Forum Archive Index - May 2001

["Andrew Dengel" <adengel@clear.net.nz>]

Thanks Chris & Malcolm for your insights and experiences, you are both right and showed some "real life examples" which enlightened me a bit however I am still convinced that buying your "own" home (as opposed to investment properties isnt always the best long term strategy.

I do beleived property should make up a part of a balanced portfolio but perhaps gaining access through a listed property fund or unit trust is an easier less stressfull way.

 

Thanks

Andrew

----- Original Message -----

From: Chris Donald

To: sharechat@sharechat.co.nz

Sent: Monday, May 07, 2001 2:14 PM

Subject: RE: [sharechat] Residential Property

Another thing that we do is invest money in finance scheames (typically HP's).  These provide a gross yeild of roughly 19-21%, By the time you take tax (less expenses) off it you get a net return of 13.5%.

So, borrow money from the bank at 6.7% and lend it out again at 13.5% giving a difference of 6.8% per year.

This also works in reverse ie if you have hire purchases or credit cards, pay them off before you increase your payments on the old mortgage.

Oh year, forgot to say, I am an Accountant.

Chris

---

Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.

---------------------------------------------------------------------------- http://www.sharechat.co.nz/ New Zealand's home for market investors http://www.netbroker.co.nz/ Trade on Credit, Low Brokerage. Join now. ---------------------------------------------------------------------------- To remove yourself from this list, please use the form at http://www.sharechat.co.nz/forum.shtml.