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  • Originally posted by Don't believe the Hype View Post
    the real danger is that he's trying to encourage others to follow him to these heights. I guess when you're not buying on fundamentals you need to rely on he greater fool theory... That theory requires lots of high profile 'success stories' and shiny suits even your name in the paper to encourage more and more fools - without them you can't close out your position.
    And therein lies the problem.
    If you understand that you are working under the 'greater fool' theory then all well and good - you understand the risk.
    But if you think your timing the market was due to some great skill then you don't understand the risk and don't know what to look out for when things change.
    After a while you start to believe your own bullshit - ask Dean, he knows.
    Teaching others that you got there by being clever so follow me does them a great dis-service. Only time will tell though.

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    • Originally posted by Wayne View Post
      ...
      Teaching others that you got there by being clever so follow me does them a great dis-service. Only time will tell though.
      I find it an interesting concept that time will tell if he is clever or not. Why can't he be clever now?

      its like if he put it all on red, and then you can only determine his cleverness after the fact.

      my thoughts for the day

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      • Originally posted by HattrickNZ View Post
        I find it an interesting concept that time will tell if he is clever or not. Why can't he be clever now?
        If he was to sell up now then he would cement the gains - until then they are paper gains.

        But the real issue is what happens to the people he coaches now - the timing is quite different.
        This is because the gains he has weren't the result of a clever plan but more a lucky one.
        The thing he did get right was that he acted. Obviously there were a lot of people who didn't act and didn't make the same gains - maybe they had a different risk appetite?

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        • Hindsight is always perfect...........

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          • Originally posted by Nick G View Post
            Possibly.

            Low interest rates have turned any crash into a slow moving weird thing where people (if they're smart) will be paying down their negatively geared properties as fast as they possibly can.
            my fixed term mortgage is due next march, in the media there is talk now about rate increase, I am thinking of even breaking it now and pay the penalty of $800 and then fixing it for one year or two years ? my current rate is 5.25% and for one year it will be 4.25%.

            what do you advice ?

            Thank you
            Last edited by Perry; 28-11-2016, 07:19 PM. Reason: moderation

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            • How much debt?

              I am personally locking 80% away for 5 years and 20% on whatever seems like a good idea in the moment.
              Free online Property Investment Course from iFindProperty, a residential investment property agency.

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              • Lots of banks or finance company always ask if you have a credit card when you want a loan. What are the advantages in regards to that.

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                • Originally posted by primal View Post
                  Lots of banks or finance company always ask if you have a credit card when you want a loan. What are the advantages in regards to that.
                  Having a high credit card limit credit card is an disadvantage when getting a new loan.

                  High credit card limit limits your new loan amount. Also high limit may raise alarm bell regarding your spending habits, especially if you have multiple credit cards. The credit manager/banker will look at your credit card spending habits in more detail.

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                  • Can you recover the interest charged when using credit card.

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                    • Interest rates appear to be rising.
                      http://www.interest.co.nz/borrowing
                      Rates from 2 to 5 yrs up.
                      "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

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                      • Originally posted by primal View Post
                        Can you recover the interest charged when using credit card.
                        I expect it would depend on what you used it for.
                        You never recover all the interest - only the tax. Pay a $1 to save 30c

                        Comment


                        • Originally posted by primal View Post
                          Lots of banks or finance company always ask if you have a credit card when you want a loan. What are the advantages in regards to that.
                          It's a credit risk. If you have a $20K limit card you are free to rack up $20K of 18% debt, which makes it harder to pay off your house.

                          or

                          They want to sell you a credit card.
                          Free online Property Investment Course from iFindProperty, a residential investment property agency.

                          Comment


                          • Originally posted by ammar View Post
                            my fixed term mortgage is due next march, in the media there is talk now about rate increase, I am thinking of even breaking it now and pay the penalty of $800 and then fixing it for one year or two years ? my current rate is 5.25% and for one year it will be 4.25%.

                            what do you advice ?

                            Thank you
                            Why 1 or 2 years?
                            Do you have other borrowing and what terms are they on?

                            Ross
                            Book a free chat here
                            Ross Barnett - Property Accountant

                            Comment


                            • Originally posted by Rosco View Post
                              Why 1 or 2 years?
                              Do you have other borrowing and what terms are they on?

                              Ross
                              I do not have another borrowing. 1 or 2 because it is the cheapest ?

                              Comment


                              • Originally posted by ammar View Post
                                I do not have another borrowing. 1 or 2 because it is the cheapest ?
                                can you define cheapest? - will you have all your debt paid off in the 1-2 years of the fixed term period?

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