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Investment Portfolio; Against Melbourne/National Property prices.
Topic Started: 16 Dec 2012, 08:34 AM (25,671 Views)
Poontang
Member Avatar


Share Code


ABY

AVB

AYN

BKP

BPT

CKF

CTN

DUE

EHL

EPX

EVN

FML

GOR

IMF

KRM

MAD

MTS

MXR

NCM

NST

PIO

RAU

SAR

SBM

TGA

TSM
Quantity

43000

229885

555555

1666666

13793

13793

19607

9478

33057

11267

12084

606060

160000

11235

11695

27777

5952

2500000

1000

17094

714284

500000

52631

14652

9706

100000
Buy Price








$0.465

$0.087

$0.036

$0.006

$1.45

$1.45

$1.025

$2.11

$0.605

$1.775

$1.655

$0.033

$0.125

$1.78

$0.885

$0.72

$3.36

$0.004

$21.56

$1.17

$0.028

$0.010

$0.38

$1.365

$2.06

$0.20







Current Price




$0.465

$0.087

$0.036

$0.006

$1.45

$1.45

$1.025

$2.11

$0.605

$1.775

$1.655

$0.033

$0.125

$1.78

$0.885

$0.72

$3.36

$0.004

$21.56

$1.17

$0.028

$0.010

$0.38

$1.365

$2.06

$0.20



Current Value $







20000

20000

20000

10000

20000

20000

20000

20000

20000

20000

20000

20000

20000

20000

10000

20000

20000

10000

21560

20000

20000

5000

20000

20000

20000

20000








Share Portfolio Total $476500
Pre Paid Interest on loan 12 months in advance @ 7.65% $19625
Total $496125

Greensborough is the suburb picked.

Weekly Rent is $430pw $1849pm

House price $480000 + Stamps + Fees $498000

$240000k Deposit $258000 Loan @ 5.5% Fixed 3 Years.

Loan Repayment $1584 per month
Interest Component $1182 per month

I have been assigned to a client so may not be able to update this weekend. Will endeavour to try.

NFI what happened with column headings...

I am not a licensed financial advisor, these are not recommendations and you should seek professional advice before investing. Using figures from an anonymous blogger on an internet forum is not professional financial advice, it is you being stupid


EDITED: SAR and RAU Quantities were in incorrect order. Fixed
2nd Edit Quantity of EHL fixed.
Should not have done this at 4 in the morning.
Edited by Poontang, 12 Jan 2013, 11:18 PM.
There are some people who seem angry and continuously look for conflict.
Walk away, the battle they are fighting isn't with you, it's with themselves.

The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it.
The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
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Poontang
Member Avatar


Poontang
11 Jan 2013, 06:16 AM
Share Code


ABY

AVB

AYN

BKP

BPT

CKF

CTN

DUE

EHL

EPX

EVN

FML

GOR

IMF

KRM

MAD

MTS

MXR

NCM

NST

PIO

RAU

SAR

SBM

TGA

TSM
Quantity

43000

229885

555555

1666666

13793

13793

19607

9478

33057

11267

12084

606060

160000

11235

11695

27777

5952

2500000

1000

17094

714284

52631

500000

14652

9706

100000
Buy Price








$0.465

$0.087

$0.036

$0.006

$1.45

$1.45

$1.025

$2.11

$0.605

$1.775

$1.655

$0.033

$0.125

$1.78

$0.885

$0.72

$3.36

$0.004

$21.56

$1.17

$0.028

$0.010

$0.38

$1.365

$2.06

$0.20







Current Price




$0.48

$0.085

$0.039

$0.006

$1.46

$1.47

$1.04

$2.12

$0.60

$1.78

$1.66

$0.033

$0.125

$1.765

$0.85

$0.69

$3.38

$0.005

$21.75

$1.18

$0.029

$0.008

$0.385

$1.385

$2.08

$0.20



Current Value $







20640

19540

21667

10000

20137

20276

20391

20093

19834

20055

20059

20000

20000

19830

9941

19166

20118

12500

21750

20171

20714

4000

20263

20293

20188

20000








Share Portfolio Total $481626
Pre Paid Interest on loan 12 months in advance @ 7.65% $19625
Total $496125

Greensborough is the suburb picked.

Weekly Rent is $430pw $1849pm

House price $480000 + Stamps + Fees $498000

$240000k Deposit $258000 Loan @ 5.5% Fixed 3 Years.

Loan Repayment $1584 per month
Interest Component $1182 per month

I have been assigned to a client so may not be able to update this weekend. Will endeavour to try.

NFI what happened with column headings...

I am not a licensed financial advisor, these are not recommendations and you should seek professional advice before investing. Using figures from an anonymous blogger on an internet forum is not professional financial advice, it is you being stupid

Would some one like to reply to the new investment portfolio and lock in the figures?
Edited by Poontang, 12 Jan 2013, 11:23 PM.
There are some people who seem angry and continuously look for conflict.
Walk away, the battle they are fighting isn't with you, it's with themselves.

The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it.
The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
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Olmule
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Sorry mate, I got totally lost with your explanations and justifications as they made no sense to me.

I agree with Petey F. The only thing we can get out of this is the tracking of you share portfolio.

Crack on Kevin Costner!
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Poontang
Member Avatar


Olmule
12 Jan 2013, 09:34 PM
Sorry mate, I got totally lost with your explanations and justifications as they made no sense to me.

I agree with Petey F. The only thing we can get out of this is the tracking of you share portfolio.

Crack on Kevin Costner!
I thought it was clear.

The discussion centred around whether someone whom could afford to buy but chose to invest and rent a home instead.

So I put up a portfolio that I thought would outperform the housing market.

Whilst not a true "technical" tracking of either, it would have given 1 of 3 results, a clear win for the property buyer, a clear win for the investor or figures that were/are reasonably close then it would have been worth a closer look at figures.

Trojans statement that the investor can not include dividends from shares makes no sense to me...
There are some people who seem angry and continuously look for conflict.
Walk away, the battle they are fighting isn't with you, it's with themselves.

The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it.
The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
Profile "REPLY WITH QUOTE" Go to top
 
Olmule
Default APF Avatar


Poontang
12 Jan 2013, 09:53 PM
Olmule
12 Jan 2013, 09:34 PM
Sorry mate, I got totally lost with your explanations and justifications as they made no sense to me.

I agree with Petey F. The only thing we can get out of this is the tracking of you share portfolio.

Crack on Kevin Costner!
I thought it was clear.

The discussion centred around whether someone whom could afford to buy but chose to invest and rent a home instead.

So I put up a portfolio that I thought would outperform the housing market.

Whilst not a true "technical" tracking of either, it would have given 1 of 3 results, a clear win for the property buyer, a clear win for the investor or figures that were/are reasonably close then it would have been worth a closer look at figures.

Trojans statement that the investor can not include dividends from shares makes no sense to me...
could you please just summarise the assumptions again for each of the 2 x options?

At some stage we went from a 240k portfolio to a 480k portfolio...
Edited by Olmule, 12 Jan 2013, 09:57 PM.
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Poontang
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Olmule
12 Jan 2013, 09:55 PM
could you please just summarise the assumptions again for each of the 2 x options?

At some stage we went from a 240k portfolio to a 480k portfolio...
It jumped to a $480k portfolio to become a more like for like comparison inclusive of costs for both the renter and the investor.

Both had a $240k deposit and borrowed funds. 1 to buy a $480k House in Greensborough. The other 2 buy an ivestment portfolio. Greensborough was chosen 1. Because I actually would consider buying there myself, trains, buses, large shopping centre, schools and other amenities are close to hand. Trams next suburb across, easy access to the ring road..

A 4 Bedroon 2 Bath Double Garaged home on a good sized block can be had for $480k

Rents for a similiar house like that in Greensborough, after a look on realestate.com.au/greensborough/rent could be had for $400 to $450 week I settled on a $430pw level.

So the investor has costs of 52 x $430pw incurred as well as interest (prepaid 12 months in advance) on the loan to purchase shares.

The property buyer has interest + rates + building insurance + water rates incurred.
Edited by Poontang, 12 Jan 2013, 10:13 PM.
There are some people who seem angry and continuously look for conflict.
Walk away, the battle they are fighting isn't with you, it's with themselves.

The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it.
The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
Profile "REPLY WITH QUOTE" Go to top
 
Olmule
Default APF Avatar


ok, cheers. I think it is starting to sound more realistic now then.

Will the share investor also gets dividends and be hit with tax on the profits of any trades?

Maybe chuck in a few grand in expenses, maintenance, renovations per year for the home owner to cover the inevitable as the building component should be depreciated over time and will need money thrown at it.

Are you comparing the share portfolio against the property performance based on one of the main RE indexes over the year?
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Poontang
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Olmule
12 Jan 2013, 10:50 PM
ok, cheers. I think it is starting to sound more realistic now then.

Will the share investor also gets dividends and be hit with tax on the profits of any trades?

Maybe chuck in a few grand in expenses, maintenance, renovations per year for the home owner to cover the inevitable as the building component should be depreciated over time and will need money thrown at it.

Are you comparing the share portfolio against the property performance based on one of the main RE indexes over the year?
Yes the share investor gets dividends on any applicaple shares that pay dividends during the scenario.

Capital gains and losses will be recorded. Tax will be done at the end of October.

A capital gains tax amount figure will be created when the first CG is made. This will not be added to figures but will be deducted from porfolio value 1st week of September.

Example portfolio might be $535000 then with a CGT figure of $7000
1st week of September portfolio value will be $52800.

Capital losses (if any) and franking credits where applicable) will also be included.

Portfolio has a captal loss against it of $7000 and I sell a share holding with a $7000 capital gain the loss is offset but no added value to portfolio either.

I had planned to compare against the Melbourne and National indes but was informed that this was not fair. So a specific suburb has been chosen, portfolio is agains that suburb. I dare say general comparisons will be made against others specific locations.
There are some people who seem angry and continuously look for conflict.
Walk away, the battle they are fighting isn't with you, it's with themselves.

The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it.
The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
Profile "REPLY WITH QUOTE" Go to top
 
Olmule
Default APF Avatar


sounds good.

I guess you could also include trading expenses (brokerage and stamp duty) and any other expenses and deductions (home office, laptop, internet, etc, etc) that you are obliged to pay and entitled to deduct.

This is a nice experiment.
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Poontang
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Olmule
12 Jan 2013, 11:11 PM
sounds good.

I guess you could also include trading expenses (brokerage and stamp duty) and any other expenses and deductions (home office, laptop, internet, etc, etc) that you are obliged to pay and entitled to deduct.

This is a nice experiment.
Just gets too technical with that aspect (aside from brokerage costs $19.95 per trade) so $520 in trades. Offset against the Home buyer hiring a truck and getting a couple of knick knacks during the move.


Trades willl be inclusive of brokerage in the "buy" price as per standard share trade. ie Brokerage divided by number of shares purchased added to share buy cost.

eg 20000 50 cent shares in company yyy $10000 + $19.95 Brokerage = .$0.501 buy price.
There are some people who seem angry and continuously look for conflict.
Walk away, the battle they are fighting isn't with you, it's with themselves.

The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it.
The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
Profile "REPLY WITH QUOTE" Go to top
 
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