Forum Replies Created
Richo is on the ball.
Ive got nothing against property, but if wealth can be built quicker, easier and cheaper in shares why muck around?
History shows shares return 13% p.a while property returns 9%. A no brainer. Plus there are large costs and delays when investing in property. It is now possible to invest in shares at NO COST. Why waste 10% or more of your money in transaction costs?
Property has one major advantage….regular income.Think back 3 or 4 years. Do you wish you had bought property when everyone was buying tech stocks? Rental yields were high then right?
Well stock yields are high now. In 3 or 4 years there will be a share mania, and everyone will be saying…”gee I wish I had bought back in 2003 when every man and his dog were jumping into property!”
Dont buy for a few weeks yet, the market is about to drop sharply.
Lets hope I soon publish a book: “0 to $1m shares in 3.5 months” lol
This is however a property investing site, and a lot of you will be biased, so I will shut up now….
You will notice every property boom comes 2 years after a stock market correction. Its simply investors chasing returns. Soon, the U.S economy will take off, investors will poor money into stocks. The booming economy will send interest rates skyrocketing. When rates are 0.75% as they are now, they can easily jump 10-fold. Property investors will sell for 2 main reasons:
1. overextending their repayments at low rates
2. seeking better returns in stocksWe KNOW property in Sydney & Melbourne is overpriced. Anyone buying there is struggling to pay the mortgage with low interest rates. When rates rise, they will be forced to sell. Prices will crash 30% like they did in 1990-1.
Dont panic, stocks may have another 2 years before they turn around. In the mean time, property might just keep going up in cheap areas.
Ross
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beenleigh has pretty much doubled in last 12 months.
still cheap in eagleby, edens landing, logan, loganholme, tanah merah & round there
