lol yeah right dude. That whopping 2% real increase is gonna masacre the 10% pa you get on housing :S
That compound interest gig is an old wives tale.
Last edited by a moderator:
The future of Australian property prices
- Thread starter Joe Blow
- Start date
lol yeah right dude. That whopping 2% real increase is gonna masacre the 10% pa you get on housing :S
That compound interest gig is an old wives tale.
- Joined
- 5 October 2011
- Posts
- 896
- Reactions
- 0
im sure ur not trying to say property returns 10% pa?
and tyson this idea wont work when interest rates hit between 0 and 1% in the next 18 months(optimistic timeline)
- property to faaaalllllllll
just some considerations.......or food for thought
what if these guys are correct......
ie china is bankrupt....
http://www.financialsense.com/contr.../11/16/chinese-banking-system-nearly-bankrupt
extracts from an interesting report today.....
If you want an illustration of how difficult the environment has become for share investors, consider the fact that US stocks have now underperformed bonds not just in the short term but in the past 30 years, which is something they haven't done in any other 30-year period since the start of the American Civil War. That's right - since 1861.
http://www.theage.com.au/money/inve...r-investors-20111115-1nfxs.html#ixzz1dzhrpdtU.................
and finally this article
http://www.zerohedge.com/news/entir...-collapse-presenting-first-mf-global-casualty
France and the UK are in strife.....so too is the US.....and so too is Australia
so I am wondering.....
its the world bankers that actually control the money....
so what if they decided tomorrow...to reduce their debt obligations.....in unison....
apart from printing money ....they announced that ....
they had done a re-capitilsation......and from the 1st of December.....your Dollar would now be worth .50 cents....
so on the basis that the banks currently only hold 10% in cash...if they are honest with the regulations.....and their debt is currently 90%, with corresponding assets....ie loans to home owners and business is also 90%
after the devaluation, or recapitalisation...they would now hold the same % in cash, net equity ie assets less liabilities......but their debt or liabilities are now only half the dollar value.....
which would free them up from their current total debt obligations.....
and send them on their way to keep running their CDO schemes
if they simply keep printing money as in the US.....the dollar is devalued, it buys you less goods....or everything costs more than yesterday....
I think the Euro cannot by law print money...but am sure there are ways around this....with The ECB and The IMF
anyone get the felling they are being screwed big time
I am now paying a 300% increase on my electricty bill....but am using less electricty each year.....and the state and federal govnuts....think that this is OK...
what if these guys are correct......
ie china is bankrupt....
http://www.financialsense.com/contr.../11/16/chinese-banking-system-nearly-bankrupt
extracts from an interesting report today.....
If you want an illustration of how difficult the environment has become for share investors, consider the fact that US stocks have now underperformed bonds not just in the short term but in the past 30 years, which is something they haven't done in any other 30-year period since the start of the American Civil War. That's right - since 1861.
http://www.theage.com.au/money/inve...r-investors-20111115-1nfxs.html#ixzz1dzhrpdtU.................
and finally this article
http://www.zerohedge.com/news/entir...-collapse-presenting-first-mf-global-casualty
France and the UK are in strife.....so too is the US.....and so too is Australia
so I am wondering.....
its the world bankers that actually control the money....
so what if they decided tomorrow...to reduce their debt obligations.....in unison....
apart from printing money ....they announced that ....
they had done a re-capitilsation......and from the 1st of December.....your Dollar would now be worth .50 cents....
so on the basis that the banks currently only hold 10% in cash...if they are honest with the regulations.....and their debt is currently 90%, with corresponding assets....ie loans to home owners and business is also 90%
after the devaluation, or recapitalisation...they would now hold the same % in cash, net equity ie assets less liabilities......but their debt or liabilities are now only half the dollar value.....
which would free them up from their current total debt obligations.....
and send them on their way to keep running their CDO schemes
if they simply keep printing money as in the US.....the dollar is devalued, it buys you less goods....or everything costs more than yesterday....
I think the Euro cannot by law print money...but am sure there are ways around this....with The ECB and The IMF
anyone get the felling they are being screwed big time
I am now paying a 300% increase on my electricty bill....but am using less electricty each year.....and the state and federal govnuts....think that this is OK...
- Joined
- 12 November 2007
- Posts
- 2,944
- Reactions
- 4
I am sorry, Both of you missed the point.
I am not trying to say property earns 10%, or earning bank interest is the way to success,
The point is, Starting early, and deploying capital in a way that it earns good returns that compound is the way to success,
There are many ways to skin a cat,
but if you are saving a decent chunk of your earnings, and deploying the saving in a way that earns decent returns, and you allow them to compound, you will grow richer and richer.
Mcgoo, Compounding returns is the only way to wealth, I am sorry if you disaggree. I know you are nearly 30, but it's not to late. Better to start now than when your 35 or 40.
I started when I was 14, and am now 29, I could easily retire on an income alot of people struggle to make working 40 hrs, So I have been there and done most of what you seem to think is impossible,
But hey each to his own, Honestly I am not here to argue, I just give my opinions based on what i have done and what I believe, It has worked out for me so far.
Would inflation eat into the principle though if you retired now?
- Joined
- 5 October 2011
- Posts
- 896
- Reactions
- 0
U need a ****e-load of money to allow for such things.. 4-5 mill plus if u were to retire at 30?
Kincella I'm sure ur aware that the destruction of a dollar increases it in value.. Unless that 50 cents you're talking of is against the green back as opposed to the new value of our own dollar once debt is written down?
I wasn't aware ebb couldn't print money, and indeed thought they hsd been so there ya go.
Tyson I got what u were saying but was referencing magoo.. Unless he was quoting u
The only way to make money is to have money. Or to make a high return on a leveraged investment.
Compounding interest MAY have worked back when you could burry $100 in the ground and 100 years later it would have increased slightly in value.
- Joined
- 12 November 2007
- Posts
- 2,944
- Reactions
- 4
Inflation reduces the purchasing power of cash, I don't hold 100% of my principle in cash, so no it wouldn't.
I hold assets that produce Cashflow, that I could live off. The principle value of these assets as well as the Cashflow generated will increase with inflation.
You invested in property in the early 2000s, seriously, big deal, anyone who did that will be doing really well now.
In 2001 I was in year 11 so buying a house wasn't really possible. Or was I going to buy one on my $8 an hour dish washing job I had at uni ? (b.c the $4.95 an hour one in highschool wasn't going to cut it)
- Joined
- 12 November 2007
- Posts
- 2,944
- Reactions
- 4
Property makes up maybe 30% of my net worth,
Why not start saving on the $8 uni job, I first entry into shares was funded by delivery of paper, earning less gha $5 an hour.
Why not start saving on the $8 uni job, I first entry into shares was funded by delivery of paper, earning less gha $5 an hour.
- Joined
- 12 November 2007
- Posts
- 2,944
- Reactions
- 4
- Joined
- 12 November 2007
- Posts
- 2,944
- Reactions
- 4
1, And an operating business,
2, Why, would you find it hard to believe you can live off rental income and dividends.
3, Not much debt at all,
My home is pretty much paid for,
My other property investments are less than 40% LVR and generate positive cashflow which is clearing the remaining debt pretty quickly.
I have a largish share portfolio personally that generates considerable annual dividends.
I hold an emergency fund of about 12months wages personally in cash (offset against property)
and,
My company is debt free and has an operating business which could be sold when i choose to scale back, a pile of cash and also a trust holding further share investments.
- Joined
- 10 August 2008
- Posts
- 2,136
- Reactions
- 315
This thread is turning into one big yawn.
Now back to property,
Has anyone got any observations at street level with what’s happening. In my area sales boards are on the increase, no bidders at auctions (apart from the vendor bid) and deserted open for inspections.
Is this a bottoming process or the start of a seismic shift ?
Now back to property,
Has anyone got any observations at street level with what’s happening. In my area sales boards are on the increase, no bidders at auctions (apart from the vendor bid) and deserted open for inspections.
Is this a bottoming process or the start of a seismic shift ?
Maybe you should sell those investment properties! Dont you hear a crash is coming?
Sorry to continue this off topic stuff but I was just wondering Tyson, what % of disposable income did you have to put aside and what % return did you have earn to achieve this?
- Joined
- 8 May 2010
- Posts
- 1,202
- Reactions
- 0
This is incorrect
18
+ 3 years for undergraduate degree
+ 4 years for medical degree
25
+1 Intern
+2 Resident
+2 of 5 registrar
30
1 year intern pay + 2 year registrar pay + 2 year resident pay is not even going to get anyone anywhere near net worth of $1million.
Just cannot happen.
now AFTER the 15 years of training (of which 12 of those are at least 60 hours per week ) the earning is good, but you would be surprised how low some of the jobs pay for such intense and prolonged training.
Glen48
Money can't buy Poverty
- Joined
- 4 September 2008
- Posts
- 2,444
- Reactions
- 3
A mate on the sunshine coast has put his unit on the market , the one above they paid 1M and sold for 600K ...
- Joined
- 12 November 2007
- Posts
- 2,944
- Reactions
- 4
Sorry, Last off topic reply I promise.
Hey Craft,
1, The % I saved varied depending on my income, during highschool it was 100% of my income, after school it was probably around 30%, Since I have been running my business I save around 80% of the companies earnings
2, I have never calculated the return, But I have certainly had some lucky days and had some big wins, Some looking back in the early days some we pure dumb luck, eg. getting into property right before the 2001 boom, and some of my early investments. Some were big gambles that fortunately paid off eg. Beppa convertable securities and others have been great buys during the GFC.
I have a much more conservative investment operation going at the moment though, So my future returns although they will be lower, should be based on sound investment principles and less on outright speculation and luck.
Any one interested can have a look back to this post from 2009 in another thread if they want to see that my responces have not just been made up to answer mcgoos questions.
https://www.aussiestockforums.com/forums/showthread.php?t=4426&page=11&highlight=people+poor
