What made you choose investing in property other than shares and mutual index funds ?

Discussion in 'Investment Strategy' started by showtime94, 25th Jun, 2016.

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  1. Perthguy

    Perthguy Well-Known Member

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    I chose property because I had no money to invest and property got me started. Now I choose property because I can value add. For example, my latest IP needs a major reno that will add value. Down the track I will borrow against the property to buy listed securities. Eventually, I will offload the property. It not my preferred investment vehicle for the long term.
     
    Perthguy, 29th Jun, 2016
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  2. showtime94

    showtime94 Well-Known Member

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    What do you mean by securities ? And whats your long term preferred investment vehicle ?
     
    showtime94, 29th Jun, 2016
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  3. Perthguy

    Perthguy Well-Known Member

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    Securities is a blanket term for EFTs LICs managed funds etc. For example, Vanguard. Listed securities are my preferred investment vehicle. That is down the track though. For now, I don't have enough to invest. Also, I know nothing about listed securities. I have plenty of time to build capital and learn about this investment vehicle before I diversify my portfolio. All in good time.
     
    Perthguy, 29th Jun, 2016
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  4. Steven Ryan

    Steven Ryan Well-Known Member

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    • It was within my means
    • Leverage
    • Shelter is a basic need
    • Reasonably stable
    • Ability to add value + increase rent income
    I have some shares outside super but to match the leveraged dollar-for-dollar returns I've made through property, they'll need to be doubling almost annually.
     
    Steven Ryan, 29th Jun, 2016
    #44
  5. tobe

    tobe Well-Known Member

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    Meh, it's like taking the escalator to get off and take the stairs. Perhaps at the end of the growth phase.
     
    tobe, 29th Jun, 2016
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  6. oracle

    oracle Well-Known Member

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    oracle, 29th Jun, 2016
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  7. big max

    big max Well-Known Member

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    I apply the same approach to both shares and property. Look for assets below value and over time the market will take care of you and help you realise full value.

    Also most companies are leveraged. So when you buy stock you are in fact getting a leveraged investment.

    For shares, for me PE and dividend yield are key indicators. I usually look for PEs below 12 and dividend yields of 5 or more %.
     
    big max, 29th Jun, 2016
    #47
  8. big max

    big max Well-Known Member

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    Me too! Also enables you to me more hands off with your assets and just sit back and let the cash come in. With property there is always something that needs doing, especially if you own many, and it becomes a hassle after a while.
     
    big max, 29th Jun, 2016
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  9. The Falcon

    The Falcon Well-Known Member

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    Yep, usually overlooked. Balance sheet leverage. Highly variable.
     
    The Falcon, 29th Jun, 2016
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