Forum Replies Created
W4L – LOL – I race a mini, well, a mini based motorkhana special anyway – wicked fun, and teaches you good driving skills too!
SHARES
When to buy and hold and sell – I like the important point that was “Get better educated”. Extremely important. This is the main reason why the share market gets so many negative comments compared to R/E. People ‘dabble’ or listen to their broker’s mate’s boss’s budgy for information. One thing to remember is if something is ‘such a bargain’ or ‘great deal’ as in R/E or cars or whatever, then you have to look at why is the other person selling it, and all too often people buy shares because of this great deal they’re going to get and its because someone else has realised what a dog it is and has to dump it before they go broke.Also, just like R/E (I feel) there is no “wrong time” to get in the market. A lot of my friends are saying (in terms of R/E) that its the wrong time and its priced too high and no-one can afford it. But that is what everyone has said since day dot. I rememebr when I bought my house in the height of the 17% rates @ $89K that I thought “If I don’t do it now I could never afford it”. Well, that property stayed dormant in price for over 10 years but it put a roof over my head and made me broke every payday – but at least I started. Now, I have sucked equity out of it several times to trade shares, import classic cars, start a business, and now looking at what will be a 4th property between myself and my GF.
This property was always a long term project. Now, had I applied the same logic to shares, I would have the same result, well, actually I would have done better as my $89k would now be worth around $500k and my house is only worth $300k. I know its not comparing apples with apples and there’s a lot of variables and “what ifs” in there. I don’t think I can post pictures here otherwise I woudl show you the trade simulation.
I guess what I am trying to say is, is, there are those that do, and there are those that say they will (most likely when the time is right -whenever that is LOL).
My comments are based on nothing more than buy and hold, no refurb, flip, or any other kind of strategy.
Cheers
Seth
HOUSING
I too am in Perth. My GF and I have been looking at acreage for a while so that is what we have been mainly concentrating on, though, I do keep an eye on other property as well.Not that it as a true indicator, bt then what is, I have noticed a change in the typres of listings that are getting emailed to me. Again, you can’t really draw conclusions from this info as agents seem to go through phases as to whether or not they list properties. Anyway, the type/area we are looking in seems to have slowed in listing, yet, vacant blocks seems to be increasing (sadly no acreage or we’d be really happy) and housing under 300k also seems to be increasing, admitedly, a lot of that is country properties. Draw whatever conclusinons you like but my ‘feeling’ is there is some ‘settling’ by some – maybe its a re-evaluation period, or maybe its a ‘hmm lets not sell now as the bidding over the asking price seems to be coming under control’. Not sure, just watching to see if I can see patterns. I am a full time share trader and I see similar ‘moods’ in that market from time to time.
I haven’t done the figures on what our yield will be as yet as at the moment I am living in my ‘home’ and my GF is in hers with the IP under construction. They’ll all be rented out from next year when we go o/s. We have found what may become ‘our home’ and are in the throws of all the background checks as we speak – but this will be rented out for the 1st 12 months anyway until we get back, which is kind of handy as the current tennants need it till then as they are building. After many many years of riding a rollercoaster and thinking I was going backwards more than forwards finally things seem to be dropping into place – yippee!!
CARS
The CanAm, yes its from South Africa. Hmmm, strange that you’ve even heard of it, 99.9% of people get a glazed look – LOL. There was 100 made for homologation purposes to go and beat the Perana Capri (factory v8 too – just sold mine to help finance other projects). It is essentially what Harry Firth’s XU2 could have been except its smaller, a real handfull due to the short wheelbase but a gloreous sound on full noise and pulls like a train with 217kw (factory spec in 1973) and about 1000kg’s. I love doing hillclimbs, classic rallies and the like and the looks it gets on the street is amazing
XJSC – I drove a new one (friends) back in maybe the mid 90’s and was stunned at how good the wind noise was cruising the highway with the top down. May still get one one day in a moment of weekness, though, an XKR would be better May have to wait though as I think I just committed to buying another Brock.If you believe the press then the chances are slowing – but then – it all becomes self fulfilling anyway really? If “we” believe they are going up then the panic merchants sell, so the press reports selling increases so more sheep follow and so on and so on and over time we have more supply than demand and so prices stall.
My ride, Brock ADP wagon, 1 of 6 made – very sad about his passing. Met him several times and a man of great talent. And on weekends its my imported Chev CanAm, size of an escort with ’69 Camaro 302 factory fitted and street registered – awesome fun
The upside to interest rates rising and the market slowing is hopefully our investment property will get started! We signed up being guaranteed 6 month turnaround which fitted nicely with our o/s trip next year. They haven’t even got council approval of the plans at this stage and its been 4 months – only found out three weeks ago they hadn’t even submitted them, grrrrrr, lies deceipt – then hopefully they’ll be able to get hold of labourers to do the work. Lucky its a locked in price or I’d be seriously (fill in own words) instead of just moderatley – LOL. The upside, yes, there’s always an upside to everything, its worth about 30% more going on recent sales – well it would be if there was a building in place – ahhh, you’ve got to laugh at life.
Cheers
Seth
Originally posted by foundation:A lot of money has recently moved from property into the share market. There is some speculation that the current share boom is almost done whilst others believe it has another year or two in it.As sure as night follows day it will end and money will move back to property.
I would say it’s not quite that simple. If this money that you say is due to flow back into real-estate is the product of debt (and / or debt-funded bubbles), the markets historically have demonstrated an interesting, though brutal way of absorbing excess liquidity…
What type of investor are you?.
F.[cowboy2]
Hi All
I have been somewhat absent from the forum for a while – activites concentrated in other areas somewhat (work – it gets in the way of life )To respond to a couple of these questions:
SHARES:
Money comes in, money goes out – the rate of either side determines the direction of the market. Thankfully as money flows out of the market, or even better, if investors get extremely bearish the market falls really quick – the best time (for me) to make money in the market. Shorting is extremely lucrative.PROPERTY:
I must admit I haven’t been able to find a +ve geared property to date. Not sure if that’s because of my location (WA) and people getting more for their property than they ask, or, asking lots for run down places. Rent just doesn’t seem to be able to keep up – yet. Not saying they’re not out there – just I haven’t been able to find one yet Having said that, a couple that I looked at, with the speed the market moved, I could have made reasonable money on refurbs – just at the time of viewing it didn’t fit my risk analysis – I guess I was too cautious WHAT TYPE OF INVESTOR ARE YOU:
I look at almost anything that I think has a $$ to be made. The good thing about a cash rich economy is that everything goes up in price. I have made a few $$ from importing classic cars from poorer countries to sell to cashed up investors here. Even that market goes in circles and the ‘bargains’ are hard to find as the source works out pretty quickly whats going on and prices hike quickly. Not the sort of thing you came make “real money/living” from unless you have a huge backing as the lead times and holding costs are pretty big.I am a share/CFD/FOREX trader/coach on a daily basis. The market has been quite choppy the last 5 months – but there is still good money to be made. Clear trends are better, and downtrends are the best for making money – NOTE – for my style of trading!!
So far as property is concerned, between myself and my GF we have 3 properties, 1 of which is under construction and still increasing in value. It will however be -ve geared when completed (build price locked thankfully as the shire has dragged its heels for about 5 months now). “My” house still has a mortgage albiet a small one and only because I have owned it for so long that it is +ve geared. My GF’s house is owned outright. This will probably become a rental in the next year as well as we seek a 4th property – and going against the grain we will have a large mortgage on this one, our new “home”, as we want some acreage. However, talks with the accountant will be in order to see if we can solve that problem.
Comments??
Anyone in WA looking for others to join in JV’s feel free to contact me – I am open to looking at any possibilities. I have just sold my business as well and will have more spare time to committ to running around to do ‘property stuff’.
Cheers
Hi All
I looked at DHA after seeing them advertise on the TV and am receiving their emails as new properties come up.
I was somewhat shocked by the 16.5% management fee and queried it.
Unfortunately I deleted the response which was along the lines of…..
quality tenants, guaranteed rent, funds go into a pool for your property and we fix up the property whenever anything goes wrong so no bills come to you.
Lets say for example the amount put aside was $2k per year for repairs, and they only had to do $500 worth, then they pocket an extra $1500.
I decided that this was not the right type of investment for me and have looked elsewhere.
Cheers
Seth
I am swinging between the research stage and jumping in.
Must have put in an average of about 2 offers per week over the last few months but haven’t secured anything yet (the reno market). I haven’t brought myself up to speed 100% on the ‘positive cash flow’ scenarios yet though have been doing an awful lot of reading in between taking advantage of good movements in the share market (my actual job).
OK, back to the reading…..oh yes, and faxing yet another offer….
recoveryman & redwing
Time permiting and with your concent – would love to join you for ‘think tank’. Feel free to contact me if OK.
Cheers
May have to wait though as I think I just committed to buying another Brock.
Having said that, a couple that I looked at, with the speed the market moved, I could have made reasonable money on refurbs – just at the time of viewing it didn’t fit my risk analysis – I guess I was too cautious 
