Matthew Gilligan tells Economist Property is GOOD business

[Damap]

And in NZ property is liquid, not so different. Just better :-)

[Wayne]

And not a bad theory and I agree.
The price of houses doesn't drop as much as it could as home owners just stop selling rather than sell at a price they can't afford.
So the value is underpinned by the home owners as you suggest.

[klauster]

Still can’t see anything new - discussing shares in an IP forum and vice versa.
If you don’t know what you are doing you lose your IP or shares – what is the difference?

Clever people make money with business and shares and buy assets to hold on and wealth creation as it makes little sense to keep it in the bank.
Owner-occupiers you need to see differently as they normally do not get a return from their investment and expenses are not tax deductible.

To squeeze every penny out of IPs on the expense of future generations is a different story or can’t you see the sub-standards how poorly people live?

[PTILoveYou]

I find being an average or below average sharemarket investor, it's best to invest in the medium term with the global economy, ie buy low after a recession/slump, and sell at the peak.

Another one is hop onto the media darlings early, like Xero/Facebook/Apple/Alibaba, ride the wave to near the top, and sell before the smart ones get out.

I had the option to buy Apple for $186 US/share, and GE for $11/share back in 2010 I think, but I didn't and I chose to invest in property instead.

[Wayne]

I find being an average or below average sharemarket investor, it's best to invest in the medium term with the global economy, ie buy low after a recession/slump, and sell at the peak.

Has that worked out for you?

[PTILoveYou]

And not a bad theory and I agree.
The price of houses doesn't drop as much as it could as home owners just stop selling rather than sell at a price they can't afford.
So the value is underpinned by the home owners as you suggest.

And this is the biggest fundamental difference and advantage residential property investment has over all other investments.

A sharemarket has no bottom, but where as housing people will always need a roof over their heads.

Water
Food
Housing
Cloths
Leisure

Five fundamental needs of humans, outside the 6 Maslows.

During an economic recession, people may put off buying new cloths or spending on leisure, but we will fight to the death with water, food, and shelter.

[PTILoveYou]

Has that worked out for you?

No because I haven't invested in any shares since GFC.

But if I were to start again, I would be aiming for medium term strategy to go along the cycle.

[Keys]

Water
Food
Housing
Cloths
Leisure

I suggest these four are the basics.

Something to keep you warm (shelter)
Something to sustain you (food, liquid)
Something to space you out (drugs)
Something to satisfy the carnal drive (sex)

These are the winners every time IMHO

[PTILoveYou]

Something to space you out (drugs)
Something to satisfy the carnal drive (sex)

These are the winners every time IMHO

YES, these definitely are profitable regardless the economy!!!

[PC]

Aging population.
Less sex & drugs.
More health services & homes!

[Wayne]

But if I were to start again, I would be aiming for medium term strategy to go along the cycle.

Companies like Xero are a bit of a punt so more for someone that has a larger portfolio (rather than a core stock) - they haven't made a profit yet and don't plan to for a while.

Good luck with

ride the wave to near the top, and sell before the smart ones get out.

[PTILoveYou]

Companies like Xero are a bit of a punt so more for someone that has a larger portfolio (rather than a core stock) - they haven't made a profit yet and don't plan to for a while.

Good luck with

Hence why I don't invest in the sharemarket, my strategy is too speculative.

[Bluekiwi]

Sham does kind of annoy me, a bit, I have given him a bit of stick on property talk and people have got upset with me, but so what I might as well say what I said again to be devils advocate.


This guy is always in the media banging on about property and his is most 99% wrong of the time.
His rural zombie town comments are counter productive.
His 1% of being right is about speculation in auckland market not being overly good for NZ as a whole, but that is just pathetic as everyone knows that.

He has about as much chance of selling sand to the arabs as convincing people that property investing or owning is not a good investment.
Yet he does this day in and day out in the media.
MG has proven he is wrong, and anyone who bought a good home for themselves pre 2004 knows he is wrong.

So back on the offensive.
He is a poor economist and should resign, if he cant see property is a good investment.
And he is doing his family a dis - serive, by not owning a home and keeping on renting.

Demand and Supply 101 for Auckland property would tell you that owning your own house and picking up some rentals is smart investing.
How you do it, whether you want to be called a speculator is up to you.

Without going into the obvious, there has been a plethora of reasons since 2000 about why Demand would be hot, and Supply would be weak.

[klauster]

"He is a poor economist and should resign, if he cant see property is a good investment."

Bluekiwi, nice – it is “rent or own”, and looking at cash-flow negative IP - rents are too low. NZ needs a change in renting culture, and this guy is one of the new generation of renters – can you bring more of them?

[Maccachic]

Aging population.
Less sex & drugs.
!

No I think the opposite - more drugs (blue pills) so they can continue