- fWord wrote:emptyvessel wrote:Johnny1974 wrote:Hi all Just my thoughts…… I to agree the world financially is pretty toxic at the moment and has been since 2006. Seems everyone, every sector, in every country is being hit hard. The only shining light is the worldwide mining industry. We have strategically sold down our portfolio of six properties to two since 2006. Taken the profits and walked away
We now have no debt, work less, have less stress. Hard work and property gains have enabled us to do this. For now I will keep all that cash fixed at 7% in the bank, don't have to worry about tenants, rates, insurance, repairs and the possible removal of negative gearing tax breaks. Maybe its time we all looked at other avenues to invest?Nice, well done. I would love to have that much cash. I am guessing inflation doesn't factor much into your strategy for now?
Strongly suggest you do look at those other avenues. I have been doing them for years and haven't done quite as well as you have with property. That said, made much more than I lost, which is doing pretty good.To a certain extent, this demonstrates people in different stages of their 'investment career'. In one of Michael Yardney's books, it talks about these 'stages'. In an investor's early life they are in the process of 'acquisition', growing their portfolio, while towards the end they put their portfolios through a stage of 'consolidation', selling down to take profits or otherwise convert a 'capital growth' portfolio into one of massive positive cashflow.
So obviously neither is the right or wrong choice. It depends on where each individual is in their 'investment career'. With that in mind, I am personally in the stage of acquisition, but when ready to retire, I will similarly perform consolidation. Of course, depending on your outlook for a particular investment, you could go against the grain of your own plan, temporarily at least, to realise greater fortunes.
Truth is, everyone wants the money without the associated stress of ANY form of investment. But you've got to start somewhere and it often means doing the hard yards first and enjoy the fruits of your labour later.
Couldn’t agree more fWord. We all get into investing to make money. At the ripe old age of 37, I opted out of the rat race for a simpler life. Have done the hard yards, achieved what I set out to achieve.
All I can say is…life is short, work hard, play hard, enjoy!! And don’t stress too much, its only money and you can’t take it with you when your’e dead.
Johnny1974 wrote:…its only money and you can't take it with you when your'e dead.On that note however, some have humorously noted that the only thing worse than death itself is being broke before death. Ultimately it may be better to have the riches, even if you can't take it with you.
We're interpreting all this in the absence of religion of course.
I firmly believe that interest rates will continue to rise over the next few years, and I also believe that even at current levels they are causing considerable hardship. Any rise in IRs lowers the affordability and borrowing capacity – this in itself is enough to cap prices at best, and likely cause further declines in prices in already depressed areas. Unfortunately reigning in the growth states thru higher interest rates will punish the slower states but it may be a reality the way things are going. Interesting times, as they all are. It's different this time, just as every new day is. Thanks for sharing..
Great and very long thread … so where are we now with the down grade to AA+ … bright future or challenges ahead??
Buckle up, next 3 years will be bumpy. This of coarse depends on the road your property is traveling.
I would dare to speculate that if we will have another 2008 style sell off in shares, AU will end up with plummeting RE values 12 months later on.
I'd hate to be a banker in this market … what about a valuer ??
You would want to work as property repossession officer… plenty of work even now in Brisbane…
I think you will find that property repossessions are relatively low compared to other developed nations around the world, and by no means high compared to historical levels in Australia. No need to hit the panic button.
Cheers,
LukeJohnny1974 wrote:Hi all Just my thoughts…… I to agree the world financially is pretty toxic at the moment and has been since 2006. Seems everyone, every sector, in every country is being hit hard. The only shining light is the worldwide mining industry. We have strategically sold down our portfolio of six properties to two since 2006. Taken the profits and walked away We now have no debt, work less, have less stress. Hard work and property gains have enabled us to do this. For now I will keep all that cash fixed at 7% in the bank, don't have to worry about tenants, rates, insurance, repairs and the possible removal of negative gearing tax breaks. Maybe its time we all looked at other avenues to invest?I have to agree with Johnny and the comments down the thread – I too have strategically consolidated my position in the last 18 months or so – down from 11 IP's back to 5 – paid down debt and increased equity to just 50% LVR and now very cashflow positive. Less stress and less hassle in my life is a much better Strategy – Sometimes "less is more" in my case more time and more money to enjoy myself instead of just feeding the bloodsucking banks.
As to where to from here – look for the opportunities that will be springing up – There is a resources boom – So take advantage while you can and make hay while the sun shines
cheers
luke86 wrote:I think you will find that property repossessions are relatively low compared to other developed nations around the world, and by no means high compared to historical levels in Australia. No need to hit the panic button.Cheers,
LukeAgree, my post reads like a bit of over reaction.
This is probably a result of been frustrated with people out there keep throwing 'property double in value every 7 years' staff
There are many houses for sale now, a lot more than 2 years ago, but not to many sold by banks as pepos.
I think in 3-4 years from now it actually may be a best time to buy, if you got a job and deposit that issimple wrote:This is probably a result of been frustrated with people out there keep throwing 'property double in value every 7 years' staffThat statement is indeed a sweeping generalization. Looking at historical house prices, the median value of some suburbs has more than doubled in that period, while others have yet to double.
In the old days the best investments were within 7km from the CBD of any city.
Peter Spann was a huge advocate of this and he was one of the first property gurus b4 Steve and Dave 0 – 130
As Kiyosaki says it is all about cash flow … growth is a bonus but cash flow is king.
Always remember the rule of 72
4 me I would always trust a one bedroom unit within 7km than in a mining town … IMHO
At the end of the day it is what you have when u r 65 … as Packer used to say … you never count your cards till the dealing is done
realestateedu wrote:4 me I would always trust a one bedroom unit within 7km than in a mining town … IMHO
A 1-bedroom UNIT, yes. A 1-bedroom APARTMENT, probably not. This is not a comparison with mining town properties because personally, I know nothing about those. However there is a very real threat of oversupply of 1-bedroom apartments in some inner city suburbs.
A very good statement sent to me today about what is going on around the world!
"The only person who can assure you of health, wealth and happiness is – yourself! Altitude is determined by attitude. If you choose to listen to, take on and acknowledge all the negative stories and events that are thrown at you every day, then what will your waking attitude and outlook be – negative, of course."
Follow what's positive now and reap the rewards even if it is only for a short period of time – 50% of something is better than 100% of nothing…
AIF QLD wrote:A very good statement sent to me today about what is going on around the world!"The only person who can assure you of health, wealth and happiness is – yourself! Altitude is determined by attitude. If you choose to listen to, take on and acknowledge all the negative stories and events that are thrown at you every day, then what will your waking attitude and outlook be – negative, of course."
Follow what's positive now and reap the rewards even if it is only for a short period of time – 50% of something is better than 100% of nothing…
Been negative about real estate does not mean been negative generally. Say returns on physical Silver over last 52 weeks been 90%
simple wrote:Been negative about real estate does not mean been negative generally. Say returns on physical Silver over last 52 weeks been 90%I would go as far to say that being negative about RE is being positive about Austrlaia's (long term) economic growth.
^^
+1, for Australia to become affordable to general mass of Australians (bottom 70%) real estate prices have to half from what they are. Or wages need to double. Anyone see wages doubling next 5 years and property pricing remain the same? That would be 20% inflation.I really think it comes back to the times earning ratio ???
In the 80s a house cost 3/4 times earnings today it is 8/10 times earnings.
Forget about all the ratios and all the history and all the what ever … it is not rocket science here … it is basic maths
Steve and Dave started this site on mathamitics … investment is mathematics … ROI … the return you are getting 3% – 6% – 10% will determine how rich and how how fast you become … end of story
IMHO
Bill Gates, Warren Buffet, Steve Jobs Kerry Packer etc What and where you buy matters not … good luck bad luck … growth is luck … what is your return is the magic formula
If I gave you a choice of investing in ANZ at 6% and Westpac at 10% where would you put your money …
Thinking out loud on ROI in Brisbane, Townhouse in Wynnum. Assuming cash purchase:
Value $350K
Rent $400
ROI: 6% (less agent fees, rates, body corporate fees, depreciation, down time), be actually close to 3%Trouble free deposit in the bank (say Ubank) is 6.51%
Buy some Silver: 80% last 12 months
Buy some Gold: 20% last 12 monthsGive you an idea where is the next up-cycle have started…
simple wrote:Thinking out loud on ROI in Brisbane, Townhouse in Wynnum. Assuming cash purchase:
Value $350K
Rent $400
ROI: 6% (less agent fees, rates, body corporate fees, depreciation, down time), be actually close to 3%Trouble free deposit in the bank (say Ubank) is 6.51%
Buy some Silver: 80% last 12 months
Buy some Gold: 20% last 12 monthsGive you an idea where is the next up-cycle have started…
Yes, my silver has given me great returns… I just wish I had stacked the boat 10 years ago when you could get the stuff for 4 bucko's an ounce
I was only making $10/hr hour back then, Though I could have bought 2.5 ounces for every hour of work I done.
Now I earn $40/hr and I can only purchase a bit over 1 ounce for an hours work.
You could have easily secured yourself a 10% dividend with Telstra shares earlier this year, I think they where trading @ less then $2.70 at some point, What a bargain.
We now have no debt, work less, have less stress. Hard work and property gains have enabled us to do this. For now I will keep all that cash fixed at 7% in the bank, don't have to worry about tenants, rates, insurance, repairs and the possible removal of negative gearing tax breaks. Maybe its time we all looked at other avenues to invest?
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