You need to register separately on the Chart Forum
- see Chart Forum Help
Edit Profile Profile Help Help
Forum Rules Forum Rules Advanced Help/Instructions Advanced Help
Search Last 1|3|7 Days Latest Posts Latest Posts
Search Search Forum Tree View Tree View
   
TSX Stocks 15-minute delayed

Property Trusts?

Chart Forum » Stocks - ASX: long term & fundamental » A Portfolio for To-Day. » Property Trusts?

««  «  Previous  Next  »  »»


 
Thread Start New Thread 
Last Poster Posts Pages Last Post
         

Author Message

Top of pagePrevious messageNext messageBottom of page Link to this message
nat
Member
Username: nat

Post Number: 43
Registered: 01-2005

Rating: N/A
Votes: 0


Tuesday, September 26, 2006 - 08:25 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Hi there ,mainly question for peter althou anyone comments be good ,Im wondering about property trusts and investing in them instead of property at the moment ,
Ive done ok at proper houses but as everyone knows houses arent going to go up much more really in general and one has to sink 180 to 250000 these days to get into one and is just not worth it in my opion ,+ to get into a house your looking at 6000 to 10000 roundabouts for stamp duty and legals ,so you are behind the 8 ball right from word go .


So i was thinking make a list of property trusts find out what div they normally pay ,wait for stock to bottom out from a down trend and buy in around 100000$ worth which is cheaper then buying a house ,less maintenance and hopefully get some ok divs to help pay loan and if stock rises by ? amount sell out then do all again another time ?

Is this a stratergy used and is there pit falls to it does anyone know ?

Nathan


Top of pagePrevious messageNext messageBottom of page Link to this message
moleman
Member
Username: moleman

Post Number: 208
Registered: 10-2003

Rating: N/A
Votes: 0


Tuesday, September 26, 2006 - 12:18 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Hi Nat

Not everyone believes houses aren't going to go up further. I went to a Michael Yardney seminar a couple of weeks back and he believes Melbourne is leading Sydney in starting the next growth cycle and now is a great time to buy. He gave very good reasons for this including migration patterns, quality property and land shortages, and rental yields. And by using the right finance, he showed that you can still find an investment property in a Melbourne suburb that's going up on average 10% a year that's cashflow positive from day 1. Sounds good to me! With property trusts and residential property, I think you're comparing two different investment vehicles each with it's own benefits and disadvantages. Why not use both?

Many of the property trusts pay dividends every 6 months so are good candidates for dividend stripping. I think the same rules apply as whenever you do a strip - do it for shares that you think are going up. Also I need to get at least a 10% return from the dividend using margin lending, which is a rule I use from a dividend stripping watchlist service I subscribe to. The guy who runs it usually sells once he's profited by the dividend amount per share but I've found this to be a good entry technique for long term holds. For trusts that don't pay franking credits, I've seen people use CFDs to do the strip but haven't looked into this.

The pitfalls, well the price could keep going down after the ex-date... And property trusts are less volatile so could take a while to turn around which could be a factor if you're paying interest. Also you could get a better rate of return by stripping or trading a more volatile share. But since many of these trusts are in long term uptrends you have a good chance of success.

cheers

MM







Top of pagePrevious messageNext messageBottom of page Link to this message
nat
Member
Username: nat

Post Number: 44
Registered: 01-2005

Rating: N/A
Votes: 0


Tuesday, September 26, 2006 - 07:59 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



hi moleman thanx for the reply,while there is always areas where property will go up, around my area i work with in sunny QLD the opportunity to get a property any where near cash flow positive is near imppossible ,thou a few more interest rate hikes will get a bit of panic selling going to the overextenders on there loans and will bring back to a more reasonable level,im always looking for more but thought might try a diff angle on property for a bit.

Also was thinking of maybe getting propery stocks that have options to and using them for simple insurence and nothing else ,as got to pay insurence on a real house every year ,again not something im real familar with ,but i think some banks on margin loans with safty net prices ,im guessing thats all they do .

Looking at div yeilds on commmsec some pay 9%thou when taxed would bring it back ,but then again if borrowing full amount ,i suppose would get tax bracket back a bit ,might have to just put them in a watch list and c what happens between cycles and div pay outs .

Is that div stripping you do from that fello that has name of rozzella ?He sounds like hes got it sorted out ok ,i saw on another forum some one did a test even in 3 years before this bull market and it still came out on top so not bad results for a relatively simple system
Nathan


Top of pagePrevious messageNext messageBottom of page Link to this message
dug
Member
Username: dug

Post Number: 1462
Registered: 07-2005

Rating: N/A
Votes: 0


Wednesday, September 27, 2006 - 07:57 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Hi nat,
There's a Big Trick in Property Trusts that I'll try to explain.
"THEY" have this formula used to value their buildings.
Eight[8]times Gross Rent=Value of Building.
"They" then artifically set the highest rent "They" can[not necessarily ever[EVER] received] and thus get the highest building value and then borrow say 85% of this inflated value AND charge their fees on this exaggerated 'Capital under Management"figure as well!!

It's not a good idea to borrow yourself to invest in Companies/Industries that are highly geared themselves.

I've read rozella's method elsewhere,too.I think you,nat would be better off investigating that.Pemail me and I'll give you another site where it's explained.

cheers,
jr


Dig for the sake of it.

Top of pagePrevious messageNext messageBottom of page Link to this message
moleman
Member
Username: moleman

Post Number: 209
Registered: 10-2003

Rating: N/A
Votes: 0


Wednesday, September 27, 2006 - 11:20 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Hi Nat

Yes I use Rozella's method and combined with indicators have found it very useful for increasing my percentage of successful trades.

When I replied to your post I thought you were looking to dividend strip the property trusts at the end of the year but you're looking to buy and hold them as the QLD residential market is overdone aren't you? Besides what Dug wrote, I think a few scribbles on the back of an envelop will show you won't get the same cash on cash returns you'd get from good residential property. Also its much harder to buy under market value and you can't add value. You can't trade options on most of the LPTs and on the ones you can liquidity is an issue. Me, I like Peter Spann's approach of investing in residential property for capital growth then using dividends from LPTs and covered calls to help with cashflow. I do trade in and out of the LPTs as many are in long term uptrends and channels and will divvy strip in December.

The Perth market is also overdone so something we've been looking at is http://www.dha.gov.au/for-investors/purchase. We haven't bought from here yet- but you say you're always looking for more so may find it an interesting alternative.

And on that seminar I mentioned I found out about a new loan for property investors where half the interest is capitalised for the first 5 years. The overall rate is a bit higher, though you can refinance after 2 years, but by pushing the repayments back it means a property paying 4% rent will likely be cashflow positive for the first 5 years with the expected rental increase making it cashflow positive after that.

But this ain't the bleeding Somersoft forum so I'll leave it there...

cheers

MM







Top of pagePrevious messageNext messageBottom of page Link to this message
nat
Member
Username: nat

Post Number: 45
Registered: 01-2005

Rating: N/A
Votes: 0


Thursday, September 28, 2006 - 12:18 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Hi there ,yes i am more looking to buy and hold but get in on a retracement or bottoming out using ta ,but maybe select out of a best of bunch using funnymentals to short list then id get a rise as well as div well and good but have a stop loss as well equal to or there abouts on what id normally pay for stamp duties and legals when buying a house.

As dug has pointed out it mightnt be as good a stratergy as one first thought ,will continue to do a bit more research on it.Thanx for those other links moleman ,is interesting stuff to consider,Nathan

Add Your Message Here
Post:
Bold text Italics Underline Create a hyperlink Insert a clipart image

Username: Posting Information:
This is a private posting area. Only registered users and moderators may post messages here.
Password:
Options: Enable HTML code in message
Automatically activate URLs in message
Action:

 
Other Threads  
Last PosterPostsPagesLast Post
TLSCA - T3 Different From T2wadda12-Mar-07  11:25 pm
JST - A Star In the Making?peterloh44 11-Mar-07  10:59 pm
TWR Is there more to go?peterloh27-Feb-07  12:31 am
SAI - Ready to take off again?peterloh27-Feb-07  12:23 am
MRL - Starting to flex its muscles.peterloh23 27-Feb-07  12:20 am
PBG - Diversified income flowpeterloh29 12-Feb-07  11:10 pm
TransField TSEpeterloh22 06-Feb-07  09:34 pm
Alumina Ltd AWCpeterloh26 25-Jan-07  03:04 am
What do I look For?peterloh11 22-Nov-06  11:34 pm
KZL - multiply last quarter by 4?rederob22-Nov-06  07:17 pm
TSE - new toy from thommopeterloh22-Nov-06  04:58 pm
HSP - Tip from a medical technologistpeterloh22-Nov-06  04:37 pm
WYL - Lady Hilarius won't let gopeterloh22-Nov-06  04:21 pm
Boom Logistics BOLrederob25-Aug-06  05:36 pm

Threads by Last Post Time:

First Previous 82 83 84 85 86 87 88 89 90 91 92 93 94 95 Next Last

Administration Administration   Log Out Log Out    

««  «  Previous  Next  »  »»