property and shares and interest all related in my eyes
first propertyi locked in 13.5% fixed interest before it hit 23% and blew developers and overextended borrowers out the water
why buy then? my property doubled in same period. didnt buy it as an investment but a first home but learnt the value of buying at right time
fast forward to gst introduction. everyone said sell as will kill property value. property dropped for a short time. and then boom and really rose and rose
interest only? i bought a little house in a garden suburb as a rental. gave a home to renters for 6 years at cheap rent. not a fixer upper. just a development site for duplexes. did not put duplexes on. just got council approval to do it and sold it. gain 400%. duplex approval meaninglless. whole suburb went up.
other question is how many property or properties still owned by developers. often none because all goes to banks and tax.
happy not to develop and keep eye out for when property goes down again
said here years ago that sydney population to treble by 2015 and property to rise despite all the nutters who hate property. sure enough just coming off the boom now
equate that to stocks and can see same happening this year in sector after sector
same rules. all cash. no loans for stocks. pick sensibly and hold in an uptrend. ignore the papers and the noise.
socialists will come here get in power and reorder things once there are enough renters
to be honest cant stand those who advocate rent and say shares rather than property. seen too many who inherit property and blow it all on the market but each to their own
that is it for me. every time get onto property here there will be a dozen who slam it down. good luck to them but not my cup of tea.
anyway interest and time are powerful weapons as long as on right side of it in stocks and property. if paying too much interest then dead in water once rates go up. property will inflate up. stocks and gold will inflate up. debt will also inflate up. balancing act. up. business used to aim for 25% gearing. with tax breaks creates new opps till interest goes up
love property. spend my spare time landscaping what i have and enjoy it.
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