Forced into early retirement, considering investing in serviced apartments to generate cash flow

Damn, I need a time machine so I can go back and put it all on CBA and bitcoin when it was a few cents

 

So what would the cash/offset split be to make up the 500k?[/QUOTE]
It’s just a thought. It’s not by any means advice.
I suggest investigating borrowing $500k and investing that rather than using your cash. Speak to your accountant and get some advice.

 

To sell based on current dividend yield is shortsighted. Long term the dividends will keep going up. You'd lose future dividends that will tend to be larger and larger with time. Key question is how you think the company will go in the future. Does it have a bright future ahead? If the company is crap, sell. If not, hold or accumulate.
Unless you have better uses for the money.

 

Smarter than Warren?

 

Smartest guys in the room.

 

That goes without saying - If the value of the shares keeps increasing then it goes to follow that to maintain the % returns, the dividend must also increase however your $ returned on the initial outlay will also also be increasing.

 

Correct. But some people mightn't understand this and it may well be a light bulb moment.

 

Over time growth should occur, but those lic's might take a beating first. If Billy shorts gets his way regarding dividends people will start dumping and watch the price drop.

 

Is that something I should wait out first? I'm keen to buy and preliminary research seems that it may be a good time to get parcels in PIA and PMC and an ok time to get parcels in VHY and WAM.

Or even DJW which seems low and right in the middle of its ex date cycle. Can't find much on here about DJW yet though.

 

Oh and if franking gets demolished, would a holding in REIT CMW be smart? I believe that one is franking free anyway. Keen to buy parcels in that one in a couple of months

 

Listed Investment Companies (LICs) in 2018

Should Thank @Nodrog and @SatayKing for their invaluable and recent contributions about DJW

 

WAM, at a 25% premium:

 

@CDizz

Be prepared for wild swings and market gyrations though, who knows what the future holds, as Wazza said

“The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities — that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future — will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”
​

The US Market has had a great run for the last nine years and crashes throughout the markets history are normal, unfortunately our local markets get affected also. There will be another.....at some point

 

The Robot looks like this now @Nodrog

 

Oh snap, 25% premium?! I must have missed something or typed up the wrong acronym as it was 1am. Better get back to the books (google)

 

http://cuffelinks.com.au/wp-content/uploads/Indicative-NTA-20180416.pdf

 

That's what I was looking at, WAM. I'm a total noob so would appreciate someone explaining to me how at the moment it's 25% over priced? Seems like it's in a mini dip to me but obviously I'm missing something

 

If wam is an lic it’s a company that owns a bunch of shares of diferent companies. Being overpriced means it’s more expensive to buy wam than it would be to buy individually all the companies shares it owns.

 

Ah ha.. and so to figure that out I need to collate all the companies shares they own and do a cost analysis? Is there a site where that is done for LICs for us? Sorry if it's in the pdf above, I must have missed it if it is