Forum Replies Created
I agree, shares are the way to go. Im sure they will drop a bit further and go up and down for a bit but (earnings per share/share price) is quite good across many sectors.
Having said that property could still be a good option. I think it will be. there is good buys around and they will be pretty close to positively geared.
Another property boom will occur. each % point drop in interest rates combined with a flat/dropping market will entice increasing numbers of people as they can see investment opportunities that arent overly negative geared. People get use to what they think house prices should be and considering there isnt a huge percentage of australia with mortgage stress huge drops are unlikely in my opinion.thinking philosophically do we have population growth and a growing number of people wanting to live comfortably ?
are people capitalistic and consumers by nature ?
people have to stop sitting on their hands eventually and spend some money.(im sure someone will shoot this post down in flames since its quite optimistic ?!?)
Use Solver paints, possibly not as good as Dulux but they last and look heaps better than any cheap paint.
Their stores sell the paint cheaper than bunnings will too.Cheap paint does mean many coats, how much is your time worth ?!
I think there is a fortune to be made in the stocks.
I feel sorry for those having to sell and who wanted to retire.property is a gamble, but i think that something is worth a value that provides a reasonable rate of return – and rental yield isnt too bad with good prospects in the right areas due to population growth.
I think this discussion is very interesting, my 2 cents is;
-there are plenty of investors out there these days and re.com etc are flooded with more experienced and inexperienced people looking for the deals, as others have stated a freebie +ive CF property wont pop up and if it does it will be gone in literally minutes.
-as others have said +ive CF properties can be created from just about anything, alternatively consider that in good location prices will double in 10yrs maybe sooner i.e. rental yield should also depending upon economic conditions, so if you did nothing with the property it will still become +ive CF but this will be an opportunity cost as you could have value added somehow, and moved onto your next property.
-too many people want an easy path and thats why they read books like steves as it looks like a get rich quick scheme, the truth is as many know that its not and it takes a lot of work. When you find something that works well for you repeat it and continually improve on your strategy.
-the best thing to do is make a start and from there the education begins.
-as i am sure many of you know, great things dont come from doing things the same as other, Warren Buffet once said "you know its time to consider your investing when you are getting tips from the local bellhop", the same great man buys when the market is doom and gloom and is conservative when the market is going well.-our real estate market at the moment is doom and gloom =0) apparently
Obviously depends on how you feel and where you are on the spectrum, some people will invest at all costs and live off nothing whereas some people want lcd tvs when they cant afford it.
From some quick sums if you earn 120k.
Weekly figures
Take home pay $1600
Likely rental after costs(4.5%) $600Repayment on loan $1250
So all things going smoothly, you will be living on $950/wk instead of $1600.
Lifestyle choice ?
Obviously come tax time you wil receive a nice return.
I think its a moderate approach rather than aggressive and would not be over stretching yourself.
