MONEY

[Alspos]

If you need the number of a broker in Melb

[flav]

BHP is there for the taking right now. Plenty of $$$$ to be made.

[skip]

"Bricks and mortar" . . safe , but a bit old school and the problem is you need the money to buy the thing in the first place . But if you can afford it and you like safety and are happy with slow returns then I would agree with that .

You want figures?

$15K in hard cash in 2000 to 'buy' the house. No real sense of investing, just wanted to own a place near the city. Sure I paid the mortgage (way more than I needed, but it reduced how much was owed). Not much more than the average clown pays for rent. Had plenty of money left to piss away.

Decided 6 years later to slightly upsize and see if I could keep the old one and rent it out (to a family member who pays half what I could get on the open market). No need to save, used the capital in that place to get a new one. Sure, I have a large mortgage (and I'm not interested in counting how much has been put to the bank, the increase in value is way more than I pay on mortgage/interest), but I have about 3/4 million worth of bricks and mortar. If I sell both today, I'd have just under half that in my pocket.

Each day I sit on these 'slow' bits of brick and mortar, they earn me almost as much as I do. When I decide to drop out of the capitalist rat race, I'll have more than enough to keep me in beer, travel and Starions :) Without ever playing the high stakes stock market.

[WidebodyWoody]

Well I bought my place exactly 1 year ago about today, and I have already made $70k on it :D Unfortunately I wonts get that until I sell though.

[bigd]

Best investment I ever made was 50k for a good education. Beats property, bonds, shares hands down. Just my 2c.

[groupAralliart]

Here is a story about making money in property:
I put $100 deposit down and agreed to purchase a property which had not even had a sign put up out the front last year - I know the agent. The original owner had started the process of putting the house on the market 12 months prior but had stalled but had now moved into a nursing home. The price they were asking for was 12 months old! The old lady unfortunately passed away 2 weeks after I signed the offer document which made the power of attorney nul and void. I had to wait for a death certificate and the reading of the will. Some 5 months later I am still waiting to make final payment. The solicitor will be 2 more weeks and then 4 weeks settlement will basically mean with Brisbane house prices risen over 20% in the last year that for my $100 initial investment I will have made conservatively $60 000.00 capital growth alone. On top of that I am saving $800 a week in interest on a morgage for the property and they are still mowing the lawns!! :D Leave the volatility of the share market alone for the next 6 months or tread wearily! Bricks and mortar will never be any cheaper but like the share market you need to be in for a good 5 years to know you are not going to loose money - who knows what the stockmarket will be like in 5 years - I can guarantee you a house will cost more.

[zippo]

property is a sure thing.

thats to say you got in at the right time , but for some one wanting to purchase right now it is very hard, i have had mine for around 6 years and its almost 65/% more than what i paid , but now i wish to move on ,the problem is every thing else is way too much , yep i wil have more cash but will also spend more and req a larger mortage .

on paper i am ok ,to say i sell up and look at the cash , but to start again i am back behind the gate :?

shares are risky and very unpredictable there is no sure thing trust me i know .

eg , a few years back a relative was c-f-o of a fairly large firm , he advised to pump money into the company on the know of a new product that was going to generate allot of $$$$$$$$$.

yep the product was great , the problem was the parent company was going bad and went into liquasation and dragged all the other 9 companies that were making money down the toilet .

lucky for me i was struggling at the time and did not have the cash to put in , but alot of other family members did their nuts , the relative who gave the advise was blambed , not his fault , but my family are old school ethnic migrants are a bit in the dark ages .

property = safe.

shares = high risk , but $ can be made or lost very quick .


at the end of the day family and health are what matter . money is not the most important thing , it helps along life , but can also create misery

[TOMSUN]

I reckon if I tried to sell my house now I'd loose about $70k. :(
But I made $120k on the first house I bought and sold. (I don't know where that money went?)

[WANTSOM]

You all realise dont you that money made on your 'residential' property is tax free. So there is nothing stopping you (if you are this way inclined) to buy a cheapo house, live in it, tart it up, sell for a profit then repeat the process working your way up each time.

Show me an investment that doubles on average every 10 years that is totally tax free and you'll get my money.

Have a look at the top 100 wealthiest people in the world, take out Mr Gates and some of his wizz kid ilk and you will see there is a common thread in where their wealth is - property - be it land holdings, hotels, CBD developments or golf courses - its land and properties they rely on.

Go to the bank and say I need to borrow $100K and see whether they value bricks and mortar or a piece of paper more.

Sorry Flav and Mr Ralliart - I appreciate your views but playing in the stockmarket is speculative and should best be done with money you can afford to lose. That said, if you do your homework and watch the market closely then yes you can make money. But shit wouldnt you rather piss your excess cash away on some fun things. :beer

[WidebodyWoody]

I agree completely the stock market is a very unpredictable area.
To play the stock market you have to be up to date every hour of the day to be effective. But its not to say that you can't make a heap of money playing it. Simple, buy money in companies that will make major mergers. For instance when woolworths merged and took over IGA stores, their shares went up. Unfortunately my 75 shares I had to sell a year before this happened to pay for some stuff, they were worth $16 per share, now they are $32. That doubled them. We are kicking ourselves, we should have borrowed money to pay for that, but shit happens. :beer

[MrBishi]

The easiest money to be made is at the casino or the track.

[groupAralliart]

My sisterinlaw is a day trader and I dabble a bit. Here is a little exercise in small gains- pick 1 stock, something strong eg Telstra look at its average price in the last 6 months then include the dividend return. Buy when it is dipping below the average sell when it is 4% above and continue to do so over a 12 month period. Buy through Comsec and claim costs involved. For as little as 10 grand you could easily make 20 - 30% annually however you need to watch the market closely. A tip about Telstra, Rudd AND the Mexican are getting on well . I think you will see strong share price growth but timing is important when the T2 offer is due. Good Luck :D

[MR Bender]

The easiest money to be made is at the casino or the track.

thats right but you are for getting 2 more thing!
DRUGS!! rofl and/or being a pimp :pimp
LOL LOL

[enthuzed]

Personally I like bricks and mortar. My first house is worth over 2.5 times what I paid for it 7 years ago (and I lived in it for 5.5 years, so it wasn't really an 'investment' until I bought my new place). Sure it 'costs' me about $4K a year even after I factor in rent (because I'm renting it to a family member, they get low rent), but who cares when the value increases by 10 times that a year. And the tax benefits are pretty reasonable too (went to the tax man yesterday, o/s trip here we come :) ).

I think you mean that it increases in value by 10% per year.
That's how it doubles every 7. I know what you were trying to say.

[enthuzed]

And Wantsom is quite right. I can't remember the exact figures but in the top 200 rich list a couple of years ago it was something like 70% of them had most of their wealth in property. They might have made a lot of money through their businesses but they stacked it into property to massively compound their wealth.

The value in real estate is actually in the mortgages. The more mortgages you get have the more you are worth due to leveraging.