MONEY

skip · Post by **skip** » Sun Feb 10, 2008 3:23 pm

enthuzed wrote: 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.

I meant that it increases in value by 10x the $4k it costs me per year (ie. it goes up in value by about $40k per year).

fwiw, it's worth around 2.5 times what I paid for it 7 years ago.

enthuzed · Post by **enthuzed** » Fri Feb 15, 2008 9:16 pm

Dude, it's not linear growth. But it might average out that way over a cycle or two, which clearly you've been through.

Not meaning to split hairs here, but you didn't include your initial deposit in the equation. Doesn't really matter, we, well I catch your drift anyways.

leoca · Post by **leoca** » Sat Feb 16, 2008 6:57 am

I would disagree that property is always a good investment for example I owned a unit in Cairns from 1997 to 2000 and I had to sell it for a loss of 5K in the end.
Fortunately prices were on the rise here is Brisbane at the time so it wasn't all bad.

groupAralliart · Post by **groupAralliart** » Sun Feb 17, 2008 7:00 pm

leoca wrote:I would disagree that property is always a good investment for example I owned a unit in Cairns from 1997 to 2000 and I had to sell it for a loss of 5K in the end.
Fortunately prices were on the rise here is Brisbane at the time so it wasn't all bad.

Property in capital East coast position, position,position. No more land to develop = capital growth :D

Noddy · Post by **Noddy** » Thu Oct 16, 2008 6:32 pm

This interesting to go back to and look at where the shares are now................interesting to read comments.
When is the right time to buy BHP??..... its at $25 now - how low will it go?

I have no BHP shares :)

groupAralliart · Post by **groupAralliart** » Thu Oct 16, 2008 6:56 pm

much lower yet.
Lets nominate now a few stocks we would recommend: My buys are:
Telstra, Commonwealth bank and Woolworths

RiceThief · Post by **RiceThief** » Thu Oct 16, 2008 7:44 pm

How low any shares will go is anyones guess, im in the same boat and am looking at investing in shares.

A couple of things to consider when purchasing shares other than the price is how well they will fare in times of recession, so long as the company doesnt fold you will always be better in the long run no matter when you entered the sharemarket.

Stats to look at are their earnings per share (eps), dividend ratio and importantly the pe ratio or price to earnings ratio. To high a pe means they have too much future earnings built into their price, so in times like this can take a hammering in their price. Too low is bad too as the company doesnt see much future growth. In the end are you buying them for the long term or hoping for a short term gain?

If its the latter then what you are doing is no different to going to the casino and making a bet. If its the former then research as much as possible to minimise your risk.

panda · Post by **panda** » Fri Oct 17, 2008 8:58 am

I have $10 in the bank, which should last me for the rest of my life ( provided I don't spend it !!!! )

bigd · Post by **bigd** » Fri Oct 17, 2008 6:41 pm

Even worse than trying to time the market is taking advice from people on a car forum.

RiceThief · Post by **RiceThief** » Fri Oct 17, 2008 8:08 pm

panda wrote:I have $10 in the bank, which should last me for the rest of my life ( provided I don't spend it !!!! )

lol not if the banks take take it away with their monthly fees :(

RiceThief · Post by **RiceThief** » Fri Oct 17, 2008 8:08 pm

bigd wrote:Even worse than trying to time the market is taking advice from people on a car forum.

Was that point directed at me?

bigd · Post by **bigd** » Sat Oct 18, 2008 4:02 am

Na not directed at anyone sorry if it was taken that way!

Just an observation.

4gpwr · Post by **4gpwr** » Sat Oct 18, 2008 10:20 am

Fellow Australians we need to invest money in ourselves , for the long term . With the carbon trading and our weak dollar , overseas investors are attracted in investing money here in us .
The Australian industrial market is going to have major growth , we can do things smarter , better , cleaner but we have to spend money in our own back yards , Develop our own products for the export market and stop buying imported products .
We got to get out of the mentality of the cheapest quotes and get our stuff locally made . Like most of Holden tooling is made overseas and our tool maker company's have gone broke . We have to feed our own . And stop trying to make a easy $ .

GasJA · Post by **GasJA** » Sat Oct 25, 2008 12:56 pm

"You have never had it so good".

The former PM was not addressing his "battlers" when he said this.
It was in fact a coded message to the top end of town.

The message has been decoded by yours truly and now reads "Sell stock portfolios and real estate assets and convert to stable fixed income positions. Re-allocate your super funds accordingly."

Just a joke folks.
But the former member for Bennelong issued forth the statement which always appears at the peak of a "Bubble".
And in case you are wondering, I did not act quickly enough.

What now?
Well if you are waiting for the ASX bottom I personally think there is still quite a wait ahead.
Checking out www.abc.net.au/lateline a figure of 2700 was suggested recently. The ASX at 6000 points is a long way off.
Some of the gloomy financial forecasts are quite scary.

The credit default swaps and the derivative market fiasco still need to
be sorted out.

Austarion

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