What's a bond yield?
Something to do with socks and jocks isn't it?
Cheers,
The Y-man
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What's a bond yield?
What's a bond yield?
What are are you thoughts on:
Buy and hold will always be a safe way to invest and will be effective - just not 'get rich overnight' stuff1) Whether the buy and hold strategy is still an effective strategy for building wealth going forward?
Absolutely. Most people will probably only be able to buy 10 properties over 10 years or more, so by this time the values of the earlier purchases will be approaching double their original value, and can be sold to retire debt on later purchases.Is it still feasible to rely on being able to buy 10 properties and then balance the debt when you want to retire by selling down a few properties??
It is all relative. Anyone starting out seems to think prices are only high NOW, and never were in the past. They have always been high in my lifetime. I remember my parents struggling to come up with the funds for a $32k house. Prices were high then apparently.2) Is future growth sustainable considering the high price of real estate today?
Debt reduction, maximising all factors of each investment such as depreciation, tax returns being re-invested back into the loans, continually buying when able to, as the more exposure you have to the market, the more your wealth grows.3) Apart from relying on capital growth, what are you doing to speed up the process of accumulating equity in your portfolio?
No, never sell is the philosophy. Ours is to use the wealth base to accumulate more, but not necessarily only property now.4) Are you selling to balance debt as you go along
We have only ever sold two of our IP's - both to improve unpleasant cashflow predictions when our incomes were low. Our philosophy is to buy and not sell, and the increasing equity has been used to fund more purchases, and in recent years businesses, which have a much higher cashflow return than geared property.or selling to move your money into other ventures (be they property, shares, business or other?)
We may sell the odd one in later years and live off rents, but no pans to do it as a necessity. The good thing is knowing that if you need to; it's there to be able to do it.5) Or are you buying holding and accumulating more properties with the view to selling down to retire debt and live on rents in years to come?
I think there's more common sense in that post than the whole of the rest of the internet .... thanks Marc.Buy and hold will always be a safe way to invest and will be effective - just not 'get rich overnight' stuff
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In strategy.
The main point I reckon is to keep on increasing the cashflows and wealth BASE - not continually buy and sell just to free up a bit of cash.
Yes and no.2) Is future growth sustainable considering the high price of real estate today?
*lots of really smart stuff n that*
I'm with Nathan too.
I was just surprised how forgiving a property purchase could be if you timed a buy at the worst possible moment.
Actually, a quick question for Nathan: How do you get a property for $50K below market value? Is it forced sales, fantastic negotiating skills? Or just your easy charm?
Actually, a quick question for Nathan: How do you get a property for $50K below market value? Is it forced sales, fantastic negotiating skills? Or just your easy charm?
I'm with Nathan too.
I was just surprised how forgiving a property purchase could be if you timed a buy at the worst possible moment.
Actually, a quick question for Nathan: How do you get a property for $50K below market value? Is it forced sales, fantastic negotiating skills? Or just your easy charm?