^*^* depression coming soon *^*^, page-77

Hi Nickoo,

Thank you for the warning and the example.

Everything, however, depends upon your own individual circumstances and how they relate to the present, and the future.

Now for a measured response.

I own 6 properties, spread across Hawthorn, Balwyn, Bulleen, Doncaster East and in South Australia. Of these, I own 4 outright (ie: they are tenanted, positively geared, in good nick, and nothing is owed to the bank on them).

A 5th property has an amount owed on it (at last check, ~$50k, or <10%) and is being retired at the rate of $5,000 per month.

A 6th property is negatively geared, tenanted, is 18 months old, and is located int he Balwyn High School Zone.

My time horizon for property is >20 years. Indeed, more in the region of the next 30+ years.

I intend being in the workforce for the next 30 years, but will also start taking on professional company directorships sometime during the next 5 -10 years.

On the market, I am less than 10% invested, despite the fact of having ~$100k in the Australian market, close to that again overseas (in Europe), and having taken losses on both market exposures.

I also happen to sit in a VC Fund (Investment Committee) role which is on top of my normal day to day corporate job function.

Yes, property is not a good thing for he uninitiated, or for the fool hardy. Before selecting my last property, I researched different areas for ~7 months before making the final selection. That was in mid-2001.

Last year, as recently posted, I was also part of a syndicate with myaccountant (etc). We were going to buy a block of units in Essendon in need of redevelopment. We did our sums, but were then beaten on the day.

The value proposition for me is 1 to 1. If I cannot get that, I will not buy.

If, in the next 3 -5 years, no suitable opportunities arise, then I will not buy. But, if they do arise, then I will buy.

Then again, there is also the nature of another Bulleen property which in due course I will pick up, subject to expiry of the current life tenancy. When that comes, the property is large enough to be re-developed as 3 separate units on a hill top location with unimpeded views back towards the City.

I have been suitably warned, but that is also why I was buying when few others were doing so back in 1994 through 1997.

That's where I'll leave it for now. I still have some work to do towards New Zealand.