I am very new to the investing world and am studying to be a financial planner and maybe even a CFP one day.
I am 23 years of age (I wish I started earlier), am married and live in a home I have a mortgage on. Now I bought this home about 3 years ago when property markets were really good so I got it a really good price. My current loan is $417,000 with around $35,000 in the offset (the home is probably worth well over $650,000)
I guess what I need is a little advice (and I understand that it is general in nature and all that) on where to actually start. I will start with what I have had experience with in regards to investing.
My father has done some developments (biggest being a group of 9 Soho style townhouses comprising of residential and commercial) and some other minor house and land sort of developments. I have helped him with these in meetings with councils, builders, etc and I know the processes involved in doing these kinds of investments.
I have never done anything with equities or anything even related. My family is more into property and I have always been taught to buy what you can see which I know is not the BEST way to become an ULTRA billionaire!
I have done a budget as stated in the “Newbie Lessons” thread and I have read all the material throughout these forums. I class myself as “High Risk”, I’m only 23 years old and I have my whole life ahead of me, mistakes are going to happen but at least I have time to recuperate!
My budget pretty much tells me that my outgoings are around $5,331/month (including my mortgage and every bill) and my income (combined with my wife) is around $7,000/month so I have around $1,700/month to spare and I could maybe sacrifice a bit more to increase this amount.
Now onto the investment options I was looking at:
Personally I was looking into platforms and investing through them (managed funds, etc) and getting them to manage them for me. One I was looking at was the Mentor Portfolio Service with Oasis Asset which has fairly low fees and they have a huge investment range. The investments I was thinking of choosing were:
Macquarie Master Australian Enhanced Equities Fund 20.00%
Walter Scott Global Equity Fund 15.00%
Platinum Asia Fund 10.00%
BlackRock Wholesale Australian Share Fund 15.00%
Vanguard International Shares Index Fund 15.00%
Vanguard Property Securities Index Fund 10.00%
All Star IAM Australian Share Fund 15.00%
What does everyone think of these funds? Now I am not asking whether these funds are right for me, but generally, what do you think of the funds above?
I will be putting my initial investment amount of $1,000 and be investing $600/month regularly.
Another option might be to invest in real estate directly (residential) and build from there however you need more of a deposit or “initial investment” to be able to get into this field and I’m not sure on returns for either. The experience that I have had has shown me that property is a really good investment and that equities are much more risky but once I started reading on both they seem to have risks either way so I am a little confused as to where I should maybe start.
I guess my real question is... PROPERTY (residential) vs. EQUITIES (through managed funds or direct) as to where one should start.
If there are any questions anyone would like to ask feel free, I’m here to learn! =)
Thanking everyone in advance and excellent work on the forum, GREAT PLACE TO LEARN!