Buying, holding and using the rent is not speculation, by definition. Buying gold to sell at a later point is speculation.
spec·u·la·tion [spek-yuh-ley-shuhn] Show IPA noun 1. the contemplation or consideration of some subject: to engage in speculation on humanity's ultimate destiny. 2. a single instance or process of consideration. 3. a conclusion or opinion reached by such contemplation: These speculations are impossible to verify. 4. conjectural consideration of a matter; conjecture or surmise: a report based on speculation rather than facts. 5. engagement in business transactions involving considerable risk but offering the chance of large gains, especially trading in commodities, stocks, etc., in the hope of profit from changes in the market price.
The 5th point is the one that applies.
Me thinks Jimbo's a bit to thick to figure that out
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Me thinks Jimbo's a bit to thick to figure that out
So you buy to rent. You don't care about the eventual selling price?
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.
So you buy to rent. You don't care about the eventual selling price?
Of course I care but it was not the primary objective.
I live off of rent now - it is the milk. The eventual selling price increasing is the cream on top
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Of course I care but it was not the primary objective.
I live off of rent now - it is the milk. The eventual selling price increasing is the cream on top
But what if you have to sell and your total return (cap gain, net rental income, inflation adjusted) is less than you paid (cost of loan including interest payments)?
Do you not consider that to be a possibility? Did you consider that before you bought?
Whenever I invest in anything, I always consider being forced to sell at a time that would not be convenient.
My hedge is not to have all of my eggs in one basket.
Just saying.
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.
Of course I care but it was not the primary objective.
I live off of rent now - it is the milk. The eventual selling price increasing is the cream on top
From reports seen here, your investment property in depot hill has dropped 25% over the last ten years. So if gains were the cream on top , what is this ? The sour milk, was that part of the plan , does the rent even cover the capital losses over that time , let alone anything else.
Some so called investors here like to paint a rosy picture, too bad the reality is very far from it.
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Do you consider your purchases halving in value or less?
Do you think near new 3 bedroom brick and tile close to CBD will ever drop to $150k?
But on the day you bought, did you consider the possibility of it dropping by say 25% in the following year? I do that as a matter of course whatever I invest in. Of course, time reduces risk in most cases so I consider the risk at the time of buying and I would factor in a minimum 25% loss for a forced sale of any asset. I also hedge so if one asset or asset class takes a hit, others may have increased in value. I also have no leveraged assets which increases my ability to hold and ride slumps (I don't borrow to bet).
You may have the benefit of time in the market behind you but there are many still piling in now who would be wiped out with just a small drop in prices.
The simple fact is that there is no such thing as a dead cert when it comes to investing. The property market has bankrupted a lot of people and the GFC had its genesis in property.
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.
Short story is no as I: Buy houses on large blocks Split off some chunks effectively getting free land (original house on smaller block often still values at close to purchase price) Semi organise trades and some materials so effectively get a house built at a considerably discount compared to average Joe End up with new build on land costing 50% or less of current valuation and CF+ from Day 1 So no, I cant see those dropping the following year to 25% below what it cost me .
Its not like gold which has had 40% hits in a year
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Short story is no as I: Buy houses on large blocks Split off some chunks effectively getting free land (original house on smaller block often still values at close to purchase price) Semi organise trades and some materials so effectively get a house built at a considerably discount compared to average Joe End up with new build on land costing 50% or less of current valuation and CF+ from Day 1 So no, I cant see those dropping the following year to 25% below what it cost me .
Its not like gold which has had 40% hits in a year
Buying houses on large blocks is a great idea (10 years ago). I did this back in the 80's (by accident) and ended up with a free house after 3 years. I have not had a mortgage since then.
I looked into it in depth last year and there is little profit to be made with 2 new residential blocks of 400m2 costing about the same as the fibro on 900m2. Every man and his dog is looking for big blocks to split so large blocks are attracting a decent premium. The local real estate agent conducted a seminar a few weeks ago on the profits to be made from subdivision and they got a decent turnout. I am still on the lookout though and it is an area I am targeting to buy when Perth prices have fallen a bit and the market is quiet.
As for gold dropping 40% in a year, that is what speculative investments (including property) are prone to do. People see something that has risen for 10 years in a row and think "I'll have some of that" and they all pile in. I got out at $1800 oz and bought back in last week at $1289.
I also bought a fair bit of silver last year at $18.50 oz. Everyone was spruiking silver a few years ago when it was $40 oz so that market was primed for a fall.
I can't comment on property over east because I don't know the market, but I wouldn't buy property in Perth at the moment. I am sitting and watching and waiting.
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.
Short story is no as I: Buy houses on large blocks Split off some chunks effectively getting free land (original house on smaller block often still values at close to purchase price) Semi organise trades and some materials so effectively get a house built at a considerably discount compared to average Joe End up with new build on land costing 50% or less of current valuation and CF+ from Day 1 So no, I cant see those dropping the following year to 25% below what it cost me .
Its not like gold which has had 40% hits in a year
But over the last ten years gold is up 500%, your depot hill property is down 25% over ten years.
Instead of buying that dspot hill property that was worth 200k ten years ago, and now worth 150k.
If you bought 200k in gold you would have 1 million now and closer to 1.5 million when prices were higher.
You have only ever bought bottom of the barrel, but now your a developer all of a sudden
Changed your tune since since your depot hill properties have been shown a failure.
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