but for many share traders/investors hedging is a great way of increasing your capital.

It is??

Please educate me,Ive been trading for many years and have never been introduced to trading using hedging to increase my capital.

Please explain your method of hedging.

tech

The most expensive habit youll ever have is a Wife/Girlfriend/lover or all three.

The Majority talk about it.
The minority DO IT.

There in lies the secret of success

whatever the method/s you employ.

Just quickly something that should stir some interest.

To the Math
Line of credit on your equity–say 7%
Interest on Margin say 7.6%
Costs of buying and selling portfolio etc 1.5%
So you need to make say 10% P/A to be viable.

Remember a 10% return on your Margin account.
is approx $35000 on our case above.

This is 35% on our initial investment…[Read more]

Thought it maybe worth explaining the stratagy of using equity in a Margin Loan a little more in depth as reading back it seems that the concept is or will be very new and daunting to some.

Firstly we are all happy to run off to a financial institution for a few $100K for our own home or the next IP.Armed with our deposit of cash or equity from…[Read more]

Kp

Ive never asked that question of my lender but would say that as your security to the lender is either cash of stock and provided you are within their margin parameters I cant see why not its your stock.
That also raises a question re stock held by a self contributing super fund (Your own) wether you could write covered calls on that as…[Read more]

Ajax.

Writing puts are fine in a bull market,are you writing index options?There are some interesting stratagies writing puts or calls 3 weeks out 3 standard deviations from the mean.Your in the minority.

Im sure you are aware that your writing of call options while holding the underlying is a stratagy for flat or falling markets as a…[Read more]

Just trying to get an idea wether there is any interest in this thread.

The question originally broadly asked about alternate methods of investment of equity in housing now that the market is somewhat flat.
Having equity that isnt working for you is really dead money and can be chewed up if interest rates turn you from a positive geared property…[Read more]

For those interested I can show charts and discuss easier here

http://www.reefcap.com/ubb/Forum23/HTML/000427.html

A favorite topic of mine.

Ok.
Margin is possible on stocks allowed by the Margin lender (I use BT–Bankers Trust)Oh by the way forward paid interest is as low as 6.5%and defered is 7.45%.

Now as part of the allowable stocks to trade there are a number of Property trusts–some out performing others.
I think Property trusts have been chosen…[Read more]

CHECK THE WIRING

If the agent tells you to check it you can bet your life its crook!

For what it worth we do our own.
It savs $8k a year for us.

We know all our tennents.
They know us and think we only have 1 IP and are only a little different to them!
We dress like them.
We are certain to call around if even 1 payment is behind.
We inspect regularly and fix(Often they do!)very quickly.
All tennets have been with us over 3 yrs…[Read more]

If sevicability of the new loan is no problem then your risk is minimal.
You will than gain 100% on any increase in property value.

Servicability will be one of the issues your lender will evaluate on your next purchaese.

Deposit in the way of equity wont be a problem and if you can find properies either Positively or as close to neutrally…[Read more]

Even if you buy out the other 1/2 you will still only have the same equity leverage and less servicability in the eyes of lenders.

On a personal note I would not continue with a partner as they can become very expensive passengers on your journey to financial security,often they are not able/willing to make the quick decisions necessary.

Unless…[Read more]

just another quick question, would you buy a property unseen??

Well I bought a Vehical from a dealership Unseen and in another state.(65K).I knew they were reputable and the vehical was un encumbered,and I am protected by many laws.That was 2 yrs ago and I still love it.

So I suppose there are cases of exception.

But for a house—-I honestly…[Read more]

Hmm.

Ive never seen the terminology for Options and how you could actually use the implications of the teminology with options to purchase a property.

Put options are options to sell a parcel of share at a pre determined price and time in the future.
Calls are to buy options at a predetermined price and time in the future.
You can also write…[Read more]

Its a slow process or a fairly quick one if you are lucky enough to take advantage of a boom like that which has just flattened out.

I have to agree with Kay though.
Many just dont have the “Balls” to invest like the gurus.

Its a huge task for most to be indebted to an institution for 200K.
When that becomes 1mill or 5 mill its beyond most…[Read more]

Trust Funds are a necessity when sidestepping crippling Landtax.

{{return on your investment in a wrap deal is higher than usual buy and hold scenario.}}

Pelican are you sure about that over the last 5 yrs or so??

If so please explain!

K

I have it on all mine.

In particular melicious damage.
We too had a tennent who was copy book never missd a beat.
Along came ex husband and within 3 mths the inside was trashed and the ex was gone.
Repair bill 8K
What about public liability that to is in the Landlord package.
As is Fire (Well mine anyway).

I dont mind insurance as you can see…[Read more]