Stern says: Invest your moniies

[CptStern]

just a friendly reminder ..wish someone told me this when I was young:

INVEST IN PROPERTY ..go now take monies and buy property ..I've currently listed my house for twice the amount I paid for it (8 years ago) ..I rented out the basement for 3 of those years ..that covered a good chunk of the mortgage so my out of pocket money is less than $60,000 (mortgage /interest over 8yrs) for a total gain of over $250,000K meaning I can put that toward the purchase of another house which I will have fully paid off in less than 10 years ..meaning the next property I purchase after this one will be cash ..meaning no mortgage/interest payments (usually up as high as $100,000K over a 25 year period) ..not bad for an initial investment of $20,000 (down payment)

I put in a bid for a new house yesterday that had a $40,000 kitchen renovation (granite countertops, imported marble floors, built in appliances (the fridge was internet ready)), built in internets in most rooms, built in surroundsound in family room and 2 offices ..the house was renovated top to bottom with high end materials and looked awesome ..I had a bidding war with another couple and lost ;( ..by only $1900 ..we went $30,000K above asking price. But I also put in a bid for a house that's $50K cheaper. It needs some work but that means more room for profitability ..it's also 4 houses down from the one that sold yesterday


so in conclusion try to save money while you're at home, invest that money in property either while you're still at home or when you can afford to carry a mortgage (partner up with family members) ..in 10 years if you've purchased smartly you can double your investment ...do it now while you have little to no responsibility ..I invested $3,000 (my life savings) in a house my dad and brother purchased when I was 16. We then renovated and sold it for a profit ..I made almost $7,000 for about a month's work

 

[Cormeh]

Property = monies? :O

No shizzle sherlockizzle!

Property is becoming less affordable by the day. You speak wisely o Stern, but never bite off more than you can chew.

 

[StardogChampion]

Do you not watch those property tv shows? They buy a piece of crap for ?25,000 then sell it for ?200,000.

 

[CptStern]

of course not ...always buy what you can afford, never overpay market value unless it's within reason and can be recouped ..sell within 6 years for maximizing your investment

those real estate shows are somewhat decieving ..buying a house for say $200k and dumping in another $100K renovations doesnt mean it'll sell for $300,000 ..you can lose your shirt if you dont gauge the market correctly

 

[Cormeh]

Do you not watch those property tv shows? They buy a piece of crap for ?25,000 then sell it for ?200,000.

From what I've seen, these shows always cover some middle class tossers who can afford to spend a small fortune renovating, which can tally up to as much as the house.

Property is a great way to make good on investments, but it just plain sucks for first time buyers.

Another factor besides the property itself is its location. If its in a shithole scheme or area, it won't amount to much.

 

[Sir Phoenixx]

Our home/land was appraised a year or two ago to be about $225,000 (bought like 10 years ago for about $150,000), it was appraised again recently to be about $335,000. Plus the airport we live near has plans for a future runway to run across the area. If they want the land enough, we could get a good deal for it.

 

[CptStern]

dont hold out too long they could always just build around you meaning your house will seriously devalue

From what I've seen, these shows always cover some middle class tossers who can afford to spend a small fortune renovating, which can tally up to as much as the house.

Property is a great way to make good on investments, but it just plain sucks for first time buyers.

the biggest problem is coming up with a down payment ..but it's slanted in your favour ..at least in canada it is ..you only need to provide 5% downpayment instead of the regular 10% ..plus firt time buyers can take up to $20K out of rrsps without a penalty

Another factor besides the property itself is its location. If its in a shithole scheme or area, it won't amount to much.

yes that is the key: location ..investing in a bad neighbourhood (unless it's on an upswing) is a bad idea

 

[lePobz]

I invest my monies in ladies. Get them out on the street makin more monies.

 

[Cormeh]

the biggest problem is coming up with a down payment ..but it's slanted in your favour ..at least in canada it is ..you only need to provide 5% downpayment instead of the regular 10% ..plus firt time buyers can take up to $20K out of rrsps without a penalty

Agreed. Many mortgage providers now allow a 125% borrow scheme where all of your solicitor fees, down payments etc. can be handled on your repayments. Unfortunately you'd have to go to about 40 years from the standard 25 to bring down the payments.

 

[CptStern]

meaning they kill you in interest ...ouch ..best to have a down payment and try to pay as much up front as possible because for the first fewe years you dont pay anything down from the capital cost (house cost) ..it's purely interest payments

 

[NeptuneUK]

House prices in the overpopulated shit hole known as 'the UK' are getting more ridiculous by the week.

 

[Gorgon]

sTERN, is 100% right... investing in houses is the way to make loads of money now these days.

I am buying one soon.....

 

[CptStern]

that's the key to a quick way to make monies ..finding a pocket that's on upswing, paying under market value and then selling when it hits peak

I get offers tommorrow on my house ..it's a shack but is listed at half a million

my current house is about this size:

but it's in a very high demand area ...there will be a bidding war.

 

[Sulkdodds]

But what if the housing market (or oil economy) crashes?

 

[Cormeh]

But what if the housing market (or oil economy) crashes?

Portal storms.

 

[CptStern]

the housing market never collapses ..it has ebbs and flows but you can pretty much bank on an increase on property value in even short time periods ..land is limited so there will always be a demand ..however buying a crack dealers house in a crime ridden neighbourhood wont make you a dime

 

[dream431ca]

But what if the housing market (or oil economy) crashes?

I would love that to happen. Then we could actually afford something (where I live anyway).

 

[Krynn72]

Oh god... there are so many "k"s in this thread. I can hardly afford my 4 HUNDRED dollar apartment.

Im gunna go cry now. Thanks Stern for making me feel like a lowlife

 

[Javert]

Stocks > property.

 

[99.vikram]

Wouldn't you get the best returns if you split it between stocks and property?

 

[CptStern]

stocks are a gamble but they can yield higher returns in short time spans but it can also go the other way, you could lose everything. blue chip stocks while much safer is better for longer term investments

Oh god... there are so many "k"s in this thread. I can hardly afford my 4 HUNDRED dollar apartment.

Im gunna go cry now. Thanks Stern for making me feel like a lowlife

heh I'm already established career wise and I have a wife and 2 kids so I'm bound to be just a little further ahead

 

[Javert]

stocks are a gamble but they can yield higher returns in short time spans but it can also go the other way, you could lose everything. blue chip stocks while much safer is better for longer term investments.

Yes, you can lose alot if you play with small/micro-cap stocks. But investing in growth stocks (Apple, Gamestop, Disney, Boeing, oil companies) have a nice combo of safety and growth.
Blue-chip aren't money makers. They're more like retirement stocks.

 

[CptStern]

Yes, you can lose alot if you play with small/micro-cap stocks. But investing in growth stocks (Apple, Gamestop, Disney, Boeing, oil companies) have a nice combo of safety and growth.
Blue-chip aren't money makers. They're more like retirement stocks.

heh you can tell how much I play the market

you can get big returns in property as well ..flipping, rental units etc ..also you can climb the property ladder by selling each property in no more than 6 years so that you you're not chiping away at your future return through interest payments and can leap frog from one level to the next ..but much like stocks it's also a gamble, nothing is a sure thing

 

[Solaris]

The UK housing market should crash quite soon, I'm waiting for that.

 

[ríomhaire]

They've been saying that about the Irish market too, for the past few years.

 

[Sulkdodds]

I'm going to crash my housing into your face.

 

[CptStern]

I'm going to crash my housing into your face.

homewrecker!

 

[Adrien C]

Its imposible to buy a house is the UK, people take 50 years loans !
50 fuken years people !

 

[Bob_Marley]

Tis pretty nutty.

Thats why I'm waiting for the long awaited crash.

Though I could be waiting for a long time... :|

 

[CptStern]

Its imposible to buy a house is the UK, people take 50 years loans !
50 fuken years people !

ya but that's stupid as a big chunk of that will be interest payments ..you start low and use your accumulated property worth/profit to move up the property ladder

i'll have my mortgage paid in 12 years and I just bought my house (monday night)

 

[Gray Fox]

A friend of ours just sold her property for ten times what she paid for it. We would have done the same if my dad would not have been such a pain in the ass and let my mom buy property.

Basically she and her friend were planning on buying some property near beaches in Croatia. Because they knew once Croatia would start the negotiations with the EU for membership, prices would rise. My mom was stopped by my dad, but the friend bought the property for the equivalent of 18,000 euro's. Now she sold it for 180,000

 

[Javert]

Bwahaha! Warren Buffett just announced he's going to invest in healthcare, the same industry as me. I woke up with $2.18 increase in my stocks. Times that by 150, and that's how much money I made today.