Forum Replies Created
http://www.somersoft.com/forums/showpost.php?p=165336&postcount=11
Remember, reducing your outstanding mortgages is also an ‘investment’
It can give you a return of 13%
This link may be of some assistance…
http://www.aireview.com/index.php?act=view&catid=8&id=2082
Macquarie thinks LPT’s are due for a correction
it works great at the moment as the housing boom is funding the consumer spending that is boosting business activityThere are not too may retail shares that have not already announced profit downgrades in the past 6 months
Originally posted by tony wpb:
i would be interested , if you could detail your successes so that we can all ascertain the level of your insight. My concern is you are giving negative information to people because you sell what? Attempting to link CPI to capital growth is pointless.I realise this wasn’t directed at me, but couldn’t resist…
I have a high regard for people that have ‘runs on the board’ as far as investing goes – but it doesn’t mean that someone can’t have a valuable opinion/argument whether or not they have disclosed what they have/haven’t done in investing.
I’m only 25 (3 years out of uni) so haven’t got the runs on the board, the only meaningful decision I made to do with investing was to not purchase a house about 12 months ago. I instead have been in the share market for the last 9 months – In hindsight from where I’m sitting, a good decision…
The problem with analysing the property market is anyone with runs on the board would have owned property over the last boom, and made significant money – no one is going to argue against that! Any decision to invest in property during the 90’s as we sit now can be viewed as sheer brilliance. In another 5 years time we’ll have a good assesment of investments made today.
What Foundation is doing is talking about investing in property NOW. His view is directed at the fundamentals driving the property market, the only thing is eventhough those fundamentals haven’t changed for the last couple of years -people arguing the ‘overvalued’ point who were laughed at 15 months ago are now getting some ‘air’ time on the forums without being shouted down because the figures are in, and sentiment has changed.
It is hard to argue fundamentals when you have people saying ‘but someone down the steet just sold their house for X (insert large figure)’ and fair enough because when the greater fool theory is previaling in the market place you might as well stay in for the ride….. Now that actual sentiment has changed, fundamentals will give you a much more accurate picture of where its ‘likely’ to go.
… Measuring real growth when calculating capital growth (ie factoring CPI) is crucial to calculating whether the investment has returned any real money in your pocket. If you sell an asset in 10 years time for the same price as today – you have lost value, as the purchasing power of that money will have decreased dramatically (ie buying a simple pie for lunch could cost $10!)
TJ
Originally posted by dsmith:
My point is the avg in 1990 was 147k and in 1996 was only 153k yet the burst came in a fairly quick time (was more after 2000). Also, I think you could pick a point in most 10 year gaps where sometimes they have less than doubled and other times where they have more than doubled. All depends on whether you are looking at a flat point, or before / after a boom.Cheers
great post dsmith
I don’t understand peoples getting themselves in a knot over property market and where is it heading – everyday there’s a new opinion. The facts are, compared to historical wages/house price ratio they are on average overvalued. The best way to sum up what will happen is to look at what happened last time…. it wont crash (in nominal terms) but it will be a severly underpeforming asset for a looong time.
The property maket doesn’t change dayly or monthly its not like other financial markets.
What was the percent return between 1989 median prices and 1999 median prices (10 year doubling!) in REAL terms for the example we have above – (Foundation)
Cheers
Well maybe it is all over for the enigma that is/was Derivex….
Here is a parting masterpiece taken from their cfdx.com site;
StrategyThe Derivex Group manages a class of fund processes that automate use of proven investment strategies over multiple capitalisation levels.
The pooling of collateral bond strips into standardized and predefined strip series for active trading purposes, increases homogenization of the underlying collateral. The key benefit is diverse generic securities.
The internalised core gearing strategy spans the complete risk/return spectrum for the equitisation of collateralised debt and equity capital.
The risk-adjusted funding mechanism is a conduit between borrowers and capital markets, eliminating a host of local middlemen and costs.
aaaahhhhhhhhh………. finance made easy!
