Oh boy, in terms of regulation and import restriction, I really can't just Google it, it is a diplomatic tool, if it's not for legislation, the importing country can impose technical barrier under WTO guidelines. Let me know if you can think of any specific legislation from an importing country or the exporting country or a scientific reason to block trade from New Zealand Food and beverage product by an importing country?Unless they have mycobacterium tuberculosis, there is hardly sound scientific reason to block trade that can meet WTO technical trade barrier requirement on NZ food.
Well as for property making more millionaires than CSL, I won't need you to dothe maths, let's just count how many property Warren Buffet invested? The most valuable part of the Property is its utility value. If you count CSL return base on dividend, you are looking at the wrong direction, I hold it for 2 years and returned close to 100% capital gain.
you are trying very hard to impress. I just don't get you.
With regards to, ”Once US stop growth”, it doesn't matter what asset class you are holding, even if it is property, you are going to have a few bad years. Imagine the number of solution FED is left with to boost growth at this low inflation, low interest rate environment? they can only rely on the last resort - More debt. Google and find which several countries are the biggest US debt holders.
same statement applies to - ”once EU stop growth, Once China stop growth, Once ASEAN stop growth” so what does that have to do with this company alone when the sentiment affects across the equity market?
One thing you don't get about Chinese is they are paying similar tax rate to Australia but with no Medicare, student loan, HECS, superannuation, union, Infant formula is considered a daily necessity, it is not like a Nestle Bueno, the reason why average Chinese are buying imported IF instead of their local a2 product and Nestle was because of the melamine tainted scandal that caused many children to live with impaired kidney, and of course, nobody involved but the parents are footing the medical bill for the rest of their life.
I struggle to get my head around in this discussion regarding - 1. legislation risk and 2. whether property had returned better than CSL.
To me property investment is leveraging your capital at a sizable interest rate. the better part I see is the tax benefit but the risk to reward ratio and liquidity seems inferior to CSL and A2M to me so far. At least I haven't owned any property that return me 100% or 500% in 2 years, unless you are calculating the total return base on downpayment alone. In my case where I have special loan access for 90% of the property value and had LMI waived, I do consider some neutrally geared rezoned property as a good investment, potentially better than CSL or A2M, since my investment horizon is 30 years I see no need to cash out from my CSL and A2M holdings. Of course, your advise about taking profit and be smart is dearly applicable for older folks that put their entire retirement saving on A2M and CSL instead of a house that I likely to generate 4% of passive income for the rest of their life.
Will a2m drop half of its value? potentially, will a house drop half of its value?Yes, unusual but i have seen it, a 20% drop has already occurred in the west, in fact Perth property has gone nowhere in these 10 years. You still have to pay the mortgage when it's worth 20% less, and the loss is even more substantial if you pay it in full.
Back to a2m, the growth seen in FY17 were mostly from domestic sales, which are exported as - Grey import, which did not comply with custom requirement to begin with, have you seen grey import electronic and mobile phone business gone bankrupt because of legislative change? I saw none.
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