Simple Question

Discussion in 'Investment Strategy' started by Property Baron, 5th May, 2019.

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  1. Property Baron

    Property Baron Well-Known Member

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    Option 1 is the question that I asked.
    I understand it is probably unrealistic to find an investment like this but it was just a question of whether or not it would be an ok investment.
     
    Property Baron, 18th May, 2019
    #61
  2. Beano

    Beano Well-Known Member

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    If relative to other properties the pricing was similar then yes it was ok
     
    Beano, 28th Sep, 2019
    #62
  3. datto

    datto Well-Known Member

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    Better than wasting the money on something that leaves you with nothing to show except maybe a headache and a pavement pizza.
     
    datto, 28th Sep, 2019
    #63
  4. Andrewtfarr

    Andrewtfarr Active Member

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    Seems like a good investment to me...nothing out of your pocket other than the 50k and you have 500k of value after 20 years...plus you have an asset paying you income every week also.
     
    Andrewtfarr, 1st Oct, 2019
    #64
  5. Fargo

    Fargo Well-Known Member

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    OOh yes it is, you only need to average 15%p/a what every investor should be targeting. Very possible and achievable in 10 years. Euro you often say things cant be done that are being done. I have done it in the 6 months since you posted this,. with 20k in each of the shares mentioned above ALC, MP1, AD8.
     
    Last edited by a moderator: 18th Oct, 2019
    Fargo, 6th Oct, 2019
    #65
  6. euro73

    euro73 Well-Known Member Business Member

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    Like that RFF stuff you sang the praises of?

    You might pick some strong winners, ( I even bought some stuff this year that's up 35% in 9 months) but I'm sorry... 15% year on year compounding requires that you kick only goals, all the time... year in and year out . No mistakes . No global jitters. Certainly cant afford **** ups like RFF

    I'm not anti shares in any way. Simply saying that some property , even with zero growth and debt reduction can match or better even extremely strong share performance because of the use of leverage. I concur that vanilla property may very well not, because it doesn't self service P&I repayments and pay itself off , so all potential profits are in speculative outcomes - ie growth ...but I don't promote vanilla property with vanilla yields - I promote cash cows and debt reduction... properties that specifically do self service P&I and pay themselves off.... so 50K leveraged into a 500K property will deliver an unencumbered 500K asset within 20 years . Possibly even 15 with rates this low

    One strategy ensures 50K becomes 500K and requires no growth to achieve it ...the other "hopes" it gets there -but requires above trend growth and zero **** ups to get there ....


    I guess we will only know which was the more appropriate , in 20 years
     
    Last edited by a moderator: 18th Oct, 2019
    euro73, 6th Oct, 2019
    #66
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