What Is Property Investment?

[Jabroni01]

Property Investment to me is a way of giving each of my ex wives a nice new home to live in at yesterdays dollars.


......
..just kidding

The scary thing is, this is probably true for some people out there

Jabs

[tpr2]

Hey I've only had to do it three times which is why I was saying just kidding. lol

[Green Fish]

"Property Investment"

Current data indicates that the phrase "Property Investment" has overtaken "Professor of Sociology" as the world's best oxymoron.

[67910241]

Property Investment is hard continuous work.

Owning any profitable business is.

It never ends.

It does once you sell.

The more you buy the more you worry.

The more you have the more you have to lose, applies to any other asset type it took you a while to acquire.

The more you invest the more you spend. If you fail to keep up with your properties they will outrun you and eventual they will own you.

Just like owning any other business!

For those of you who have become investors over the last ten years in New Zealand and can mathematically show 150% plus returns on their investments today – one year from today you will wish for 8%.

But a few years later you'll once again laugh at the mention of just 8%. That's the nature of cycles.

For those of you who believed that property investment was an easy road to wealth – with little or no effort or work involved – are in for rude-awakening.

I doubt many of those bother to spend their time on this board.

[McDuck]

Property investment:
A fad that took the imagination of New Zealanders by storm for the decade following the year 2000.
Through most of the 20th century and part of the 21st century, the monkey like species of the planet Earth known as Man, perused the foolish dream of luxury without effort.
This dream possibly originating in California USA with the discovery, lying upon the ground free for the taking, of a precious metal called Gold.
Other 20th century versions of the “get rich quick illusion” were also inflicted upon an incredibly gullible public.
The Dot Com Bubble and the Stock Market Bubble to name just two.
As with most “get rich quick” illusions, a few early entrants to the game were able to turn a nice profit, but would usually loose it all (due to human weakness).
Latecomers to the game would often become much poorer as a result of their inclusion.

Encyclopaedia Ducklactica.

[outspoken]

Nice one McDuck...I like it

[Jabroni01]

Hey I've only had to do it three times which is why I was saying just kidding. lol

Glutton for punishment

[tpr2]

There's lots of possible saying there jab's

A fool and his money.

I like to share the love.

hmmmmm maybe not so many....lol

[McDuck]

3!

love hurts (the pocket)

If at first you don't......

the serial monogomist.

[tpr2]

lol.... I knew there would be others.

[orion]

Hi,

Thanks to you all of you that answered the question. I'm not sure if you realised by reading them that there is no right or wrong answer, but what you answer is can determine the outcome. In other words, there is also the sentence that starts 'Life is ..... ' and people's reality or answer will be something like 'Life is a : - struggle, hard, easy, lessons to be learnt, a breeze, fun, difficult, scary, a game etc etc etc. There are so many different ways in which someone can view life, and so accordingly will live within that belief, or those beliefs. The same with thi squestion, for those of you that answered, how true is it the statement and has it become a reality for you?
People will often want to know the 'how to' wothout ever asking or thinking about the 'what is property investment?'

Some think it is about wealth creation, some about wealth retention, others think it is hard work or a struggle whatever way it is done, others a way to create cash flow, and others like me a way to have someone else to pay for your investments.
My definition is - Property Investment is a way to own assets that I initially purchase that someone else will pay for, leaving me the asset and the cash flow.

Regards
Graeme Fowler

[tpr2]

I'm still thinking about my answer Graeme.
As an aside I picked up your book again. I hadn't read it since you first published it.
It's still a good read although I would suggest that a lot of people would look at it and make the statement "well you can't do that today" and I say this not because you can't but because the numbers are so incredible.
I mean incredible in terms of what you could by property for. It's interesting isn't it. I remember my mum and dad buying our home at lake karapiro for 7k when I was about 14.
So perhaps a similar book with 2005 numbers

[orion]

I'm still thinking about my answer Graeme.

Ok, thanks Terry. Would be good to have a few others say what it means to them as well. As far as I can remember, nobody has mentioned cashflow yet which is interesting.

As an aside I picked up your book again. I hadn't read it since you first published it. It's still a good read although I would suggest that a lot of people would look at it and make the statement "well you can't do that today" and I say this not because you can't but because the numbers are so incredible. I mean incredible in terms of what you could by property for. It's interesting isn't it. I remember my mum and dad buying our home at lake karapiro for 7k when I was about 14.
So perhaps a similar book with 2005 numbers.

There was an update done last year, so 2008 with the 5 year updates for 6 of us, and the original info from most people is still in there. So the numbers were different then than when the book was first done in 2003. Lots of people say, well it was easy then, anybody could have done it, but you couldn't do that now. But, how many people were actually doing it? I was thinking the other day when Mum & Dad bought their house (which they still live in), it cost $6,000 and they paid a $500 deposit, so had a mortgage of $5,500 which worked out to be $23 a month @ 3% p.a. interest fixed for 30 years. They finally paid it off in about 1994 I think. I think if I had been around in the 1960's and in my 20s, I would have been buying up as much as possible with 3% p.a. loans fixed for 30 years, but how many people were actually doing it? Generally, there are results, or there are reasons. Most of the time, you will hear of all the reasons why it's not possible to do now, but if they could have done it then, it would have been different.

Regards
Graeme Fowler

[annaspanna]

So if I get started now will i be able to knock off work and hang out with my 6 year old before he leaves home?
Thats what I want Property Investment to mean for me.

[orion]

So if I get started now will i be able to knock off work and hang out with my 6 year old before he leaves home?

Hi Anna, depends on how old he is when he leaves home. If he leaves home at age 40, then yes a very good chance!
It varies so much, but definitely it would be possibly by the time he was 20 in my opinion. I say possible, but you would have to do very well in order to do that within 14 years. It depends on a lot of things, but yes very possible.

Regards
Graeme Fowler