iTec TEAM BA Donating Members 1,755 Member For: 20y 4m 19d Gender: Male Location: North of The Bridge Posted 20/03/06 04:49 AM Share Posted 20/03/06 04:49 AM nothing beats compound interest as far as I am concerned... get out of debt and put money in a term deposit.. over time it will beat shares and property Link to comment https://www.fordxr6turbo.com/forum/topic/24156-gut-feel/page/2/#findComment-361615 Share on other sites More sharing options...
F6 RAPID Formerly Turbo6 Donating Members 2,332 Member For: 22y 3m 18d Location: North Brisbane Posted 20/03/06 04:56 AM Share Posted 20/03/06 04:56 AM iTec said: nothing beats compound interest as far as I am concerned... get out of debt and put money in a term deposit.. over time it will beat shares and propertyI hope you are not serious?? Don't take this the wrong way mate, but that is a completely incorrect statement. Don't take my word for it, go to the ASX website (www.asx.com.au) and do some research on the performance of the all ords or relatively and equity index you care to think of and do a comparison to the cash rate. Link to comment https://www.fordxr6turbo.com/forum/topic/24156-gut-feel/page/2/#findComment-361616 Share on other sites More sharing options...
iTec TEAM BA Donating Members 1,755 Member For: 20y 4m 19d Gender: Male Location: North of The Bridge Posted 20/03/06 05:45 AM Share Posted 20/03/06 05:45 AM F6 RAPID said: iTec said: nothing beats compound interest as far as I am concerned... get out of debt and put money in a term deposit.. over time it will beat shares and propertyI hope you are not serious?? Don't take this the wrong way mate, but that is a completely incorrect statement. Don't take my word for it, go to the ASX website (www.asx.com.au) and do some research on the performance of the all ords or relatively and equity index you care to think of and do a comparison to the cash rate.hmm maybe I was wrong dont like my chances of getting a term deposit rate of 9.65% or better over 22 years (based on my quick calculation that's the average end on end result over 22 years for the all ords)ohh well lucky I am not a financial planner ey Link to comment https://www.fordxr6turbo.com/forum/topic/24156-gut-feel/page/2/#findComment-361628 Share on other sites More sharing options...
Mondie Firm Member Donating Members 2,924 Member For: 22y 5m 25d Location: Adelaide Hills Posted 20/03/06 06:17 AM Share Posted 20/03/06 06:17 AM Phew Itec, you scared me there for a minute This is a good time to bring the rule of 72 into this; if you take the number 72 and divide it by the yearly return on your investment the resulting number is the number of years it takes to double your money. So if we take the all ords return of 9.65% over the past 22 years then we get a doubling every 72/9.65 = 7.5 yrs ie. about the same as property. Hence why there really is no corect answer, both property and shares are good, both have good and bad points, the most important thing is that you are doing something. We each have different risk profiles, skills and desires hence share suit some, property others.Going back to the term deposit example if we assume you can get a 4.5% return then it takes 72/4.5 = 16 yrs to double your money. So over a 32 yr period if you invested 100k into a term deposit you would have 400k, if into shares/property 900k (ignoring tax of course). Link to comment https://www.fordxr6turbo.com/forum/topic/24156-gut-feel/page/2/#findComment-361635 Share on other sites More sharing options...
F6 RAPID Formerly Turbo6 Donating Members 2,332 Member For: 22y 3m 18d Location: North Brisbane Posted 20/03/06 06:43 AM Share Posted 20/03/06 06:43 AM You may want to take into account tax effectiveness, I.e. available franking credits and growth returns. Cash in term deposits doesn't grow much, to be precise, 0%. Link to comment https://www.fordxr6turbo.com/forum/topic/24156-gut-feel/page/2/#findComment-361641 Share on other sites More sharing options...
sixfan Flaccid Member Donating Members 2,503 Member For: 21y 11m 5d Gender: Male Location: NOONAMAH, go figure..... Posted 20/03/06 06:54 AM Share Posted 20/03/06 06:54 AM I'd go property..housing specifically.Land..... they ain't making anymore of it.(and I work for a mining company....) Link to comment https://www.fordxr6turbo.com/forum/topic/24156-gut-feel/page/2/#findComment-361643 Share on other sites More sharing options...
pelican Pelican Member 141 Member For: 19y 9m 1d Location: Gold Coast Posted 20/03/06 08:58 AM Share Posted 20/03/06 08:58 AM TurboDewd said: pelican said: PROPERTYPROPERTYPROPERTYPROPERTYShares are ok if you want liquidity, but at the end of the day, all you have is paper..... How would you feel if all your savings were in HIH/FAI shares right now ???(my opinion / views anyway.... your needs will no doubt be different.... )<{POST_SNAPBACK}>How would u feel if you put all your savings in Westpoint?How would you feel if you put all your savings in Zinifex (zinc miner, up 240% in 12 mths) or Paladin (uranium miner, up 300% in past 12 mths)? *check*Whatever one does make sure you get several opinions first and diversify!<{POST_SNAPBACK}>TurboDewd, Think you missed my point there matey.....Westpoint - exactly.... investing in paper...... ( read : equities or private lending.... ) NOT GOOD......Shares can be great, but if they suddenly drop, you end up holding NOTHING......*******************Each person has their own risk levels...... and... it pays to research both and see what will suit YOU....********************Being able to leverage your funds cheaply to buy a property can be fantastic.... as long as you do the homework and buy them well.... And I dont mean negatively geared properties either.....You have to research the area you want to buy in, and, just like shares, that means do your homework, visit the area. drive around... look at whats going on......We find / get given deals that are fantastic, every week....I've been down the shares road before, and have no problems with it..... I'm simply trying to point out the differences......The market is flat, but not deflating. Especially if you buy in the right areas..... EVEN THEN, you can do a cosmetic renovation to add value..... we do this all the time..... With shares you cant do anything to affect the value..... and that is a BIG DIFFERENCE...... With property, I still have some control......Vacancy Rates increasing.... um NOPE.... quite the opposite...... We have a house we are renovaying now, and there are 7 applications already for it..... All depends on what you buy & where....LOCATION LOCATION LOCATION & BUY AT THE RIGHT PRICE.....Cheers Link to comment https://www.fordxr6turbo.com/forum/topic/24156-gut-feel/page/2/#findComment-361693 Share on other sites More sharing options...
rushed6 Member 137 Member For: 19y 8m 3d Gender: Male Location: Victoria Posted 20/03/06 09:38 AM Share Posted 20/03/06 09:38 AM I'm 22 sold my xr6 turb ute 4 months ago to buy my first house brought it for 185,000 recently got it valued 215,000 not bad seeing there first asking price was 195,000 so I recon I got a good investment I recon housing is the go Link to comment https://www.fordxr6turbo.com/forum/topic/24156-gut-feel/page/2/#findComment-361707 Share on other sites More sharing options...
Romulus Donating Members 1,279 Member For: 20y 3m 22d Location: Perth Posted 20/03/06 09:59 AM Share Posted 20/03/06 09:59 AM (edited) rushed6 said: I'm 22 sold my xr6 turb ute 4 months ago to buy my first house brought it for 185,000 recently got it valued 215,000 not bad seeing there first asking price was 195,000 so I recon I got a good investment I recon housing is the go<{POST_SNAPBACK}>That's a false sense of a good return. It's only of value if you cash it out. Then you have the dilema of purchasing another property of a similar type, but will cost you more as the housing value has increased.I manage my own super fund and see around a 25-30% return per annum. The War on Terror has definately helped my petroleum shares A good managed fund is far better than real estate imo. Edited 20/03/06 10:00 AM by M6 XR6T Link to comment https://www.fordxr6turbo.com/forum/topic/24156-gut-feel/page/2/#findComment-361720 Share on other sites More sharing options...
pelican Pelican Member 141 Member For: 19y 9m 1d Location: Gold Coast Posted 20/03/06 10:22 AM Share Posted 20/03/06 10:22 AM Rushed6,Nice one......We're just doing similar.... bought a house for 175,000 did a re-paint, new kitchen & tiling..... now worth 225,000....Timeframe involved 2 months......The issue is..... I had the control over that outcome...... not a bunch of strangers......If you are looking to park funds in Shares, then, STAY with the banks,utilities, the BIGGER guys out there..... AS ALWAYS... doing your own homework on them...... NEVER rely on some analyst..... is MUST be YOU.... Link to comment https://www.fordxr6turbo.com/forum/topic/24156-gut-feel/page/2/#findComment-361728 Share on other sites More sharing options...
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