great post F, very important to put it all in persective and see how hard your money is working 9% p.a growth is nota great return on your money, and thus the reason why the super rich do not bother with residential property they demand their money to worka bit harder, unfortunately i am not one of those so have to try and create a faster wealth through resi property investment but hopefully skillfully so i can outperform the 9.2%p.a. as in high interest years you will be losing money on that return from Resi Investment property, stil as Don & Liz says it will be a nice nest Egg, but i am an impatient 35 years old
when the going gets weird the weird turn pro
Yes Kiwiduvet! We are nearly the same age (You are my senior by a little bit) and I suppose impatience comes with the territory.
Does this mean we should slowly and diligently acquire good properties over time or jump in and out of the market taking profits as we go.This was the original question. The title of the post may have directed the discussion in the wrong way.
Another question. If we are out of property in years of flat and negative real growth where is our money. What strategies have the forum member adopted. Let’s not get one tracked. Property is not the only investment vehicle.
The way I see it is that you need a strategy which will constantly change and be reviewed as the world around you changes.
But you need to take a position in each market – in – out – hold – other assests – money under the matress. We can’t just say that macro fores will rule and it is all too hard. Hopefully, we have a strategy for events as they transpire rather than just react to them as they happen.
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Originally posted by Don and Liz:Another question. If we are out of property in years of flat and negative real growth where is our money. What strategies have the forum member adopted. Let’s not get one tracked. Property is not the only investment vehicle.
Well, in answer to that question, my alternative investment vehicles are doing nicely. Gold is up 33% since the start of the year, about +10% in a month. Silver up about 25% for the year and ~10% for the month. Managed Aus share fund up 20% in 7 months (selling today). BHP did nicely for me, sold at +15% clear. Gold shares are volatile (I took a hit on LHG last week, but it’s bouncing back nicely so I’m holding), GDR sitting at about 12% and 7%. I took my profits from oil shares when crude dropped below $60. I’m still a long-term oil bull, but am waiting a and watching… I think palladium might be worth a punt – I wanted to start accumulating at <$250, but was nearly fully committed and try not to risk borrowed capital.
My losers for the year have been IFM, GGY and GLI – the first two I was stopped out at -10% plus trading costs, the last was not performing as well as I expected in the face of a rising gold price – I guess they were too cautious and not transparent enough for me. I roughly broke even on that one. Meanwhile, house asking prices have continued to rise slowly in the coastal town where my beach shack is located (but the more expensive ones have been on the market for 12-18 months+), and fallen around 10% where the ‘big’ house is.Cheers, F.[cowboy2]
Hi simon
“Those who sell at the peak and buy in the trough are cleverer than I. Picking the right times is very very easy looking back“
Are they?????
When the developer,(NOT A REAL ESTATE AGENT) is sitting on a milk crate in the lounge room watching a portable b&w tv trying to sell his last unit, over looking laguana bay in noosa heads, and will take any offer……
is that the right time to buy?When only two people (plus bank)show up to mortgagee auction, quoted by RE as 280K plus, on a property that was previously purchased for over 1mil…..
is that the right time to buy?When a tycoon spends over 20 mil developing his estate, only later to be sold for 7 mil, to an asian developer….
is that the time to buy?The stories can keep coming from the crys of previous downturns.
You don’t have to be Einstein,
just a little bit of common sense, know the difference between hype and reality…
and be cashed up.Well done “foundation”
the only decent prespective on this whole forum.remember the wise saying….
A BALANCED PORTFILIOps simon….. i’m not a gambler
but when you receive 70k nett on a 350k CP investment it is hard to sell…..wheras receiving 5-7k nett on a 300k unit investment?when there’s to many people in this boat….i’ll just go over that empty one over there…..they’ll eventually come over
Timing….
Harry
So harry,
are you saying that you are a lemming following the crowd in and out or would you buy some of these properties now (that you mentioned in your post) before they appreciate and make some actual money. Not being facetious but not quite sure which way you are leaning. Are you saying it is easy to do. Have you been able to achieve success?
Sim
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Some pretty powerful examples Harry. You must have some good contacts to hear about those deals. I know they don’t come by me very often.
I don’t disagree with all you say. But when you are buying cheap for short term growth that is a different game and one with different risks.
Please don’t think I am knocking you. I am impressed by what you are doing.
Kind regards,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Harry- PLEEZE E mail me the details of any of those deals that u don’t want to buy– Thxs in advance–So many properties- so much money to make-
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