What are you investing in?

[hey-you]

Investing in stock markets is akin to gambling today.
The australian market looks cheap but who would know,the divvies are certainly good but there is a lot of downside possible.
Cash in the bank in australia can still earn 5.75 per cent but as they say who ever got rich by keeping money in the bank?
Perth real estate looks to be recovering as it should with a thousand people a week arriving.

I may buy a cheap unit-$210 k.

I bought gold in holland in 1979 for $230,a few months later the Russians invaded Afghanistan and by February 1980 it was $848 as I remember.

Are you saying you won't be back for a while.

[ken svay]

I won't be back for months,the money is too good in Perth.
I have worked for the last five weeks and made over 11k. Plus super.
This really is the lucky country if you are skilled and connected.
If my health hold up I plan to work st least nine months a year from now on and save ove 50 k year.
What to invest in is the problem,hence the thread.
I was going to buy real estate but it looks like prices are going nowhere for years,except down.
Melbourne has cheap units but my son says they may never increase in price.Houses in outer suburbs of melbourne are down up to 30 per cent at the moment.
Blue chip shares are holding up though,my portfolio keeps creeping up in value.But to invest more in the market,one has to be brave.
However dividends are a tax credit so if one is earning good money stocks paying six or seven per cent make sense.
I am staying with a mate in the inner city,he bought his old timber house in 1981 for 28k.Value now a cool million.

[LaudJohn]

I won't be back for months,the money is too good in Perth.
I have worked for the last five weeks and made over 11k. Plus super.

To get a bit of perspective, are we talking net or gross?

How many hours worked in those 5 weeks?

I was going to buy real estate but it looks like prices are going nowhere for years,except down.


Melbourne has cheap units but my son says they may never increase in price.Houses in outer suburbs of melbourne are down up to 30 per cent at the moment.

Your son is right in that there my never be an increase.

He is out a bit on the downside of the outer areas, more like 10-20%, prices have been stable since Jan 2012, but they may break to the downside again.

Propetry in Oz, and in Melb in particular is purely a capital gain play.

The gross yield is around 3% to 4% gross.

Take off management and rates and you are looking at 3% net at best. Mortgage rates are still around 6.5%.

Counting stamp duty, entry and exit costs a property has to grow about 5%pa for 8 years and you have broken even.

Telstra shares are paying aout 7% in dividends by comparison and you can still get 4.5% on deposits in the bank

[Bitteeinbit]

Now that's a god investment, lol. To know what you should be investing in, we need to have an accurate picture of where you are in your life (what stage you're at, risk tolerance, etc.). How old are you Ken? Judging by other posts and bits of info along the years, I gather somewhere in your early 60ies? I may be way off, let me know. But if you are over 60 it's probably best to stay away from the markets or anything too volatile. Not sure about Australia, but you can still get great returns with dividend plays where I'm from but there's still some risk involved and usually if you're planning for a retirement that should be coming soon, it's best to avoid crazy plays (though you seem to be on the right track with dividends and undervalued blue chips).

[ken svay]

Good hours in the building game nowadays LJ.
We work 6.30 to 3 only five days a week,55 an hour plus super.
But there are younger guys doing piece work on our job,they are making up to 4k a week.As are my mates sons,their best weeks have been up to 10 k each.
But everyone has heaps of tools average ten thousand each in tools probably plus the vehicle.
On union jobs guys are earning 2200 after tax then super,holiday pay,redundancy,holiday pay etc etc.
Up north they earn anything up to 100 an hour probably.
I have gone cold on real estate,even in Perth.the market looks a much better bet if one is earning good money.
I have done really well from Telstra,I think I will double my holding this week.It must be Australia's best defensive share at 28 cents divvie per share.And having spent my first few days in the wheat belt I now understand that they will always be the only provider with national coverage-who else would invest the money?
The libs did the backflip last week as well,they wont tinker too much with the NBN.

[Bitteeinbit]

FB close to 18$, lol. I love it, a classic pump and dump by the big boys. Hopefully no one here lost money on that.

[kampucheer]

My main purpose for being in Nepal these last four months was for making a small investment that returns sixteen percent interest paid monthly in Arthur Ash. I shall be leaving tomorrow now it's all ticking along, and if history proves anything, my next investment move will be sure to obliterate any recent mild successes.

[Visser]

FB close to 18$, lol. I love it, a classic pump and dump by the big boys. Hopefully no one here lost money on that.

Made money on it.

[Bernhardow]

I go Pink this week and take a ride on Oriens Travel & Hotel Management Corp.  (OTHM)  $ 0.034
its just a Prom game but should be good till early next week.

[Bernhardow]

I'm in but please dont buy any ... its under investigation! rules are changing ...

[ken svay]

Dont buy iron ore producers,shares plunging this week.
Best buy this year,sirius resources up 2500 per cent since june,they were 4 cents now 1.50!!!
Huge nickel find in WA,first hole driiled the shares went from 4cents to 40 cents in one day!!!
Talk about a lucky country.

[shizzle]

Best buy this year,sirius resources up 2500 per cent since june,they were 4 cents now 1.50!!!

And up another 15% since you posted this.

[Jonny]

Pork belly

[shizzle]

Best buy this year,sirius resources up 2500 per cent since june,they were 4 cents now 1.50!!!

And up another 15% since you posted this.

+27.67% for the day. Nice find, Ken.

[Bernhardow]

Very nice find ...