your Absulutly right Red Dan Dirt, we are in a different enviroment, then 30 years ago, when I bought a 3 bed unit for $93,000 the int rates were 18% and now we are at what 3% but tge pty is worth $450k so tge only reason I cam see assets going up is inteterst rate going down, so any profit made was due to rates going down, the assets were good back in the days, these days we need to grow while we have low rates and we cant do that by borrowing money for assets that we hold that costs us overheads and only is profitable if its used 100%, miney is better spent on monopolies as we need to be big and have strenge and posture to move forward, then you see a leader emerge, we van allways move studios anyware we want, it does not need to be in a main city, look how Las Vegas started out, we can lease back studios and as we lease time in the studios we can be profitable, low interest rates are here to stay in the medium to long term, and I feel any assets returns today will be low as there will be alot of reits trust/funds trying to aquire property assets even super funds, and Cromwell, and that is what there bussiness model is a stable return on asset and future capital growth, I see the return are dropping in property and capital growth will slow or come to a holt even possibly go lower if interest rates are increased correctly, so I believe property assets are not the way to go these days and already had their run, so I believe that the team is on the right track, and this is how we can compete with the new enviroment that we finds ourselves in, new start ups dont have assets only ambitions and grow ther business by market share and look at there PE,s and SP going through the roof!!!!
SWM Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
(20min delay)