What do you LOVE most about Property Investment?

My property

- doesn't answer back
-doesn't need to be on time
- won't run away
- will always be there
- doesn't lie
- will always let me as long as I have a key

 

Yes you can, BHP where available for a 50% discount 2 years ago ! Just bought Appen for a 30% discount a week ago under their entitlement offer of $5.80 to buy leap frog, they have been trading a $8.60. Don't know any-one who offers you a house for a discount that you can immediately sell for 30% more and have no transaction costs either.

 

The whole point of property is that you can use it as security to buy shares if some share lose value you, still have your capital earning income and it will probably still be increasing in value at 8%. Also you can buy put options as insurance against share price falls. You cant insure property against price falls. Funds diverted to shares can greatly increase the return on capital and enable loan pay off in years instead of decades.

 

We began and continue to do it because of the tangible stuff (money), but excluding that, the best part is now the hunt and the deal. I get a serious rush when I find something that I think might be a goer. Also love the fact you can use a number or combination of different strategies to achieve your goals. This forum is a testament to that.

 

As many others have already mentioned, for me it's 2 items:
Leverage, no other asset class gives you this much power
Compounding Interest, other asset classes also do this but not to the same extent when you
combine leverage and Compounding Interest together when buying property.
As an example i recently purchased a $600,000 house with only $60,000 down as way of deposit and the asset went up in value by $50,000 in just under 12 months.

 

I should also add if you are not doing it already you should also be taking your super funds and creating a SMSF to purchase a property and use the power of leverage and compounding interest to maximise your super for retirement. Using this strategy i can beat the typical super retail fund returns and have direct control over my investment to add further value.

 

I love the creativity of it - the designing, the interior stuff, the transformation from blank space to house
I love how much I've learnt since starting
I love the roller coaster ride (sometimes!)
I love the flexibility it's given my life
I love helping people (my clients and peeps on here)

 

I love the information asymmetry & 'micro' nature of individual assets. Allows you to pick up great deals & concepts like 'BMV' to exist.

 

Ah...lets me see

1. The ability to sort through BS
2. The priviledge of meeting meeting shysters, scamsters, and BS artists
3. Meeting trolls on the internet forums
4. Dealing with human emotions such as fear, greed, envy, anger, jealousy
5. People who ask for advice and then say it won't work or it is BS...

Hey I have an idea I can make soap opera..and call it "Day of our lives in Property"

 

The Bold and the Bogans.

@datto is the new Ridge Forrester.

 

He is rdgey didge @datto is...he is a legend amount toothless girls in the Druie....hes a right Errol Flynn he is....

 

Oi..

 

I like the inconsistency.

 

In what way? just curious.

 

I'm interesting to know more. Please explain more

 

I have property netting between 5 and 10%, the 5% yielding ( on current price) property have exceeded 8% pa growth. It has 4x$ in 29 years. Which is bugger all compared to shares I purchased by LOC on a property when banks threw money at you. When the Vic government sold the GEB and it became VGS I bought as many as I could for 5c, maxed out my borrowing to buy more for 25c was totally broke living on nothing about $30 a week growing vegetables and chooks shooting and trapping rabbits and catching wild goats to eat. Anyway that company was taken over by GrainCorp which I sold for $13. After that I bought ABB and AWB pre asx listing for 5c, was given $19 for ABB when bought out by Viterra and sold AWB for $13. In 2003 to realize some profit and not pay to much tax,I bought 2 blocks of land sold one for a 25% profit before settlement a month latter and build on the other. I put what I thought were ridiculous offers on houses in Ouyen of 17k, after talking to a guy who had done the same in Lake Boga , that got accepted, after I bought a few, there was a shortage and sold them after a few years for 90k. In 2008 with proceeds from the shares, I did 2 developments and bought another 2 houses and more farm land. In 2014 I had some good equity but it was useless as the bank doesnt count more than 7% yield and use a 7% interest rate for serviceability, so I sold 3 properties kept borrowing limit the same paid down some loans and left enough available credit for about 3 years drawings, share market crash or whatever, put 350 k into growth shares portfolio. now worth 700k with a 30 % annualized return. Also had a small dividend paying portfolio it was a disaster capital diminished by more than the dividends. is useless and pointless if you cant access it, if you convert it to shares you have funds anytime you want. If you have leveraged of property to buy shares you wont go broke, you can take more risk and get higher returns, if say after 7 years you lose your shares. Your property may have doubled in value and be worth twice as much as the buy price of the shares if you used a 50% LVR. If you buy the shares outright with cash, instead of buying a property to secure the shares, and you lose your shares, you have zip, nada F.. all.

 

Love it for not disappeared on me like some of my shares did

 

Love the endorphin when the sales contract exchanged on a bargain deal that only happens once in a few years!

 

My friend made a similar comment the other day...said bricks and mortar was reliable .. stayed there in the good and bad times and withstood any storms..unlike his last 2 wives....

 

and it gets better with time too!