You held your cash off-shore?
I was in the process of moving it, I converted SFA to US currency. Missed the drop
Meh.
Property risk highest in a long time
- Thread starter hobo-jo
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You held your cash off-shore?
I was in the process of moving it, I converted SFA to US currency. Missed the drop
Meh.
You held your cash off-shore?
I was in the process of moving it, I converted SFA to US currency. Missed the drop
Meh.
Ive had the same "luck".
Not a real gain though, as I lost a lot more when the dollar rose so much in 2010-2012. basically recouping 50% of loss in 5 weeks though. its been a long wait!!
Reada very common sense reasoning, that looks great in hindsight......at $1.05 the risk to the upside was maybe $1.10-1.15 but downside was much more with averages being ore 75-85...
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Yeah, I was in the states in March and poking around, it seemed like I'd better get my **** together and hedge against the aussie dollar quick smart. And then I didn't due to distractions. Well once again, my instinct reminding me to listen to it.
I was setting up an account on the forex to go against the aussie on the currency exchange too. 100x LVR is always handy in these situations.
Yes I held USD, all entered above $1.00. Nearly all my cash reserves has been in USD except for money spent on real estate. The fall in the AUD was so obvious, as was the rise in inner city property prices (which by the way has far outpaced my return on the USDAUD trade).
As I have said in many threads recently, lots of rhetoric and theories. But who has actually made money in the past 12 months? There are people buying stocks, people buying gold etc. Who's actually up?
As I have said in many threads recently, lots of rhetoric and theories. But who has actually made money in the past 12 months? There are people buying stocks, people buying gold etc. Who's actually up?
I kept my money in the bank and made 4 percent and spent zero time worrying about the stock market, currency or what colour tie benanke is wearing at his latest press conference!
There are some cheap shares around with price to earning ratios of about 7 after some big drops.
Who cares about the last 12 months alone if there is a longer term strategy in place? Do you think those holding property with a long term outlook are concerned with a 1-2 year drop in price short term?
You said yourself in another thread that the gains you achieved in the last 12 months were unexpected (to the degree they occurred) and then you were not able to provide any ideas for the 12 months ahead... pointless gloating.
I would much rather be making money this 12 months period, the last 12 months before and the 12 months to follow.
I made money in the last 12 months, not a considerable amount against the debt I have, but against the cash in I actually put in, well over 100% ROI. Which is why I love my property.
It is all about compounding your profits. If you aren't making money now, you are exponentially not working towards building your wealth in the future.
I suppose in retrospect the clues were right there.
We are massively exposed to a slowdown. Our dollar was way above its average.
Overseas, rates are uncomprehendingly low so that savers are punished. Much more money is lost through barely there IR returns than money saved on mortgage payments.
But the explicit message that rates will be low for the foreseeable future tells a tale: you lose with savings or grow by speculating. On what? the two old favourites.... Stocks & RE.
Everyone knows its the only game in town, but they also know that when the party ends it will end quickly.
Real economic growth doesn't look to be forthcoming. We are left with some kind of Dutch courage where any hint of the alcohol finishing sobers everyone up quick smart.
And gold? It's getting belted in a way history says it probably shouldn't. Is it the paper sell off, manipulation? Who knows but interesting times lay ahead.
The big story at the moment is the Federal Reserve possibly tapering QE later this year. The fall is the AUD is probably a manifestation of that.
Basically what's happened is that the yield on US bonds has risen due to the above, and that's going to have a knock-on effect elsewhere. It'll no doubt push up interest rates in the rest of the world, weaken currencies and so forth.
Speaking of the US, here's interesting article on the housing recovery over there. I've heard that a lot of growth has been driven by investors, which seems to be confirmed by it.
http://www.guardian.co.uk/commentisfree/2013/jun/20/housing-recovery-is-not-real
Basically what's happened is that the yield on US bonds has risen due to the above, and that's going to have a knock-on effect elsewhere. It'll no doubt push up interest rates in the rest of the world, weaken currencies and so forth.
Speaking of the US, here's interesting article on the housing recovery over there. I've heard that a lot of growth has been driven by investors, which seems to be confirmed by it.
http://www.guardian.co.uk/commentisfree/2013/jun/20/housing-recovery-is-not-real
Up to May 2013 I had been incredibly well.
Then May came along and I got wacked 15% in May.
June is being hit again with another 5%.
Still making a satisfactory return of something like 25% for this financial year so far, but I am now being more cautious. Reducing positions to keep the margin loan in balance with the portfolio. Kept a cash buffer of 8% in US$ (yes even with a margin loan, I will keep some cash, and happily pay the interest, just to reduce risk).
Taking advantage of selling some positions at a loss to offset realised gains.
Went into mining services on the downside correction, got absolutely canned, reduced positions significantly. Mining services look like value on paper, but could also be a real value trap. One of the mining services companies I had a tiny position in over the last year (and so never bothered to sell, or really monitor) has just gone into administration (Allmine Group).
You make it sound like I stumbled across this by accident.
Reality is, I thought the fall in AUD and spike in inner city would happen probably in 2014. It just occurred faster than I expected, that's all.
Nothing particularly stands out at the moment because markets that are going up have started to run, and markets that are coming down have only just began to fall. That said, I'm not a speculator, but come from a medium enterprise business family and for me the opportunities are in business, consolidation and maximising cashflow in the next 12 months.
By the way, if you believe the AUD will continue to fall (ie USD will rise), where does that put gold? Obviously my question is playing out in the market as we speak.
The intersection of theory and practice, only place you are ever increasing your purchasing power.
I punted on some real estate and made some 200% return on equity in 8 months (but settlement occurred only 3-4 months ago), plus get an additional 12% return on equity from rent per annum. That said, I do spend close to 1 hour per week at some stage following up on some minor renovations and making sure my banker, broker, lawyer etc do their job, so I must say it's definitely not as cruisy as leaving your money in the bank for 4%.
The forex trade was a bit simpler, but still involved me clicking around 3 buttons on my internet banking. That's why the returns are a bit lower at only 13-14%.
damn wish i transferred some currency to USD.
all i have now from when the AUD was up are 25 louis vuitton bags, couple of panerais and a hermes bag.
all i have now from when the AUD was up are 25 louis vuitton bags, couple of panerais and a hermes bag.
Not necessarily mutually exclusive.
I use the word punt freely. Didn't realise we're politicians suddenly.
Here let me try again. I strategically calculate and invest in real estate.
Which is different to a majority of your posts or Deltaberry's inference that having made money in X time frame is critical to having a view worth considering, how exactly?
What's cheap about trying to make $$ in the quickest timeframe possible?
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