gold, page-1860

Haven't you forgotten the GFC? Strange that you predicted the GFC and got out of US stocks or whatever you were in at the time but conspicuously continued with the Nikkei fund?

Do you actually believe that the Kiwi property markets will dislocate from world economic growth and keep inflating like its cousin Syd/Mel? If one believe in yield chasing then the current cap gains are in higher risk asset class and even though brick and mortars are traditionally considered as safe, it is a definition if one is living in it and can make the mortgage payments. Investing property on leverage is no different to stocks, currently about the only asset classes that one can aim for cap gains as well as better than cash yields. At such elevated property prices the risks far outweigh the benefits taking the whole picture into consideration. Dairy index is similar in destruction to IOP and this is a Kiwi dependent export $. Property investments is only make believe wealth psychologically. So if you believe that property prices can keep going to the stratosphere taking into account the world economic conditions I would be very surprised that you had timed the GFC perfectly.

You may say it is tops and bottoms picking but I am just being cautious when a section of asset class is dislocating from the entire global growth prospects. Of course yield chasing could propel these inflated assets continually but to dangerous for me if I were contemplating investment property. ASIC forcing the banks to adopt Basel liquidity reserves and reigning in deposit free property investing and overseas classified income mortgages are signs RBA is getting very nervous.

You just never know what the next triggers is but super charging portfolio more than 100% especially with leverage is sure quick way to lose the capital. But fortune favors the super brave.