Combined income 350k. Property portfolio at 2.6m. 300k in savings. What is best way to invest further?

OliverKlozoff on 09/07/2017 - 23:45
Last edited 10/07/2017 - 08:27

Hi there,

My wife and I been very blessed and live in our own house (still paying off mortgage) and currently have all our investments in property only.

I am (obviously) by no means a guru/even moderately clued in when it comes to how to invest money and have heard lots of arguments going both ways for diversifying or keeping on with property.

Personally, I'd prefer to diversify into some sort of fund (that someone else can manage for me cause I'd just do the equivalent of 'putting it all on black'), but part of the reason we are entertaining the idea of buying another house is to get into a good public school zone for our kids to come as my wife is currently pregnant.

Would love to get some opinions from the more investment savvy people on this forum.

Edit: Important information I've forgotten to state, properties are all still being paid off at 20:80 LVR, so a large amount of liability.
Rental income covers a large proportion of interest (whilst the interest rate stays put) but there is some negative gearing going on.
Savings are in offset for home mortgage

Financial

Comments

        • OliverKlozoff on 10/07/2017 - 00:31

          Will look into that. Thanks AlienC

        • MercSal on 10/07/2017 - 09:44
          +5

          @OliverKlozoff: Acorns is not a good choice for your purposes. High fees, compared to something like vanguard or other ETFs

        • AlienC on 10/07/2017 - 19:26
          +1

          @OliverKlozoff: disclosure: I am not very knowledgeable when it comes to investing. My knowlEdge and experience is beginner level

        • Doggiie on 10/07/2017 - 20:13
          +1

          @OliverKlozoff: I too also disagree with Acorns. Proceed with your own diligence.

        • drfuzzy on 13/07/2017 - 19:05

          This is terrible advice.

    • airal3rt on 10/07/2017 - 00:31
      +16

      Start a small business in a crowded industry where the owner won't be on hand to work long hours and directly supervise the running of day-to-day operations? You might get arrested, setting currency on fire is illegal.

      • timetoquit on 10/07/2017 - 01:26
        +5

        haha, that gave me a chuckle. If I had my time again, the restaurant/hospitality industry is most definitely not where I would be!

      • Slippery Fish on 10/07/2017 - 09:03
        +3

        Was a pretty bloody dumb suggestion right?

    • Slippery Fish on 10/07/2017 - 09:02
      +1

      Lol, you have no idea…

    • daleyboy79 on 10/07/2017 - 09:51
      +5

      plenty of profit margin in the food business??? Are you in the food business? I'm not, but my impression is that unless you work long hours running/staffing the business yourself then there's very little profit margin … and high risk

    • Lancerx on 10/07/2017 - 19:27
      +1

      Coming from personal experience, NEVER open a restaurant if you not gonna be hands on, or at least have some culinary knowledge…or unless that cook of yours is blood tied to you

    • AlienC on 10/07/2017 - 19:28

      Bazinga.

  • HardQuiz on 10/07/2017 - 00:27
    +12

    Surprised no one said enloopes

    • toristo on 10/07/2017 - 21:45
      +2

      shhhh. First rule of ozbargain investors club…

    • [Deactivated] on 12/07/2017 - 10:11
      +1

      coz every thread you've already said it and it's getting old

  • dlakers3peat on 10/07/2017 - 00:52
    +17

    Instead of trying to increase your materialistic wealth why don't you try and increase your moral wealth. Give some of your money to the needy or to a worthwhile charity. How much money do you need. Are just trying to accumulate more wealth for the sake of it. Like 99% of people in this world all we care about are ourselves and how much money we have. End of rant.

    • [Deactivated] on 10/07/2017 - 01:46
      +4

      Sorry, what? They earnt this money through hard work, why should they give it away for free? I would never donate to a charity considering reports of 70%+ of the donations going towards "administration" and advertising. I would much rather start my own trust and set my kids and hopefully their kids up for life.

      • airal3rt on 10/07/2017 - 02:02
        +16

        You do realise charities have to disclose what % of each donation actually reaches the beneficiaries, so you can choose accordingly..

        Or you can just hoard your wealth and set up multi-generational trust fund kids. Whatever floats your boat ¯_(ツ)_/¯

      • Ridiculous Panda on 10/07/2017 - 08:16
        +14

        Surely that is just an excuse to help yourself sleep better at night. Donate to reputable organisations after doing some research. Not hard if you actually want to help.

      • BargainCowboy on 10/07/2017 - 19:55

        Whatcha doing commenting on threads now? Get your paperwork in order!

        • [Deactivated] on 10/07/2017 - 19:57

          All done, boss!

        • BargainCowboy on 10/07/2017 - 19:58

          @nurries: Good luck!

        • [Deactivated] on 10/07/2017 - 19:58

          @BargainCowboy:

          Thank you :)

    • OliverKlozoff on 10/07/2017 - 08:22
      +24

      Agreed. I'm all for helping the less fortunate. But I want to focus on setting up my family for the future. When properties are paid off and I'm not as exposed to some disaster ruining me.

      I also do volunteer trips to less fortunate countries to provide health care.

      But I do agree wholeheartedly with your point.

      • Binchicken22 on 10/07/2017 - 18:08
        +7

        I came here thinking this was going to be another one of those "subtle brag" posts that pop up every now and then.

        After reading this post and your replies I can honestly say you sound like a genuinely good person, I just wanted to say good luck with your endeavours and I wish you the best.

    • ankor on 11/07/2017 - 17:13

      Found the communist! /s

  • pressPlay on 10/07/2017 - 01:04
    +2

    More info required. How many properties in your portfolio? Are they all paid off? Any income from them? Any other debts? Also, why would you be paying off a mortgage yet have 300K sitting around? Or is that in some sort of an offset account?

    • OliverKlozoff on 10/07/2017 - 08:18

      Good question

      3 investment properties still being paid off so lots of liability there.
      Rental income covers bulk of interest (whilst the interest rate stays put) but there is some negative gearing.

      Yes savings are in offset.

    • Sebastian on 11/07/2017 - 01:32
      +1

      This. Pointless to have a debt on your O/O property as you can't negativly gear. If you have $300k sitting doing nothing, your O/O mortgage should be the first thing you pay off

  • portard on 10/07/2017 - 02:52
    +8

    If you're that wealthy you should probably just hire a financial advisor

  • gimli on 10/07/2017 - 06:54

    Imo some may tell you to diversify but if you are already familiar(and successful) with property it is not a bad idea to keep investing there unless you really have time to get the expertise in investing elsewhere

    • Sira on 10/07/2017 - 07:02
      +1

      Nothing like ploughing all your eggs in one basket… Not a good move by any measure, especially given current property prices are considered inflated on most of the East coast.

      • gimli on 10/07/2017 - 07:30

        I used think the same about diversification but I think it comes down to your expertise and your time frame for investment.

      • OliverKlozoff on 10/07/2017 - 08:20

        That's the worry!

        @Gimli: can't predict what will happen in property market, as prices have been rising at an almost unmanageable rate, lots of people expecting a drop

    • sep1 on 10/07/2017 - 07:30

      Can still diversify without being an expert in a particular field. Just have to be willing to let go of a percentage of interests to pay the expert. I realize it is not the general ozb mentality. But it's worth considering as it's better than not diversifying and being broke when property market experiences negative fluctuations.

  • CyberMurning on 10/07/2017 - 07:41

    Very good income if I earn half yours.

  • snajper on 10/07/2017 - 07:45
    +2

    Invest in 5 good holidays a year and have at least 5 children… what else do you need?

    • Kangal on 10/07/2017 - 11:10

      One child per Continent?
      So something like one in Australia, plus one is Japan, South Africa, Norway, Canada, Argentina…

      No love for Antartica or the rest of massive Asia?

      • CoronavirusVaccine on 11/07/2017 - 18:57

        Is this your take on diversification?

        • Kangal on 11/07/2017 - 19:03

          Pretty much.
          But if* I had to choose my women it would probably be: Blonde (Norwegian), Red (Scottish), Brunette (Italian), Black (S Korean). Diversification!

          Which geographies interests you?
          (*however, women always choose the guy, always haha)

  • chumlee on 10/07/2017 - 08:22
    +3

    Isn't $2.6M an average house price in inner Sydney??

    You haven't stated what your debt is as that's more important than assets

  • giventofly on 10/07/2017 - 08:41
    +2

    Asking on a bargain site how to increase their net worth. I've seen it all.

    • effraye on 10/07/2017 - 09:17
      +5

      Makes sense, wealthy people are wealthy for a reason. Tighter than a fishs proverbial.

      • giventofly on 10/07/2017 - 09:43
        +2

        I understand that, but most of us buy stuff we don't need.

        Would wager that most of us are shopaholics rather than frugal.

        • effraye on 11/07/2017 - 21:48

          That's why most people aren't wealthy.

  • Powershopz on 10/07/2017 - 09:10
    +4

    If you have that much money - go 'invest' in a proper financial adviser.

  • effraye on 10/07/2017 - 09:16

    Now is the worst time to buy another property.. I assume you would not be a sophisticated investor (?) if you are you should consider investments not available to the general public such as:
    - wholesale managed funds
    - wholesale placements
    - corporate bonds

    Wholesale managed funds generally have strategies not available to the general public and higher risk but offer a higher return I know of one that has double the performance of the asx300 with half the volatility and only a 24% correlation to equities… ie it's pure alpha

    Wholesale placements, as a sophisticated investor you can get access to these through the big brokers like UBS,Macquarie etc. let's say a fund wants to sell a $150m position in seek theycant do that on market so they place it with these guys and they sell it to clients usually at a 7-10% discount from the market price.. this happens 4-8 times a year.

    Corporate bonds, checkout FIIG there are some asx listed companies which offer interest rates of 8-9%+ and are solid as a rock.

    None of this is financial advice just my opinion.

    • kiitos on 28/07/2017 - 15:30

      How much funds would you need to use wholesale funds? Does the same apply for super?

  • raspudala on 10/07/2017 - 09:16
    +8

    If my math is correct you owe banks ~2 millions (80:20 leverage), maybe worth concentrating on paying some of this first in case there is a downturn in property?

  • Francisk on 10/07/2017 - 09:35
    +1

    Invest in gold. abcbullion is a good place to steer and for information

  • frostman on 10/07/2017 - 09:37
    +1

    You're one of the reasons why house prices continue to climb, your negative gearing investment of multi-property with interest-only pay is to blame. Once they get rid of NG, house prices will go down by 30% and to a decent standard, you will lose a shit load of money.

    What a great idea, just buy 2-3 properties and pay Interest-only on a NG situation, I'm sure Warren Buffet missed something in his billionaire portfolio.

    • giventofly on 10/07/2017 - 09:44
      +7

      NG won't go. The politicians themselves use it.

    • Lando on 10/07/2017 - 10:33
      +3

      Labor and Lib voters both use negative gearing and own property.

      They'll never get rid of it.

    • Sebastian on 11/07/2017 - 01:35

      Properties prices in WA and some of QLD are dropping, so there goes your logic.

      • frostman on 11/07/2017 - 09:54

        You must be living in a cabbage patch with worm friends.
        It was announced not long ago whether the potential new government will be looking at axing negative gearing and the first thing that blocked it was the fact that it will likely cause a property crash.

        Why?

        A person can by multiple properties while paying Interest Only (IO) and negatively geared so that they claim tax benefits on the interest payments. They're hope is that they sell this property over the next year or so and make money. This has caused an influx of property purchases which ultimately is driven by demand.

        The other catalyst causing the property price hike are the foreign investors with their dirty money purchasing property as a safe haven. The government recently announced reforms for these purchases where the investor must live in the property for a certain time, this has somewhat slightly reduced the prices too.

        • Sebastian on 18/07/2017 - 01:27
          -1

          Spoken like a retard living under the rock.

          https://reiwa.com.au/the-wa-market/perth-suburbs-price-data/

          All but a few of the suburbs have record -ve growth; and you think FIRB was recently announced? FIRB has been around for at least 15YR.

          You sound like someone who's been blowing his money on weed and shit and suddenly realised, you can't buy a property and is blaming everyone but yourself and calling all foreigner investing, dirty money.. what a joke.

          Just to further prove your ignorant, most banks now do not do I.O loan unless you are rocking under 80% and if you are only borrowing 80%, the chance of you negative gearing the property is very unlikely so please, don't talk crap and insult someone who knows more than you do.

        • frostman on 18/07/2017 - 08:38
          +1

          @Sebastian: Sometimes I wonder why I even bother with dumbasses on this forum, everyone wants to be an expert yet in real life, you'd probably keep your mouth shut during a heated property debate with some experts.

          If you used your non-extistant maths skills, you'd realise that the overall +/- average of all 349 properties is -3.56%.
          This means that on average across the city of Perth, prices went down by 3.56%. By the way, these figures are all indicative.

          Also, let's give you another brain teaser; your property profile link shows the suburb of Cardup is down by a median -%48.8, with the median property price at $399,000.00. A simple Real Estate property search reveals that most of the prices there are CURRENTLY going between $800,0000 - $900,0000+

          Here I did all the work for you: http://www.realestate.com.au/buy/in-cardup,+wa+6122/list-1

          Anyway, with a name like Sebastian, I feel for you.

        • Sebastian on 18/07/2017 - 20:02
          -1

          @frostman:

          You do not know how to read do you? The link is for the property price for the last 12mths. Those properties you mentioned were either bought at 15% more and they are trying sell lower, or was bought before the GFC, double in value and is now slowly getting affected by the drop in market.

          You link properties that are for sales without knowing how much they bought it for and use that as a 'We made profit' example. Hell, do you even know what MEDIAN price means?

          2 Pollard is selling for $680k, in your book, that's a BARGAIN!. Put your money where your mouth is and go buy it; you'll be picking up a bargain!

          You are a bonafide moron, no wonder you are in the position you are at and cry about how buying a properties is beyond your reach, cause you are a dumb arse mate.

        • frostman on 18/07/2017 - 21:52
          +2

          @Sebastian:

          Your assumptions are mediocre, and you love sealing off a statement with an insult. Makes you feel powerful given your name diminishes that.

          no wonder you are in the position you are at

          And what has possibly given away that I am renting and cannot afford a house? How do you know I don't currently own one Sebastian?

          The 2nd outrageous assumption was this in relation to the high prices in Cardup and elsewhere, lol I love the "15%" theory.

          Those properties you mentioned were either bought at 15% more and they are trying sell lower,

          Let me refresh your mind, the long and short of your silly argument was that you first replied to me that Prices in WA are dropping, I was arguing that prices will never drop to a reasonable level of 20-30% unless Negative Gearing is abolished and FIRB implies stricter measures. You came back with a link to counter that showing house prices have already dropped way below that.
          Upon simple mathematics, we realised on average the house prices dropped -3.5% and the median house price in the -40% percentile suburb was at 900K. You later changed your mind about the purpose of the link and threw a stupid assumption that perhaps the 900K house was purchased at 15% more and now aiming to sell at a loss.
          Sebastian the fish, I think you need a break. Please stop replying to me, it's getting dumber.

        • Sebastian on 19/07/2017 - 02:40
          -1

          @frostman:
          First you wrote: You're one of the reasons why house prices continue to climb, then you correct yourself and wrote: I was arguing that prices will never drop to a reason level; so what it is.. the prices rising or not dropping fast enough for you?

          You are right, I should stop wasting my time replying to your BS, you actually don't even know what you are talking about seem to change your mind from one post to another.

          As for how I know you are forever renting and that you are too dumb to understand the property market? - easy.. an investor will never complain and bitch about their assets going up in value, the only people who cries about it are people like you, who blams everyone else, including foreign investors and their dirty money.

          ME? I love foreign investors, they offer prices no local buyers can and I am loving the profit I am making on my property portfolio. So go pay your rent little man and leave the investing to those who know what they doing.

        • frostman on 19/07/2017 - 14:17
          +1

          @Sebastian:

          First you wrote: You're one of the reasons why house prices continue to climb, then you correct yourself and wrote: I was arguing that prices will never drop to a reason level; so what it is.. the prices rising or not dropping fast enough for you?

          There is nothing wrong with either of my sentences, they are not contradicting. The first statement was implying that people buying multiple properties on I/O, and negatively geared are fuelling house prices because of the demand. The 2nd statement was suggesting that abolishment of NG will essentially lead to a property price decline.

          You've totally ignored your stupid assumptions that I blatantly pointed out because you had no answer to, so you decide to cherry pick some of my statements to cover your fish memory.

          easy.. an investor will never complain and bitch about their assets going up in value

          "their assets" going up, and general property prices going up are 2 things here. The latter means that even a cashed investor wouldn't be pleased to buy a property at 1.5m when 3 years ago it was 900K.

          ME? I love foreign investors, they offer prices no local buyers can and I am loving the profit I am making on my property portfolio

          I can see how well your profits are going considering you're on Ozbargain looking to save a few dollars here and there, lol

        • Sebastian on 19/07/2017 - 20:15
          -2

          @frostman:

          "their assets" going up, and general property prices going up are 2 things here - most investors have the largest of their portfolio in properties, thus when properties prices goes up, their assets increase.

          Spend more time reading and understand the property market and perhaps you won't be a loser renting for the rest of your life.. as for looking for a bargain, penny saved is a penny earned, (profanity).. but that's a concept foreign to you though, isn't it?

          The way I see it,
          You are either a total loser who's renting, bitching about the price of properties cause you can't buy into it; or
          A retard who actually owns properties but bitch about how NG is affecting your properties cause it's driving the prices UP?

          I'll pick the first one.

        • frostman on 19/07/2017 - 20:35
          +2

          @Sebastian:

          as for looking for a bargain, penny saved is a penny earned, (profanity).. but that's a concept foreign to you though, isn't it?

          I am loving the profit I am making on my property portfolio

          No, it's a concept foreign to people making millions in the property market, developers, builders and investors.
          But I dare say any of the people above have OZB accounts looking for $4 off Eneloops or 15% off iTunes.

          The way I see it,

          Let me help you here, you got a weasel of a name, shit come-backs, outrageous assumptions, and rubbish at providing anything remotely close to a fact. When facts were presented back to you, you weaselled out,

          This will be my last post to you, you've really wasted my time here. Go back to the main site and find $3 off something while your property portfolio makes a few million. lol

        • Sebastian on 19/07/2017 - 21:09
          -4

          @frostman:

          Sebastian is a weasel name? From someone who called himself Frostman.. ya - real mature buddy and only a fool will pay full price for anything they can get half priced on.

          http://www.investopedia.com/articles/financialcareers/10/buf… - "As a value investor, Buffett is always looking for a bargain"

          No wonder you are renting buddy, keep on spending what you don't have..

          As for not providing facts, isn't the statistic from REIWA showing pricing of properties are -ve for the last 12mths good enough for you?

          I think you are the one who hasn't present anything remotely close to anything show pricing are going up due to NG; just stupid assumption mades from reading reports made by politicians who don't live in the real world and thinks that pensioners can survive on $500 a fortnight; that's your source isn't it.

          Please don't go, your ignorant is amusing and it's cheap entertainment for me..

  • daleyboy79 on 10/07/2017 - 09:57
    +2

    1) Are you including your home in your portfolio? If so, remove it, its not an investment, you have to live somewhere!
    2) If you sold all investments now and paid off investment mortgages, how much would you have? That's the current worth of your investments.
    3) How long until you plan to retire?

    • sator on 12/07/2017 - 09:47

      People don't like to think like that! It feels better to state value of property ignoring loans.

      I imagine most fiscally responsible good earners would aspire to retire (stop full time work) around 55 or 60. Then go part time for another 5-10 to keep the boredom at bay

  • hoey888 on 10/07/2017 - 09:58

    A few things for you to consider
    1) you have a child on the way, how many children would you like? How many does your wife like to have?

    2) with your children, coming from a medical background; what kind of school will they be going to? Public? Private?

    3 how much is this going to cost in school fees, and other costs?

    4) is your wife taking 6 month or longer maternity leave? During that time, will you be able to support family, wife, investments in single income?

    5) yes, you have $300k available, but how much are you willing to invest? Personally I keep some money aside for rainy day/bad times.

  • cameldownunder on 10/07/2017 - 10:16
    +2

    You have 2.6M in 80% loan? so you own 520K. You have 350K to invest. Your wife is pregnant? Combined income 350K? Mortgage on your house?
    You have 2 options here:
    Option 1: Invest the 350 in whatever people tell you, let your wife have yours kid, put the kid in 5 days a week childcare, stop having kids, and both keep working, investing and praying that nothing bad, like a market crash, job loss, accident happens.
    Option 2: Consolidate ( sell ) and buy ( fully owned ) a house in a good public elementary primary school. Have 2 or 3 kids, let your wife enjoy being a mum, and you being a dad.

  • noshopping on 10/07/2017 - 10:59
    +21

    In the 2.5 years you've used OzBargain, you voted on 2 deals, seriously? Now asking for financial advice… Not sure if this is a troll thread. Seems like norm here, every couple of months some member gloats about how he has heaps of $$$ and seeking investment advice. Ozbargain = deals. Not investment advice. One thing I can tell you is be prepared to constantly upskill. A high paid job has LOTS of competition.

    • Tech5 on 10/07/2017 - 12:40

      Unless it is in the Dr. field, in which case, nope. Job is and will be very stable

    • JIMB0 on 10/07/2017 - 12:51
      +4

      I was thinking the same thing, another "I make/have a ton of money and don't know what to do with it thread ". Most people with the amount of money the OP claims to have would be well connected with lawyers, accountants, financial planners etc. They would have advised on things such as structuring in trusts to minimise tax (esp. if the wife is not working). They wouldn't be asking on a bargain website, maybe on a property forum. I'd say most of these threads have been trolls.

      • outlander on 10/07/2017 - 18:18

        An interesting idea, based on logical extrapolations. Anyone who does have that kind of money would be actively marketted to, so one could imagine there would be few people legitimately in the OPs situation.

        Here's an alternate theory - OP has his money in investments as advised by his financial team, but he is not sure he is getting the best deal so he comes here and floats the question to the internet. Whats the best way to find out if someones trustworthy? Ask them questions you already know the answer to

      • CI on 10/07/2017 - 22:51

        What type of trolling would you call this then ? if you think that they are trolls ?
        what benefit would one get out of it ?

        • Koolbargain on 11/07/2017 - 09:01
          +3

          Ego

        • JIMB0 on 11/07/2017 - 10:53

          Maybe they just want people to pay them compliments on their financial position.

        • CI on 11/07/2017 - 15:08

          @krazed15: that's some nasty ego then

        • gimme on 11/07/2017 - 15:59

          Let's face it, this is the Tall Poppy country, I doubt that posting this stuff will generate any outpouring of praise so I doubt that his posting it too boost his ego + it's anonymous anyway.

          Also, looking beyond the headline, in terms of real equity it's not like he's that rich. Sure he's doing well and has a highly paid profession but I'm sure he/she has had to work hard for it.

          Also income and wealth are 2 different things. I know plenty of people with very high incomes (and corresponding expenditure) which would be in real immediate strife should they lose their jobs.

          I personally don't see the point of asking these types of stupid questions here. The question could be framed much better if your looking for another point of view. No need to get specific about exactly what you have etc.

        • sator on 12/07/2017 - 10:09
          +1

          @gimme:
          The tall syndrome is very common on this site as expected.

          Anyhow, agree with your income does not mean wealth.

          In addition people don't realise that many high income earners don't have a network of 'professionals' at their beck and call.

          It's the old money that are connected. The boys club from a school like scotch or trust funds babies is the link to good advice.

          In addition, the OP is very comfortable, not rich

        • gimme on 12/07/2017 - 10:39

          @sator:

          Yup I agree

    • momov3 on 10/07/2017 - 13:25

      You'll be surprised the people who ask/consult the same thing of Scott Pape (that Barefoor Investor guy)- I subscribe only to the newsletters, but you get the same kind of super wealthy high earners who must not have been that stupid in the first place to have invested in property - PLENTY property. Then they ask advice what to do with all their excess $$$. You would think someone who has such a lot of wealth already has a good financial advisor telling them how to structure their wealth to avoid as much tax as possible. The options are endless. But to ask such advice of poor church mice like us, and to rely on it, give me a break. Would you play around with such varied advice when it involves your hard earned $$?

  • abb on 10/07/2017 - 11:12
    +3

    Buy more property. If you're a doctor you can probably get that LVR up to 90%. Make sure to pay only the minimum repayments (interest only).

    Then, most importantly, send me a PM when interest rates go up and you have to sell in a hurry.

    Or you could buy this, it's better for you but worse for me, whatever: https://www.vanguardinvestments.com.au/retail/ret/investment…

  • OzzyOzbourne on 10/07/2017 - 11:26
    +1

    Well you're definitely asking in the right place… A bargain forum.

    Next step is to work out how to pay as little tax as possible.

    Tax is for the lower class minions.

  • [Deactivated] on 10/07/2017 - 11:34
    +3

    Just a thought. If you're a high earning health professional seeking financial advice via OzBargain forums, it's the equivalent of a someone with a cancer diagnosis seeking medical advice by consulting Dr Google.

    Do plenty of reading. Take everything you say on this forum with a grain of salt. If you can afford a fee paying financial adviser who can recommend an investment strategy that fits with your risk profile and the time you wish to spend on thinking about your investments, then consider that.

    3 things I take from your brief description however:
    - you're likely to earn more from your salary than from investments, so focus on enhancing that (assuming you enjoy that). Getting up to speed on investment takes time to learn, and experiences to learn from, and that time takes away from your occupation/expertise and family. Trying to do it quickly via speculative bit coin investments is likely to end in tears…..for most people.
    - your current investments are rather concentrated on one asset class (residential property) and your highly leveraged. I'd consider diversifying and possible deleveraging a little. No need to do anything dramatic - but something you may wish to consider for the long term.
    - read up on passive investing via indexes. It's slow. It's boring. But over the long term, it uses the power of compounding returns and diversification to deliver solid returns:

    http://jlcollinsnh.com/stock-series/

  • smhto on 10/07/2017 - 11:49
    +2

    You'll need to think ahead and plan for your retirement and the future financial security of you and your kids
    1. Non-concessional contributions (for you and your wife) into your SMSF or use an industry Super fund. Earnings in your fund are not taxed at your marginal tax rate.
    2. Consider investing in commercial property
    3. Set up a discretionary family trust with a corporate trustee. Beneficiaries are your bloodline. Kids partners can't get their grubby hands on it (well, not so easily). I would include the trust in your will
    4. You can do your own trading. As some have suggested, ETF's are a safe bet and will follow the markets. Do this in both the Family trust name and your SMSF

  • Shame on 10/07/2017 - 12:02
    +4

    Max long tulips

  • Piranha2004 on 10/07/2017 - 12:53
    +1

    Hire a financial advisor? Seriously with that income/assets, you would be silly to not have one. Im not sure how much help ordinary OzB citizens can be.

  • thord on 10/07/2017 - 13:10
    +2
    • Throw extra cash into vanguard funds
    • Throw some into ETFs
    • Throw 2% of the leftovers into your own stock picks and learn what you're doing
    • Throw some cash into cryptocurrencies like others have said. At this point, why not?
    • Don't touch anymore property, you're already highly exposed. Get that diversification going.
  • Apue on 10/07/2017 - 13:30

    Investing ETF or High yield stocks could be good ways to diversify your asset.
    Otherwise salary sacrifice super fund would be another way to go.

  • Trying2SaveABuck on 10/07/2017 - 13:34
    +2

    I think this level of advice is beyond the Ozbargin community but ill give me 2 cents.

    You already have a fair number of assets however due to having a mortgage on your Owner occupied property I would be trying to pay that off ASAP simply put you can't claim your owner occupied properties interest on tax thus your interest repayments are dead money and aiming to make your primary residence debt free would be my priority.

    You and your partner make a large income so if you are still aiming to reduced the amount of tax you pay i would say invest in land (not houses) land appreciates faster and is far less maintenance - you get no income so it is 100% negative gearing. The idea being you buy land hold and sell… however it sounds like you have a lot of money tide up into property already so i wouldnt.

    Ultra low cost Exchanged funds are also a good option for rich people (but i have no idea how they work because i am not rich)

    Another you thing you might look at is starting a trust (assuming you have/or plan to have kids) to protect your money in the future.

    Good Luck and good on you for your success!

    • sator on 11/07/2017 - 13:24

      Is there no other way he can significantly reduce his tax than to just negative gear?

    • Roney on 15/07/2017 - 21:21

      Isn't negative gearing applicable only on negative cash flow from income-generating investment property? If I have a vacant unit still on LVR, can I claim the negative gearing?

  • MessyG on 10/07/2017 - 13:55
    +2

    Look I'm no financial guru so take this with a grain of salt but I would just pay those mortgages down with it then save up enough for the next property or toss it all into super. If property investing is your thing, I can't recommend The Property Couch podcast highly enough. Or have a read of The Barefoot Investor for more general advice. And also consider how much you're going to need in retirement and if you're going to be able to have no debt by that time, I assume you've got income protection insurance. Owning multiple indebted properties can be a house of cards if things turn sour.

    • danielkcheung on 10/07/2017 - 20:24
      +1

      Was going to suggest listening to the same podcast.

  • freemoneyhunter on 10/07/2017 - 14:03
    +15

    These threads are pissing me off.

    • westernculture on 10/07/2017 - 17:39

      Seems 'appropriate' high income earners looking investment advice on a bargains site.

    • BargainCowboy on 10/07/2017 - 19:57

      Trolls…

    • [Deactivated] on 11/07/2017 - 13:13

      Why?

  • Cyphar on 10/07/2017 - 14:29

    See a financial adviser. Nobody here can give this kind of advice. You need a paid professional for this one but one piece of general advice I can offer; if your wife isn't intending on working after bubs is born, make sure that loss in income is taken in to account

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