Forum Replies Created
There has been heaps of discussion about the bubble bursting.
All those predicting it,(including me) will be right…..one of these days. Even a broken clock is correct twice a day
]What makes me think that it won’t happen just yet, is the fact that all the financial comentators are preaching a fall in property prices.
Standard contrarian theory says that we have to wait till they have given up and all turned positive, or at least stop preaching…….THEN we will get our property crash.
Clitheroe has always been biased towards shares, and you would fully expect him to be bearish on property. He was preaching shares, shares, shares, and bagging property 2 or 3 years ago.
What has happened since then? Property has absolutly flown and share investors(but not traders[
]) have been slaughterd.Cheers
Wayne
B. I am intelligent…Im just not very smart. God it hurts to admit that….but I will. []C
Hahaha, I love that Pinky!
I think I am exactly the same!
But I would never admit that on a forum with thousands of members………
WOOOPS! Looks like I just did[:0)]
Good luck
Cheers
Wayne
Hi FolksMy maths isn’t to strong, so forgive my dopey or obvious question.
I understand the 11 sec sol gives you a 10.4% yield, what is the 1.6 showing us? I assume it is the minimum rent to remain cf+[
]Cheers
Leigh K[]Read, learn, grow but most of all do it.
8.3% gross[
]Cheers Wayne
Simon,
Unfortunatly I when to school down the bottom of the hill at Morley SHS…..a harrowing experience!![
][xx(]But when I get back, I will be be heading straight for the hills again.[
]Cheers
Wayne
[]What do all of you lot think? Perth or Melbourne?
Cheers
Steph.
P.S Perth is the better of the two naturally…
[}][][8D]Success is 1% inspiration and 99% perspiration.
Couldn’t agree more Steph!!! Just flogged my ppor here in melb. and I’m going home.[
][][]Whereabouts in Perth are you from? I’m a hills boy myself….Kalamunda[8D]
Bet you can’t wait to get home!
Wayne
Crashy,
Firstly, I have no position on which is better, – or +, was just using shares as an example. And just for the record, I don’t like negative geared property investment for my PERSONAL circumstances, so I am going a fair way in agreeing with you.
But for certain investors negative gearing can be a fabulous wealth buiding tool.
Going back to my share example: Lets replace xyz with COH-Cochlear. This company if leveraged with margin lending would never have been positively geared. But imagine if you had puchased COH @ $2.50 and margined it when possible…adding aggressively to the position as increased equity allowed……HOLY SMOKE i’m not even going to do the calcs because I will kick myself for not doing it[
] but it would be in the 100’s% if not 1000’s% return on investment.Better than any high div stock that I can think of!!!
That being said, it is possible to have found high dividend, relatively high growth share as well.
This of course is far more difficult in the property market.
Generally, if there is a high expectation of capital gain, the relative yield will be lower, as you will be paying a premium, just as in shares. How much premium is of course the key issue.
A nice piece of negative geared property, at the right time in the cycle(NOT NOW) at the right price, in the right area(say beachfront or similar) for the right investor, would be a wonderful investment and hard to beat with positive geared property.
Again I re-iterate I wouldn’t do it myself cause it doesn’t suit my personality or circumstances. I prefer to do the same sort of thing with shares for a host of different reasons; ah la my example above.
Horses for courses
Wayne
Fester“most of my properties are -ve geared BUT +ve cashflow”
And just how do you get negative gearing from positive cashflow? I think you forgot that negative gearing requires a ‘negative’ part.
All you bunnies who think neg gearing has advantages, STATE THEM. Provide worked examples. Give us evidence, not opinion.
I think we are talking cash positive but with a tax loss due to depreciation of building/fittings etc.
Am I right Fester?
Crashy….re negative gearing; think shares m8
you buy 1000 share of xyz at say $30, margined with a lvr @ 70%, so your cash outlay is $9000-toatal value of position $30000
Interest rate is say 7% and the dividend is say 3.5% grossed up……you are negatively geared, right?
One year later the share is trading @ $35…..(and we flogg that sucker, locking in our profit[
][}])capital gain = $5000
dividend = $1050
interest = $1470Total Profit = $4580 …..51% return on capital thanks very much.
All relies on capital gain though which will be harder to come by in property imo, but thats how it works. Very simple and in the last 4-5 years its been like taking candy from a baby.
Genius is a rising market!!![
]Cheers
Wayne
I have been to one also.
Just as Jester has said, very good info if you are an average consumer wishing to buy or sell a home.
My “promoting self interest detector” registered only a slight reading. But thats ok, nothing wrong with promoting your business. He has just disguised it as “consumer protection”
I saw two major purposes for the meeting.
1/ Finding people who were interested in selling in the near future and convincing them to use a Jenman agent. Although he stated he wouldn’t be promoting any particular agent, he ended up promoting the local “Jenman Approved” agent by name, which here in Cranbourne is Finnings.
2/ This is the subtle one[
] finding potential “agents representitive” candidates. The Jenman group makes money by training candidates and placing them in member offices.He did promote a method of real estate investment which was as you might imagine, very conservative; purchase a property with at least 7% gross yield, finance with a PI loan and have enough deposit to at least make the investment cashflow neutral…in other words have a big deposit.
He is an impassioned speaker and quite entertaining. All in all a good thing for mums & dads but nothing really for the property investor.
Cheers
WayneGeurilla journalism!!!! very distastful!!!
No better than petty rumourmongering[
!]Wayne
Westan,
2 points here:
1/ Trading is dead simple but its not easy[?] The mathematics involved are about 3rd grade standard(thankfully[
]) It is the psychological factors that make it hard. Not many manage to overcome these, and thats why most struggle.2/ Trading teqhnique tends to be quite poor. Most traders I know are “breakout” traders…they’re buying when I’m looking to sell. The most successful traders I know buy at support and sell at resistance. Thats why its psychologically hard; you are buying when the chart looks like s**t and selling just as the chart looks good to most people.
If you lined up twenty plumbers only one would be doing really well. Does that mean that plumbing is not a good business? Of course not!!!…..it’s the same old 95/5 principle that applies right throughout humanity.
How many property investors are doing REALLY well? I personally dont know any. But of course we all know we can be property millionares overnight, just like Henry Kaye said[
]3/ (yeah I know I said 2 points[:0)]) It is hard to tell who is really doing well!!!!
Taking myself for instance, I hardly spend a cent ’cause I’m keeping as much capital as possible in the account for compounding until I’ve got 1.5-2million in there. Then I can live off dividends and not trade every day if I don’t want to.
Hence, I live in a modest home, I drive a 1964 volkswagen, and wear the same old rags I’ve had for years.
Hardly a picture of wealth but thats the way I like it!Just wait till the next sharemarket boom and everybody will be saying how easy it is again, just like right now in the property market.
Soon many many property investors will be whinging about property. Then it will be up to the 5% with the tenancity and will to make money in a flat/down market who will be secretly laughing all the way to the bank.
Cheers
Wayne
most of the people i know who are traders aren’t making much cash at all. what areyou seeing with your friends?
regards westanMost traders don’t make much because of poor technique, inexperience etc., but the biggest reason is that most traders are undercapitalized.
You need a fair amount of capital to make a living AND retain some profits for compounding.
THE MORE THE BETTER!
Trading is pretty much comparable to normal business in this regard… look to have about 250k minimum plus great survival skills[
]
]
]) have been slaughterd.
]
][xx(]
]
] but it would be in the 100’s% if not 1000’s% return on investment.
]
