everyone knows that property will appreciate in the long run. But for every seller there is a buyer. Why did they sell in 94 ? 20-20 is great in retrospect. At the time they were probably seeing no capital gain in sight and the majority view was that property was going nowhere.

Simple human nature : people follow the herd. An interesting question…[Read more]

ausprop, yes i guess you can argue anything. However it is actually very difficult to act against the majority. To do this you have to concieve of how it could be different to the majority view which can be extremely compelling. Social proof is an amazingly concrete feeling reality. Arguments here can be useful and provide you with the mental…[Read more]

check what the market rent is. It is often inflated, particularly if there is a rental guarantee.

ausprop the article you quote refers to the US, I was referring to the UK property market in mine.

The UK seems to be 6-12 mos behind us and the US is still in a property boom (2 years behind UK)

Not sure what average rental yields are in US. I suspect they are better than here as prop prices have gone up by only 60% last 5 yrs there compared to 120% here.

what’s the interest rate charged funds geared with Fusion ?

I am more thinking 40% aust, 60% overseas next year, as I expect US equities to outperform from q2 2005.

Mortgage securities worry me, the banks have shifted the risk so when there is period of high defaults, they maybe more insulated than in the past. I wonder who is insane enough to…[Read more]

Robert, I am interested in your investment club. Unfortunately I will not be living in Sydney again until oct 2005, but would be interested in meeting other individuals in the sydney region late 2005, cheers.

Also : 1994 was a slow year, low liquidity, hard to move stuff. Fast forward to boom times and the opposite is true.

todays dog is tomorrow’s poodle…

I voted for bob car, only because he jogs and I like joggers, but with what he’s done to the sydney city structure/ infrastructure/ planning/ investment/ economy, I am voting for someone else. Greens maybe.

With the accom in NZ Sth island, I was in Dunedin this year and there are heaps and heaps of cheap and wonderfully comfy B&B’s. Don’t worry…[Read more]

so is there a fee if you want to get out early ? How much of a floor does the capital protection provide ? Staggering the maturity dates is good, but one year does not give you a large timeframe to dollar cost average.

Be careful of leverage if you are new to sharemarket. It is usually the main reason for big losses, along with being…[Read more]

fusion product is interesting, make sure you get a good margin rate and no front end fees on the funds. In 2000 I bought into colonial geared fund, as margin lending on a mutual fund was not as available. Margin loan is better as you can select the funds yourself rather then be limited to a fund that has a levered structure inbuilt. If you are…[Read more]

I drive a late 90’s model car that I bought second hand and live in a modest home. I have a lot of fun, just not involving wasting money. I enjoy my job as I have the opportunity to help people there, but I also enjoy investing and markets.

Why ? I actually enjoy the process very much.

my gotten, you are right I do need to get a broker ! This is ridiculous. I have an account with comsec but since I haven’t used them since 1999 I’ve forgotten my password and account number and have this fear that they will make me physically come into a bank branch and wait at customer relations for hours and then the branch will close and the…[Read more]

yeh, or I could be wrong holding a cash, comercial property tust, oil, gold and underperforming badly. In which case I would have to quickly change the plan to cunning plan mark 438.

I have a cunning plan, it is to time markets where I have a likely directional view and to remain diversified the rest of the time. Another part of the plan is not to get wiped out by earthquakes, tidal waves, interest rate hikes, recessions and other events that although uncommon are likely to occur every couple of decades. An add on of the plan…[Read more]

Thanks for the link. I gave my boker the ding a long time ago. Fin does not list LIC’s in any section I can find (maybe they’re all in general industrial). These are all property vehicles in a diversified portfolio so why not mention it here ?

Not many people seem to have an interest in anything other then westfield and lend lease.

I sold my…[Read more]

I think they will go down or nowhere in the next 12 months but when Chinese inflation rockets and they revalue the yuan in the next 2-5 years rates will probably increase significantly.

Consumers are very levered and account for 2/3rds of economic growth. The RBA is aware that the economy is very sensitive to rate hikes and presumably would not…[Read more]

the bond market indicates that rates will stay flat or go down next year. They are usually right. This indicates the expectation of a slowdown. The yield curve is very flat at the moment but not inverted so I don’t think anyone is expecting a recession (yet).

The big unknown is where US rates will go as it is hard to see how we can attract…[Read more]

stuff it LIC’s too hard to understand. Checked out LPT’s. Only a couple are trading at discount to NTA. THis was not the case when I last had a good look (2000), the majority were trading at discount to NTA. Also yields are lower, most around 6%

Maybe people have shifted some from direct property to here ? Share property index has done quite well…[Read more]

LIC’s : yield around 8%, capital appreciation the rest. Some have done better eg WAM capital 25% this year to Sept. This still underperformance compared to the broad shremarket which appreciated 30% in the last year.

I am not sure what the difference between LIC’s and LPT’s is. I am just looking for something that tracks industrial RE. A share…[Read more]