When the dollar is at an all-time low, it's time to put some money aside (!?): See the following picture. Echo cycle…
When the dollar is at an absolute low, it's time to put some money aside (!?):
See the following image. The dollar-shekel turnover has reached the bottom of which it has launched 4 times in the last decade. And every time he reached that launch point, he jumped to his high level again. Although it is forbidden to predict and it is impossible to know what the dollar trend, or the market, will be - but if you planned to invest in the dollar, in an income-producing property in the US or elsewhere - and even if it is still just a thought, maybe it's time to convert to the dollar?
Is it possible that the market trend that has been repeated three times in the last decade will repeat itself again?
The answer is - probably yes, but even if it is not, it does not matter so much.
Please follow the following exercise with a simple account:
To explain the ear, and in theory only - let's say you chose to invest today in a property of about $ 75000, which is worth at the current exchange rate - 256000 NIS.
And suppose your investment is right, you have renovated a bit (within budget) and your property (which is not a big deal, but a reasonable investment) is already worth about $ 85000 today.
And suppose you enjoy about 9 percent of the return along the way (again, a pretty solid return for such an investment) that is about $ 560 a month (net) or $ 6750 a year.
And let's say you enjoy a very reasonable price increase (let's say 3% per year - in all recent years without exception the price increase in the US was at least 7%), within 4 years, the value of the current property (again - about $ 85000 in a solid calculation) will add another $ 11,000.
And suppose the dollar is at an absolute low (let's just say), and it has returned to a steady level of 3.6 (as has happened repeatedly in the past).
If we consider all these numbers together, for a 4-year period (long investment time, not short), you can return home (or reinvest):
85000: Current value +
11000: + value increase
6750 * 4 = 27000: Rent for 4 years =
85000 + 11000 + 27000 = $ 123000.
Which is about NIS 442000 (at a rate of 3.6).
Which is about NIS 186000 more than you initially invested.
Suppose for all this you paid about 15 percent tax (on average - between capital gains and rental income, and it very much depends on your tax route, and other tax liabilities), you earned about 158000 NIS for four years, after tax, which is almost 40000 NIS per year. Looks crazy - no?
well no.
This is not a great doctrine, and the numbers presented here are not particularly warning or eye-opening, but, as Warren Buffett used to say - quite dull. It is the power of simple investment, over time, and with the right timing.
As investors, we don't have to be big smart, break conventions or make up the rules, we just have to follow a simple template, and be patient.
Submitted as a thought material for forum members ✌️
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