Financial advice from Mary Holm

[cube]

The very fact that shares haven't done well in recent times makes it more likely they will do well over the next few decades.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10821018

[halfempty]

Lol complete this sentence, "Taking Property Advice from Mary Holme is like........"

[eri]

yeah just look at toyota

1 of the world's most well-known and respected brands

currently under half their pre-GFC value

and still dropping

when will people start buying new cars again?

[donna]

As for wishing you had been in property, don't overlook all those mortgagee sales of the past few years. And there's more to come. Terralink recently predicted this might be New Zealand's worst year ever for foreclosures, and most now involve property investors.

Really? Anyone here in foreclosure?

Cheers,

Donna

[PC]

Interest rates way, way down.
Rents rising - in Auckland.
Tenants clamouring for somewhere to live - In Auckland
Shucks could have been so much more "productive" invested in finance companies like many other professionally advised people.

[halfempty]

How common is it for you to buy a house and then over the next few years it becomes worth nothing?

[Keys]

Really? Anyone here in foreclosure?

Cheers,

Donna

Ummm. Terry, Dean. Just to name a couple?

[Davo36]

How common is it for you to buy a house and then over the next few years it becomes worth nothing?

Well that's a false comparison.

What happens is they put in $20k on a house, borrow the rest, but the banks get nervous, force them to sell, and they lose the whole $20k. And maybe some more...

So you can lose the lot.

[halfempty]

Yeah and if that happened (and it never has because banks don't foreclose based on nerves), then you would lose the $20k that you had just like you would lose the 20k you put into any other investment that went belly up.

What I'm saying is that the house itself would still be an asset with some value.

I wonder what has been the largest drop in asset value of any property in New Zealand in the last 10 years?
Maybe 10-12%? But nothing like a 100% loss.

[eri]

hmm... what about people who have bought in toke for $100,000

and now it's worth $50,000...

[halfempty]

Compared to people who bought Strategic/bluechip/lombard they made a brilliant investment.

[Keys]

Agreed ^^^

You can spend all day on different "what if" scenarios.

Fact remains, paper money (or balance sheet money) disappears. Land (unless in Christchurch) mostly stays.

[muppet]

Ha,
I know some you bought in Tok for $75k
and now they are worth $150k.

[halfempty]

Agreed ^^^

You can spend all day on different "what if" scenarios.

Fact remains, paper money (or balance sheet money) disappears. Land (unless in Christchurch) mostly stays.

Yep what he said......

[Damap]

Do you think we have to consider stagflation as a real possibility in these times? This changes everything in regard to future capital growth prediction surely?