Nicely said, on the high leverage you are correct, I’ve done it...

First 50 Last

Share
Profile

Follow
CDT82

1,695 Posts.

227

18/11/20

13:17

Post #: 48958821
Share

Originally posted by zipperlip: ↑

I think you’re correct in your opinion, KP.
The multitude of factors that effect the reality of individual property investments over this wide brown render the opening graph next to useless.

However, it is a cracker for those who are chasing a very broad overview of the history of Aussie realestate and a great graph to pull out at a BBQ/Dinner party to liven up a dull conversation about property/investment.

It provides points to debate with options to skew the conversation to one’s preferred position.

Buying an investment property/family home is similar to trying to find a wife/husband.
It is a decision not to be taken lightly, some people seem to just be gifted, lucky or unlucky, outsiders may look at another’s choice and not see the value but it comes down to this one point!
It’s an individual choice that we have to make based on the variables that effect the individual at the time, we can be correct and totally wrong with our choice multiple times during our investment timeframe and there’s no investment that doesn’t require a bit of work to give us our best returns.
——-

I love the idea of being able to borrow 90-95% to buy a property, people see it as a high risk strategy but it isn’t.
Of course one should have a very good asset base behind them, a very good accountant/advisor, a shorter term timeframe than 25-35 years, solid belief/knowledge on why their bit of dirt is in the sweet spot and be adaptable enough to accept changes as/if they appear.

Personally I’ve been trying to reduce my exposure to bank debt over the last year but that’s just me and most probably the wrong thing to do in many other’s eyes.

Expand

Nicely said, on the high leverage you are correct, I’ve done it myself and it’s obviously not an issue when other funds are available either being cash, a redraw facility, shares etc, just scary when someone takes up an offer because they “can” rather than “should” in my mind.

Like the partner analogy.
2 Upvote

Reply