Investing - Property/Shares
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@pakman said in Investing - Property/Shares:
Friends tell me the price of replacing the battery drives the resale value.
Resale values seem to hold well for the Kia Hyundai vehicles - if you can find a used one.
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@junior I've quoted this before but it has been one of my investment axioms for decades
Rockefeller said he made a fortune buying high and selling low.
I'm not a totally passive investor; I have a strategy and I review my portfolio regularly but I do play the long game and I definitely don't chase the hot tips (by the time I learn of them they're already cool) or try and catch the peaks and troughs.
It's worked well for me. My problem has been having to bail out friends and family who get into strife. I've always been paid back - eventually - but the opportunity cost has probably been about 1/2 Mill in terms of price movements while I was out of the market and the ongoing impact of that. Illustrates the value of letting the investments sit. It's the closest example I have to trying to be a proper trader. Still if helping whanau isn't what money's for what is the point.
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@junior said in Investing - Property/Shares:
@Snowy said in Investing - Property/Shares:
@taniwharugby said in Happiness Scale:
@Snowy my bank manager suggested I should be looking at an investment property, I said yeah nah.
I'm not good with handling stress relating to finances and I expect that would just about kill me, am pretty risk adverse when it comes to money.
If you are getting into too much debt to do it, it would be pretty stressful.
Then you get a tenant who smokes P in it and things get ugly quickly, bloody bitch. Two young kids too. It was insured but it took me six months to sort it out. It's also getting more difficult to get rid of shit tenants with changes to laws. They aren't exactly helping with rental property shortages.
Yes to both comments above - tracker funds aren't a bad way to go and the diversity reduces risk. The same thing applies though, never be in a position where you have to sell, whatever the investment.
My old man, who has made plenty out of shares (was an accountant) gave me a tip when I was trading quite a lot and markets were quite volatile. If you have made a large capital gain sell what it cost you, and keep the rest. Effectively means that you have no risk as what you kept cost you nothing. Stress free stock holdings.
Define "Large"? And what would you do with the money once you have sold? Buy some other shares?
It depends how much that you had to start with. Enough that you still have reasonable holding after selling. Having a whole lot of odd lots isn't much good. And yes, buy some other shares, diversify and spread your risk. Both my grandfather and father were accountants and did this for over 100 years in total, and it worked for both of them. I should have followed their model a bit more than having too much in property. Some of that worked well but I would have been better off with at least some in stocks.
Trying to reallocate it now. -
@Snowy I've never had a property investment. I decided to gain exposure to property by investing in companies who made money in that sector. Mainly because I didn't want the hassles you faced.
I do get the attraction of property i.e. you get 100% of the total CG for a minimal outlay but I like the flexibility and liquidity of equities.
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@dogmeat said in Investing - Property/Shares:
@Snowy I've never had a property investment. I decided to gain exposure to property by investing in companies who made money in that sector. Mainly because I didn't want the hassles you faced.
I do get the attraction of property i.e. you get 100% of the total CG for a minimal outlay but I like the flexibility and liquidity of equities.
Liquidity is another of my old man's catch phrases. I've never been in a position where I had to sell in a hurry, so haven't been caught out, but it is a valid point.
Your first point is where I am going now. Best of both worlds, still in the property market but more diversified risk. Looking closely at peer to peer lending. Squirrel and Zagga (had Harmoney and it was O.K but they sold out). Good returns, secured against property with out actually owning it and the issues that go with that.
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Might need an energy thread
@pakman said in Investing - Property/Shares:
@voodoo said in Investing - Property/Shares:
And all of those countries will benefit from the points I mentioned earlier. As the grid gets smarter, EV's can help to smooth loads, power homes at certain times. Its not just a new, big drain on the power supply.
China is in process of building a fleet of coal plants to produce an insane number of GWs!
Definitely an issue - some are designed to replace older, less efficient plants. More interesting is that capacity factor across the fleet is below 50% as of 2019. Why build new coal when you're not even using half of what you have?
Overbuild has been part of their planning for decades, but at 50% CF you'd surely mothball any new plans until that rose to mid-70s percent and in the meantime add a crapload of wind or even nuclear, given it is China after all.
Some of it is being driven by the need to stimulate growth by the continuation of jobs and action by the big power companies. Some by politics - quoting "energy security" is always a winner.
It presents a further geopolitical challenge if countries start accounting for carbon trading in their tariffs. Who is going to be the first to tell China their goods cost more due to coal?
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@Victor-Meldrew said in Investing - Property/Shares:
@pakman said in Investing - Property/Shares:
Friends tell me the price of replacing the battery drives the resale value.
Resale values seem to hold well for the Kia Hyundai vehicles - if you can find a used one.
Have been watching Robert Llewellyn on his YouTube channel about EVs and one area that might provide a ready source of second hand EVs is the lease market. Three years down the track, a few start popping up, and they have favourable policies in place for zero-carbon emissions in the lease market that can get some in the door who would otherwise not be able to afford an EV.
Goodness knows dealers aren't pushing them because they're less profitable than fuel burners on service etc.
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@NTA said in Investing - Property/Shares:
Goodness knows dealers aren't pushing them because they're less profitable than fuel burners on service etc.
They're pushing them quite hard here. Diesel and petrol car sales are banned here in 9 years time
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A couple of other comments:
Tech stocks - we have seen all of this before. I think it took 18 years for the Nasdaq to get back to where it was in 1999. I'm more with Warren Buffet, invest in something that people actually need food, clothing, etc (he was big into Coca Cola though). Tech has its place but easily gets over inflated. FOMO I suppose.Without getting too far into EVs again, and this is investment related, you can get up to 10% ROI on one. Depending on how many solar panels you put in and what you spend on the car.
I have just calculated that my Dad spent about $180k and is getting around 6% (bloody lovely but expensive car) can easily do better than that. You do have to be able to charge the car from the panels during the day though. If you are at work it doesn't add up the same. -
@Snowy said in Investing - Property/Shares:
Tech stocks - we have seen all of this before.
This time you can add regulation and anti-trust actions to the risks. Google is a prime candidate to be broken up along with Apple. Will be interesting to see how the Oz - Google News royalty spat goes.
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@Victor-Meldrew said in Investing - Property/Shares:
@Snowy said in Investing - Property/Shares:
Tech stocks - we have seen all of this before.
This time you can add regulation and anti-trust actions to the risks. Google is a prime candidate to be broken up along with Apple. Will be interesting to see how the Oz - Google News royalty spat goes.
Which might be a reason Google valuation metrics were only FANG ones which were half reasonable when I looked late last year.
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@Snowy said in Investing - Property/Shares:
@dogmeat said in Investing - Property/Shares:
@Snowy I've never had a property investment. I decided to gain exposure to property by investing in companies who made money in that sector. Mainly because I didn't want the hassles you faced.
I do get the attraction of property i.e. you get 100% of the total CG for a minimal outlay but I like the flexibility and liquidity of equities.
Liquidity is another of my old man's catch phrases. I've never been in a position where I had to sell in a hurry, so haven't been caught out, but it is a valid point.
Your first point is where I am going now. Best of both worlds, still in the property market but more diversified risk. Looking closely at peer to peer lending. Squirrel and Zagga (had Harmoney and it was O.K but they sold out). Good returns, secured against property with out actually owning it and the issues that go with that.
Without having looked into it myself (TL:DR), what happens when the loan isn't repaid and you have to liquidate the secured property - who takes responsibility for that? Because I imagine that would be a complete ball ache for an investor who may have only lent a relatively small sum.
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@junior Done by the company that "owns" the loan ( the two mentioned). LVRs are pretty good (for a lender) so disposal of a default means it is pretty secure. Harmoney was very small units ($20 I think) and they had plenty of defaults, but interest rates were high to cover it.
Zagga is only 1K, Squirrel only $500 for minimum investment but obviously much easier to dp more than that. Most of them average $750k loans and they go really fast.
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I cant really actively invest in shares due to work reasons (independence etc) so just have kiwisaver which isnt one Im actively involved in so basically runs on autopilot leaving me at the mercy of the investment managers (who I actually do rate).
This means property is more for me. Have our home and a rental on the shore plus the bach but wouldn't mind another rental this year
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@JK I'm selling one in a few weeks at auction (if not sold prior of course). Just giving it a tidy up at the moment. I did a complete reno on it about 4 years ago. I've made my money out of it but it will go higher I think. Getting a good tenant is the key. PM me if interested.
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https://www.pggwre.co.nz/property/MAT33663/gore-road-matamata/
For those that want a lifestyle block, we have sliced a hectare off. Apparently it's the only one in the district but I can't back that up. They aren't lasting though and are selling at overs in my opinion.
We did consider building on it and selling but neither of us have that extra bit of time to organise so decided to do it the "stress free" way.
I think someone will buy and get a house built and transported onto it and then sell. Probably a very quick way making a $300k profit.
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@Hooroo said in Investing - Property/Shares:
https://www.pggwre.co.nz/property/MAT33663/gore-road-matamata/
For those that want a lifestyle block, we have sliced a hectare off. Apparently it's the only one in the district but I can't back that up. They aren't lasting though and are selling at overs in my opinion.
We did consider building on it and selling but neither of us have that extra bit of time to organise so decided to do it the "stress free" way.
I think someone will buy and get a house built and transported onto it and then sell. Probably a very quick way making a $300k profit.
Steve Hansen helping you sell it
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@MajorRage said in Investing - Property/Shares:
@Hooroo said in Investing - Property/Shares:
https://www.pggwre.co.nz/property/MAT33663/gore-road-matamata/
For those that want a lifestyle block, we have sliced a hectare off. Apparently it's the only one in the district but I can't back that up. They aren't lasting though and are selling at overs in my opinion.
We did consider building on it and selling but neither of us have that extra bit of time to organise so decided to do it the "stress free" way.
I think someone will buy and get a house built and transported onto it and then sell. Probably a very quick way making a $300k profit.
Steve Hansen helping you sell it
I was going to throw in a free membership at the golf club but forgot to tell him that before the ad went up
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@Snowy said in Investing - Property/Shares:
@junior Done by the company that "owns" the loan ( the two mentioned). LVRs are pretty good (for a lender) so disposal of a default means it is pretty secure. Harmoney was very small units ($20 I think) and they had plenty of defaults, but interest rates were high to cover it.
Zagga is only 1K, Squirrel only $500 for minimum investment but obviously much easier to dp more than that. Most of them average $750k loans and they go really fast.
In UK, valuations of loans and their underlying collateral has been an issue.
Under modern accounting, often no general provision for bad debts is made. Even though established banks know that over a business cycle small scale lending inevitably leads to defaults and losses.
So results in the 'good times' look artifically good, but the chickens come home to roost in a recesiion (or a pandemic).
I'd be careful.