What events would need to happen for you to consider reducing your portfolios?

[Eugene]

I've just downsized selling a property to reduce my debt levels and am channelling all I can into reducing my mortgages before I (semi) retire at the end of the year. With interest rates this low its a great time to reduce debt not increase it as far as I'm concerned- my brother has done the same in Wellington.

There is an old adage in property: speed kills. Here is a good example of what happens when it gets messy: https://www.youtube.com/watch?v=j_ktN_h7-J4
Of course the the "investors" blame the banks for lending the money not their own greed.

Craig

Crazy scary

[Nick G]

Hi Nick,

Yes, $841k which he was very happy with.

Craig

Wow that's a great price for him. Congrats.

[Don't believe the Hype]

There is an old adage in property: speed kills. Here is a good example of what happens when it gets messy: https://www.youtube.com/watch?v=j_ktN_h7-J4
Of course the the "investors" blame the banks for lending the money not their own greed.

Craig

this is not about speed... It's about greed... Idiots gambling using the greater fool strategy... Ego and stupidity resulted in bankruptcy... The quote in the article was 'we've gong from poster child of success to poster child of a financial screw up' - this was never succes... It was high stakes poker with a loaded deck... The house was going to win every time...

anyone who doesn't invest based on fundamentals is at risk of this type of scenario... When the pull back happens as in this micro enviroment the most exposed are take out.

The he smart money balances risk with exit strategy...

[DaveW]

I would only sell if there was a deal of the century that required me to do so.

[klauster]

The madness is people are believing in an unsustainable financial system driven by debts, creating money from thin air. Debts are the results of increasing (unsustainable) consume. The results of excessive consumption you see and feel everywhere, everything consumed gets dumped as gift for future generation.

Well – how to change that? At least I do control my needs, sell off to improve life quality and value having more time, not belonging to the “Would-like-be-Trump”.

Satisfaction and happiness I feel enjoying my own backyard, manage good tenants and sell the next one when I need a cash injection for the next step in life.

The exponential increase in debts kills societies, tears apart families and communities - and stopping debt funded growth and inflation would kill the financial system. Which death do you prefer?

[PTILoveYou]

The longer I keep my debt, the less valuable the debt becomes overtime.

So I would keep my properties forever.

[Perry]

Site won't let me post links? Is it because my post-count is too low?

Yes - 10 posts are required before links can be posted.

[Perry]

I was visiting an old colleague, the other day, in an apartment attached to a elder care facility. It looked and felt like little more than a holding cell for the mortuary. A bedroom with ensuite and a kitchen-dining room-lounge where the food could be prepared and eaten and the idiot box could be watched. At least they had Internet. But it did prompt the question in my mind: is this what it comes to, even if the location may vary, from case-to-case?

[Wayne]

But it did prompt the question in my mind: is this what it comes to, even if the location may vary, from case-to-case?

Depends on the age really.
What do you think 'better' looks like?
Serious question - I have been thinking of such things on and off for a while lately as my parents get older.

[Perry]

What do you think 'better' looks like? Serious question - I have been thinking of such things on and off for a while lately as my parents get older.

I suspect there are too many variables which prevent a narrow view of what is better. Or not. Affordability would be one big factor. I.e. have lots of home help, so retaining familiar surroundings.

Children growing up and moving away - becoming less frequent visitors;
One's contact list of tradies becomes a fire starter, as those tradies all retire;
Friends and neighbours of long acquaintance shuffle off this mortal coil, with the consequential feelings of emptiness and being bereft.

Once, "the oldies" were cared for in one or other of their children's homes. They helped with their grand children. Everything from baby-sitting to teaching about social niceties. No longer. They're now shoved off to a holding paddock for the morgue.

Logan's Run, anyone?

[Bobsyouruncle]

Sadly what we would call "good care" costs so much now. My mum went into a great facility which was attached to a hospital. Room, meals, everything was brilliant. But the cost was ridiculously high.

[klauster]

Sadly what we would call "good care" costs so much now. My mum went into a great facility which was attached to a hospital. Room, meals, everything was brilliant. But the cost was ridiculously high.

Well, one reason for me to invest is being able to care financially for people I love. I had at the right time my parents in excellent care, and for myself I sell off whenever I need to, why would I wait until 65 to retire?

Gary Lin – do you live forever?