Anyone do any Investing?

[Nastycrow]

Originally posted by: the0n3
Date: June 03, 2009 at 01:02 PM
Source: https://forum.mmajunkie.com/threads/anyone-do-any-investing.14100/

Im always looking at ways to make money and stop having to work. I have only come accross a few plans in the past few years that seem interesting.
I am interested in property investing. Having multiple properties and renting them out to cover the mortgage repayments. I like this idea because it is fairly easy to understand.
Ive looked into the sharemarkets and read a few books on the subject but dam it is confusing! It also appears that there is a lot more risk with shares. One of the guys I know at work has recently started investing in the futures market. Im always getting him to explain his methods of how things work, trying to learn about different ways of investing.
Does anyone here have any investment strategies or plans that they are following currently?

 

[Nastycrow]

Originally posted by: SafyreSchool
Date: June 03, 2009 at 01:26 PM
Source: https://forum.mmajunkie.com/threads/anyone-do-any-investing.14100/

the good; i made 2k out of selling my random ameritrade stock in the beginning of 07.
the [potentially] bad; i would have lost 30% of that had i kept it at the end of 08.
the ugly; i lost that amount anyways because i was taxed $385 by the IRS.

 

[Nastycrow]

Originally posted by: Gordon
Date: June 03, 2009 at 01:32 PM
Source: https://forum.mmajunkie.com/threads/anyone-do-any-investing.14100/

I have dabbled in the Stock Market a little bit.
I pulled most of my money out a couple years ago when I bought a house. Needed to furnish the place!
I don't dare offer any advice to anyone looking at playing the market, but you can get a lot of good info and websites with a little Google Search.
I did ok, obviously some days better than others. In a little over 2 years I took my $1500 original investment up to about $4400. There was a WHOLE LOTTA luck involved in those gains though!
Currently i have only 1 stock. It is an extremely long term hold. So i don't do a whole lot of research on anything anymore.

 

[Nastycrow]

Originally posted by: the0n3
Date: June 03, 2009 at 01:33 PM
Source: https://forum.mmajunkie.com/threads/anyone-do-any-investing.14100/

^^ Yeah sucks how the government always wants some of your capital gains.
Were taxed to death over here. Even when buying a house we have something called "stamp duty" which is basically just a 20,000 fee for buying a house. Then if you sell the house you have to pay the government on any capital gains you made from the sale!
I plan on getting investment properties and not selling them, just keep the rent coming in to cover the repayments and eventually up the rent to the point where I am making an income. The plan is to get enough properties and income coming in from rent, then I dont have to go to work all the time.

 

[Nastycrow]

Originally posted by: EdoKaz818
Date: June 03, 2009 at 01:44 PM
Source: https://forum.mmajunkie.com/threads/anyone-do-any-investing.14100/

If you have good credit and can get a house for very low monthly then it would be a smart idea to rent them out for more. Its better to start small instead of going all out. Rent prices change like house prices also.

 

[Nastycrow]

Originally posted by: the0n3
Date: June 03, 2009 at 01:54 PM
Source: https://forum.mmajunkie.com/threads/anyone-do-any-investing.14100/

Gordon said:
In a little over 2 years I took my $1500 original investment up to about $4400. There was a WHOLE LOTTA luck involved in those gains though!
Click to expand...
Yeah thats my issue with the stock market.. risky and confusing haha

 

[Nastycrow]

Originally posted by: Gordon
Date: June 03, 2009 at 02:00 PM
Source: https://forum.mmajunkie.com/threads/anyone-do-any-investing.14100/

Thir13en said:
Gordon said:
In a little over 2 years I took my $1500 original investment up to about $4400. There was a WHOLE LOTTA luck involved in those gains though!
Click to expand...
Yeah thats my issue with the stock market.. risky and confusing haha
Click to expand...
Surprisingly with a little research a lot of, notice a lot not ALL of, the moves the market makes make a lot of sense.
I found a few programs that teach you what to watch and instead of buying them I pluggeed their strategies into my own charts and programs and made out pretty well. I did more of what's called swing trading. I would buy a stock at a low point when the signals said buy and would sell at a, hopefully, high point when the signals said sell. Sometimes it didn't work so well other times it worked GREAT!
Most of my profit came from a small Canadian Mining Company. I bought in and it ran up a little bit and then a larger company bought them out. I bought in at like $3 per share and the purchase price for the buy out was like $12 per share. 250 shares with a $9 per share gain was pretty sweet! Plus it all happened in a matter of 3-4 weeks!

 

[Nastycrow]

Originally posted by: the0n3
Date: June 03, 2009 at 02:19 PM
Source: https://forum.mmajunkie.com/threads/anyone-do-any-investing.14100/

Property is on the rise here... prices keep going up in my state. Last year standard 3 bedroom house would cost around $220,000 in a decent area. This year those houses are up around $270,000-$280,000
Most rental prices ive come accross have sat around 10% of the value of the house. EG $250 per week for a $250,000 house.
Obviously this has a limit because no one is going to rent a $1million dollar house for $1000 per week. They would just buy their own house. But having your house go up in value gives you equity to buy another investment property, continuing your income stream.
Im looking at getting an investment property soon, im luckily in a good position. No credit cards and my mortgage is low on my current house. I think it would be very difficult for someone with no captial behind them to get into property investment. Thus the rich getting richer scenario.

 

[Nastycrow]

Originally posted by: Brick
Date: June 03, 2009 at 02:41 PM
Source: https://forum.mmajunkie.com/threads/anyone-do-any-investing.14100/

I've been a landlord on multiple properties for a few years now. Just know going in that it is a HUGE time drainer, you can compare it to a part time job. I'm sure you've thought of that, but just wanted to make sure.
Negative cash flow from repairs will probably be more than you are expecting, so make sure that the rent doesn't just cover the mortgage, but gives you significant positive cash flow to cover this expense. A lot of that depends on what type of property, tenant, or neighborhood you are dealing with, but if it is anywhere below average, you can count on a tenant here and there leaving you a trashed house that you will need to spend a few grand getting fixed back up. And if your tenant/landlord law is anything like here, you will have virtually no recourse against them.
Most of what I know is specific to U.S./Ohio laws and business, so I don't know how much else would be useful regarding taxes and whatnot. But I would say, overall, don't look to investing in real estate unless you are already sufficiently diversified in other securities. If you already have a ton sunk into stocks, bonds, and the like, than real estate can be a good way to diversify and get into something else, a little more speculative and active. But I would not advise someone just starting out their portfolio of retirement savings to start with real estate.

 

[Nastycrow]

Originally posted by: the0n3
Date: June 03, 2009 at 03:31 PM
Source: https://forum.mmajunkie.com/threads/anyone-do-any-investing.14100/

^^ Yeah ive been considering the positives/negatives. Ive looked at around 40 houses in the past few months but havent settled with anything yet. Definently doing my homework before making a decision.