property scams, page-24

re: property scams 4 cnrs program copydog...you bag those people, but talk about making a stupid comment yourself...20 years of capital growth inbuilt into current prices, i hope u were only exaggerrating to prove a point. Lets say ur not, that would mean that one of my property investments in elwood, a suburb whose average growth rate over the last 30 years is 15% per annum, is really only worth 50000, which means my RENTAL yield would be 39%, uhh i dont think so!!!

As for the phrase "Dont let past performance guide you" Firstly that phrase is used for short term past performance figures and secondly, its a TOOL that the finance industry uses to get themselves out of trouble when they're past performance figures dont actually occur and people lose money.

I suggest you go do some research into blue chip property areas over the past 30-40 years and compare them to blue chip stocks. I think the results may surprise you. Here i emphasise and support molonski's post that noted that 'value is in the land' although i do think you can add significant value through improvements, done properly.

As for the property bubble, there is no bubble. A bubble is something that bursts, eg NASDAQ slumping by 70%+. A decrease of 5-15% in property values is not a bubble bursting, its a plateauing before prices start to move up again. You forget that over the 90s residential prices were only growing at between 5-8% while stocks were growing at a lot more. Property has only boomed in the last 2-3 years.

Some people say, look at japan, residential prices are 1/10 of what they were 10 years ago. This was due to poor economic management and poor bank regulation where banks were involved in bad CORPORATE DEBTS.

Others say, look at the debt to income ratio that has grown. Hello, interest rates are at their lowest level for ages, did you expect the ratio to stay the same? decrease? Of courses its gone up. But look what happened last time you say? Well last time interest rates were VERY high, bit of a difference hey.

I have been an investor in property for 10 years. I work in a finance company, have an extensive investment background, courses and so forth, and my simple message is that, done properly, the safest wealth creation vehicle is buying property. You dont need to have a buffet analysis brain or guppy chart skills to invest successfully in property. All you need to do is select a high capital growth area and have some free capital (review historical prices for past 20-30 years). For some with little capital it may take time, for others, its relatively quick.

If anyone wants assistance in property investment, can i suggest you visit www.somersoft.com.au and join the property investment discussion board there, theres about 7-8 topic boards and its australian and I post there as ELWOOD OR BUST.

Cdchi1