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Klexio
I've been having a good hard think about how to increase your monetary worth that extends beyond the standard 9-5 job. I'm a web developer for a good, small business that doesn't push me extremely hard, rewards me for my hard work (2 pay rises in my first year) and am now on a respectable salary. That leaves me with some energy on some evenings/the weekend without being too burnt out.

I'm looking to increase my ability to the point of being able to run my own business on the side in perhaps a year or 2 so I've got another stream of income. I'm hoping that once the startup costs are overcome and the client base is reasonable (given a 9-5 job is still happening) that I'll be able to add a few more dollars to my name. In the meantime, I'm exploring other options to continue to increase my income and the 2 most common ones seem to stick out like a sore thumb; property or shares.

In order to save for a property in Melbourne (where I live), you need a ginormous amount of upfront deposit if you want to live somewhere within 30 minutes of the CBD and not full of deros. As I am currently renting and my girlfriend is both studying and working, I can't see a house/apartment deposit happening any time in the next 5 years. This has brought me to look into investing in the stock market. There are a few resources I've found (ASX website and a few others) but I'm sure there is nothing like hearing other people's experiences and what they found would be their dos/don'ts when starting out.

Do you have any books/websites that have assisted you in the stock market or any advise yourself? Or do you have any good suggestions on how to get into the property market without requiring that huge lump 20% deposit? Or maybe even other avenues that have allowed to increase your income?

I'd love to hear any of it. I'm not convinced that just buying a property and working a 9-5 job is the best way to make money. Probably the safest, but probably not the most lucrative.
Fork
Starting your own side-business is easy, but having the goal of actually growing it large enough to drop a day or two off your usual 9-5 job is a whole different ball game - one that requires an extreme amount of effort and risk. Being a web development company makes it a bit easier in some aspects, such as if you go on holidays you just need to make sure your dev schedule is clear for that month instead of hiring someone to fill orders while you're away. But it's more annoying in others, as even when you're on holidays on the other side of the world you'll have to be on call 24/7 and talk to chumps if their site goes down. Sick leave doesn't exist, if you get any decent sized clients you'll need to look into workers insurance in case you fall off a ladder or your servers lose them big business, lawyers to write contracts, etc.

Not to deter you at all, you could be hugely successful. All i'm saying is you should decide how far you want to take it and be realistic with your goals. A little backyard developer making a few hundie on the side isn't too bad and most of us here have done it. But to grow any more, takes serious effort and some serious balls.

Haven't touched the stock market, got nothing for you there.

Property is generally seen as a safe investment with steady return these days, and interest rates are at an all time which is a great time to jump on board - assuming you could still handle your repayments if the rates rise, and they will! Just because the bank says you can afford it, doesn't mean you can. Do your own sums and make your own decision.

Regarding getting a property without the 20% deposit? I think the minimum you can have is 5% deposit, but if you have anything less they charge you Lenders Mortgage Insurance (LMI) on top. Not a huge hassle as you can just get it tacked onto your mortgage, that way you end up paying double (as you pay interest on it too) but it's one less thing to worry about and you've got a goddamn house. That's my experience with it anyway, may be different over east.
willy
An exchange traded fund sounds right for you. You don't have the time frame (you said five years) for anything else.

Vanguard is considered top tier for ETF's. Here is their product list. https://www.vanguardinvestments.com.au/ … ducts#/etf

I wouldn't be lured into any fund for Aussie shares or property right now, we are still finding a bottom for the shades and property has peaked.

I'd go international shares.
Klexio
Thanks friends. Yeah Fork, I think just running a little thing on the side in addition to the 9-5er would be what I'm looking at. A few hundy is exactly what I'm looking for. I'm happy with not being able to afford a place within 5 years as long as I can keep my net wealth increasing. I think the stock market (local or international) would probably be more up my alley as I want to get the ball rolling in the next few years. Thanks for the suggestions, I'd love to hear more input. Obviously this type of thing is different depending on where you're from and what your circumstances are. I'm a stickler for stats and monitoring trends as of late so perhaps stocks is where I should invest my time and money.
BigChief
willy wrote:
An exchange traded fund sounds right for you. You don't have the time frame (you said five years) for anything else.

Vanguard is considered top tier for ETF's. Here is their product list. https://www.vanguardinvestments.com.au/ … ducts#/etf

I wouldn't be lured into any fund for Aussie shares or property right now, we are still finding a bottom for the shades and property has peaked.

I'd go international shares.


I think international side of things are trying to find a bottom as well.
But i would agree, shares are a simple way to find some extra income with very little effort (almost none)
The extra cash flow on dividends is quite nice as well.

But don't expect to get rich quick...i lost a bit of money in this recent downturn.… but im no means gonna sell at a loss now... the share market always improves.

Once the American side of things finds a bottom, I'll probably shift a little money into an ETF there and see how it goes.
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