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A fundamental Question for YOU the home owner in Australia; When did your home become an investment
Topic Started: 18 Sep 2014, 09:53 AM (2,115 Views)
Foxy
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Zero is coming...

Ok trendsetters,

An open question that may be looked back on in the not to distant future.

When did your home become an investment.

An even more important question is, investment for whom???

And what happens to your reality bubble when your "investment" returns to being your home.

How much are you paying for the "investment" part of your home and is that being fair on yourself and your family??

Walk outside your home and have a good look at it. Add up the cost of building a new identical home and add say $200,000 for the land.

That is the true value of your home.

All the rest is eye wash.

Now i know that 98% of you will be unable to find the hidden links to the question really being asked but to those who can please think through this, i have a feeling you already have.

Man this is going to hurt the true believers.

I hope your with HBF.

Peter

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Guest
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Who knows.....

A 500k mortgage over 25 years paying principal and interest will mean it has cost you 1 million dollars.

And when we have these interest only periods going on , well its going to be a lot more again.

But dopes are still under the illusion prices and rents and wages can keep doubling at certain intervals.

Yet the evidence is very clear, this downturn is nothing like history over the last forty or so years. Wages have only ever grown over this time, and again dopes thought this shit would go on forever.

Well guess what girls, its not going on forever, its now stopped, wages are now going backwards in western economies including Australia. What to tell me wages are not dropping again Peter, like the bullshit you tried to us yesterday. Coke wages freezes, new stage now getting 38% less than current workers doing the same job. Wake up and see the reality Peter, its all around you buddy :bye:

They thought it was an investment when they used what little capital there was in their home to leverage 100% into another overpriced shitbox to pay interest only on the loan and hope for the best.

Any real investor laughs at real estate for an investment. Even at the best of times its a joke compared to what anybody with have a brain could do.

But most of you won't realize this until half a life has passed you buy, and in franks case, nearly your whole life and still not learn. He does not own anything overseas, he dreams about it because he can't afford anything worthwhile in Australia. That's where the road to poor investing will leave you.

You so called investors can watch the already sad excuse for a rental return you get dissapear, and watch all your other bills and utilities increase. Frank castle can not even afford I durance where he is and has none. To bad if one of his center link Tennant's burns the house down in between floods. Properties that he owns rent for about $200 a week if that, insurance would half that if he was to pay, he can't afford it.
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goldbug
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Mine was never an investment in my eyes, probably because I wasn't fooled by the equity loan propaganda. My new home is certainty not an investment. Investments imply selling at a certain point or creating incomes and my little bit of country will never be sold I hope and certainly doesn't generate income.

Shadow was hopelessly wrong about the Gold Bull Market.
What else is he wrong about?
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Foxy
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Zero is coming...

goldbug
18 Sep 2014, 10:16 AM
Mine was never an investment in my eyes, probably because I wasn't fooled by the equity loan propaganda. My new home is certainty not an investment. Investments imply selling at a certain point or creating incomes and my little bit of country will never be sold I hope and certainly doesn't generate income.

Realism.

Good luck man.

When the whole herd moves it is hard to stay still.

Peter
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cokatoo56
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goldbug
18 Sep 2014, 10:16 AM
Mine was never an investment in my eyes, probably because I wasn't fooled by the equity loan propaganda. My new home is certainty not an investment. Investments imply selling at a certain point or creating incomes and my little bit of country will never be sold I hope and certainly doesn't generate income.

I disagree. buying with the intention to later sell with the expectation to make a profit is speculation. I believe that is what most properties are bought for these days in Aus btw. You have to see how long an owner keeps a property in average, and how many sales there are everyday. it's common to see, at least in sydney, properties bought and sold only 2 or 3 years later.
Buying a property with the intention to keep it and live in is an investment. you have some cash you want to spend in an asset, it can be stock, property, commodities etc... you're investing.
like other assets, if the market value of your home grows over time, it proves to be a good investment, if not, it can be a bad investment you have made.
even if you don't plan on selling your home for a profit, you have invested your money in something.
likewise, when you invest in stocks or commodities, that investment doesn't necessarily generate income. it does if you get dividends, otherwise it doesn't.
property agents like to ask you this question when you inspect a house : "is it to occupy or to invest?", which means for them that investing has to be about selling later for a profit or renting out to someone.
it is a misnomer. property agents know crap about investing.
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stinkbug
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My own home is not an investment, but that doesn't mean I didn't choose carefully.

My IPs are purely investments, and making the numbers work is really all that counts. Fortunately, looking after your tenants and encouraging them to do the right thing seems to be the best way to run this business.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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zaph
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stinkbug
19 Sep 2014, 03:31 PM
My own home is not an investment, but that doesn't mean I didn't choose carefully.
Ditto.

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Drgonzo
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Both of ours are investments and we rent our PPOR because it would cost us over a million bucks to buy and as I have said over and over again, high end property is a bad investment.
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peter fraser
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Mustapha Mond
18 Sep 2014, 09:53 AM
Ok trendsetters,

An open question that may be looked back on in the not to distant future.

When did your home become an investment.

An even more important question is, investment for whom???

And what happens to your reality bubble when your "investment" returns to being your home.

How much are you paying for the "investment" part of your home and is that being fair on yourself and your family??

Walk outside your home and have a good look at it. Add up the cost of building a new identical home and add say $200,000 for the land.

That is the true value of your home.

All the rest is eye wash.

Now i know that 98% of you will be unable to find the hidden links to the question really being asked but to those who can please think through this, i have a feeling you already have.

Man this is going to hurt the true believers.

I hope your with HBF.

Peter

Anyone who buys without keeping value in mind is very foolish.

One day you might sell for whatever reason.
Any expressed market opinion is my own and is not to be taken as financial advice
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Ex BP Golly
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goldbug
18 Sep 2014, 10:16 AM
Mine was never an investment in my eyes, probably because I wasn't fooled by the equity loan propaganda. My new home is certainty not an investment. Investments imply selling at a certain point or creating incomes and my little bit of country will never be sold I hope and certainly doesn't generate income.

+1.

I Don't think of it as an investment. I know it is a liability.

Dont owe a cent on the property.

It has ceased being an investment for the banks.

As regards value, it is not some postage stamp in the burbs so prices are a bit different.

But city folk have long been active in the Market and thus even here prices are unrealistic.

Similar properties now sell at about $750000.

WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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