Forum Replies Created
I like jenwren’s reply, and dazzling.
These principles/strategies would work whether you had $100k or $5mil!! So you don’t have to think “if only” but start where you are at.I’m really surprised at some people’s answers, although of course some of you are being funny.
Why would you buy shares or a managed fund when you can get so much leverage with property? (Think dollars, not percentage return.) And it would be fun! Okay, if you’re too busy, or don’t find property fun, then sure, go with a passive investment, but why are you on this website?
You could always buy some good shares/managed funds with a portion of the proceeds – I liked Steve”s formula of diversifying by re-investing returns one third into shares, one third into debt reduction and one third into lifestyle.
I would put it to you that like tithing, what you do with a large amount you should do with what you have. It’s no good saying “I’ll give to charity when I make my first million, you need to establish the habit right away and start the way you intend to finish. If you look at your money and think – I’ll holiday first and then think what to do with the money, that’s fine, but some of us would be looking at that money and thinking – I’ll set it all up first and then go on a permanent holiday.
Martin Ayles said he could never again go down the path of buying a luxury car (he always pays cash for personal spending). He just looks at $200 000 and thinks ” This is the deposit on $1m of real estate, that could earn me $100k or more per year.” It works on a small scale too.
A thousand dollars is part-way towards the deposit on your next investment. What do you want more? If I buy something it is because I want it more than I want the income I could produce from investing it.
Sharon
sebaker
Two of my friends have raised the issue of the falling birth rate in Australia and the impact that may have on the population and subsequent demand for residential property in 20 or so years time.
My position was that if you are watching the market closely you could downsize or restructure your portfolio to manage the risk of vacancy or that the market will adjust and we may end up with a larger market of tennants as the market situation might enable more single people to move out on their own. All the same, I look at the massive number of new houses being built and wonder if we might end up with an oversupply in the not too distant future.
I would welcome your thoughts.Sharon
sebaker
Great Question. If I take more than a week off and fail to find a suitable deal, I have wasted $3000, so it may be best for me to go this way as well, although I would still be looking at weekends and holidays to develop the skills myself.
I will be watching for answers.Sharon, Jandowae
sebaker
