[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

March 24, 2011 - 7:09 am

Been doing the usual things: Work, Study, Exercise, Games, and time seems to fly

Work:

• Been working 6-7 days per week for the past few months
• The boss is happy to give me a week off in April, and some time off to attend events around June-July period

Studies:

• Recently completed a course in Austrian economics relating to the 'Anatomy of the Feds' – Did you guys know that if you deposit $10,000, the bank can lend out $90,000 out of thin air and charge someone else interest on it?!
• Currently reading the book 'The Power of Focus' by Jack Canfield, and trying to develop more successful habit
• In terms of investments, I invested quite heavily in Silver back in November 2010, and the shares have appreciated by a staggering +40% since then! My plan in 2011 is to prepare for the next phase of my investing by studying material relating to property investing. I had a brief look at Australian properties, and 'Tasmania' looks like a good place to invest in – especially the suburbs with median house price of below $100,000, 7% yields, and 10% growth
• Also looking into a work from home business in the health and nutrition industry, by the name of 'Herbalife'

Exercise

• Currently walking 30 minutes per day, and going to the gym once a week, but am considering doing more weights and more cardio, every morning
• Have gained about 1kg of lean muscle mass in the past fortnight – my goal being another 5kg by the end of the year, and a six pack

Games

• I enjoy playing strategic games, like Starcraft II and have recently attained Gold Ranking in all team matches

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March 22, 2011 - 1:14 pm

I'm interested in investing in US properties, and I'd love to have an investment partner to work with and share insights with, but not at this stage (I may consider doing so from 2014 onwards depending on how things unfold around the world)

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

March 6, 2011 - 10:36 pm

Hi WinstonWolfe,

Thanks for the indepth charts and your valuable insights 

Just like you I am investing in where I believe the returns will be greatest and investing in cycles

I am a firm believer that there are cycles in everything, from properties, to shares, to commodities

And right now I believe the best asset class to invest in during this decade is 'Commodities'

Particularly the precious metal 'Silver' because it is not only a monetary metal but also an industrial metal

However, rather than taking an active approach and trading, I've taken a passive approach

I purchased shares in Silver mining companies such as Hecla, and SilverCorp metals back in November 2010

And intended to hold onto them for the long term portfolio gains E.g. 1 to 4 years

So far the shares have appreciated by a staggering +45%

And with many experts predicting +$50 this year I am very excited about being part of this BULL market

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

March 6, 2011 - 10:02 pm

Thanks for the elaboration guys, and for the website http://www.austlii.edu.au/databases.html#cth

I'll add it to my bookmark list for future reference

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

March 6, 2011 - 11:00 am

Do you have to lodge a Product Disclosure Statement with ASIC in order to get financing from a private investor, or is it mainly because this has been posted in a public forum?

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

February 17, 2011 - 1:58 pm

In my view, I believe 'Financing' is one of the most important aspects that guide the prices of properties. The easier it is to get finance, the more likely the value of properties in a certain area will increase. Conversely, the harder it is to get finance, the less likely they are to increase. Banks tend to lend based on an individual's income and ability to repay a loan. Ideally loan repayments should not be greater than 30% of one's income, and of great concern right now in Australia, is that some properties have been bid up so high that families are paying over 50% of their income towards mortgage repayments, and in the event that this increases to +70% we could very well see a collapse in the prices of some of these properties.

I also thought I'd point out that many properties in Australia have barely been able to keep up with inflation during the past few years – If your property increases by 7% each year and the money supply increases by 7% each year, will you really be better off 7 years from now?

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December 28, 2010 - 11:24 pm

Hi White_goodman,

Thank you for raising your concerns.

I agree with your comment about all bubbles eventually bursting.

But I don’t quite understand how you’ve come to the conclusion that Silver has increased parabolically and is currently in a bubble.

One of the most common aspects of bubbles such as the dot.com bubble, the Tulips bubble, the South Seas bubble and the Florida Housing bubble is that they were all characterized by a excessive buying by the public, leading to unsustainable prices – speculators just buying because they notice rapid rise in the price of the asset and are anticipating further rises, rather than buying an asset because it is undervalued.  Right now I don’t see this happening with Silver, and despite the fact that Silver has increased by 70% this year I still believe it is extremely undervalued.

 “The suggestion that gold is in a bubble phase is the latest tactic of anti-gold crowd, whose predictions, incidently, for the price of gold and silver have now been consistently wrong for 10 years. Jimmy Rogers, who is one of the world’s leading authorities on commodities, dealt with the bubble issue recently by recounting an interesting anecdote. While addressing a group of highend money managers, he inquired as to how many of them held gold or silver in their accounts and remarkably, 75 per cent replied that they have never owned either precious metals” John Embry

“When gold is trading at several multiples of the current price… you can be assured that every single person at a similar gathering would be long and then discussion of a bubble might become legitimate” Jimmy Rogers

Brent Harmes summarizes the three phases of a bull market quite well and it appears that we have not reached the 'Euphoria phase' yet and are still in the second phase of the bull market, the ‘Wall of Worry Phase’

In conclusion, I agree gold and silver will eventually become bubbles (some say the ‘ultimate bubble’), but I do not agree that they are in a bubble right now.

 

Regards,

 

Kong

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December 26, 2010 - 12:29 am

A big thanks to all those that have contributed to this thread and shared their experiences so that we can all learn from another

Being in my early 20s and having only commenced work this year after graduating from university, I have limited experiences in investing, and haven't made many mistakes yet

I'd say my biggest mistake so far is what you guys would refer to as 'analysis paralysis' and letting family/friends, who care about me and think they know what's best to influence me

After many months of watching the price of gold/silver rise, and analyzing the financial statements and portfolio of mining companies, I finally took action last month by purchasing shares in mining companies I have confidence in. The fundamentals and technical for Gold/Silver were all there, but what finally triggered me to take action was the announcement of 'Quantitative Ease 2', which is basically a fancy name for 'printing/digitizing currency'

I strongly believe that Silver is biggest investment of this decade. Not only has it been a monetary metal for thousands of years, but it is also an industrial metal used in all sorts of applications (http://www.silverinstitute.org/silver_uses.php).  I am so confident about Silver that I have invested all of my funds into Silver Bullion and Silver Equities, and with my portfolio increasing by 30% in the past month I am glad about my decision, and am excited to be able to participate in this great bull market

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December 24, 2010 - 11:52 pm

I agree with a lot of points already made

1. The need to be clear on your goals, whether it is capital gains, cashflow or quick cash (and a strong 'why')
2. That a debt of $600,000 for a PPR will reduce your borrowing capacity for investment purposes
3. That there are many tax issues (and legal/asset protection issues) that need to be discussed with an accountant

With regards to US properties, it is true that there are some great bargains out there, especially with a lot of home prices dropping by well below 50% of their all time high, but in my view the real estate bubble in the US hasn't completely deflated yet. Of great concern is tsunami of Alt-A and Options ARM mortgage crisis that looms ahead. If I were to invest in US properties right now I wouldn't be investing for growth until 2014, but I would be investing for cashflow (and I would also be very careful about where I invest)

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December 24, 2010 - 11:21 pm

In my view, renting by room is a great way of increasing cash flow, but whether this strategy succeeds or not, all comes down to 'management'

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December 20, 2010 - 12:59 am

Its sounds like you love your son very much and still have emotions for your partner, and that the main cause of your breakup is finance problems. If this is the case, I would strive towards finding a solution to the financial problems, and only resort to a divorce as a last resort, whereby I would consult a lawyer for advice.

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December 11, 2010 - 12:40 pm

I think the real estate bubble in the US hasn't completely deflated yet

Of great concern with regards to US properties is the tidal waves Alt-A and option ARM mortgage crisis that looms ahead

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

November 20, 2010 - 2:52 pm

Hi D,

Whether you decide to invest the $150,000 into properties, Silver or both, really depends on who you are, what your goals are and what time frame you are looking at.

Personally, I believe Silver is the biggest investment of this decade, not only because it is a monetary metal, but also because it is an industrial metal and because of supply/demand fundamentals:

• Monetary Metal: When people lose faith in fiat currency because of excessive currency printing, they always flock back to gold/silver, which has been money for thousands of years
• Industrial Metal: Because of its unique properties,  Silver is used in all sorts of appliances e.g. electronics, mirrors, photography
• Demand: Demand for Silver is likely to increase. Not only because of an increase in demand for consumer electronics (e.g. cell phones, computers) due to the rise of middle class in China and India, but also because of emerging uses of Silver such as in Water Purification, and in Solar energy
• Supply: Stockpiles of Silver are at an all time low, and are being consumed rapidly as the information age progresses. It is estimated that there is less than 10 years supply  and there is not much new supply being discovered

As a result of my beliefs, and my confidence in the metal I have invested all of my funds into Silver, and my portfolio is fairly aggressive, consisting of 10% physical silver, and 90% Silver mining stocks. However, having said that, this does not mean that you should as well. Before investing any money anywhere, regardless of whether it is shares or properties, you should always do your own research and due diligence first

Kind Regards,

Kong

[kong71286Participant@kong71286Join Date: 2009Post Count: 261]

November 13, 2010 - 11:11 pm

I'm not a lawyer, but based on the vague information you have posted, I believe the law is currently on the side of the Solicitor and the Credit Union, and there is no strong case for the removal of the Caveat. Even if you were forced to sign under great duress, what evidence do you have of this, and would this evidence hold in court? With regards to the credit union, I assume that you had a written agreement that would allow them to lodge a caveat on your property in order for you to secure a loan, and you signed this document to get your personal loan.

I hate to be the bad guy and break the bad news to you, but the best thing for you to do to have the caveat removed is to repay the money you owe the solicitor and the credit union – taking things to court may not be the best option as it could cost more than the cost to repay your creditors (not only money wise, but time wise as well) and you may not win the case

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November 12, 2010 - 9:16 pm

Hi Swampy,

When calculating yields to compare between different properties I would use the information that is available today… With so many confounding factors it is difficult to predict what the market value of properties will be 5yrs, 10yrs, 20yrs from now… Furthermore yields are based on both the value and the income of the property i.e. if the income rises at the same rate as the price, then the yield will remain the same despite the property doubling in value. Many investors use yields to help determine where to put their money

E.g. an investor may have a rule where they only invest in properties that yield at least 10%. They start off by buying a house at 10% yield. 3 yrs from now, the value of the house doubles, but the income does not, thus yielding 5%. He/she then decides to sell the house and use the proceeds to purchase 2 other properties with 10% yields

Hope that helps

Kong

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November 12, 2010 - 5:54 am

A property option is a legal document that allows a person to control a property, and not only profit first from natural growth, but gives them the ability to add massive value to the property. It gives the option owner the right to buy the property at a certain price and by a certain date, but they are not obligated to settle. In return for 'time' e.g. 1-2 years for a development approval to add value to the property, an investor may offer the seller more than the asking price e.g. $500,000 instead of $400,000. This might sound great, but remember this is a right to purchase the property at $500,000 in the future, and not an obligation to.

The way I see it is that there are 2 main scenarios. They either settle on the deal or don't settle. If they settle, then that's an extra $100,000 for you for not doing any work. If they don't settle, you could either be on the losing end or winning end. Losing end, if they demolish the house, and then walk away from the deal. Winning end if they manage to get a development approval (thus adding more value to your property) before walking away. If I were you I'd ask them to elaborate on what they mean by 'Sharing the risk'.

Hope that helps clarify a few issues, and encourages you to do some more due diligence of your own

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November 10, 2010 - 7:46 pm

Hi Intrigue,

Like many others I am very BULLISH on Silver and have invested heavily in Silver mining stocks because I believe Silver is extremely undervalued. When I first decided to invest in mining shares, my intention was to hold them for at least 1 year to attain the 50% capital gains tax reduction, and try to sell at within 20% of the peak for a nice profit. I was looking more at long term (1-4yrs) gains rather than short term – I was surprised when I saw that my shares had increased 70% in less than 1 month! I believe Silver still has a long way to go, and will increase astronomically in the next few years.

As Patriotsoldier has mentioned, not only is Silver a monetary metal but it is also an industrial metal. When people lose faith in fiat currency because of too much currency printing, they rush back to Gold and Silver, which have been money for thousands of years.  Silver is also a great investment because of its high demand for industrial uses, especially for electronics such as computers, cellphones http://www.silverinstitute.org/silver_uses.php It also has many emerging uses such as in solar energy and water purification.

Simply looking at Economics 101, Supply curve shifting to the left (decreasing supply), and demand curve shifting to the right (increasing demand), I am 100% confident that Silver will continue to increase in price… On the conservative side I predict a price of at LEAST $300 per ounces, and on a more speculative side a price of +$2,000

Regards,

 

Kong

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October 26, 2010 - 12:25 pm

House Call wrote:

 Why does everyone want to retire at 40?  What does one do then?  I seem to hear and read it a lot.  Especially from 20-somethings.  I work, I love what I do. I am not trapped, but I not think that heavily gearing into property will accelerate future planning.  Whilst I do not want to work till I am 75 or anything, I can't see the point of retiring too early unless you have something else to do.

• Why does everyone want to retire at 40? I think the answer to this question is obvious, not everyone wants to retire at 40, but for those that do, they probably have different reasons
• What does one do then? Well it depends on the person, but most will try to enjoy life, whether it is spending more time with family and children, or pursuing other activities they enjoy such as traveling, gardening etc
• I'm glad you love what you do and that you do not feel trapped. When you love what you do it no longer becomes work
• To me the idea of 'retiring' and not doing anything is absurd. I want to be as productive as possible until the very end

House Call wrote:

My personal interpretation is that what people  mean is that they want to be financially independant by 40 ( in other words, if I stop working today, how much income would I continue to recieve? Or re-worded, how long could I survive for if I stopped work and only lived off passive income only.  If you had several positively geared properties getting, say $50k/year net after all expenses then you are sort of financially independant.  A bit more would be better of course.  Only problem I can see is you can't borrow as easily because you don't have a job.

• If you word it that way, then 'yes' I would like to be 'financially independent', but 'no' I never want to retire
• My goal however is to achieve this a lot sooner i.e. before I turn 30

House Call wrote:

People who retire with nothing to do often seem to shrivel up and die.  You need something to do or you get bored and go batty.

•  You are absolutely right. Retiring with nothing or a lower standard of living, is not something to really look forward to, which is why its so important for everyone to take control of their finances

House Call wrote:

I believe there are a few Great Australian Dreams.

 

1. is to get a redundancy package

2 Own your own home

3. retire at 40 (if you don't get 1, and if 2 isn't forcing you to work till you're 75)

4 give your kids what you never had (most of the time this equates to having a parent up to their eyeballs in debt!)

• 'Yes' the majority of the population value 'security' the most

House Call wrote:

I would go differently and say that it is better is to

1. have someone to love

2 have something to do

3 have something to plan/dream/look forward to for ( and this is where the whole financial/investing in IPs comes in)

4have memories to cherish.

• There's no reason why you can't have be financially independent and still have all of the above
• Having money and time is likely to enrich your relationships, expand your opportunities, and improve your lifestyle

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October 15, 2010 - 11:57 am

Have you considered selling your $3M property?

In my view, that money could be put to better use, earning a much higher ROI

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October 10, 2010 - 2:17 am

Hi Rache,

Not sure if you are still interested, but I have listed my copy of the MasterClassStarter: How to go from 0 to 5 properties on E-bay

http://cgi.ebay.com.au/MasterClass-Starter-Steve-Mcknight-/260675899714?pt=AU_Business_Industrial_Courses_Educational_Services&hash=item3cb17e9142

Starting bid price is $100, and duration is 7 days

Kind Regards,

Kong