Is this a good investment strategy?

Bought for 2.4 million in 2003, sold for $3 million in 2012.

PROPERTY DOUBLES EVERY 7-10 YEARS!!!!!!!!!!!!!

Oh wait... no it doesnt
 
Not a good deal in my opinion......

Lets say it sold for $2.9m

That is a 500k gain (a 17% gain)......out that you can deduct

About 80k for stamp duty
Another 10k say for legals and other costs
Another 75k for selling costs

That leaves you with 335k profit....take out interest costs (holding costs) and time value of money it is more like a 1-1.5% return per year!

No thanks.....properties over 800k are speculative investments.


I got a better return on a property bought in Melton South for 155k in 2007...which is now worth 250k (62%) gain. I know which one I would get....
 
Mate you have got be kidding right????

Most invest professionals are pretty useless....just look at the donkeys they employ in private banks. Most are glorified salesman who are there to get more business not help you with your portfolio growth.

Ultimately decisions rest with the investor....if you are one you are solely responsible for any decisions you make. Thankfully over 85% percent of my decisions have been spot on....but the other 15% were not so good. Most of the bad ones mad money with the exception of 1.....but my returns have been about 4-5% per annum instead of 10% plus.


I presume Megan must be advised by a quality team of investment professionals. Has she been poorly advised?
 
A couple of statements I live by
- just because you are good at your day job, doesnt mean you have any idea in investing
- money doesn't buy taste
- the bigger the company the stupider people they employ at the top
- investment professionals?????.??.? Wtf! If you knew how to invest very wisely, wouldn't you go and do it yourself instead of telling someone clueless how to?
- often people who find wealth by luck or no hard work, will lose it quicker,

Whether gale has made decisions based on professional advice or not, take a look at her properties , they are all high high end (unless I'm missing something) she is obviously buying them for **** factor or doing it because everyone else famous is doing, frankly I think she is dumb as a sack of ****,

In my opinion they weren't bad investment decisions, they were just average and safe, imagine had you bought, 4 x 200k properties
 
I presume Megan must be advised by a quality team of investment professionals. Has she been poorly advised?

These were bought as PPOR's (both properties), right, that one generally buys because they like the location, the house, and the lifestyle it can give them?

IP and PPOR are generally 2 different things.

I'd say there was no analysis by an investment professional, rather she liked the house (her price range) and wanted to live there, so she bought it.
 
If you have a lot of money, some of the simpliest best buys are in Mosman/Toorak where you can buy what was a $15m house for say $9m. At the next boom these things will sell for $16-17m and since it's your PPOR, it'll be tax free. Only problem is you'll be eating tree leaves for a few years waiting for those gains.

But it's still better than most cheaper outer suburb investments which, mind you, used to be a hot topic here with lots of "let's see who's right in 3 years". I guess I am?

http://www.smh.com.au/victoria/warnings-as-outer-suburbs-property-market-teeters-20121128-2aefh.html
 
If you have a lot of money, some of the simpliest best buys are in Mosman/Toorak where you can buy what was a $15m house for say $9m. At the next boom these things will sell for $16-17m and since it's your PPOR, it'll be tax free. Only problem is you'll be eating tree leaves for a few years waiting for those gains.

Buying what was a $15m house for $9m MIGHT be a good buy if you don't have to wait years for the next boom (or you can't find better investments) or it could be a bad buy if you bought for $15m, held on and are waiting for the next boom to sell for $16-17m.

Agree about it being tax free, but a 'dated' luxury home also devalues quickly, so add an expensive reno if held for too long, then minus your mega rates over a few years, all on top of the buying costs.

But, as we all know when you have the money to buy a $9-15m home chances are not all your wealth is tied up in that home, and you usually have financial nous to have afforded it in the first place, so probably not the end of the world if it doesn't perform that well (inc. choosing to not have invested in something else).
 
The main advantages of PPOR as a major or sole investment vehicle are:

1. No constant dilemma of what to invest in
2. Savings on repeated transaction costs of multiple investments
3. Much greater certainty of a good return over time
4. Living in and looking after one's investment
5. Enjoyment of the investment: instead of living in a 750k hut and investing in three by 400k units, you can live in a 1.5mil + mansion
6. Tax free investment

So if you can buy a 15m ppor for 9m, do so on the basis of having a long investment horizon.
 
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