why NOT listed Property Trusts

[777]

Does anyone follow

http://www.directproperty.co.nz/

[fungus pudding]

Does anyone follow

http://www.directproperty.co.nz/

First I've heard of them. Shares are 14,500 each by looks of things, but I have no idea of returns etc. Web site is vague. Like to know more.

[loofa]

What/who is "CMC" charge?

CMC Markets charge 5.5% (rate today) for the 90% they are loaning against.
So if the yield is 12% and there is no change in price of the CFD, you make a margin of 6.5% on a day to day basis.

[voltage]

loofa, i am ignorant of CFD. Obviously these are leveraged products. Could you expand further. thanks. If I borrow to invest is this the same thing

[GR8DAY]

....ok cheers loofa. just started looking into CFDs today after your comments so still trying to get my head around them also. I guess it would be just as easy to mortgage the house and throw it at LPTs to make the same gain...as you say money for jam?? do you have any prefered LPTs and for what reason?

Gr8day

[voltage]

FP i suppose an LPT is just like any other share but focused on income. Does this mean you should include other income shares inNZ that pay a high dividend

[fungus pudding]

FP i suppose an LPT is just like any other share but focused on income. Does this mean you should include other income shares inNZ that pay a high dividend

If you want to. I don't because I have huge confidence in bricks and mortar, and no confidence in run of the mill widget manufacturers, retailers etc. Also I know a large number of people who make a damn good living from real estate and many are including the listed trusts now because they represent better buying than the direct market. But I have never met anyone who lives off the sharemarket through general shares. Which is not to say they don't exist - just that they seem to be well hidden.

[voltage]

thanks FP I do welcome your comments, you certainly know what you are doing. Do you buy all the LPTS available on the NZX?

[fungus pudding]

thanks FP I do welcome your comments, you certainly know what you are doing. Do you buy all the LPTS available on the NZX?

No. I have 25,000 Apt. 50,000 GMT. 150,000 ING. 50,000 KIP, 100,000 KPF. 315,000 DNZ (unlisted) and a few bits and pieces in some Australian syndicates, one American, and some NZ proportional titles. My main income is from a couple of commercial buildings. I am really interested in that Direct property fund mentioned a couple of posts back so will follow it up. I got to the stage in life where I have no mortgages so just intend to keep dumping my surplus into LPTs and the like. I'm not suggesting that being mortgage free is a great thing - it carries the risk of losing out in times of high inflation and capital gain. But it suits me these days because buying has become too competitive, i.e. returns don't excite me. As I said, I just keep concentrating on stacking up income and that has meant repaying mortgages which has given me a better income than buying more property. Personally I see little point in becoming better off on paper all the time, while being stretched for cash. It's necessary when you start - but there comes a time when you think 'enough is enough'. As I've often said 'the funny thing about real estate is it will keep you poor while you're getting rich'. Amen

[beacon]

As I've often said 'the funny thing about real estate is it will keep you poor while you're getting rich'. Amen

Brilliant elucidation. kudos