Yes sure ...one has to have a non-bias flexible brain to be an investor.
I think people think I am mad when I said I am thinking of buying property in an overheated property market. I am not mad maybe a little drunk at the time but not mad...If one analyses the Prop market in depth ..the major % rises are in central city apartments, high priced luxury homes, beach properties and lifestyle blocks + farms. This is because the rich have got a lot richer and the poor have gone nowhere....The poorer areas of town the properties have not moved up much ...well not in Hamilton anyway..An investor can still get about 9% in rental income in these areas at $200pw rental..In the high cost areas e.g central city 3Brm apartment purchase $350,000 and rent for $350pw average 5% return ..shows either the rent is too low or the purchase price too high...in recession people rent cheaper areas and the top end properties have to lower the rent due to surplus supply...so investing in central city is becoming dangerous.
Date: Thursday, 29 January 2004 09:25:22
Subject: Re: [sharechat] Prop & Shares
Just a thought.
May be interesting to seek some different perspectives on investment cycles, eg;
property VS shares;
over the next say 3-5 years to obtain a range of opinions on anticipated performance.
----- Original Message -----
Sent: Wednesday, January 28, 2004 10:36 PM
Subject: [sharechat] Prop inv
|sold most of my shares and will be looking at the low economic area to buy another rental house. Have sold nearly all my DPC ords ..Keeping my warrants ( goldmine??)|