Acquiring a property with 15% ROE is a good thing. But property is illiquid. There's a lot of effort involved for financing. If you have capital gains of 5% per year, 7% NOI, you can achieve 31.8% IRR for sure. But it's not easy to sell when things go wrong, and the time and effort required to maintain it suggests that I'll be happy with 25 - 30% IRR for stocks.
That's what I believe can be done for stocks, ETF and unit trusts. 25 - 30% IRR. It's liquid. Eventually when the market crashes, I will have enough liquidity to pick up properties at 10 - 30% discounts. But timing is extremely important for stocks. One cannot miss the major down turn and must get out before it.
That's what I believe can be done for stocks, ETF and unit trusts. 25 - 30% IRR. It's liquid. Eventually when the market crashes, I will have enough liquidity to pick up properties at 10 - 30% discounts. But timing is extremely important for stocks. One cannot miss the major down turn and must get out before it.
