Hi All,
I've made a property investment 3.5yrs ago and have seen significant capital growth (I secretly regret I didn't invest enough).
So that made me wondering what was your best investments and how much percentage/times?
I would be grateful to hear about Oz-bargainers financial strategies?
how much was insurance costs?
not an investment.
I've had a friend that works with insurance INSIST that even though I'm on agreed value, if my car was totaled/stolen etc I wouldn't get the figure we're agreed on, only market value. It makes no sense to me, why offer agreed value at all if it's not agreed? the wording in the PDS also seems pretty damn clear cut that they pay you agreed value in those events.. What can I tell this person except that they're an idiot? they claim this intellectual high ground over it because they work in insurance.
Just call them an idiot.
"you're an idiot, policies vary from company to company"
They're an idiot, but the key issue if you over-insure a vehicle and get in an accident, the insurance company might spend a monza fixing up your crippled car which will never ever be the same rather than declaring it a write off and paying you out.
Good point and well worth considering! definitely not at all something this person mentioned.
It's slightly different but I just had my 8yo car written off. I had GIO platinum car insurance which has lifetime new for old replacement. Strangely I could set an agreed value, which I put as low as the slider would allow which brought the premium down. This year the insured value was around $20.5k.
I bought the car for $59k. Just got a pay out of $74k.
Wow! How does GIO premium compare?
And what new car are you getting?
@danyool: A little under $200 more than regular comprehensive. Premium was just above $1000.
Got the larger model car and paid basically nothing, nice upgrade since we now have 2 kids instead of 0.
A rep from Youi told me this as well when I said I currently had agreed value with SGIO. Basically said oh yeah, you don't actually get that, they might just pay up to that amount. Wtf.
$5 scratchie, got $10 back.
Won a free ice-cream from one of those icecream paddle/sticks.
capslock janitor, I don't use the word "hero" very often but you are the greatest hero in Australian history.
Extra points if it was a chocolate paddlepop.
Bro you really made my day better.
I remember as a kid buying 1 paddle pop that ended up turning into 6 as I won a free one each time, I/m sure the guy at the servo must have thought I was doing something dodgy but was just super lucky
Rams Home Loans. Bought $9k in 2 tranches in 2008 sold in 2010 $36885.
Flight Centre. Bought $32k from 2005-2009. Sold for $120k several years later and still hold a few.
CGT ate up some of the joy.
I could also list enough bad investments that totally negate that win.
The best investment I ever made was doing a Mech Eng Associate Diploma while also doing my apprenticeship. The fees weren't a lot but there was 4 years part time that destroyed my social life. The payback was a career that gave me pay rises almost every year.
What field do you work in that utilises both the trade and diploma? I did both as well but never really looked at other jobs as my current one has been rather good.
I jumped between spanners (motor mech) and customer facing roles or a combination of the two for about 12 years and ended up in aircraft maintenance. Then went into workshop planning / scheduling; asset management (buying and commissioning ground support equipment); IT change management (Y2K bug) and back to asset management.
Sole trader for 9 months doing "everything' (customer consult, design, order, install).
Moved into dams & pipelines. Maintenance planning, writing job plans, contract management then Reliability Engineering (auditing the effectiveness of our maintenance practices) then into Maintenance supervision / implementation.
Most of the jobs you need to know about engineering concepts but not actually do any calcs. It's more about project management, customer management, reports, etc.
We employ around 200 people with engineering qualifications. Only about 10 of them do actual engineering that involves calculations, stress analysis, etc but the remainder couldn't do their job without their engineering knowledge & skills.
I decided to invest in eating healthier and exercising regularly.
The return has been considerably higher energy levels, less body fat, more muscle, cessation of blood pressure meds and a more positive outlook to life.
diet wise ?
significant reduction in sugar, substituted with stevia-based products to satiate sugar need.
Less fatty foods and eating way more salads with less carbs, unless I'm going for 10km + run.
That's an excellent investment. A strong structure needs a good base.
and a strong core ;)
And my Axe!
What about 8hrs+ of nightly zzz's? Will go nicely with the current investment
WINNER
I am investing in this.. for my kids. Abeit maybe too late.
Never too late bro
The apartment that paid me my deposit back every year.
Also bought CSL during Eurozone financial crisis and 10x return.
which suburb was the apartment?
Melbourne CBD. Doubled in price too.
Awesome!
Melbourne CBD
Consider yourself very very lucky. Lots of people lost a lot of money especially after Covid. Way too many stocks and no demand. I know few people owned CBD apartment and they all have to cut the rent and some sitting vacant for months. One guy sold his apartment half the price he paid in 2017.
Doubled in price too
When did you purchase it? And what kind of apartment? ( ie sqm / bedrooms /car park)
Way too many stocks and no demand. I know few people owned CBD apartment and they all have to cut the rent and some sitting vacant for months.
In Melbourne you only buy within one block of Swanston and Elizabeth St. Any further than that if things go wrong (economic down turn / COVID) you are in trouble. Southbank is full of ex Airbnb empty apartments, Docklands has good views if you face the right direction but it is still a social desert and if you think anyone is going to hike the dead zone between Queen St and the Esplanade people are dreaming.
Also don't buy new build you instantly lose money. They will talk about depreciation benefits but you pay $1 and get to not pay 30c to the tax office. Buy an old one for $300k rather than a new one for $400k the $100k in my pocket is better than someone else's pocket and just reduce the rent. Problem with paying more is you need to find people who are rich enough to afford it.
I've had to drop my rent but I've had it since mid 2000s therefore I've made my money back and some more. I bought it for just over $100k. It is a 37sqm studio in a good location (I could partition it into a one bedroom, have thought about it but it looks a lot bigger as an open plan studio) high enough to be not so noisey and street facing. No parking space, parking space is also a white elephant. You don't live in the city to drive all the time to get out of it. Paying $50k - $60k for a parking space that is worth $300 per month and not everyone needs it living in the CBD except for the rich overseas students. Always been occupied because it is cheap, not dirt cheap like the 20sqm boxes but not as expensive as the 1BR super new builds but also doesn't have the same problems.
I've always built a spreadsheet model around every purchase and at some point the spreadsheet says no. If the spreadsheet says no then definitely a no. People who over pay are just lucky rising market (government bail out) has saved them in the past.
@netjock: Thanks for the insight !
only buy within one block of Swanston and Elizabeth St. Any further than that if things go wrong (economic down turn / COVID) you are in trouble
What is the reason behind this? Are you targeting international students?
Also don't buy new build you instantly lose money
The bit that increases in value is the land. You instantly lose money with any building. New buildings just expedite the depreciation.
If you spent $136K in some eastern suburb house back in 2000 - your asset value is worth close to 10 times more by now. Spending roughly the same amount of money in CBD get you a 1 bedder that only slightly more than doubled in price .
If you spent $136K in some eastern suburb
20/20 hindsight. Back then nobody went to Ringwood. I've lived in Melbourne for 20 years. I've been overseas more often than Ringwood. Had conversation with someone the other day, if you want to come into the city from Ringwood you would die to boredom half an hour before getting into the city. I have no idea why the Eastern suburbs just keep on getting further and further out. Apparently Packenham is half a million for a block of land.
Probably the still affordable patch in Melbourne is around Dallas / Upfield Station. Yes the area has a crap reputation but it is also about $500k (old houses and units) 20 kilo meters from the city (or 35 mins on the Upfield line, Ringwood is like 45mins and $1m so you could build a castle with your own gym and pool never go out with the price difference).
I could have bought a lot of CSL at $34 a share in 2014 but I didn't. If I bought $100k I could have 10x rather than having to hold it since 2000 and deal with all the trouble that comes with property.
What is the reason behind this? Are you targeting international students?
No. It is just margin of safety. Swanston and Elizabeth St will be last part of the city to die. Problem is you can't find a good 37sqm studio. You'd be luck if they don't try to shove 2 BR in 37sqm (yes I have seen a lot of those).
@netjock: Actually, pick any other suburbs as long as it's not surrounded by empty flat land and you'll see a similar result.
Probably the still affordable patch in Melbourne is around Dallas / Upfield Station
For investment you want to avoid buying in somewhere with no existing infrastructure and lots of supplies ( ie new estate )
Distance to CBD is not a major factor.
If I bought $100k I could have
Provided you pick the right stock and have the cash at that time. Some people that pick Telstra in 2000 still in the red today.
Back in 2000 you could buy 200k house with no down payment. Pick any house and highly likely you'll double your property purchase price
@Indomietable: If you mean infrastructure is roads and utilities.
If you want close to good schools, gym and aquatic centre, shopping centre incl cinema within walking distance (under 10mins). There is very few places in all of metro Melbourne.
People just like to live in black holes where they pay $1m then have to spend $100k on two cars so they can drive 10mins to the shopping centre then 20mins in the other direction to go to the gym.
I guess time is money.
Also all the best paying office jobs are in the city. Covid will pass like 1918 Spanish flu and people will gravitate to the city like they always have.
@netjock: The majority of office workers is in low to medium average income brackets. High-income earners (surgeons, business owners, boards of directors etc) generally don't mix with 9 to 5 workers in a train or stuck in the morning traffic heading to the city.
I think it's a riskier gamble to invest in a location where its population is in low to medium-income brackets. I'd rather go further out of the city and invest in say Mount Martha (80KM away) than Upfield (25KM).
I think it's a riskier gamble to invest in a location where its population is in low to medium-income brackets. I'd rather go further out of the city and invest in say Mount Martha (80KM away) than Upfield (25KM).
Always more poor people than rich people.
High-income earners (surgeons, business owners, boards of directors etc) generally don't mix with 9 to 5 workers in a train or stuck in the morning traffic heading to the city.
Don't think there is much surgery being done in mount martha, and how many people own a business and run it from Mt Martha.
If you look at how much board members make if you are not on top listed firms then you'll know it isn't all rainbows and sunshine. Why do you think board members are board members on a few boards, one not enough to live on.
Still would have gained more with Bitcoin. :D
@techlead: Advice from the guy who takes a margin loan instead of realising a capital gain even with a discount and pay non tax deductible interest.
@netjock: I was exploring the various options. I have yet to decide on one.
My potential CGT bill is worth multiples your net worth most likely.
@netjock: Wealthy people don't sell assets into fiat to buy a coffee.
They take out debt to pay for their lifestyle and hodl the assets while it appreciates. When the time is right they pass on the assets tax-free to a beneficiary.
“Our new Constitution is now established, everything seems to promise it will be durable; but, in this world, nothing is certain except death and taxes,” B.F
He was right on the former but wrong on the latter.
People that understand the rules play a better game.
@rektrading: Yeah. Unfortunately I can bet neither of you are really rich just pretending to live like it.
Most very rich put their play things as part of their business. Unless you run a crypto business you are just talking rubbish.
Very surprising the apartment made any money…land > no land.
It is about yield. You buy it at 10% yield and market goes to 7% you make money. Interest rates when I bought was more like 6%. Now 2.5% so people would rather pay me than pocket the windfall.
gf = love
didn't have to pay others? = financial gain? haha.
I got married and now have a child
Wow, what a downer.
That wasn’t sarcasm
Can you elaborate on how your child became the best financial investment in your life and what the return was?
I would think a kid is typically the worst financial investment someone's life.
@watwatwat: I enjoy spending money on them. It brings me and them great happiness. In this current climate, being happy is the best thing.
@Dlw: You're really pushing the definition of this thread title for something that was supposed to be about financial investment and financial returns.
Why not take it further? Maybe buying water was your best financial investment because it allowed you to be alive.
Well if he makes the kid work then it's passive income for the parent.
Hmmm, I wouldn't say it's passive because you would have to look after the kid until they're a teenager at least. I wonder if you can claim asset depreciation on them over their average 80 year life span on your tax return?
Having a graduate degree.
I am yet to have an employer even ask if I have a degree. Wasted 4 years of potential income + 30k
You haven't had to submit a resume?
What qualification do you have and what field are you applying to?
I have a bachelor of business, diploma of building, cert IV in building & Cert IV in WHS. Currently working as a construction project manager.
that's funny
I'll sell you my masters for half price!
Just like any other investment, will not work for everyone. It's all about timing and type of program. For example, I know few people who lost their life time savings on Bitcoins and there are few make it through.
BTC. 5x so far.
damn has it gone back up?
62k AUD as of now.
So you are investing around 10k initially?
@Succulent: That's per coin so get got in at about $10k, but might have $50k in there who knows.. But it's all x5
All the Best. You gonna need all the luck soon
How do you record it on your tax returns?
Unrealized gains are not taxable.
Only have to declare when you sell.
Bought bitcoin near the beginning.
Did you buy pizza with it? What's the current return look like
How much? Because beginning beginning is <$1 lad. $10 and you're multi-millionaire today.
Enough, but not enough as I still require the services of OzBargain.
Worst investment was listening to whirlpool experts - should have trusted my gut - https://forums.whirlpool.net.au/thread/3n8x78k3?p=2
Why do you need a margin loan, if you have a gut feeling you simply buy.
And use a burner phone as your contact. Sucked in CBA. ABC Learning to the moon!
Similarly, when I saw this thread, I thought back to Whirlpool and my best financial return was not listening to their career advice >10 years ago.
Selectively picking winners and saying you could have got a loan and be onto a winner. That is easy to do.
My CSL shares 10x but I could have got a margin loan and 100x my initial investment. Problem is you don't know whether it would go up or you end up holding a big debt.
Margin loan has it's place like if you find take over battles and you can get in there an make 10% in 3 months when you are paying 6% pa. Generally no unless you know what you are doing.
you miss 100% of the shots you don't take.
Also don't blame others, at the end of the day it's your money and your risk.
The power of hindsight is also a factor in this. It's easy for anyone to say "I was going to buy bitcoin in the beginning but xxx talked me out of it"
Bitcoin also could've fizzled out, nothing is guaranteed.
Bought a lotto ticket a while ago and had a 25000% return on it. Not really an investment but I would say if Bitcoin counts, then so does lotto.
You won $25000
For lotto investment, is it supposed to include all the money that you have put to date, for the return % calculation?
Yeh, probably does to be fair which would reduce mine down to say 18000% or so
Still a good return!
@[Deactivated]: You can always invest in other means now that you have unlocked the luck-achievement from lotto
Finding ozbargain
About 15 years ago, I used to work in a rural town and insured my BA XR Falcon (more than 100k coz of regular commuting to Mel) for $20,000.
It was valued less than $10,000 at that time. Now back then, there was no ceiling on how much you can insure the car and insurance, compared to now, was far more affordable.
I had an accident (hit by an L plater in a roundabout) and I instantly got $20k to spend on a new car which I obviously didn't spend on because I then used my girlfriend's car.
Best investment ever albeit accidental. Ever since that time, I never doubted Agreed Value insurance again.