tech/a
No Ordinary Duck
- Joined
- 14 October 2004
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I think Bills point hasnt been made clearly enough.
The eager investor wishes to accumulate riches NOW.
There are times to hold potfolio's and there are times to begin portfolios in each asset mentioned.
Now in my opinion is NOT the time for either.(Begining).
Keep accumulating and wait to see signs of growth OR exhaustion of supply in either.
The secret to wealth particularly when starting is TIMING.Opportunity is always there--TIMING is swift (Although opportunity in property lasted 5 yrs and the Bull market in stock 7 yrs).
In the meantime become an expert in the signs you will need to recognise in each to effect best timing.
A solid understanding of ECONOMICS will be handy
Perhaps more so the consequences of ECONOMICS--eg a war in Iraq--Gold Oil rise.
Also study RISK mitigation.
So are you saying cash is the best investment to make?
I feel like I'm achieving nothing having my money in savings accounts.
So are you saying cash is the best investment to make?
I feel like I'm achieving nothing having my money in savings accounts.
So are you saying cash is the best investment to make?
I feel like I'm achieving nothing having my money in savings accounts.
Similar position also, forget both...concentrate on trading, 5-7 years (if this is your hypothetical timeframe) of doing so, you will be generating far greater returns (if successful), than what you would otherwise get on rental yields etc.
Strictly speaking, shares > property, it would be 'easier', for lack of a better word, to generate a better return on an equivalent some of money which would otherwise be sunk into a mortgage, for numerous reasons, regardless of the current state of market(s).
i'm sorry, but property doubles in price every 7-10 years...when you can borrow up to 90% of the cash for a property, if you bought a $1M house (with a $100k deposit), in ten years (less interst repayments of say $720K and other expenses of $80k) you've got a return of $200K!
Might be able to achieve the same in shares, but i'd prefer to not have a heart attack everytime the market drops.
L_______________O______________ L !!
i'm sorry, but property doubles in price every 7-10 years...when you can borrow up to 90% of the cash for a property, if you bought a $1M house (with a $100k deposit), in ten years (less interst repayments of say $720K and other expenses of $80k) you've got a return of $200K!
Might be able to achieve the same in shares, but i'd prefer to not have a heart attack everytime the market drops.
So you can prove that property prices haven't doubled (usually more than doubled) every ten years since the 60's?
Can you prove that at the end of the biggest credit bubble ever that they will double again?
L_______________O______________ L !!
So you can prove that property prices haven't doubled (usually more than doubled) every ten years since the 60's?
Some said i'm wrong, but try prove me wrong...
Can you prove that at the end of the biggest credit bubble ever that they will double again?
do your self a favour and pull data on RE from the great depression. RE hit highs in 1929 before tumbling and staying there for the next 10 or so years. we are at the same point right now.
taking a snippet from 60's to now isn't giving you a full understanding of economic cycles.
i'm sorry, but property doubles in price every 7-10 years...when you can borrow up to 90% of the cash for a property, if you bought a $1M house (with a $100k deposit), in ten years (less interst repayments of say $720K and other expenses of $80k) you've got a return of $200K!
Might be able to achieve the same in shares, but i'd prefer to not have a heart attack everytime the market drops.
Australia's mining boom and population growth should push it through this stagnant time, highly doubt prices will go down.
Some magnificent assumptions there.i'm sorry, but property doubles in price every 7-10 years...when you can borrow up to 90% of the cash for a property, if you bought a $1M house (with a $100k deposit), in ten years (less interst repayments of say $720K and other expenses of $80k) you've got a return of $200K!
Might be able to achieve the same in shares, but i'd prefer to not have a heart attack everytime the market drops.
This reminds me of the house seller's further imparted wisdom, viz "if you really want to make money buy a cheap house in a mining area where they're getting rentals of more than $1000 p.w.". The notion that there are no cheap properties in such areas had not apparently occurred to her and she had no concept of ROE.I wouldn't call property prices increasing 2-3% "tumbling", and i wasn't aware Australia was amongst its biggest mining boom in the 1930's. economists rely a lot on cycles and theories, but don't take a lot of external factors into the equation. Australia's mining boom and population growth should push it through this stagnant time, highly doubt prices will go down.
That's a pretty damn good return (not) what's that yield on a yearly basis?
You're probably trolling though.
Some magnificent assumptions there.
Plenty of people acted on just that sort of heroic forecast and are in dire trouble now.
Today I made an offer for a house in this area that was pretty realistic on the present market to the owner who is operating sans agent. She rejected it on the basis that:
1. They borrowed 100% of the purchase price, quite a short time ago, so have almost no equity in the property.
2. At the same time they bought a block of land on which they have outgoings but no income, also in negative equity.
3. They are 'hoping' for a turn around in the market which will at least return them to break even. Hope they're not holding their breath.
What is more than likely for them is house prices will fall further, ditto the land, and it's unlikely the bank will in future loan them 100% of the purchase price. The present house is in a regional area where prices are lower than in Brisbane, so their difficulty is further compounded by higher prices in a capital city which is where they need to go.
So anyone buying on the naive 'doubling every 7 - 10 years' belief, is in for a pretty unpleasant reality check imo.
This reminds me of the house seller's further imparted wisdom, viz "if you really want to make money buy a cheap house in a mining area where they're getting rentals of more than $1000 p.w.". The notion that there are no cheap properties in such areas had not apparently occurred to her and she had no concept of ROE.
No wonder so many people end up in deep ****.
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