Thanks for the profound advice.
No worries ay! I’m thinking of writing a book, Bieber did it at 16, I reckon at 25 I have way more wisdom to share.
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Thanks for the profound advice.
The amount of leverage you apply does not change the risk profile of the investment, it simply magnifies the outcome. What experienced investors consider is not so much the risk of the investment itself, but rather the risk TO THEM of making the investment.
What this means is that the experienced investor with a multi-million dollar portfolio with a couple of million in equity can assess the risk TO THEM of buying an inner city unit on a 100% lend differently to the 23 year old kid starting their first professional job...
The amount of leverage you apply does not change the risk profile of the investment, it simply magnifies the outcome.
Belle,
You're obviously passionate about putting your new found knowledge to good use, but as a few have already stated on here the balance of your argument against leveraging is severely lacking.
Personally it is many years since I completed my own business and economics degree, and whilst I believe it is important to get an education to understand the bigger picture, there really is no substitute for real life experience.
Just out of curiosity, you wouldn't happen to be a student of Professor Steve Keen over at UWS would you? It really does worry me what they are actually teaching students these days.
If so just run a search on here for him or even google him to give yourself a little perspective. He's not exactly Nostradamus.
At the end of the day communism was good in theory, but experience has told us otherwise. That said I think its a little harsh criticising a whole generation just for wanting to contribute to a discussion.
Economists are fools. They are just rat-race employees. Why take advice from these kind of people?
having known many uni lecturers in my time, unfortunately they tend to have very little concept as to how what they teach relates to real life.
Just out of curiosity, you wouldn't happen to be a student of Professor Steve Keen over at UWS would you? It really does worry me what they are actually teaching students these days.
If so just run a search on here for him or even google him to give yourself a little perspective. He's not exactly Nostradamus.
I view it as something quite specialised and risky. I think it's quite sensible for him to recommend things such as index funds which don't involve leverage. That is pretty much all I was trying to say.
One of my property lecturers (middle aged) thinks that the property market is safe because of high immigration. He is a very successful property investor. He doesn't rule out a crash though. He says he *hopes* there won't be a crash. I think that is a good attitude to have. Even though he doesn't think a crash is coming, he at least thinks about the possibility and looks at the risk
My other lecturer who is a little younger (in his late 20s/early 30s) was leaning more towards a crash and so he has invested overseas in resorts and things like that. Many experts disagree on whether there is a bubble in Australia or not.
whilst in the meantime taking advantage of fabulous rental returns.
was all good up until the end