All Forum Posts by: Account Closed

ok you're right.

Thanks for your input. I think I'll continue averaging down on precious metals though. We could be set to repeat 2008 when commodities were bashed, then appreciated greatly. In reality looking at a 5 year chart is probably more reliable then a chart from the 1970's. The world has changed rapidly and there's way more demand out there. Plus, in emerging markets like China where there currency is devaluing , people aren't staying in cash, they are buying precious metals (or US real estate). The Great Depression was a deflationary environment and gold went up. Then again the past is no map for the future. 

But your advice in a deflationary environment is to buy a property in depreciating market. Debtors get crushed in deflationary times. Factoring in the high unemployment rate of Stockton and similar cities, I'd rather stay far away from Stockton for investment and safety purposes. The skids of Oakland provide price appreciation through gentrification. 

I think there's a strong lack of confidence, job growth (full time, well paid employment), and real corporate earnings in the world. 

Yea, the problem is that in my location (SF Bay Area) I'll need a significant sum to put down on a house to be cash flow positive. I've asked my dad for help but he said he bought his rentals on his own and I should do the same. Even if I liquidated everything in my portfolio today I'd be short a down payment. And I do not like the idea of hard money lending since I'd rather be the lender. Maybe just way  a few more years saving plus Ill be graduated too. And hopefully housing goes into a little cyclical downturn for my sake. 

Thanks

Mark: I'd say that I have about 15% of my net worth in PM's. Thanks for the input. 

Jon: That is the main dilemma I have with investing in PM's. Especially since my equity portfolio is made up of solid dividend firms such as Altria and I have a P2P lending account that averages around 11% interest. Great coincidence though and I appreciate your input. 

Richard: I think my timing has been pretty decent, hopefully I do not eat my own words. I have contemplated buying into PM;s since 2012 when that market started its decline. I do not believe that I need to another 3.5 years on that chart. My intention was to show the inverse relationship between real estate and PM's. And my theory was to have a great exit point in one asset class and an even better entry point into another. 

Checkout a peer to peer lending website? 

Hello,

I am in college and going to graduate soon with my accounting degree. I have always worked and saved money. I had a landscaping business (mainly mowed lawns, lots of lawns) and worked retail jobs making the bare minimum. Fortunately, my father is very supportive in my efforts to become a real estate investor. He says my goal should be to get my hands on the first unit. I invested heavily in the stock market, but have not contributed to my brokerage account due to stocks (MO, MCK) being overvalued in my opinion. 

Recently, with precious metals at 5 year lows i have embarked on a buying spree of silver and even a couple ounces of gold. I was thinking that gold, silver have an inverse relationship with real estate. I would be able to take advantage of my investments in  precious metals appreciating, while my ultimate goal/investment would be depreciating. What do you wise people think? Is it a decent plan or should I just save cash? To be honest I have a hard time just saving money because its literally eroding in value.