Yes, gold massively outperformed Sydney property from 2003-2011. In fact Sydney house prices fell in real terms over that period
So much for house prices doubling every 10 years. That's the IO trap shadow, prices have to double to clear the debt and give you the property value you banked on. If sydney turns down from here (which you have admitted is likely) you are back to square one. A massive debt and no equity.
Trapped!
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
Sydney prices have doubled over the past seven years, but it doesn't happen every seven years, or even every ten years. Not sure why you thought it did... did they tell you that at a seminar?
Quote:
If sydney turns down from here (which you have admitted is likely) you are back to square one. A massive debt and no equity.
Prices would need to drop back to 2001 levels to wipe out my equity. Can't see that happening, but even if it did, the rental income would keep flowing in.
Sydney prices have doubled over the past seven years, but it doesn't happen every seven years, or even every ten years. Not sure why you thought it did... did they tell you that at a seminar?
And gold has tripled over the last decade. Basically the Sydney median has sliced in half in relation to gold. What does the next few years hold?
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
Listen to the count shadow, he cuts through all your gibberish and sums it up in a nushell.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
No. Gold has gone from $578 to $1506 over the past decade, which is a rise of 160%
Not bad, but the problem for you guys is the gold bull ended in 2012 and gold has dropped back to its 2009 level.
So gold has gone nowhere (dropped significantly in real terms) over the past six years, with no yield to cover the storage and insurance costs.
Whereas Sydney property is booming. Doubled in seven years, plus rental income. And still rising.
But what if people don't want to live in Sydney? Similar things are happening in cities such as Auckland, so does that mean you're some kind of loser because you have no exposure to Auckland housing? Similarly, there are stock indexes that have doubled in 7 years which require far less expense and effort than buying a house. Are people who have benefited from this also losers because they don't want to buy a house in Sydney? Are people from Brissy losers because they don't live in Sydney?
You need to get a grip. Most gold owners are probably well equipped for the gold price to sink even further. If that happens with house prices, it actually has quite negative implications for our economy. The powers that be are terrified of that eventuality.
Which basically means that you're going through your seagull routine.
Anyway, an investor in ETFs in Japan has probably matched or done better done a Sydney property investor since 2009. Proof is in the pudding Sonny Jim.
As I have said often bere, Gold is not for the little people, they have been herded into debt and residential houses. It's the preserve of the wealthy, and those that would emulate them.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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