simple

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About simple

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  1. Yep, back to GHPC days.
  2. In $US gold did not move up much at all since COVID-19. We are still at 2011 levels. If it goes closer to US$2000 mark, it will be about AU$3000. Now that is entertaining.
  3. Добрый День Bank account in Russia could be reliable but getting money out of Russia is another challenge. Relatively strict controls are in place that limit transfers of any significant amount. Tested 6 months ago. BTW, we both seem to joined simplesustainable in 2009
  4. Swaize, what access level membership I need with Socrates to access data on Silver/Gold? Basic, Plus or Pro? His projection to 2024 in Gold is bit of gamble, if Gold to raise to say US$2000 but AUD/USD at the same time recover that benefit can be nil in AUD. What are your thoughts?
  5. Interesting conversation with a friend in PNG toaday. Construction is booming. Gold mines are closing down, cost of gold is too low to allow them to operate at profit. Think about it, it's rich ore there, labour is cheap. Still expencive to mine?! I guess one major ongoing expence will be bribes to lockals....
  6. Resources may actually solve high housing debt issue. If 'they' keep on kicking can down the road for 10 more years as they did for last 5, inflation will catch-up making size of loans look reasonable. On the top of it, people will be some 15 years in to repayment anyway, probably reducing loans value some 40%. It that is the plan "they" meant for us, they effectively will be robing people with money on the account, subsidizing people in-debt. Not a bad approach to quietly tax wealthy to feed the poor.
  7. I came across a man some time ago who was from Europe and specialized in analysis of countries resource sectors. I met him true work and still remember his comment about Australia. Main point was that we are very small nation with lots of land and wast resources. Resources per person, Australia was/is in top 5 of the world, with unique position been noted that we posses almost all known minerals. I am not saying that mining boom will save us all to prosperity, but this is about resource reach countries around the world with stable governments, they always did and still do just fine (until run out, aka Dubai). Can this be our main point of difference when we compare our self's to Japan/USA? How can this play out for us in the view of maintaining healthy GDP, unemployment and ability to pay for the debt? Ummester: The thing is simple - housing isn't an investment for 75% or more of the population. +1 from me.
  8. I thought I add: This was the reason I suspended my investments in RE in 2006, I expected crash within 3-5 years. Now 5 years later I am back on the market, I have no time to wait. Who knows, maybe this is new norm?
  9. I see your point. 8% is possible, with some risk taking I have seen guys score 9-10%. I just settled last month on 7% return. And yes, it's nice enough to live-in if you have to. That is Brisbane 15km radius. Mortgage - hm, this is where people get done. Got to pay cash or have cash on offsett account. So you pay no interest, or very little. You can barrow to, but then you risk interest rate fluctuations and as you say get your self in to 25 years contract. Invest only what you can afford to loose, old story. I agree that it's is still a gamble but to much lesser degree. You got to make sure that rent is paid and hope that government do not consider to introduce some major landlord tax (as in some countries). Australia property prices - agree, not attractive. I can buy 2 high end houses on the waterfront in Hungary/Croatia/Spain for the price we pay here for mid-class house! But while I am still in Australia, it's easier to invest and control investment locally. Unless you move overseas, you stuck with what this country offer.
  10. Thinking out loud. This is what I trying to say, acting on thinking what happens tomorrow is a gamble. In some cases is educated gamble, but still you are gambling. Instead, observe what is happening today and make moves to profit from it. If done correctly, you will make money regardless what will happen tomorrow. Example: You located property for $500K returning 8%. Money earning in the bank 4.5%. You purchase, and net aprox 5.5-6%. You are about 1% better off = cashflow profit. If tomorrow RE drop in value 30%, do you care? You still returning 6% on invested amount. Drop in value just opens more opportunities, you go out and buy some more. If tomorrow RE increase in value 30%, your asset worth $650. Do you care? You still get your nice 6% return on money. But you just got your RE inflation adjusted.
  11. If you are rite, he saves some money. If you are wrong, he looses some money. Sounds like russian rullete. Can you aford to gamble that much money? If so, act accordingly. If not, make decision on what is fact today not speculation about tommorow. Acting on what tommorow may/maynot be is pure speculation. I know, I lived in western europe thru 1990s... event.
  12. Having a dosen of properties for rent is a business like any other. Your rent can detoriate or increase based on what you do to the dwelling (renowate, value add or develop). Your capital growth is speculation regardless it's been a RE or Manufacturing business. When business is sold value calculated as a ratio of income to the asking price plus any RE + GoodWill + stock on hand. I got both, and see no difference between them. Plenty of people buy ' non RE business' hoping to sell it some 2 years later when market improves together with profits. Mispriced RE same as any other Business is subjective. While you have buyer/s it's not mis-priced. Some may see value, others may still make prifit on it. If market pay for now asking price, this means it's priced correctly. What happens tommorow is unknown. In 2006 I was positive to see 30% correction in pricing of RE. Now it's 2013, I turned out to be frong with my timeframe or expectation. Does it mean RE was mis-priced in 2006? Today it still worth the same amount of money (+/- 10%), is it mis-priced even considering the fack we had 7 years worth of inflation?! What's your view on it?
  13. Maybe some are but not all. Think about it, if purchasing business (unless it owns RE) your capital risk is very high, its possible to loose the lot of capital quickly. But at the same time return is in the range of 10-35% (approx). So one can say by purchasing business you are speculating on income/cashflow? Realestate on the other hand, returns about 5-8% (if run like a business) and have very low risk of the capital loss. At the same time your initial investment value grow at the rate of inflation. Investors that like to accept higher risks are tend to be involved in business while more defensive thinking individuals are parking money in RE.
  14. Sometimes. When purchasing I normally get over 100 ounce pet lot. So, ask them to do 10 ounce bars pricing for 5 ounce nuggets. It's not that much of the difference, more of the fun than actual bargain. The fact is, from the moment they invoice you and the day funds clear on the account several days pass. And during that time the price swings can be dramatic either way, canceling out any discount you may have gotten. It always fascinated me, how do they operate in this environment? Do they hold GOLD on consignment for the mint and sell at spot + margin???
  15. Looking at the price level and current hesitation up/down of Gold I am tempted to add some more physical. I hear people losing large sums of money over last two months on paper Gold I wonder why do I seldom hear of people making lots of money when prices go up? Do people keep it 'low' when profits made and 'scream' when money are lost? Or because majority always loose money and guys that make money are in the different league...