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  1. #106
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    Quote Originally Posted by fungus pudding View Post
    Is it mortgaged and if so what is the return on your initial input? And let's say you now factor in any increase or decrease in value to give a fair comparison.
    Correct. Leverage is a huge component of return on investment, and is the main reason people invest in rental property - residential or commercial - over other opportunities.

  2. #107
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    Quote Originally Posted by artemis View Post
    Correct. Leverage is a huge component of return on investment, and is the main reason people invest in rental property - residential or commercial - over other opportunities.
    Yep. Gotta be sure you're not comparing apples with trucks.

  3. #108
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    May 2014
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    Quote Originally Posted by fungus pudding View Post
    Is it mortgaged and if so what is the return on your initial input? And let's say you now factor in any increase or decrease in value to give a fair comparison.
    nah wasn't mortgaged at that point in time as I had sold off other rentals and paid down the remaining mortgage

    But with leverage if the gross yeild is less than the mortgage interest rate, leverage is just gonna make it worse



    But yeah, i'm fully aware property i quite in depth to work out ROI, you have leverage, tax breaks, cap gain etc etc. Its not as straight forward as shares.

    But given cap gains had gone up so much faster than rents and IMHO market was near the peak, i elected to liquidate my most of my rentals and put the money into other stuff, which happened to be managed funds, etf, private equity, harmoney etc

  4. #109
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    Aug 2015
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    I own a few properties, I measure their yield on current market value and return on initial investment. Selling off the biggest one as it is mortgage free....doesn’t affect the LVR limit on the others. Money will be better used in other asset classes and providing freedom of choice to us. Many property investors measure yield on their purchase value, something I don’t agree with. And yes, the leverage has been fantastic in this past booming market with the low interest rates and some good timing. Previously I put my share profits back into the mortgage when my LVR was higher, now it doesn’t make sense so I am enjoying letting some more of my shares run rather than securing profits a bit earlier (for mortgage benefit). Shares are far more interesting than property!

  5. #110
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    Quote Originally Posted by BeeBop View Post
    I own a few properties, I measure their yield on current market value and return on initial investment. Selling off the biggest one as it is mortgage free....doesn’t affect the LVR limit on the others. Money will be better used in other asset classes and providing freedom of choice to us. Many property investors measure yield on their purchase value, something I don’t agree with. And yes, the leverage has been fantastic in this past booming market with the low interest rates and some good timing. Previously I put my share profits back into the mortgage when my LVR was higher, now it doesn’t make sense so I am enjoying letting some more of my shares run rather than securing profits a bit earlier (for mortgage benefit). Shares are far more interesting than property!
    Except you can't drive past them. Nothing like the thrill of driving past your latest skyscraper.

  6. #111
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    May 2014
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    Quote Originally Posted by fungus pudding View Post
    Except you can't drive past them. Nothing like the thrill of driving past your latest skyscraper.
    it got to the point where I hadn't physically seen a number of mine in 5+ years. It was all on paper pretty much.

    I like going into companies and pretending I am the owner of them (technically I am)

    "yes and can i please change the potato and gravy for a coleslaw?"

    that will be an extra 50c sir..

    "hmmm I am a restaurant brands shareholder... i don't think I should have to pay that... can I not pay that.... I'm not gonna pay that"

  7. #112
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    Quote Originally Posted by fungus pudding View Post
    Except you can't drive past them. Nothing like the thrill of driving past your latest skyscraper.
    Ah ha...but I can see the price change by the second on my screen and as alistar_mid says, I can benefit from the companies e.g. Carnival’s shareholder benefit, or not feel too bad about paying my MIL’s electricity bill/inflated internet charges!

  8. #113
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    Nelson
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    Interesting discussion and I agree leverage is a huge component. But if one has a lowly mortgaged or a mortgage free investment property, an alternative to selling it to buy managed funds or shares is to simply remortgage it and invest the money in shares. Invest in 2 markets at the same time. I personally feel I am not getting the most out of my equity, including rental properties, if they're mortgaged below 60-65% of market value as I don't "need" the income from them for personal use yet. So I keep topping up the mortgages to invest further.

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