Opinion sought on investing advice given to me:-

[undesign]

Ah right - understand what you're getting at now. Word of advice - do not take investment advice from friends, family or over the internet for that matter.

Unless you're on good terms with Warren Buffet, that is...

+1

 

[guest2013-1]

if gold was at 500 dollar like it was in 2000 then i would yes. buying gold at near 900 dollar means if it goes down (oh yes it will) you lose money.

dont do it

 

[oober]

Ah right - understand what you're getting at now. Word of advice - do not take investment advice from friends, family or over the internet for that matter.

Unless you're on good terms with Warren Buffet, that is...

In other words don't bother with this thread.

 

[Dolby]

Can someone check out my post and let me know if I'm right?

 

[oober]

Can someone check out my post and let me know if I'm right?

No you are missing the fact that you still owe the bank their money.

 

[Dolby]

If that million is cash ... ?

Putting R1 million into property shares compared to real property is the better choice?

 

[oober]

If that million is cash ... ?

Putting R1 million into property shares compared to real property is the better choice?

What a complicated way to ask a question. Well I suppose you would have to look at the returns of the two and what their correlation is. I can't help you with those figures though.

 

[Waaib]

If you bought a R1million plot of land in Sandton and held it for ten years vs putting R1million rand onto the stock exchange in Sandton. Which would be less risk? Which would give higher returns? And why ...

 

[Bondizzo]

If you bought a R1million plot of land in Sandton and held it for ten years vs putting R1million rand onto the stock exchange in Sandton. Which would be less risk? Which would give higher returns? And why ...

Theres risks on both sides, your land could become unusable do to varying factors, what if Sandton becomes like inner JHB in 10 years time ?

 

[Dolby]

If you bought a R1million plot of land in Sandton and held it for ten years vs putting R1million rand onto the stock exchange in Sandton. Which would be less risk? Which would give higher returns? And why ...

Yea - but take away the initial fees (transfers, costs etc etc) and your plot that you're buying is effectivly R950,000.00. You may make money over the 10 years - but come time to sell and you're hit with both CGT and 8% agency commision. Also bear in mind the monthly expenses such as levies, rates, taxes, insurance on building and income tax yearly. In this amrket, you're probably paying 15% of your rent out on monthly expenses.

The risk (as it's renting out) is :

A) Maintenance of the place while the tenant is there. Simple things like paint and carpets can be R20,000.00.

B) Risk of the tenant not paying - which is pretty common.

I also thing propery shares are pretty stable?

All I'm saying is it's not clear cut between the two (in my eyes)

 

[Slootvreter]

What kind of property should I buy for R200k?

True.