[patb]

Don’t call it land investment call it Land Speculation.

To be an investment you need a cash flow and an exit strategy.

Here’s you.” i want to buy 2 acres for $50K and someday sell it”

Here’s an Investor” I am going to buy 10,000 Acres
get the state to build an offramp and the county to build 30 miles of section Road and the city to rezone it, while i rent it to cattle ranchers for cash”

Guess who makes money.?

[patb]

do they allow plumbers to file postal permits?

[patb]

do they allow plumbers to file postal permits?

[patb]

do they allow plumbers to file postal permits?

[patb]

do they allow plumbers to file postal permits?

[patb]

do they allow plumbers to file postal permits?

[patb]

[quote=FormerSanDiegan]

At what point will these future price expectation be baked into the market ? September, December, January 2011 ?[/quote]

never i expect it will be a long time before housing bubbles again. so lousy values will be backed into prices.

[patb]

[quote=FormerSanDiegan]

At what point will these future price expectation be baked into the market ? September, December, January 2011 ?[/quote]

never i expect it will be a long time before housing bubbles again. so lousy values will be backed into prices.

[patb]

[quote=FormerSanDiegan]

At what point will these future price expectation be baked into the market ? September, December, January 2011 ?[/quote]

never i expect it will be a long time before housing bubbles again. so lousy values will be backed into prices.

[patb]

[quote=FormerSanDiegan]

At what point will these future price expectation be baked into the market ? September, December, January 2011 ?[/quote]

never i expect it will be a long time before housing bubbles again. so lousy values will be backed into prices.

[patb]

[quote=FormerSanDiegan]

At what point will these future price expectation be baked into the market ? September, December, January 2011 ?[/quote]

never i expect it will be a long time before housing bubbles again. so lousy values will be backed into prices.

[patb]

[quote=enron_by_the_sea][1] for your situation, there are only 3 catagories of bonds that you should consider – Treasury, GNMA and CA GO. Or spread money in these 3 catagories. [If you don’t know about them google or wikipedia them.] Default risk in everything else is too high.

[2] Do not expect miracles in investing in above catagories. I would expect returns of 3% or less going forward.

[3] Do not buy individual bonds (transaction costs may be too high and less diversification.) Consider low cost bond funds from Vanguard for example. I do not recommend bond ETFs because most of them do not have sufficient trading volume so that their price can diverge from NAV by a lot during periods of market stress (e.g. flash crash)

[4] You CAN lose money by investing in bonds – either because of default or because interest rates rise. You have reduced default probability by staying with above catagories. You can estimate the sensitivity of bond fund to interest rates changes by looking at its “duration”. For example, If “duration” is 5 years then 1% rise in rates translates into 5% loss of principal. Intermediate bond funds will typically have duration of 3-7 years.

[3] If you can not take risk of losing 5-10% ( to earn a return of ~3% per year) do not invest in bonds. ( Or you can buy gold & gun – someone is bound to suggest this sooner or later 🙂 ….)[/quote]

look at utility preferred shares also.

fixed dividend, decent biz model

look at SCE or CMS

[patb]

[quote=enron_by_the_sea][1] for your situation, there are only 3 catagories of bonds that you should consider – Treasury, GNMA and CA GO. Or spread money in these 3 catagories. [If you don’t know about them google or wikipedia them.] Default risk in everything else is too high.

[2] Do not expect miracles in investing in above catagories. I would expect returns of 3% or less going forward.

[3] Do not buy individual bonds (transaction costs may be too high and less diversification.) Consider low cost bond funds from Vanguard for example. I do not recommend bond ETFs because most of them do not have sufficient trading volume so that their price can diverge from NAV by a lot during periods of market stress (e.g. flash crash)

[4] You CAN lose money by investing in bonds – either because of default or because interest rates rise. You have reduced default probability by staying with above catagories. You can estimate the sensitivity of bond fund to interest rates changes by looking at its “duration”. For example, If “duration” is 5 years then 1% rise in rates translates into 5% loss of principal. Intermediate bond funds will typically have duration of 3-7 years.

[3] If you can not take risk of losing 5-10% ( to earn a return of ~3% per year) do not invest in bonds. ( Or you can buy gold & gun – someone is bound to suggest this sooner or later 🙂 ….)[/quote]

look at utility preferred shares also.

fixed dividend, decent biz model

look at SCE or CMS

[patb]

[quote=enron_by_the_sea][1] for your situation, there are only 3 catagories of bonds that you should consider – Treasury, GNMA and CA GO. Or spread money in these 3 catagories. [If you don’t know about them google or wikipedia them.] Default risk in everything else is too high.

[2] Do not expect miracles in investing in above catagories. I would expect returns of 3% or less going forward.

[3] Do not buy individual bonds (transaction costs may be too high and less diversification.) Consider low cost bond funds from Vanguard for example. I do not recommend bond ETFs because most of them do not have sufficient trading volume so that their price can diverge from NAV by a lot during periods of market stress (e.g. flash crash)

[4] You CAN lose money by investing in bonds – either because of default or because interest rates rise. You have reduced default probability by staying with above catagories. You can estimate the sensitivity of bond fund to interest rates changes by looking at its “duration”. For example, If “duration” is 5 years then 1% rise in rates translates into 5% loss of principal. Intermediate bond funds will typically have duration of 3-7 years.

[3] If you can not take risk of losing 5-10% ( to earn a return of ~3% per year) do not invest in bonds. ( Or you can buy gold & gun – someone is bound to suggest this sooner or later 🙂 ….)[/quote]

look at utility preferred shares also.

fixed dividend, decent biz model

look at SCE or CMS

[patb]

[quote=enron_by_the_sea][1] for your situation, there are only 3 catagories of bonds that you should consider – Treasury, GNMA and CA GO. Or spread money in these 3 catagories. [If you don’t know about them google or wikipedia them.] Default risk in everything else is too high.

[2] Do not expect miracles in investing in above catagories. I would expect returns of 3% or less going forward.

[3] Do not buy individual bonds (transaction costs may be too high and less diversification.) Consider low cost bond funds from Vanguard for example. I do not recommend bond ETFs because most of them do not have sufficient trading volume so that their price can diverge from NAV by a lot during periods of market stress (e.g. flash crash)

[4] You CAN lose money by investing in bonds – either because of default or because interest rates rise. You have reduced default probability by staying with above catagories. You can estimate the sensitivity of bond fund to interest rates changes by looking at its “duration”. For example, If “duration” is 5 years then 1% rise in rates translates into 5% loss of principal. Intermediate bond funds will typically have duration of 3-7 years.

[3] If you can not take risk of losing 5-10% ( to earn a return of ~3% per year) do not invest in bonds. ( Or you can buy gold & gun – someone is bound to suggest this sooner or later 🙂 ….)[/quote]

look at utility preferred shares also.

fixed dividend, decent biz model

look at SCE or CMS

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