High Risk Strategy or Money For Jam?

A

Anonymous

Guest
From: Anonymous


OK, so say we are going to get 10% growth in Sydney, Melbourne, Brisbane and?????????. So does one buy 4 x $250k properties using deposit bonds and then onsell them before settlement and pocket the $100K? -less expenses naturally.

Lets say $60k profit on an outlay of $1000. Not bad returns on your money. Like to see young Eric get that sought of return with shares!

Isn't this what Henry Kaye (Kay?)is suggesting amongst other things?

Perhaps this should be posted under Caveat Emptor?
 
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Reply: 2
From: Michael G


Hi,

The theory is good, only problem is the list of things that can go wrong...

1) building completes early (before capital gain.

2) building completes late - during bust

3) No buyers around and you have to take over property

4) Lack of tentants

5) the other 99 investors try to onsell at just the same time as you and flood the market

6) Interest rates rise

7) Rents drop

8) People running around screaming "The End is Nigh!"

Michael G.
 
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Reply: 1.1
From: Michael G


Hi,

For such questions, its always a good idea to do a "search" in the forum or on the web.

FYI - a promise made by an insurer that they will pay the deposit to the developer, because they know they bleed you dry to recover their money from you :)

Michael G.
 
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A

Anonymous

Guest
Reply: 2.1
From: Anonymous


Hi Michael,

So you reckon there are a few holes in dear Henry's bucket?

I hear he is moving offshore too! I wonder if it is just to pursue the US market or there might be some tax issues involved as well?
 
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Reply: 2.1.1
From: Michael G


On 9/7/01 12:35:00 PM, Anonymous wrote:
>Hi Michael,
>
>So you reckon there are a few
>holes in dear Henry's bucket?
>
>I hear he is moving offshore
>too! I wonder if it is just
>to pursue the US market or
>there might be some tax issues
>involved as well?

I didn't say anything any which way, I just raised things people need to be careful of :p

By the way, there are problems with any strategy, those problems are usually caused by implementing the wrong strategy in the wrong place at the wrong time.

You can use a hammer as a screwdriver, it will do the job, it just may not give you the best results or be as neat. There's also the problem that your door may fall off its hinges a few years later because those screws went set properly, but hey, the door worked fine for a while at least :p

Regards
Michael G.
 
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