I subscribed to this free newsletter some weeks back and I must admit I find the propositions and positions expounded by Kris and his colleagues to be interesting and at the same time challenging and to a degree confronting. HAve you seen any of Kris' other articles - what are your thoughts on this article and the ideas, propositions and arguments put forward - would love to hear some agreements and/or disagreements and rationale for same - think it makes incredibly interesting mental excercise - Please feel free to leave your comments
Melbourne’s Costly Hobby
Friday, 4th February 2011
Melbourne, Australia
By Kris Sayce
Melbourne’s Costly Hobby
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“If the property value goes up every seven or eight years and it doubles, which I understand, I agree – how many years do you have to hold the property for the property to make enough cashflow… to cover your mortgage, your rates, your water and all your outgoings? Ladies and gentleman it’s sixteen years. So the property can double in seven years, it can double in eight years but for you to walk away from your job it takes sixteen years… before it makes enough money for you to stop going to your job to support it… so what happens is we find people go ‘I’m worth a fortune’, and they are. But they still have to go to the job every day at 6.30 in the morning because they’ve still got to put money into the fortune!”
That’s probably the most sense we’ve heard from a property “guru” in years.
Money Morning reader Pat brought it to our attention. The words come from property financing whizz Rick Otton.
The fact is, most property investors are in the same financial position as the doddery old English Lords of the manor… asset rich, cash poor, and debt heavy. The Lords have to sell off the family silver to stay liquid.
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BE AWARE - The following few sentences are the VALUE PROPOSITION for you to subscribe to the NEsletter
From August 4th to October 27th 2010, shares in Aussie mining heavyweight Rio Tinto rose 13%. Not bad. But in that time you could have made 130% from another Aussie miner your broker would never tell you about...
Between August 27th 2009 & March 23rd 2010, Australia’s biggest airline Qantas gained 7%. Meanwhile you could have doubled your money investing in an airline your broker would have told you to stay away from...
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