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  1. #111
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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"

  2. #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!

  3. #113
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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.

  4. #114
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    Quote Originally Posted by iceman View Post
    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.
    Exactly. Leverage is great with property cause it amplifies your returns when starting out, and then at the other end of the investment lifecycle you have a credit facility that because its secured on something banks like (property) you get to borrow at low interest rates.

    For me starting in property investment in Auckland 15 years ago, and I stress INVESTMENT not speculation... ie yield based where I buying apartments and townhouses weekly rent close to 1/500th capital value - eg a place I got for $188k at panmure I rented it for $360 a week, a studio in Emily place $140k, rented for $320 a week. The golden era of yields.

    But over time, capital value growth outpaced rent growth, yields fell, and eventually you get to where you are sitting on a bunch of money and its return is quite low. So I liquidated all but one, paid off the mortgage on that one and on the primary residence. The reason I kept that one, as I figured its not a bad idea to have some exposure to the Auckland property market long term (primary residence doesn't really count).

    But yeah having it mortgage free, $650k value with a rent of $600 a week (this was the same place that was originally $188 / $360), I decided to draw down on that equity and throw just over $100k in harmoney (I call it the harmoney experiment), throw some money into PE (milford PE fund 2 and various snowball effect stuff) and random other investments.

    Its been good, I still have a whole bunch of equity I could draw down on, I think some debt is good esp with these interest rates, but given 8 years of strong markets, not too much debt... need to remain cautiously optimistic
    Last edited by alistar_mid; 01-02-2018 at 12:38 PM.

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