What is your Gross Worth?

[chilliaa]

Gross Worth??, does it make a difference. The numbers are meaningless. If like JIT, you have a "200%" increase in gross wealth, by getting two 90% and 95% LVR properties. Maybe then all of $20K closer to retirement.

You should be asking net wealth. Gross wealth is very easy to aquire (just get a lot more debt). Net wealth is what is important.

Hey, the Storm people who had $1.5million margin loans were probably very happy with their "gross" wealth, hehe.

Don't know, sometimes the Somersoft patting each other on the back is a little to much.

So lests see, at 25% LVR currently, I can increase by "Gross" wealth by about 300% instantly why going to 80% LVR instantly with more properties. Woohoo, financial genious I am.

So Sash, hyperthetically, 300%. Guess I've gone better than others than. )

For the first time ever i agree with one of your posts.

 

[Sunfish]

Sunfish: I believe you are both dangerously wrong.

why is that?

Because the world isn't always fair. The wealthy (those who fund your investment ventures) do not lend to us plebs on such favourable terms that wealth is guaranteed by borrowing. Their real interest is luring you into a debt you can't get out of. The Old Money fights a war against the middle class who they wish to crush. They actually like the working class, they need them.

Even if you don't like conspiracy theories, it is very difficult to make a profit on borrowed funds. Personal intellect is the best ticket to ride.

 

[Somerville]

Sunfish, you are suggesting that nobody can make money on property if they have borrowed any money against it. You are also suggesting that banks try to lure you into so much debt that you can't pay it back.........I was always of the impression that banks like to be paid back, guess not.

 

[human]

Because the world isn't always fair. The wealthy (those who fund your investment ventures) do not lend to us plebs on such favourable terms that wealth is guaranteed by borrowing. Their real interest is luring you into a debt you can't get out of. The Old Money fights a war against the middle class who they wish to crush. They actually like the working class, they need them.

Even if you don't like conspiracy theories, it is very difficult to make a profit on borrowed funds. Personal intellect is the best ticket to ride.

It is actually a conspiracy theory.

I know too many including myself who have prospered through the borrowed funds.. LVR below 20% now on very significant asset base.

This is bull dust regarding old money, new money, luring into debt, inability to prosper, blah blah

Personal intellect has to accompany any investing strategy and is a given.

 

[Dazz]

LVR below 20% now on very significant asset base.

Human - I'd be interested to learn more about your specific definition of the word "significant".

 

[human]

Human - I'd be interested to learn more about your specific definition of the word "significant".

very significant

across (almost) all key asset classes in Aus & some OS. Only borrowed funds gave me that capacity, although I sold some in 07 and 08 to bring my LVR down to just below 20%.

 

[Dazz]

Thanks - that's clarified your definition of "significant" perfectly.

 

[--(< PJ >)--]

Great question. Interesting graph from the survey too. It's nice to have a snapshot.

I'm a firm believer that we should plan out and implement a strategy that suits our own personal priorities (rolling in $ or just don't want to work etc), risk tolerance, life situation (e.g. parent, retired, bored etc), and preferences.

My personal goal is primarily +ve cash flow (must be +ve ignoring tax deductions), which needs retention (&/or growth) of gross worth, and building of nett worth (thanks to renos, the long-term market, & the cash flow repaying the loans for me). I tend to use my JOB income for any fun stuff I want to get up to (usually totally irresponsible ). I purchase at high LVRs, but have ultra conservative strategies in all other elements. Any spare personal/settlement cash goes into increasing nett worth & rental income through careful (and low-cost) targeted renos.

That's my own approach. It is helping me achieve my goals. That suits me to a tee, and that's all that matters. What suits others is up to them. Live and let live!