Interested in investing but don't understand how to beat housing leverage?

[BlindSquirrel]

speaking of houses. Our modest place in Perth is currently only about $5k down in value since we got it 7 years ago. 7 years before that (the last sale according to REA) the person that I bought it off got it for about $90k less.

Well at least I still have the roof over my head and am sufficiently ahead on the mortgage (no jinx).

 

[MarketMatters]

Buying CFD is not like a casino but rather playing with more advanced investors. Like turning up to a gun fight with a knife. Learn the basics and practice before you embark on more advanced areas.

There are other leveraged forms also available like warrants and options however once again this is not just something you learn overnight. If in doubt visit the ASX website, undertake classes or engage the services of a broker and start learning. Success does take some work and risk!

As for buying at ETF this is much like buying the average capital city house price, but you are not capable of achieving this in property. You are buying a single asset that within a city which could perform poorly or greatly depending on so many variables - infrastructure, political intervention, demographics, regulation, location etc. Don't be fooled, many areas in Sydney and Melbourne climbed over the past 10 years from various influences but not all suburbs experienced this same linear growth curve. Same applies to the stock market!!

Don't forget INFLATION and transaction costs when assessing past people's quoted returns in any market. Property investors are quick to point out they bought for $100K and sold or are worth $XXX but fail to mention the costs to acquire and to maintain the property. I've never heard anyone say their inflation adjusted return was XX% pa after expenses deducted.

TIMING. Applies pretty much to most markets, some will be lucky and some not so. However, it all starts with taking action in which ever path you choose. Procrastination will kill your goals! Remember if investing in the stockmarket (whilst more liquid) should not be treated any different to any other long term strategy. Don't get emotional!

Either way you intend to go, investing $2k pm is a great start but just don't park it in the bank!!