Yet that is exactly what you are doing here to those who own property
Hypocrite much?
I understand Perth property Frank. That is why I am not in Perth property right now. I'll be back in when it is right to get back in. You are in Sydney property and I have only spent two days in Sydney in my 50 years on this planet. Most of that time I was pissed. I don't care or think about Sydney property because I only put/remove my money into/out of things I understand.
Remember Frank, there are three key things to investing
1. Understanding the market 2. Knowing when to buy 3. Knowing when to sell
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
I also made a whack of money on copper futures once. Does that make me a copper bug?
I made big money on property in the 80's (buy, develop and sell). Property bug?
I have made some pretty big gains on FX and I also own a 1/4 share in a profitable local industrial enterprise. Any insect names you'd like to apply to those?
Just because you don't understand how something works, doesn't mean you should poke fun at the people who do.
How did I poke fun at you? Gold bug was the term you used ....
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
How did I poke fun at you? Gold bug was the term you used ....
I said I was not a Gold Bug. You implied that I was. Gold Bugs have a tendency to only see one direction in the market. Gold Bugs don't sell. All markets have two directions (unless you count sideways as a third). I understand that fact very well. Therefore I am not a Gold Bug.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Gold was used by the wealthy ruling class to indoctrinate subordinate classes i.e. mystical powers e.g. possess a bit of divine quality i.e. the only reason gold [metals] had any value is because of the force applied to it, by the divinity backed rulers, in antiquity e.g. it has zero intrinsic value outside the collective belief some have in it, and some question the value of equity [Nada rights].
A bit more unpacking –
“As a practical matter, governments with gold standards have always fixed the price of gold.
That need arises as a result of one of three things:
- Bimetallism. Metals markets have never been liquid enough to assure price stability.
In fact, it was increases in the price of gold that hurt the common family so badly that bimetallism was adopted. An increase in the value of money benefits hose who have money and those who lend money. It hurts everyone else, whom we would now call the 99%.
Bimetallism makes price fixing necessary in order to maintain an exchange rate between denominated coins. But there’s always a mismatch in values, so the coins made of the undervalued material become more valuable if melted into bullion.
So we’re left with the possibility of only a single standard. If course no metal is plentiful enough to meet that need, so we would go to a fractional standard, which is generally what governments used.
A fractional standard is still not a market solution – it involves both fixing the metal price and fixing the ratio.
That leads us to the second reason – notes and electronics. Imposing a requirement to use gold coins for trade would be a draconian measure, and would be completely impractical in an electronic, global world.
We need tokens of money , and that requires the maintenance of some sort of par relationship between the tokens and the metal. That requires price fixing. If you let the price of the token float, then you can’t guarantee convertibility. If you have a floating exchange rate nonconvertible currency, you have fiat money, and you may as well not use a metal standard.
Third, there’s credit. Unless you make it illegal to loan anything but hold coins, you run into all of the same problems as listed above. Particularly, you have to figure out a way to guarantee par value exchange between money and bank deposits, or credit will tighten so radically that it won’t support industrialization.” H/T LET
At least here in Oz the gold bugs don’t have the weapon fetishes as those in the states.
Hows the depot hill valuations going frank? Last time I checked on Oldprice they were still down 50% from the last flood. You really fu*ked up there didn't you
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
1/ Location Location Location 2/ When there is blood in the streets 3/ When everyone believes the asset is bullet-proof and prices can never fall.
10/10
SSS
8 Aug 2014, 05:55 PM
At least here in Oz the gold bugs don’t have the weapon fetishes as those in the states.
And that is to my advantage.
As long as people believe that Gold is for nutters with guns and hidden baked beans, then I know that I am not buying into an over bought market.
To be honest, if the world got to the stage of bug out locations and booby traps, I would be checking out with Charlie & Brown rather than trying to bargain ounces of Au for stale bread.
But I buy gold for the middle ground. The bit between houses going up forever and WWIII.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
1/ Location Location Location 2/ When there is blood in the streets 3/ When everyone believes the asset is bullet-proof and prices can never fall.
Easy to say, and true, but totally useless advice.
Anyone can cut and paste it from a website but few have the knowledge and expertise for (1) and even fewer have the discipline and emotional control to execute on (2) and (3).
Here's a strategy that any schlub can execute on. It takes some work and it isn't optimal, but it does OK.
1/ Look at *lots* of places and do the nett yield numbers rigorously. Do a DCF analysis, modifying the discount rate to reflect location and volatility/risk. Take into account opportunities where you can add value relatively cheaply. Spend $10k on renovations to get $35 more per week in rent.
2/ Buy when you can swing it at leverage you are comfortable with and cashflow you can support relatively easily. Thinking that you know what the market will do better than the millions on the other side of the bargain is the kind of arrogance you need to squash.
3/ If you wanna be a trader go into stocks, not property. You'll lose your shirt quicker and have more of your life left to make use of the valuable lessons learned. Sell when you want the money to balance cashflow. Plan ahead. If you have a value add opportunity, do it and get the place rented out at the higher rate before you go to market. Plan to sell more than 10 years after you buy.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
Here's a strategy that any schlub can execute on. It takes some work and it isn't optimal, but it does OK.
The thing is, most people I know who buy investment properties don't have a strategy at all. They just do it because everybody else is doing it and they have been told that they can't lose.
I know a young couple with four properties who were so leveraged, that when interest rates ticked up 100 basis points a few years back, they had to cancel their foxtel (no shit).
I know another couple who rented out their main house (not using an agent) and moved into their smaller rental property so that they could increase their rental income to help cover their mortgage. The people they rented to trashed their main residence (again, totally true story).
One of the problems with the market at the moment is that it is full of amateur investors, renovators and developers. Someone goes to a seminar or watches The Block and they think they can make big money.
There used to be good money in buying an old property for reno and I did a few back in the 90's. Bought very cheap, lived in them and worked on them and then sold them for a fat profit. I bought both as permanent places to live but once we had finished the work, we got bored and sold. I have been in the construction game since I left school so I knew what I was doing. I have been to a few so called "reno'd" properties recently and they were a dogs breakfast. Pissed wall tiles, doors that didn't close properly, skirting mitres full of wood filler and badly made DIY decking areas. They chuck around a few scatter cushions and expect $100k over market value? The problem is now, that agents actually use the words "renovators dream" to entice these wanabee block contestants and they pay over the odds. It makes it hard to find anywhere that offers the prospect of a decent return.
Having an investment strategy is good but sadly a lot of people go into it for the wrong reasons (NG). They see it as a way to get rich quick and don't think of it as a business that needs constant attention.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
3/ If you wanna be a trader go into stocks, not property. You'll lose your shirt quicker and have more of your life left to make use of the valuable lessons learned. Sell when you want the money to balance cashflow. Plan ahead. If you have a value add opportunity, do it and get the place rented out at the higher rate before you go to market. Plan to sell more than 10 years after you buy.
A rather long winded opinion there but I will just choose this last piece to refute. The main difference between stocks and houses as investment vehicles is that houses are for the poor people and stocks are for the wealthy. Multi millionares don't go about buying houses, the yield is not as good generally and the headaches involved in managing and maintaining houses go against them.
The poor invest in residential property because they only need a small deposit to enter the game, and nowdays that is mostly covered by equity anyway. Once you put all the seminar hype and cherry picked figures aside being a landlord of a few suburban houses is not a path to riches. The simple fact that so many people have chosen this avenue to get wealthy pretty much condems it to be a loser for a generation. Every time the public rushes in and distorts a market it turns into a bubble and then crashes. Every time!
There is nothing special about houses as an investment, they are going down with everything else now aren't they.
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