Forums / Property Investing / General Property / Property or Shares

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  • Profile photo of yuskiyuski
    Member
    @yuski
    Join Date: 2004
    Post Count: 1

    Hi I am new to this site and seeking some advice or opinion on property investing. In this heated property environment, is it better to invest in shares and wait till the property prices have stablise dor fallen to go in?

    Thanks.

    Profile photo of PropertyGuruPropertyGuru
    Member
    @propertyguru
    Join Date: 2003
    Post Count: 1,501

    Hi Yuski,

    Welcome to forum!
    If you get/make good deal all market is good.

    Good Luck!

    Cheers
    PropertyGuRu [sultan]
    Mortgage Consultant
    [email protected]

    NZ loan pre approval from austrlia in 48 hours

    Profile photo of techatecha
    Member
    @techa
    Join Date: 2004
    Post Count: 79

    Yeh I know its a topic that can be discussed infinitum.

    But there are a couple of issues that I feel people over look.

    Lets face it we make good money in Property because we use other peoples money for leverage.

    We may put 50K down as deposit lending insto gives us a further 200K and we are in.

    Prices boom and we make 30% in a couple of years (as an example).So on our initial investment of $50K we have a further 60K less expenses.

    People are very comfortable with this form of investment.

    Trading the Market however to most is similar to voodoo.The use of leverage in the Markets is more wide spread than Property.
    CFD’s 10/1 Margin 2.5/1 Options Varies but 50/1+
    Futures 100s/1

    However the number of people willing to place 50K down and trade(Or control)$500K of shares using CFD’s for example are indeed small in comparison to property.

    Rightly risk is seen as a 2 edged sword.A 10% climb in your portfolio using our CFD example will gain 50K doubling our investment.
    A 10% fall will see a $50K loss whipping out our initial investment.

    Trading can be as safe as “houses” there is not enough education which gets to the crux of trading Longer term and risk management/ allocation.

    Returns can be consistantly over those of property without having to trade exotics,spending 1000s of hrs pawing over Balance sheets or studying Technical Analysis in its various forms to find your Holy Grail.

    I personally trade a longer term Margin account and have returned over the last 3 yrs well above that of housing.Infact the method I use and developed is traded live on the net.All results are published every week.Frankly its so slow that its as boring as hell.But for 80-120% return on my initial investment each year,Im happy to be bored!

    I certaintly agree that there are opportunities in both Property and Trading ALL the time.
    There is no need to have all your eggs in one basket.Spreading risk is certaintly a wise stratagy.

    There is also no need to be 100% geared in anyone investment stratagy either.Your weighting can and should vary when opportunity calls.

    EG at this time property is flat or negative in some areas.Many including myself have equity doing nothing in our IPs.Some of that could be used in a share portfolio with the potential to return much more than FLAT.

    Trading and REALLY understanding it took me 7 Yrs to unravel and 8 yrs to turn a profit regularly,that was 11 yrs ago.Anyone can have a profitable trade or 3 but FEW can string it together for an income flow.

    Finally in answer to the question.
    Learn how to DO BOTH,the secret to real wealth IS being able to use other peoples money to create money that is yours.
    Master this and it doesnt matter what you choose to invest in RICHES WILL COME!.

    tech

    Humans are the DUMBEST of creatures.
    They do the same thing day in day out and expect a DIFFERENT result.

    Profile photo of SuperTedSuperTed
    Member
    @superted
    Join Date: 2003
    Post Count: 205
    Originally posted by techa:

    I personally trade a longer term Margin account and have returned over the last 3 yrs well above that of housing.Infact the method I use and developed is traded live on the net.All results are published every week.Frankly its so slow that its as boring as hell.But for 80-120% return on my initial investment each year,Im happy to be bored!

    You tell me your “method” and i will tell yr mine ;-), or is it a sign me up Eddy type thing.

    Originally posted by techa:

    the secret to real wealth IS being able to use other peoples money to create money that is yours.
    Master this and it doesnt matter what you choose to invest in RICHES WILL COME!.

    Prerferably without paying interest ;-)…. at the end of the day most references “to other peoples money” apply’s to banks money… so could you clarify this statement as it sounds paperbackey

    techa are you tech/a from the old stockcentral days??

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