Cate Blanchette should have invested her money elsewhere

Discussion in 'Share Investing Strategies, Theories & Education' started by wombat777, 12th Mar, 2017.

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  1. wombat777

    wombat777 Well-Known Member

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    wombat777, 12th Mar, 2017
    #1
    inspiredbyprop, Perthguy and orangestreet like this.
  2. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Zenith Chaos, 12th Mar, 2017
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  3. ellejay

    ellejay Well-Known Member

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    Ouch, not often we hear the actual net return figure. Not so impressive usually when you break it all down.
     
    ellejay, 12th Mar, 2017
    #3
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  4. turk

    turk Well-Known Member

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    As much as the following statement may be correct.

    There are three hugely important factors missing from the above calculation.

    1. How long did Blanchett own the house?
    2. How much money did she spend upgrading and maintaining the property?
    3. What were her transaction costs when buying and selling?

    At least as important in calculating the returm is what was the leverage.

    A puff piece from a Company with a vested interest in the sharemarket.
     
    turk, 12th Mar, 2017
    #4
    Perthguy likes this.
  5. Perthguy

    Perthguy Well-Known Member

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    True, but if you buy a house for $10 million, spend $8 million renovating and sell for $20 million, you didn't make 100%.

    Speaking of which, for my second IP, I did a 105% lend and didn't actually put any of my own cash into the purchase. I sold after the property almost doubled in value. I could never figure out how to calculate my return on investment o_O
     
    Perthguy, 13th Mar, 2017
    #5
  6. The Falcon

    The Falcon Well-Known Member

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    Let's selectively quote the best performing market 05-16. Great work Sharesight.......
     
    The Falcon, 13th Mar, 2017
    #6
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    It neglected to mention that:
    1. It was CB's ppor
    2. The opportunity cost of her living in the house vs renting elsewhere was at least $5k/week
    3. Her return would've been cgt free (unlike shares)
    4. Forgot to mention the GFC
    5. Every journo has an angle
     
    Scott No Mates, 13th Mar, 2017
    #7
  8. KDP

    KDP Well-Known Member

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    Yep agree Scott. You can't claim dividend for the shares and not rent for the property.
     
    KDP, 13th Mar, 2017
    #8
  9. MTR

    MTR Well-Known Member

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    Poor Kate, she desperately needs to make money from property....LOL

    I have a passion for famous people and their net worth

    Kate Blanchett - net worth $45M
     
    MTR, 13th Mar, 2017
    #9