Property|Shares|Business
- Thread starter negt
- Start date
What about if we're talking about shares for a property related business?
I think it's different for everyone, would depend on your strengths.
I use to share trade and did ok from it, yet never seemed to grasp the concepts behind it the way I could with real estate.
When my mates ask, I recommend they start with shares. If they can get their head around it, i find it is less laborious and more profitable. Even then, shares can be broken down (as can real estate), CFD's, Options, and so on that matches your risk profile.
So... disclaimer aside. I would say,
SHARES | BUSINESS | REAL ESTATE
Business is a great way to generate funds to feed into the other investment classes (when you're making money, which i'm not, yet).
I use to share trade and did ok from it, yet never seemed to grasp the concepts behind it the way I could with real estate.
When my mates ask, I recommend they start with shares. If they can get their head around it, i find it is less laborious and more profitable. Even then, shares can be broken down (as can real estate), CFD's, Options, and so on that matches your risk profile.
So... disclaimer aside. I would say,
SHARES | BUSINESS | REAL ESTATE
Business is a great way to generate funds to feed into the other investment classes (when you're making money, which i'm not, yet).
All of these investment classes are great ways to make or loose money. Shares is the fastest, You can be up 50% ROI one day and down 50% the next! Real Estate is slow and hard work but more predictable. Business has a very high rate of failure and those that do survive most do ok, the business owner that takes home above 100k pay per year imo is very rare.
I am using real estate to build up a large sum of cash. I will then invest this into index funds and bonds at the appropriate times. Shares are easy and true passive income unlike a business and real estate.
IMO Shares is the easiest and best for income. Real estate is best for building capital and business is best for crazy people who like to work 80hrs a week and take home 20k
I am using real estate to build up a large sum of cash. I will then invest this into index funds and bonds at the appropriate times. Shares are easy and true passive income unlike a business and real estate.
IMO Shares is the easiest and best for income. Real estate is best for building capital and business is best for crazy people who like to work 80hrs a week and take home 20k
What i've noticed is people going into business are the same as those doing real estate. Some go in with no plan, and just want a small income.
I know of few people who go into business actually thinking... is this going to make me a significant amount of money. Most do it to have no 'boss' (only to replace it with 100's of clients) and making an income (not specified beforehand).
In my case
REAL ESTATE | WAGES | SUPER | SHARES | BUSINESS
I have added our yearly household income + Super balance + deposits of IPs (15%) + shares value + annual income from the small business and then calculated the percentage splits.
REAL ESTATE - 40%
WAGES - 27%
SUPER - 27%
SHARES - 4%
BUSINESS - 2 %
REAL ESTATE | WAGES | SUPER | SHARES | BUSINESS
I have added our yearly household income + Super balance + deposits of IPs (15%) + shares value + annual income from the small business and then calculated the percentage splits.
REAL ESTATE - 40%
WAGES - 27%
SUPER - 27%
SHARES - 4%
BUSINESS - 2 %
Personally, business has been the standout performer. I went into business at age 22 and started from scratch. My business doesn't fully revolve around me working, and the gains are exponential when we ramp up the workforce. Most self employed people in businesses that rely on hourly rate from themselves really aren't making much more than PAYG in the long term (there are however some that do). If you are looking to get into business, really analyse what your income is going to be vs hours spent working as a ratio.
Property has always been a sideline thing for me.....and as some can attest, it still is really. Ive done renos, small development, buy and hold type stuff, but it isn't a passion like it is to many on here. I look at all forms of income as a business venture.
I never have held shares, however am dabbling in ForEx at the moment. Again, hobby like scenario....only using $$$ I can afford to lose (I never lose, Im far too conservative).
pinkboy
Property has always been a sideline thing for me.....and as some can attest, it still is really. Ive done renos, small development, buy and hold type stuff, but it isn't a passion like it is to many on here. I look at all forms of income as a business venture.
I never have held shares, however am dabbling in ForEx at the moment. Again, hobby like scenario....only using $$$ I can afford to lose (I never lose, Im far too conservative).
pinkboy
Yep; + 1 that.
agreed....
Thus the transition. Maybe I misread between the lines, but I noticed a trend, most here doing very well from real-estate have a high income business in the background.
Business - real estate - shares
or
business - shares - real estate
depending where we are in the economic cycle.
I remember attending a seminar once where old mate said over the long term shares and real estate had done pretty much exactly the same - something like 7.2% per annum and put the graph up showing so. When you think about it it is probably true otherwise if it was say real estate 10% and shares 5% or the other way around then it definitely would be a lop-sided debate.
or
business - shares - real estate
depending where we are in the economic cycle.
I remember attending a seminar once where old mate said over the long term shares and real estate had done pretty much exactly the same - something like 7.2% per annum and put the graph up showing so. When you think about it it is probably true otherwise if it was say real estate 10% and shares 5% or the other way around then it definitely would be a lop-sided debate.
Must have been a 'shares' seminar. This is where leverage comes to play.
Say you have $100.
With shares, you may borrow another $100 using your deposit. With the total of $200, you will get $21.6 based on the 7.2% return.
With properties, you can simply borrow another $400 using your $100 deposit. You will be able to get $36 using the same return.
That is about $14.4 difference.
Business rules all.
Property and shares both fall under business when done on a reasonable scale.
I find business the lowest risk and highest reward of these 3.
I also believe you need the least capital for business to achieve reasonable rewards.
Everybody is different and has different opinions and experiences.
Property and shares both fall under business when done on a reasonable scale.
I find business the lowest risk and highest reward of these 3.
I also believe you need the least capital for business to achieve reasonable rewards.
Everybody is different and has different opinions and experiences.
He's (or she? I don't know) warming up to me.Which means you and Bayview are in agreement.
Which is about a 70% better outcome. Thanks Devank for pointing that out.
The seminar was pro property and shares and cashflow business.
Grats to everyone killing it in business. I suppose with my insolvency and credit analysis background, I see business gone bad more often than not so I am a lot more risk adverse than than most here, hence why I am not killing it in business.
May be... only the killers can afford (time & money) to get into property investment. Hence, we have higher proportion of them here. Also remember that most businesses related to properties are small businesses too (brokers, planners, BAs, tax agents.... etc.)
