I live out Pilbara, hubby is in mining. From what I can see the mining sector is booming and more and more so each year. As long as the mining keeps going strong then I don't think our economy is going to suffer too badly. In fact, in WA I find the general feeling is of optomism compared with in NSW (and Sydney) where I am orginally from. We didn't even feel the GFC where I live. With QLD now coming on board with some major mining I feel very optomistic and I wish Engelo all the best with his goal of owning multiple properties. That is my goal too, although I only have 3 at present. I will probably be trying to add a few positive cashflow properties and will be spreading my risk by investing in different areas. I certainly see property investing as a much better option than shares. Jackflash – what is your property investing strategy if it is not to own multiple properteis?
camjanice wrote:Jackflash – what is your property investing strategy if it is not to own multiple properteis?I’m also in the Pilbara. I’m afraid I don’t share your enthusiasm over the long term outlook for mining. Mining itself will continue however the high demand for workers is about expansion and construction not mining itself which employs very few ppl of which only a tiny percentage actually live locally up here.
It looks like China is coming to the end of a frenetic 2 decade expansion. It has major structural problems within its economy that need addressing over the next few years. Couple that with a global slowdown and China will be forced to slow down to a more sustainable growth rate. For a clearer picture of China you should read;
Some predictions for the rest of the decade by Michael Petis
http://mpettis.com/2011/08/some-predictions-for-the-rest-of-the-decade/*BRICS is an international political organisation of leading emerging market countries consisting of Brazil, Russia, India, the People’s Republic of China and South Africa.
I don’t invest in property anymore although I retain an interest in the sector. If taking on property investing you need to describe it as a business and it treat it so. When I try to build a business case around property it always throws up the following problems;
– high entry/transaction costs
– high holding costs
– high exit costs
– difficult to exit market and time frames can be unpredictable
– huge amounts of leverage required to grow portfolio’s
– little to no liquidity
– income potential is difficult to maintain above break even
– average yields are relatively low (3 – 6%)
– CG is unpredictable from year to year and long term ‘real’ growth is often negative after various taxes
– requires a high degree of monitoring to produce the most efficient yields
– govt policy and interference is a constant problem
– market risk going forward is now extremely high.I prefer to invest in small businesses usually my own. A new business I started last year for $40k down returns around $200k+ for 25 – 30hrs/wk. I can stop and start this business as I require so holidays and breaks are at my whim. It may disappear if mining contracts but I’ve hedged with defensive shares.
I invest surplus income via the business into shares and precious metals. The reason I do this is the exact opposite to the reasons I don’t invest in property any more. I consider net returns of less than 25%/yr before tax as poor. I target returns in the 35% – 50%+ range.
I’m in the process of going defensive now as the approaching correction nears. Six months ago I would have said we have 2 years. Now I’m wondering if we’ll make it to Xmas before the melt down begins.
Jack
Hi Jack Flash,
I tend to agree with two points you have made.
1) The mining outlook is not looking good – I have a uncle to works for BHP in NSW. They have been forced to take days off and know there shifts are going to be cut down as well with no over time at all.I working in the freight forwarding industry and our friends in china are saying one thing – Things are slowing down more then the government is reporting for sure.
2) Investing in business – that's my cup of tea to i have tried my first stint thought in a lotto store and found the returns to be not great but the experience has thought me allot.. You based in Melbourne?
Cheers
Johann PS – i think your right about robert K – read over some chapters over the weekend and alot of things didnt make sense lolJpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
johann22 wrote:You based in Melbourne?lPort Hedland
johann22 wrote:PS – i think your right about robert K – read over some chapters over the weekend and alot of things didnt make sense lolNot sure if you’ve seen John Reed’s site. He critiques the so called guru’s. RK’s there with an extensive analysis that’ll explain why you’re struggling with some of his waffle.
further reading
http://www.johntreed.com/Reedgururating.html
Here’s an interesting video presentation by Steve Keen
http://www.debtdeflation.com/blogs/2011/03/20/mortgage-finance-association-of-australia-talk/An interesting article Percy Allen on primary and secular bear/bull markets
http://tiny.tw/8VYHi Engelo,
I was going to shoot a question to you but it looks like you don't have Private Message set up? If you do, flick me a message and I'll reply.Hey rusty,
Send me an email to [email protected]
Thanks
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
I know this topic is a little old from last year, but I have found this post really good and its refreshing to see two different sides of the coin like this. Engelo, I empathize with you because I can relate to your position but its good to be grilled and Jack I think knows what he is talking about. I have learnt a few things too.
vet80 wrote:I know this topic is a little old from last year, but I have found this post really good and its refreshing to see two different sides of the coin like this. Engelo, I empathize with you because I can relate to your position but its good to be grilled and Jack I think knows what he is talking about. I have learnt a few things too.ROFL… I like young Engelo even though we disagree. Young bull old bull kinda thing. Quite possible he’ll be broke in the coming years. I hope not but unless he’s hedged his rampant buying spree I’m not confident he’ll make it through the turmoil that’s coming.
Jack …I mean The Freckle
Jack you legend, your back hahahaha.
How is your business going?
Hoping not to go broke but if I do, I will def learn from the experience.
You changed user names?
Its good to see people still posting on our heated discussion haha
Send me an email and ill tell you the deal im currently working on, I think you will like even tho your Jackflash hahahah
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
Good Read,
Firstly Jack/freckle I think the one thing I have to ask is, what is your goal with this conversation? I mean if you feel you’ve one the argument, you have likely lost getting your point across, but in this case Engelo seems very very reasonable. you show little regard for others opinions and seem a little emotional in responses although its clear you study and are smart, I dont know if this is fair to use that to belittle?
Engelo Love to hear were you are now, and all the recent changes?
Its funny reading this, so many points of views shadowed by really long points that seem repugnant and futile, although gold is in dirt I guess.
Also Love to hear your profitable ventures Freckle, or how you minised bad situations! sounds like you hold a wealth of experience and learnt a lot more lessons than myself.
Kind regards
Jaxon Avery
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
Jaxon
You are reviving a thread that is more than 5 years old.
Wondering if the others are still reading that thread at all..
No idea, maybe not, I mean a few of the people on this thread have gone on to fly pass needing or getting fulfilment from this site, but I hope I get replies as they are very versed in success through RE
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
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