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ut that over the last 10yrs etc say in "Queenstown" you telling me that renting rather than owning your own property 2009 they were auctioning of properties that are currently worth 200-300% more today
I don't live in Queenstown and owning a property there from 2009 would have come at a significant cost to other things I have done and profited from. If we are making the decision based on hindsight, I would have purchased google stock at $186 in 2009. Current share price is now $1200.
Really ...It's smarter to pay rent than own your own property ? put that over the last 10yrs etc say in "Queenstown" you telling me that renting rather than owning your own property 2009 they were auctioning of properties that are currently worth 200-300% more today
BTW, I find it remarkable that people who provide rental accommodation can also think it is 'stupid' to rent. The mental dis-junction is quite profound.
BTW, I find it remarkable that people who provide rental accommodation can also think it is 'stupid' to rent. The mental dis-junction is quite profound.
Some people can hold more than one concept in their mind simultaneously.
BTW, I find it remarkable that people who provide rental accommodation can also think it is 'stupid' to rent. The mental dis-junction is quite profound.
I disagree here. I don't see a mental disjunction (is this a word? if so it's a good one). Don't get me wrong, I don't think people are stupid to rent - though I am sure some are, as are some landlords - but I can absolutely see how others would see this while still being a provider of rental property.
There are plenty of businesses and business models that rely heavily on people's stupidity. The owners of these businesses provide their products and services because there's money in it. Whether they feel their product has any true value, or is only valued by those of below-zero intelligence is besides the point.
I can think of a handful of examples off the top of my head, but hesitate to name them lest I offend a bunch of people who use the services out of desire or desperation.
There are plenty of businesses and business models that rely heavily on people's stupidity. The owners of these businesses provide their products and services because there's money in it. Whether they feel their product has any true value, or is only valued by those of below-zero intelligence is besides the point.
I can think of a handful of examples off the top of my head, but hesitate to name them lest I offend a bunch of people who use the services out of desire or desperation.
I don't live in Queenstown and owning a property there from 2009 would have come at a significant cost to other things I have done and profited from. If we are making the decision based on hindsight, I would have purchased google stock at $186 in 2009. Current share price is now $1200.
Dont forget real estate has the benefit of leverage through mortgaging. Google stock in 2009 would had been bought with all cash?
Dont forget real estate has the benefit of leverage through mortgaging. Google stock in 2009 would had been bought with all cash?
Not if you knew the future it wouldn't. Youd be finding places to do you margin lending (am sure it's much easier on US stocks), taking out personal loans, borrowing from family... heck, even credit card cash advances at 20% interest would make sense.
For what it's worth, I'd have bought Amazon, not Google. Was ~$90 in 2009, now ~$2k.
An excellent example! We have Zuckerberg saying exactly that.
Not if you knew the future it wouldn't. Youd be finding places to do you margin lending (am sure it's much easier on US stocks), taking out personal loans, borrowing from family... heck, even credit card cash advances at 20% interest would make sense.
For what it's worth, I'd have bought Amazon, not Google. Was ~$90 in 2009, now ~$2k.
That same clever financing could had been applied to a 10% deposit on real estate right?
That same clever financing could had been applied to a 10% deposit on real estate right?
Not sure in 2009, but certainly not today. Banks would take one look at someone with multiple credit cards and personal loans and decline further lending.
Dont forget real estate has the benefit of leverage through mortgaging. Google stock in 2009 would had been bought with all cash?
You can leverage stock to the just about the same level as property, between 40 and 75% depending on the company. Rate is higher by a couple of percent.
Not if you knew the future it wouldn't. Youd be finding places to do you margin lending (am sure it's much easier on US stocks), taking out personal loans, borrowing from family... heck, even credit card cash advances at 20% interest would make sense.
For what it's worth, I'd have bought Amazon, not Google. Was ~$90 in 2009, now ~$2k.
It's just as easy to do in NZ, all the main banks offer it. Good investment practice would indicate that a low level of leverage on stocks is very productive, with minimal risks. Sitting at 30% is likely the sweet spot.
The absolute best stock was likely Jazz Phama, it was a dollar in 2009, now $123. Being a hindsight investor is very profitable.
I disagree here. I don't see a mental disjunction (is this a word? if so it's a good one). Don't get me wrong, I don't think people are stupid to rent - though I am sure some are, as are some landlords - but I can absolutely see how others would see this while still being a provider of rental property.
There are plenty of businesses and business models that rely heavily on people's stupidity. The owners of these businesses provide their products and services because there's money in it. Whether they feel their product has any true value, or is only valued by those of below-zero intelligence is besides the point.
I have no doubt you are right. The 'truck shops' that run around South Auckland would very much be one of these.
It's just telling you something about the person running such a business.
Originally posted by Don't believe the HypeView Post
You're definitely smarter than me - my share portfolio is worth nearly as much as i paid for it 5+ years ago.
Well now you know. Pick the next Jazz Phama, ask your fav aunt for $200k deposit, raise 75% mortgage to a total investment of $800k. Wait for 10 years for the stock to increase 123 fold and presto you're almost $100M worth.
Oh, and pay back Aunty $200k plus interest.
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