Mitch you said this in a recent post.
The way in which you put down any form of property investment as foolishness(my interpretation of your attitude via your posts)is brilliant.It has made me sit down and take a good hard look.
Mate at no stage did i say that any form of property investment was foolish (where did you get that from). What i said was the property market is overheated at the moment and it was time to transfer to a safe area (fixed interest) and i have sold all of my properties.Out of all the posts i have read i agree with your investment tatics the most, buy quality, look for capital growth and debt reduction, but the difference between you and me is you buy and hold while i turn my paper capital gain in to cash to take advantage in other areas.
Take for instance the stock market now, its at about 2750 points a year and half ago it was at 3500 points, which means with my capital growth that i have made in the housing sector (no longer paper profit) i am able to put in fix interest at call and wait for any down turn ( the war to start) and buy quality stocks at a reduced rate. My tactic is to keep my money working at all times it might be shares, property, or fixed interest.
Now in two years when the property market is still in a stagnant mood i will return to the property industry (with capital from the share market). I liken it to when you go down to the beach.
A wave is building out the back, its nice and solid, one person gets on it followed by more and more, now people near the waters edge can see that their are many people on this wave so the also deside to catch the wave, at this point the person who first caught the wave pulls outs because he has a good ride and wants to catch another wave out the back, he also knows that the closer he goes to the sand the more likly he is to being dumped.
I am the one who swims out the back and has a good ride but always pulls out before i get dumped, because i know that their is always going to be another wave out the back that is bigger and better.
DONT BE THE PERSON PLAYING AT THE END OF THE WAVE WHO GETS DUMPED.
Tails777 why should we thank you when your stratergy is obviously strait out of the Hudson Reserch handbook and you havent given us 1 original idea.
I have 2 questions:
1. How many thousands of $ does it cost these days to be a parrot
2. Are you familiar with the word plagerism?
Andy
Hi,
Please, be respectful of other people’s opinions.
While I don’t agree with Tails277’s opinion, his concern for investors is apparent and he has no visible alterior motive.
Any good debate needs those campaigning for the positive and negative arguments.
I’ve certainly valued the discussion and feel it has been for the good of all.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Tails
I feel that your investment philosophy is flawed as you do not take into account the erosion of tax and other costs each time you change investment strategies.
The capital gain on real estate and shares are subject to CGT and as such you will be loosing approx 25-30% of any gain to the tax man. With interest bearing deposits this is a straight income stream and is taxed at your top marginal rate with the return after tax less than the real rate of inflation.
Please don’t misunderstand that I find anything wrong with following the investment cycle and I do agree that the property market is overheated but there are smarter ways to do it than cashing in.
The simplest and most cost effective manner would have been to organise a line of credit against your property capital gains and then invest that money as you see fit.
Previously you eluded to the bank reviewing the loan this as a rule does not happen on a pure property loan. Reviews only occur where the loan is related to a business and its viability. As long as you continue to pay your mortgage the bank keeps taking your money.
So based on the fact that you now have money from your property (and still have your property for any future capital growth against its full value) you can use this money to invest further and multiply your potential many times over.
Cheers
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