All Eggs in one basket ??

[Gordon Gekko]

Hi All,

With all this talk about throwing your job in and investing in property full time........is this not putting all of your investmet $$ in one basket ??

And a side note, i have just started to read Jan Somers book " More Wealth from Residential Property" Mind blowing, great book:D

Gordon Gekko

[sbe]

There's two thoughts on that topic.

1) Diversify.
2) Concentrate.

Financial Planners will thell you to diversify (a cynical person would say that way, they can't get it totally wrong)

Then there's the "put them all in one basket and watch that basket VERY closely".

Personally, I like property as I understand it, I can add value to it etc. I'd also like some sharemarket exposure, but only to even things out a little for cycle purposes.

Besides, isn't working PAYE for most people putting all your income in one basket?

Ideally, I'd like (in no particular order):

Small Business income
Rental Income
Stockmarket Income
And maybe on other stream....

But I'd leap on rental income if it were enough. Then I'd look at the others....

Cheerio

Simon.

[Aceyducey]

Gordon,

There are upsides & downsides to everything.

You don't necessarily have to invest in one thing, so within your 'job' as investor you can have many baskets...

Looking at it as an investing 'job' = basket, remember Jim from Jim's mowing - Put all your eggs in one basket - then hang on to that basket!

Can you get another job if things don't work out? Probably Yes

Does it focus you on building your wealth? YES!!!

Is it hard work? Yes

Is it worth it? - I'll let the forum answer :)

Cheers,

Aceyducey

[WillG]

Depends on your basket and eggs.

Which of the following basket + egg combinations would you rely on for pasive income ?

1 x $1mil Harbourside property in Sydney

or

1 x $350k house in Sydney + 1 x $250k house in Melb + 2 x $150 townhouses in Brizbane

or

1 x $600k rural property + 1 x Holliday house in North West Cape + 5 Caravans in a local caravan park in Dubbo

[sbe]

I'll take option 2 thanks Will :D

[WillG]

No problems.

Would you like fries & finance with that sir ? he he he

[see_change]

None of the above

One comment I'v heard is Diversify really means deworsify

Don't want the Fries, But can I up size ??

see change

[Serge]

Hi all,

Option one sounds good for me WillG

Not sure if i could find $1mil Harbourside property in Sydney

More like $5mil plus hey :)


If you don't want to put all your eggs in the one basket

Ask yourself, "how many egg baskets can one carry?"



My two cents,
SERGE

[whitt]

why not diversify a little bit by having your property's spread around the place and not in one suburb. that way you can get the average returns from all them if some suburbs are low for awhile.

[Tibor]

Agree with SC.

My view is firstly to study your basket until you have a full understanding of it.

If and when it is so good, I would throw everything I got and then watch it very very carefully and concentrate on exploiting further opportunities in the basket.

What the basket contains? It is up to everyone own liking, preference, experience, emotions, bla, bla, bla.

Diversification? Within reason (inside the basket) its OK for me,
but too much of it just will get you down to average level. Of course FP's advise to diversify. This is what they were thought
and it is also as good a*** covering. Risk is reduced for the investor as does not matter what part of the investment cycle is working / not working now, you will be SAFE!

Sorry, I do not wish to be neither average, nor safe.

And just another point. I prefer to advice seriously from an FP who happens to be a wealthy person in their own right. Then I will listen to EVERY word they say VERY carefully. I might just learn from them.

Just my 2c.

Tibor

[Aceyducey]

Originally posted by WillG
Which of the following basket + egg combinations would you rely on for pasive income ?

I'll take all three thanks and any other baskets you've got sitting around.....

Cheers,

Aceyducey

[investor]

Originally posted by WillG
Depends on your basket and eggs.

Which of the following basket + egg combinations would you rely on for pasive income ?

1 x $1mil Harbourside property in Sydney

or

1 x $350k house in Sydney + 1 x $250k house in Melb + 2 x $150 townhouses in Brizbane

or

1 x $600k rural property + 1 x Holliday house in North West Cape + 5 Caravans in a local caravan park in Dubbo

Hi

I don't even have to think about that one at all. The first basket thanks, because if you can find me a Harbourside property in Sydney for 1mil then I will have made about 2mil straight away on signing the contract and 4mil -15mil if it's waterfront. :p

Regards

Investor :)

[BUNDY]

I'll take one big basket, full of eggs.

P.S. Just don't drop it!!!!!!!

BUNDY