Forum Replies Created
- chilliaa wrote:If you cannot refinance, then the banks will take reposession of your property.
That is a huge step
. You are saying that if you cannot get a loan then you lose the property? Just like that?Reckon I would rather have this problem against a portfolio of property than be aiming at a old age pension with nothing.
blogs wrote:Tysonboss1 wrote:For example I found a house that I was looking at buying a few months ago, The person bought it in 2003 for $212,000,… for them to break even on the deal they would mave to sell it for over $250,000 to make back the interest they have paid, stamp duty, maintance, neg cash flow during that time and the 3% sales commission, and the amount that they have to sell it at to break even is growing every day as they incurr cash flow losses, this property is only valued at $230,000 at the most so their investment of the $30,000 deposit has decreased by over $20,000 thats a negative 66% return.
Finally someone with half a brain thatcan actually see just because a house has gone up $30k doesnt mean you have made $30k, as Ive said before people LOVE to brag about how their property has gone up by x amount but ALWAYS forget to mention how much it has cost them………..
In 2 years and 162 posts you have finally found a person with half a brain here?
Why do you keep coming back all this time?
You know it wasn't aimed at you specifically. Was more a knee jerk reaction I have to everyone who believes shares are inherently dangerous. An atitude that is usually fostered by a well meaning parent who knew someone who speculated once out of greed and got burnt. It is an attitude that gets reinforced daily in forums like this. I would never say that shares are better than property or vice versa. Only that they are a perfectly valid avenue in themselves. If anyone believes they are "risky" and akin to "gambling" then they should reasses where that belief comes from and be honest with themselves.
When I fist started borrowing to buy shares my peers thought I was insane. They knew what borrowing was for – it was for buying cars and going on holidays. Even whitegoods etc. But not to blow on a share that might go down in value.
What if I lost money they asked?I must admit that when I first read your comment that I fail to help people I thought it lacked a bit of recognition to the effort I put into this forum and I felt bad. I reckon I give advice within my area of expertise and qualifications quite a bit. Possibly more so by email. Helps a disabled fellow like myself to feel useful and passes the time
But I reckon you weren't referring to that stuff I do – rather that I can be relied upon to comment whenever anyone trots out the old chestnut that shares are risky. I get your point that I don't offer any examples so here is one.
In 1994 I bought my first shares in the Woolworths float. I bought $2000 worth which was a lot of money to me then and I don't mind admitting it caused some marital friction. Now a decent house could have been had in Melbourne (where I lived at the time) for $100K. Had I the guts to buy $100K worth of Woolworths now where would I be?
Would now be worth $1.1M. it would be paying me a annual dividend worth $27K pa. This dividend would be fully franked as the company has paid 30% tax on it already. So I get that tax credit. Compared to my initial price I am earning 27% on my outlay with tax credits and that grows every year!
If I had elected to join a Dividend Reinvestment Program (DRP) where I can take additional shares instead of cash then it would be worth quite a multiple of that. I don't know how to calculate it. I am guessing as least three times as much? Quite likely more.
What has it cost me? well an interest bill of $8550 pa assuming I had never paid any principal.
Not a single cent extra. No land rates, insurances, repairs, land tax, nothing. I can read an annual report if I choose but that is the full extent of it.
Now I guess you are thinking that I chose an example to prove my point. Do the sums with any of the banks. CBA would have been a good float to get in on… CSL – wow that was something special. Doesn't even need to be a float. I bought NAB for $10K and sold a few days later for $14K. A 40% profit and I thought myself pretty clever but do you think I wish I had kept them today? Not just the price but the growing dividend yield! In fact I suggest that a growing dividend is of as much importanceto the buy and hold investor as capital growth.
I am sorry I cannot make a suggestion as to a share that has the potential to do that today. This is a property forum. We are not licensed to discuss specific shares etc. I am not a financial advisor and am neither licensed nor insured to give such advice. As a Moderator I would delete such a post and you would be right to suspect the motives of anyone who does ramp up a specific share publicly.
But if you wish to discuss generalised investment strategies I am happy to do so. Perhaps a better place to do so is another forum? Here is a thread where I contributed as a fellow investor and I would welcome your input there on any of the threads. Some of you might even find it as useful a site as this one and I hope I am not breaking any unwritten rules by suggesting another website
.I hope you understand my position.
Do I think shares are better than property?
Nope. They complement each other well and with the different boom cycles it allows you considerably more rising market opportunities.
Good luck to you all.
Right
You know that depends on your longer term plans. Many investors and brokers reckon xcoll is a terrible thing to be avoided at all costs. I think it depends on your plans. If you wish to extend yourself as far as possible then it may become an issue later on but it is nothing that can't be sorted.
If you just wish to hold 2-3 properties and can easily service the debt then don't sweat it.
You can borrow within a Pro Package and not xcoll the loans – having all loans fee free is handy.
So my answer in a nutshell – it depends.
…. and here I am naively making hundreds of thousands of dollars on the stockmarket over the years, blissfully unaware that I am only one day away from disaster. You reckon I should stop it? Seriously?
What about Gates and Buffett, they have so much to lose. I better email them this thread so they can sell up and save themselves! Maybe get a few regional pos cashflow properties instead.
Come on guys … just because you ar ignorant of something is no reason to write it off. Why not cede controle to an expert? I reckon the CEO of Woolworths and ANZ knows more about making money in business than you and I do about property put together!
Either learn about the sharemarket then make a decision or stick to what you know – and admit it. Taking a middle ground and publicly arguing it just makes you look a fool
Quoting Enron, HIH etc is just picking out solitary examples to prove a sweeping generalisation. I might argue that going to the beach is courting death because I read about the guy in South Australia who was taken by a shark! Doesn't prove a rule my friends.
For those that want to learn – go to http://www.asx.com.au and find some wonderful education resources. Buying shares is not a whole lot different to property. Do your due diligence, make an offer, settle the deal, hold them until your goal is achieved and sell for a profit or sit back and enjoy a strongly growing rental income. You don't have to make it harder than that.
By the way a lot of value can be added to shares without ever picking up a paintbrush, ripping up a carpet or picking up a shovel. Can double your money without even getting off your bum!
You already know a lot about some shares. Woolworths, Telstra, ANZ, NAB, Coles, etc etc You know what strengths and weaknesses these companies have. It doesn't have to be much harder than that!
All the best to those of you who have open minds,
. Are you eligible to receive the grant?
To be eligible to receive the grant, the following criteria must be satisfied:
- You and your spouse/partner must not have received a grant in any State or Territory of Australia.
- You and your spouse/partner must not have owned residential property, either jointly, separately or with some other person prior to 1 July 2000, in any State or Territory of Australia
- You and your spouse/partner must not have occupied for a continuous period of at least 6 months, a residential property in which either of you acquired a relevant interest on or after 1 July 2000 in any State or Territory of Australia.
- You must be a natural person (not a company) and at least 18 years of age at the time of settlement or completion of construction
The bold section is the key. It allows you to hold any property after July 2000 as long as you never live in it.
http://www.sro.vic.gov.au/sro/SROWebSite.nsf/rebates_fhog.htm
Trust me – I am a Mortgage Broker
. You are saying that if you cannot get a loan then you lose the property? Just like that?
What if I lost money they asked?
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