Yes, the baby boomers are going to leave the younglings in a real mess.
Baby boomers, the most selfish, self interested generation in history (and too arrogant to see it)
1,The part you were refering to does not mention rental returns at all.
2, I get what you are saying but what I am saying, But you are thinking about it in the wrong context.
You are using the cashflow (interest) of one investment example ( cash investment ) to argue that it is going to perform better against another investment example, but refusing to take the cashflow of the second investment into account, which in my view is dumb, and gives your analysis bogus results.
You are yet to give a sound reason to why when comparing the probable outcomes of investing in to differrent asset classes that you would use the cashflow from one in your results but ignore the cash flow from the second.
Interest on cash is not capital gain, it is cash flow, A cash investment has zero capital gain period, adding back the interest (net of taxes) is the same as adding back the rent net of taxes and outgoings.
Anyone have the Auctions Reults?
Haven't seen any figures posted for quite some time now. The Latte Sippers have disappeared underground lately.
As long as there is demand for property and limited by supply, property prices will continue to rise. Period. We have an increasing population. We have inflation so wages, food, electricity and house prices will continue to rise. And we have a need to live somewhere.
A crash occurs because either there is limited demand or an over supply.
If you're trying to compare investments in property v's shares, then it's a personal preference and based on the risk profile of the investor. You don't need much money to get into shares but if you buy Blue Chips then you're probably better leaving it in the bank. If you like Speculative stocks then prepare to make lots or lose lots.
An over-supply of credit was the means with which to create the demand. A bubble formed due to a demand for housing - everyone had money to spend... and they spent it. You didn't see a Ferrari bubble. Or a jet-ski bubble. It was a housing bubble based on an over demand for housing. High demand and short supply increases the price - just as it does in the stock market.The US & UK crashes occurred due to an over supply of credit....asset prices cant form a bubble without the credit needed to build the bubble....supply and demand is a nonsense without the credit to drive it.
And TLS is an ASX20 stock that has gone down by around 18% in the last 18 months. What's your point? In this case the investor would have been better leaving their money in cash.ILU is a ASX100 stock (considered blue chip by many) that has gone up in price by some 250% in the last 18 months...personal preference my ass...
You don't need much money to get into shares but if you buy Blue Chips then you're probably better leaving it in the bank.
Learn to read a post before replying.
I am aware of investments and their pros and cons,
Why do some people like to take comments out of context? As a member of the ASF, do you think I have stockpiles of cash sitting in the bank doing nothing? Well not just yet anyway.Can I ask why you would think that stockpiling cash and letting taxes and inflation eat it away is better than owning good businesses.
An over-supply of credit was the means with which to create the demand. A bubble formed due to a demand for housing - everyone had money to spend... and they spent it. You didn't see a Ferrari bubble. Or a jet-ski bubble. It was a housing bubble based on an over demand for housing. High demand and short supply increases the price - just as it does in the stock market.
If the stock market has low volumes of trade, does it go up or down? Could go either way if the fundamentals are ok. But if there is an oversupply of sellers, dumping shares at any cost, the price goes down. Or are you suggesting that it's because the sellers are simply closing positions and retracting their credit... and has nothing to do with the over supply of sellers.
Just like housing, timing has alot to do with your success in the stock market...And if you brought TLS when i suggested it was a potential turn around stock (27/28th-September-2010 - $2.60 approx) you would of done ok.And TLS is an ASX20 stock that has gone down by around 18% in the last 18 months. What's your point? In this case the investor would have been better leaving their money in cash.
Perhaps you should spend some of your "blue chip" money on reading lessons. I say again - "...it's a personal preference and based on the risk profile of the investor...". Some people shy away from the stock market because they either don't understand it, are worried that their capital may go down or they simply feel they are already exposed enough through their super fund.
I'm not really interested in the US or UK property market - I'm not looking to buy. But demand may have dropped due to the rising unemployment, increase in the cost of living (CPI) and severe Government spending cuts painting a very gloomy picture. If people find it difficult to pay for everyday items, they aren't going to risk committing to a mortgage. So demand is declining just like the house prices? Funny that.LOL so you agree that the over supply of credit created the demand, but the bubble formed due to demand for housing? the US and UK populations continue to rise, so why isn't the demand for housing and prices also rising?
Why over complicate things?Rising stock prices driven by High demand and short supply? jezz that's just way to simplistic.
As you suggested: "...Worth serious consideration at these prices IMO...". Investors may have considered it, and then seen it decline further to a low of $2.56 in mid-November. That's a great return.Just like housing, timing has alot to do with your success in the stock market...And if you brought TLS when i suggested it was a potential turn around stock (27/28th-September-2010 - $2.60 approx) you would of done ok.
A nonsense statement totally without foundation? Huh? TLS was provided as an example and between September and November it performed worse than cash. Someone was obviously selling at the "low", so they were obviously of the opinion that it was going to go lower... unless they were "shorting it".Agree...however you stated that " if you buy Blue Chips then you're probably better leaving it in the bank" and that's a crock...a nonsense statement totally without foundation in reality.
. You don't need much money to get into shares but if you buy Blue Chips then you're probably better leaving it in the bank.:
Why do some people like to take comments out of context? As a member of the ASF, do you think I have stockpiles of cash sitting in the bank doing nothing? Well not just yet anyway.:
What if I'd bought: TLS, BXB, and WDC back in 2007. Current prices I'd be down between 30-60% on all stocks. Or are you suggesting that none of these ASX20 stocks are good businesses? Some people prefer bricks-and-mortar, some people prefer shares, some people prefer stocks, some people prefer gold and some people prefer blondes.
Just like housing, timing has alot to do with your success in the stock market...And if you brought TLS when i suggested it was a potential turn around stock (27/28th-September-2010 - $2.60 approx) you would of done ok.
(In future, please use the correct spelling for "brought / bought", "there / their / they're" and "to / too / two" in future. It detracts from the meaning of a sentence.)
It's called English. Clearly I need to start a new topic - "Am I illiterate or just lazy because I can't spell for sh*t?"Sorry I can't help myself,
Inlight of my comments earlier about the medical profession being the worst investors, Academics don't rate highly either.
Sorry I can't help myself,
Inlight of my comments earlier about the medical profession being the worst investors, Academics don't rate highly either.
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