Where are you parking your hard earned dollars?

[Autodidact]

Unparking 10 bucks and heading to Cambodia

 

[SwingToWin]

Forget about ladies

never

didn't the CHF unpeg that literally just happened months ago teach anybody that relying on pegged anything is not the best idea in the world? What if some kind of Asian economic crisis happens again and countries start changing their monetary policy. This isn't exactly a safe hedge, it's a "it's always been this way so what could possibly go wrong?" hedge.

the scenario you described is one of the possible risks, sure. you know, all (!) investments have risks. also your properties or bank accounts in the US are not risk free.
now we just need to ask ourselves - how likely is that? in my opinion, it is not likely.
also if the currency were ever unpegged, it would be likely to rise against the USD because of strong fundamentals (GDP growth,...). Sure, it's one of the risks. But in my opinion the reward is worth the risk.
And also you could deposit USD cash notes - without changing to the local currency - and get your 7% a year.


About real estate... really depends on your location. I don't know about the US, but in Europe you can forget it. Rents are so low compared to property prices that it doesn't make any sense at all.

 

[SwingToWin]

I have been reducing amount applied to day trading, summer volume can be horrible slippage even in mornings. Not increasing volume in long term stocks or commodities, have good enough value.

Where I have started to increase is more in Commodity spread trading and much much more in selling stock/ETF options and owning stocks in uptrend of dividend stocks, and down trend ETFs and non dividend stocks.

Have also increased in Tax lien Notes and have started going out few states, get better interest and occasionally property to include farmland and water rights. Been buying up worthless desert so long as it comes with water rights, perhaps one day it worth more than gold.

I think Commodities will be breaking 9 year extremes before reversing, US Dollar has already, I think coffee and sugar will go below lows. But I don't trade on what I think, but when I have signals. I like to be buying Gold and Silver coins, but going to wait as I think both Gold and Silver will continue to making lower lows.

Real Estate is still good to get into 3BR houses or even Quads.

Thank you for sharing, really interesting
Can't talk about tax lien notes or desert/farmland property - that's out of my reach.
But can you tell me more about Commodity spread trading? I have never been able to find an edge there. What are you looking for when trading? Setups, strategies,... I'm really a noob there.
Thanks

 

[Ditch]

never





About real estate... really depends on your location. I don't know about the US, but in Europe you can forget it. Rents are so low compared to property prices that it doesn't make any sense at all.

Quite the opposite in the Netherlands, i.e. in Rotterdam there are plenty of appartments to be had between 50k and 100k. Most of them are in a area in which the government is going to invest massively to upgrade the area, so the downside risk is zilch. These appartments can easily be rented out for eur 650/month. Combine this with the possible upside and you have a very nice LT investment opportunity.

 

[Ditch]

Unparking 10 bucks and heading to Cambodia

Remembers me of my time in Thailand. The ladies were cheaper than a dinner in a restaurant.

 

[SwingToWin]

in Rotterdam there are plenty of appartments to be had between 50k and 100k. ... These appartments can easily be rented out for eur 650/month.

not really? That would be a 10% a year ROI.
I always thought the Netherlands were even more expensive than Germany.

In Innsbruck (Austria), a small city where I lived long time and know the market well, you can buy 1BR for 100K and rent it out for 300 EUR, 2BR for 200K and rent for 600 EUR and so on...
So you have your 3,6% return a year gross. Before taxes, renovation costs, vacancy,...

In Munich, where I live now you can buy a 1BR for 200K and rent it for 350EUR. Even worse.

Need to check about Netherlands now

 

[stevegee58]

About real estate... really depends on your location. I don't know about the US, but in Europe you can forget it. Rents are so low compared to property prices that it doesn't make any sense at all.

Depends on location in the US too. It was more cash flow efficient to buy a house for our college daughter to live in than pay the insane rents in that area. Since she graduated it's rented out at those insane rents.

The rental income is literally 10% of the purchase price per year.

 

[SwingToWin]

The rental income is literally 10% of the purchase price per year.

nice. that's the way it should be.
In Thailand and Cambodia you can also make a 10% ROI per year.

 

[Ditch]

not really? That would be a 10% a year ROI.
I always thought the Netherlands were even more expensive than Germany.

In Innsbruck (Austria), a small city where I lived long time and know the market well, you can buy 1BR for 100K and rent it out for 300 EUR, 2BR for 200K and rent for 600 EUR and so on...
So you have your 3,6% return a year gross. Before taxes, renovation costs, vacancy,...

In Munich, where I live now you can buy a 1BR for 200K and rent it for 350EUR. Even worse.

Need to check about Netherlands now

Google "Kop van Zuid" en "Katendrecht". This kind of upgrading is planned for other areas as well.

 

[FCXoptions]

Depends on location in the US too. It was more cash flow efficient to buy a house for our college daughter to live in than pay the insane rents in that area. Since she graduated it's rented out at those insane rents.

The rental income is literally 10% of the purchase price per year.

I've been debating on the properties near the school I go to. The area is growing significantly and it's a giant school, but there are a ton of apartment complexes available or already in the works so I honestly don't know how the rent prices are on homes. I would assume still pretty good though.