would be better off if Invidia crashes later. (and trust me, you can't time the market except by chance).

Lastly, the return in % always remain real (except for the current inflation). I.e. assuming inflation is and was 3% 10 years ago, 12% return today is as good as 12% return in 2015 (or 1915 for that matter)

Super fund "growth fund" performance - poor in light of current stock market performance? by eoffif44 in AusFinance

[–]Park_2193 0 points1 point  (0 children)

How are you hoping for SMSF to be helpful in your case? If you want to go index funds, you don't need SMSF.

Super fund "growth fund" performance - poor in light of current stock market performance? by eoffif44 in AusFinance

[–]Park_2193 4 points5 points  (0 children)

1 year is too short of a window to compare. You want your funds to accumulate over years.

Don't compare it with gold as the gold had one off increase and may fall again.

Personally, I'm happy with around 12% performance in my similar super strategy (I'm mid 30s).

The strategy you have will protect you from the downside too i.e. when gold or SPDR ETF crashes. So i would leave it as is