Forum Archive Index - June 2001

[jerrold poh <pohj@ihug.co.nz>]

very interesting subject here, and i'm going to be following this
thread very closely :).  i've always been interested in property, and
it's only due to my lack of funds that i'm staying out of it (btw, did
anyone here see Rolf De Roo's seminar held recently?  quite interested
to hear any thoughts - missed it due to exams).

it's funny how most people in this forum think property, and then think
capital gains.  it's a different beast, unlike shares, where it is safe
to think shares, then capital gains (yes, even long term buy and hold
people).  

when i think of property, i _also_ think cashflow, flexibility, and the
ability to use vast amounts of OPM to do run this business structure -
the more of OPM you use, the higher your return.

i could go to the bank, and if i have a good enough track record, and
good enough statements, they'll literally be giving me money to buy a
good property (yes i know it's not always the case .. but when was it
that you could go to the bank and borrow a 95% loan on a group of shares
:) ).  couple this with a good company structure, and i can walk into a
deal with little or no risk of losing my money - yes unethical at times,
but the banks and the government do it all the time :).

or i guess you could start up an investing partnership a la ron
briely, warren buffett, etc, but come on, wouldn't you like to screw
the bank just once :).

they're also alot of deals you could do with property aswell, so the
situation is always different, ie, lease purchase agreements (where you
literally become the bank .. very nice :) ), owning a building and
getting the government to pay "guaranteed" rent for you, interesting
arrangements due to gearing so you can pay off your mortgage quicker
while getting a house for "free", etc. 

will be keen to hear your thoughts



jerrold.
ps. i also agree on Michael's comments on newbies 


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