Investment Advice

[HugoStroebel]

Very interresting. Nickolai, has the all share gone back to the levels of 2007? I was thinking of making use of Satrix but now you`re making me doubt that. Thanks!

(Some paid for advise is also useless) :P

[Nickolai Naydenov]

All share is sitting at almost 34 000 which is a 1 000 mire than what it was beore the crash, however in real terms it still has to recover.

What are your investment goals, period, risk you are prepared to take, how much money are we talking about, is it lump sum or recurring monthly or both, in what tax bracket are you? These are just some of the things you have to consider first then you can see what platform to use and what asset classes to invest and etc

[wynn]

I would only consider investing in property, not necessarily residential (even if a bomb or angry mob destroys the building at least you still have the ground)

The advantages are short and medium to long term.

You get an escalating monthly income (short term rent) and escalating capital gain mostly tax free (medium to long term increase in the value of the property)

There are many cheap available residential properties on the market at the moment (here I am thinking 2 bedroom townhouses in secure complexes, which the sellers will probably be prepared to rent back from you, then buy back at a higher price in the future)

[Nickolai Naydenov]

I'm sorry but I don't really agree with you Wynn. Property growth between 2002 and 2012 was 98% considering inflation at 6% per annum in 10 years wouldn't have made more money in real terms, also you pay the property about three and a half times during the life of the bond so practically you've lost money. To compare that if we take Coronation Top 20 if you had R100 000 in year 2000 in year 2010 you would of had R692 000. I have a client that has made over 100% in five and a half years, I've also got a few clients that did just over 24% in the last year, I've got the documents to prove it. Petrol increased by 242% in the period 2002-2012 so you judge and make the calculation, I'm just giving you the facts. I thought the same before and I ended up on 4 properties the first of which I bought in 2007 and I still can't break even, I have to pay in every month. Another thing is as soon as you break even and start making money that income will be taxed, when you sell the property you will pay CGT and when you have more than one property then all the taxes and etc will be more as compared to a primary property. In the last 4 years property hasn't grown so taking inflation into consideration property has lost value, there was also an article in e mail and guardian recently that an economist had done some research and said that there is a bubble in SA property. You also think that there is property is cheap but it's not really. My feeling is you don't have any properties because otherwise you would of known about all the concerns that exist and it sounds like you heard that from someone, please don't take offence that's my feeling.

[roryf]

So what you saying is that we should have invested in petrol....

[HugoStroebel]

Buying property in 2007/2008 must have been the wrong decision. I am sure many people can attest to that!

I am in agreement that our property market is in a bubble, just have a look at - http://housepricesouthafrica.com/ for some interesting reading. I have also read many similar discussions, it seems people that like investing in property like the idea of having something that they can touch and see.

Personally I like the idea as well, maybe because the dynamics seem simpler than the financial side!

[Justloadit]

it seems people that like investing in property like the idea of having something that they can touch and see.

In times of financial crises, tangible goods is king as opposed to inflationary paper based investments.
An example, if you are in the middle of the dessert, what has more value, shares in say an oil company, or a camel?

[Blurock]

If I had money when I was younger, I would have invested in property. It can also be a trap if you invest in the wrong property, but can give you an inflation linked annuity income if selected and invested wisely.

[wynn]

Property growth between 2002 and 2012 was 98% (ten years in the property market is short term, but in the mean time you still get rent, interest) also you pay the property about three and a half times during the life of the bond so practically you've lost money (if you think that gearing is a way to make money! I am talking about investing money you have to pay for property not borrowing to own it) To compare that if we take Coronation Top 20 if you had R100 000 in year 2000 in year 2010 you would of had R692 000 (and if nationalisation happens you will have nothing, when Chris Hani was assasinated there was nearly civil war and any paper investments would have made good toilet paper, but property would have still been there even if it had been vandalised and would have stood the test) I have a client that has made over 100% in five and a half years, I've also got a few clients that did just over 24% in the last year (there are a lot of people with serious money who invested in america and lost their shirts when the bubble burst, they showed huge growth on their original investment today not so much!) when you sell the property you will pay CGT and when you have more than one property then all the taxes and etc will be more as compared to a primary property (that is a given but the idea is to try and not sell property, earn the rentals and when you really need to then you sell) In the last 4 years property hasn't grown so taking inflation into consideration property has lost value (but in the last 30 years property has shown a remarkable resilliance and rentals have increased with inflation) there is a bubble in SA property (there is always a bubble in SA property, years ago if you owned a block of flats in Hillbrow you were top of the heap, today not so much, 20 years from now, who knows?) You also think that there is property is cheap but it's not really (you just said it lost value, you can't have it both ways! I say there are bargains out there you will have to do spade work)

Well good luck with "Coronation top 20" but I would also look at "Premium property" to see how you do it

[Nickolai Naydenov]

Ferrarijohn if you want to advertise your business do so in the relevant section please

[Dave A]

If you're wondering who Ferrarijohn is was, he/she just qualified for removal (albeit in another thread).

Rules is rules.

[synergize]

Financial Advice and Asset Management rolled into one

What is the best way to invest money on long term and where? Low risk and high income. (Or is this wishful thinking?)
Regards,
Dirk Fourie

As helpful as these forums are, I do believe that best option for establishing what kind of investment is best for you is by contact a financial services company.

[Rusty Willard]

Looking for an investment advice? try to search from google you can find the best advice. But for me? I suggest that the best advice is to hold what I have and when markets take dive.