That is not correct. Why is the myth perpetuated?
So Why do You Invest in Property ?
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That is not correct. Why is the myth perpetuated?
For tax deductions, to acess profits made from shares through line of credit on property, can spend my money, save on tax or rather pay it through stamp duty and have it making me more at the same time. This is something commentators and doom and gloomers dont consider. A lot of the higher end properties are bought with profits from share markets looking for a tax efficient home. As you can be liable for huge CG tax on profits from the share market. This is why houseprice ratios to wages is flawed. Property is for storing wealth. I think there are quicker easier and safer ways to build it.
Because many many people will say that they do not understand this as well as they possbily could:
We still buy the weekly lotto ticket, because let's face it, going to work every day bites!
But seriously, it's the combination of incredible leverage and decidely low risk that makes property the only game worth playing, in my view.
Before enlightenment struck, we invested everything we saved and invested religiously for 7 years in the stock market only to break even.
We then took out our $180K and bought a PPOR. 7 years later, exploiting futher savings, equity and leverage, we've got a portfolio worth $3M.
Let super be your exposure to shares unless you're Warren Buffett, is what I'm saying.
Belbo
But seriously, it's the combination of incredible leverage and decidely low risk that makes property the only game worth playing, in my view.
Before enlightenment struck, we invested everything we saved and invested religiously for 7 years in the stock market only to break even.
We then took out our $180K and bought a PPOR. 7 years later, exploiting futher savings, equity and leverage, we've got a portfolio worth $3M.
Let super be your exposure to shares unless you're Warren Buffett, is what I'm saying.
Belbo
I only buy tattslotto... who needs properties
To sell it all down in 5 years and be the first homeless Bugatti Veyron owner
I can hang my clothesline off the windscreen if I get a convertable model !!
Haha I like your style!
I’d like to sell my IPs and get a Bentley Conti SS... but then I’d also have to live in it... maybe we can be neighbours lol
Tried shares for a few months and could not make it work. Ended up losing 5% of my initial capital, which I am told I was already very lucky. The price variations in shares and the need for constant monitoring proofed too much for my character.
I enjoy the stability of property, the leverage and the challenge of doing a reno.
Regards,
Daniel
I enjoy the stability of property, the leverage and the challenge of doing a reno.
Regards,
Daniel
Why property? Hmmm...
1) High leverage available at low cost
2) Regular rents mean reliable yield
3) Lots of opportunity to buy underpriced assets (for a variety of reasons)
4) Rent + tax benefits pay holding costs
5) Timeframe of loans suits my retirement plans
6) Low risk of negative equity, with this risk continuing to reduce every day
If I was to convert my 1 I/O loan (all the others are P+I) to P+I, then ignore the portfolio for about 18-20 years, I could retire at 55 or younger with 8 properties owned outright. Dead easy. (Of course, I'll do a bit better than that with some thinking and careful management)
I also invest in shares through my super and through directly held managed funds (using a margin loan).
I guess I like assets I can hold for long periods of time (ie decades) that pay for themselves while I wait for capital gains and watch the yields steadily rise.
I also like the idea of being able to retire by 45 years of age, without having sell the assets (and incur CGT).
The price I pay for these benefits is doing some research, and taking some short-medium term risk, which I can manage using various measures.
I can't see a downside.
1) High leverage available at low cost
2) Regular rents mean reliable yield
3) Lots of opportunity to buy underpriced assets (for a variety of reasons)
4) Rent + tax benefits pay holding costs
5) Timeframe of loans suits my retirement plans
6) Low risk of negative equity, with this risk continuing to reduce every day
If I was to convert my 1 I/O loan (all the others are P+I) to P+I, then ignore the portfolio for about 18-20 years, I could retire at 55 or younger with 8 properties owned outright. Dead easy. (Of course, I'll do a bit better than that with some thinking and careful management)
I also invest in shares through my super and through directly held managed funds (using a margin loan).
I guess I like assets I can hold for long periods of time (ie decades) that pay for themselves while I wait for capital gains and watch the yields steadily rise.
I also like the idea of being able to retire by 45 years of age, without having sell the assets (and incur CGT).
The price I pay for these benefits is doing some research, and taking some short-medium term risk, which I can manage using various measures.
I can't see a downside.
You should look at the same shares you bought 12 months later. You've probably made 50%. Just like property, you can't expect to buy and flip unless you have some market edge (eg in property you can be a renovation gun, or a subdivision gun, or just have a niche... in equities/derivatives you could be pricing delta/gamma etc or perhaps trading on specific news items etc)
Wonder which shares you were picking? not telstra right?
for fun
property investing is a lot more fun but less lucrative than share investing. There are only three ways of making a passive income
1. property
2. shares
3. online businesses
property is fun but requires a lot of hard work. It also involves dealing with humans (tenants) which can be difficult at times. Shares can be unpredictable but is often more lucrative and more "clean"
property investing is a lot more fun but less lucrative than share investing. There are only three ways of making a passive income
1. property
2. shares
3. online businesses
property is fun but requires a lot of hard work. It also involves dealing with humans (tenants) which can be difficult at times. Shares can be unpredictable but is often more lucrative and more "clean"
