What's the funniest/worst excuse you've heard for NOT investing from people?

[Aceyducey]

There's so many reasons people give for not investing.

Have you ever heard any from someone that made you laugh (inside) or struck you as totally ridiculous or very sad. If so, what are was it?

For me the funniest has always been 'I don't know anything about it [the type of asset]'.

Knowledge is one thing all of us have to gain through effort, no-one starts out with it :)

Cheers,

Aceyducey

[Monopoly]

"I don't want to be tied down financially"

Fair call, but from a couple who had 6 children and one on the way!!!! :confused:

[geoffw]

"I don't have enough money to invest".

From someone who has enough to dine out very regularly, go to the movies with the kids twice per week, and who has just bought an IPod.

[always_learning]

But I could lose the pension

[Lplate]

Assertion by a spouse: 'Everything must be in joint names'.

[quiggles]

My spouse is too high maintenance for me to be able to afford investments too. :(

And yes, the pension one as well. The embroidered version was "Do you know how much WORK I've put into getting every benefit I can from the pension - and unlike you, I pay no tax!"

[Beach Bum]

"After kids clothes, school fees, holidays and eating out we really can't afford our house repayments. I'm not going to change my lifestyle just to make the repayments"
Conversation overheard between 2 women in a shop in the early 90's. No wonder houses were cheap.

In the early 90's I explained neg gearing to a friend of a relative who was single and earning 70k yr (she loved top brag about that, and the clothes, and the jewelery, and the car, and the funky apartment etc), I explaind how she maybe could make 1 million in >10 yrs with about $50 per week (houses were then 200-250k, now 350-400k), she then barked back:

"How the hell can I afford $50 a week? I don't make enough as it is! Infact if my rent goes up I'll have to ask for an increase......"
"The relative than said, she's right, how can you make money if the property is losing money? what's the point of buying a losing IP?"

I just shook my head in disbelief, never to raise that topic again.

[willair]

i have a friend,lost his family to the bottle,and the horses
this was about 4 years ago,he was staying in a caravan park
i went over to help him , i said you can still buy 6 klms from the
cbd for under 60k,fair enough the area floods,high crime,
half the area on the dole,i said why dont you buy into this area
i will help you in any way i can.
all he said but if i buy this property i will lose my dole and rental assist
payments,some people are just quite happy to have nothing and no worry.
good luck
willair..

[Andrew_A]

"But will I have to pay more tax??" from a family member :confused:

[Mrs Bird]

" I don't need to invest because I have THE INHERITANCE"

My friend, who had just migrated from England.

I kindly had to explain to her that it is not in our custom to openly talk about such things. In her family, their inheritances were openly spoken about even by the people who it was from.

She was terribly embarassed because she couldnt work out why people at work used to give her strange looks when she spoke about her inheritance.

Mrs Bird

[buzzlightyear]

From an ex-girlfriend when discussing future finances & wants

Because we won't be able to afford the nice house along the beach, the convertible (ie Saab) & holidays, which I really want to take every year.

She was last seen chasing James Packer

[Peter 14.7]

"But will I have to pay more tax??" from a family member :confused:

Ditto.

BTW on this matter , my father in law taught me this:

"No-one should ever complain about paying tax because it means you made a profit somewhere"

Peter 147

[Sunstone]

What's the funniest/worst excuse you've heard for NOT investing from people?

Dear Acey,

Good thread idea.

-“The house would be too hot for anyone to live in.”………….. So they didn’t buy anything.

-“The road may be widened sometime and the government will take some of the land”. (Said to myself after I recommended and showed this property as a good one to invest in. (No kickbacks to myself.) When I was told that, I decided to buy it myself. After I bought it, it then increased in value more than 128% (Far more than doubled.) in 7 months on a conservative bank valuation WITH an impressive rental yield.) (Even if a road was ever widened the government WILL pay to take the small part of land.) :eek:

-“It’s too risky at our age.” (Only 50 years old.)

-“Who on earth would want to maintain (keep up repairs to) TWO houses?”

There are benefits in networking with likeminded people. ;)

Cheers,

Sunstone.

[Jimmyjamjars]

I know of a guy who, when the conversation got around to property investment, replied, "we were going to invest in properties this year but the gearbox crapped out in the car and took our available cash"
JIM

[shaunwalker]

the one i hear, is
debt is bad, i'm not going down that road!and this is from my parents/family.
since then they've seen my bank balance, and still tell me that getting into debt is bad!
sigh,,, you just cant teach someone who doesnt want to learn.
oh well, when i get my z3 bmw at the end of this year it may change their tune.

shaun

[Jacque]

My favourite is the old debt theory too which are similar to all the ones already mentioned. In the end, you can lead a horse to water etc.
Perhaps the saddest, however, are the excessive worriers, who will never take action on most things in life that present a challenge simply due to the possibility that "something bad" might happen. I once read that so many of our problems are the result of overactive imaginations, and aint this the truth?!

I have a friend whom I love dearly, but can't get her head around why we invest in property. The worries come out thick and fast:
But what if you get bad tenants?
Of if interest rates rise?
Or if you get termites?
What about if something happens at work and you can't repay?
Or if you have an accident and need the money?
Or the bottom falls out of the market and the bank recalls the loan?
What about neighbours/druggies/hopeless PMs?
Or those PM's who take your rent?
etc etc

Even though I've explained many time over how to mitigate risk and reminded her that she worried excessively, some things just don't change......

I've since learnt not to mention any aspect of property investing with her at all. We still have plenty to talk about however :)

And all my other friends, family and fellow forumites keep me inspired!

[WillG]

The most common excuses I hear is 'What if the tennent wrecks the place ?', 'What if you can't rent the place' and 'I can't afford it' however the real reason is 'lack of knowledge' and fear.

[XBenX]

I MUST ride 100days+ each yr (me)

Ahhh thats right, lifes not about investing, its about having fun =P

(Dont worry ppl just polarising for the sake of it)

[likewow]

the one i hear, is
debt is bad, i'm not going down that road!and this is from my parents/family.
since then they've seen my bank balance, and still tell me that getting into debt is bad!
sigh,,, you just cant teach someone who doesnt want to learn.
oh well, when i get my z3 bmw at the end of this year it may change their tune.

shaun


woohoo!! way to go Shaun, i love Beemers and have owned previously. Why not go the whole hog and go the Z4? :D

[aussierogue]

the main one i hear is the 'you only live once' line as a good reason for buying an expensive car........

i tried to explain to a mate who owns a boxter that his repayments would service a 150k loan on an investment property or even a holiday unit (surely more impressive to the ladies, plus it appreciates, plus it pays for itself etc etc).......his reply :: 'yeh but i own a porshe'..

hehe

[willair]

its a bit hard to get a plumbers tool box in the back of a z3 bmw,
and if your smart and watch the auctions bmw go for a song.
you can do some real damage at car or truck auctions
if you have cash.
good luck
willair..

[Dos]

Have a friend who was in a brand new house at Regents Park SE Qld, paid $150k for the house and land in around 2001. After a year said "We better get out now before the market go's bust". Sold for $230k, then proceeded to buy new Santa Fe, a few toys and got married. House was listed last year for $325k and mate is currently renting with no cash. Sad story but I couldn't convince him! I had as many people as possible call him (broker, bank manager, REA's etc etc) to say that the market wasn't going to bottom out in 2002!! Unsuccessful though!!

Dos

[shaunwalker]

i've looked at the z4, but just cant fall in love with it.
i know these types of cars are totally impratical, which is the whole point! there isnt even any room for a swag! (dont know how i'm going to get around that)
i have wanted a z3 for so long its sort of like the pressy i get for hitting the milestone (100k a year) so i will be lend leasing it through my company.
ah silver grey
spider mag wheels
gps thingy
and a dancing elvis!

cheers
shaun

[keithj]

Not quite answering the question, but the last line (in bold) is interesting.


Source ABC News (http://www.abc.net.au/news/newsitems/200501/s1290160.htm)

Aust kids are good savers: survey



The Commonwealth Bank says Australian children are exhibiting healthy saving habits.

The bank has surveyed almost 400 parents of children aged between five and 12.

It has found children are saving up to 43 per cent of their pocket money, or about $3 a week.

Ninety per cent of parents believe they are good role models where saving is concerned.

However, 37 per cent claim a lack of time prevents them from teaching their children about money.

[ren-A]

My favourite is "the market is too high/ could go lower/ moving too fast", etc (take your pick).

For some, procrastination is a terminal disease. ;)

[chook]

I was working in Sydney with a woman aged 40 and we were both paid well but she had no assets and couldn't afford to buy in Sydney. I explained to her that with her salary, she could buy in Brisbane (this was about 4 years ago). "But I don't want to live in Brisbane" she said. I said "no, you don't have to live there - just buy it and rent it out. Get a foot in the real estate door and then when you have built up capital you can sell and do something in Sydney with the profit". The conversation continued and I showed her some properties in a Qld magazine I had that she could afford to buy. And then she said "But I don't want to live in Brisbane". I gave up and never mentioned it again.

[wish-ga]

Co-worker one:
Received $7,000 from a distant relative's estate. Didn't combine it with fhog to buy a property. Used it to pay debts from European holiday (including a $1500 phone bill racked on her mobile whilst in Europe (heard of a &*!#@ phonecard Einstein?).

Pays $320 a week to rent and has said the only way she will own property is if something happens to both her parents. She is only twenty seven!!!! (could be waiting a long time pet...at least I hope so as it means both of your parents are in good health)

Co-worker two:
Talked about selling house and using money from long service leave to buy a smaller place and another investment. Good for you I said. Nah, he thought about it and went to Europe and instead. After all when his parents pass on he will get 1/3 of their house. (he is only in his 30s)


There is a Blood sweat and tears song that says:
God Bless the Child that can stand up and say "I got my own"

God bless you all!!!


edit: Blood, Sweat and Tears did the version that I know but just discovered Billie Holiday (legend!) wrote it.

[buzzlightyear]

i tried to explain to a mate who owns a boxter that his repayments would service a 150k loan

Maybe he has trouble getting over the fact that he can't drive his IP with the top down ;)

[Jacque]

Co-worker one:
Received $7,000 from a distant relative's estate. Didn't combine it with fhog to buy a property. Used it to pay debts from European holiday (including a $1500 phone bill racked on her mobile whilst in Europe (heard of a &*!#@ phonecard Einstein?).

Pays $320 a week to rent and has said the only way she will own property is if something happens to both her parents. She is only twenty seven!!!! (could be waiting a long time pet...at least I hope so as it means both of your parents are in good health)

Co-worker two:
Talked about selling house and using money from long service leave to buy a smaller place and another investment. Good for you I said. Nah, he thought about it and went to Europe and instead. After all when his parents pass on he will get 1/3 of their house. (he is only in his 30s)


There is a Blood sweat and tears song that says:
God Bless the Child that can stand up and say "I got my own"

God bless you all!!!


I've let my parents know that I don't expect any inheritance whatsoever from them and that they should enjoy the fruits of their labour, rather than worrying about leaving it to any of us five offspring. Must be taking my advice seriously, as they are off on an 8 week European trip this year and have been eating out a lot lately at some pretty swish places :eek:
I've also told them about reverse mortgages and hope that they never go without simply to ensure we each get the "inheritance". We all are masters of our own destiny. Long live financial independence!!!! :)

[mitch]

Mates wife "what if the hot water servce blows up?

Brother in laws wifes father said at auction "its too dear and l think prices are falling , just wait . Circa 2000.

[skater]

"But then I'd have to borrow money & I don't want to be in debt" Then borrowed for new car.

[Simon]

I remember being told by people with car loans that borrowing for shares was crazy. They didn't understand that my investment had a chance of appreciating and some tax deductions whereas their's wa sheaded in only one direction.

This was from my young male employees who used to think it funny that the boss drove an old valiant to work whilst they had flash cars.....

[Jacque]

Actually I just remembered what one of my relatives said on Boxing Day, when we were discussing the current market in Sydney:

"No, I'm not going to buy now as I'm waiting for prices to fall 30% and people get desperate to sell"

His theory is to wait until interest rates rise as there will be a mass dumping of good quality properties from desperate home buyers who suddenly can't afford the repayments, thus sending the market into a decline, with prices falling 30%. I asked him to let me know when it happens so that I can get some bargains too :)

[Corsa]

"No, I'm not going to buy now as I'm waiting for prices to fall 30% and people get desperate to sell"

His theory is to wait until interest rates rise as there will be a mass dumping of good quality properties from desperate home buyers who suddenly can't afford the repayments, thus sending the market into a decline, with prices falling 30%. I asked him to let me know when it happens so that I can get some bargains too :)

Hey Jacque

I so get what you mean! This is what people are always saying to me, they are waiting for the market to drop or interest rates to rise so that they can come in and grab all the bargains! They have been saying this for 3 years during the boom!!

At least if you have been investing during this whole time, you know how to spot a bargain when you see one and move quickly! For people who havent been investing, I am sure it would be quite difficult to know just exactly what is a bargain and hence you would always be thinking maybe there is something better around.

[kissfan]

Hi all.

I can recall (I was about 17 at the time), upon hearing from a good mate that he was going to buy a house, saying to him "why would you want to get a mortgage at your age", he was same age. Anyway, he didn't take my "good advice" and bought a place in Georges Hall (Sydney) which more than doubled within a few years. Over the years we fell out of touch but I had heard he was living on Scotland Island. By chance I bumped into him one day and asked was he still at Scotland Is. to which his reply was "no, I sold that and now have a place with views over Pittwater"

Wouldn't it be good to have the knowledge we have now back then.

Regards
Marty

[wish-ga]

wow kissfan. That's an amazing kid huh? Thanks for the story.

I am inspired - no longer 17 of course but am keeping on going with my goals...must write 'em down though....was just thinking about that this morning.

[Mike F]

I recently sold a property for a profit after a minor reno.

All I heard from anyone I told was 'won't you have to pay tax on that' - my reply was 'yes, I like paying more tax - it means I made more money' :D

The other one I hear all the time is 'I am waiting for the market to settle down a bit - the bubble will burst' this was in 2001.


Mike F

[quintets]

Back on the original topic, my brother's wife said,

"I don't want to be a landlord!!"

Mind you, they're in Canada where a vast selection of PMs doesn't exist and almost every property owner has to do their own management.

Jireh

[shazza]

Hey Jacque

At least if you have been investing during this whole time, you know how to spot a bargain when you see one and move quickly! For people who havent been investing, I am sure it would be quite difficult to know just exactly what is a bargain and hence you would always be thinking maybe there is something better around.

Good reminder Corsa and Jacque - its much better to be pro-active rather than waiting waiting waiting.
Fortune favours the bold.

cheer Sharyn

[Aceyducey]

Mind you, they're in Canada where a vast selection of PMs doesn't exist and almost every property owner has to do their own management.
That's called an opportunity!

Any enterprising PMs who want to live in Canada?

Cheers,

Aceyducey

[quiggles]

That's called an opportunity!

Any enterprising PMs who want to live in Canada?

Cheers,

Aceyducey

You're not kidding! The market is so thin there that a professional national firm of PM's could just about take it by storm. Same goes for a lot of North America. Of course, there's a lot of tightwads who like fixing toilets as well.
:)

[geoffw]

You're not kidding! The market is so thin there that a professional national firm of PM's could just about take it by storm. Same goes for a lot of North America. Of course, there's a lot of tightwads who like fixing toilets as well.
:)A tightwad with a toilet- that sounds messy.

[The Y-man]

It is interesting when people say things like:
"Invest? Why would I want to invest? What would I do with the money?"

and then the next minute:

"Ohhh, I wish I had money to do <whatever>..."

:confused:

Cheers,

The Y-man

[Oscar]

I still vividly remember a good friend (co worker) saying (as I just settled on my firts Sydney IP in Jan 1999), "what if there is a world wide recession and we enter into a prolonged period of deflation???" This guy was, and still is, very smart. I remember thinking about it for a few seconds and then tossed the thought into the waste basket as I would a used kleenex.

6 years on the plans for the Porsche Boxster are about to become a reality. And yes, what the heck, you do only live once, and what is the point of all this investing and money making if you don't indulge every now and then.

Cheers,

[likewow]

I still vividly remember a good friend (co worker) saying (as I just settled on my firts Sydney IP in Jan 1999), "what if there is a world wide recession and we enter into a prolonged period of deflation???" This guy was, and still is, very smart. I remember thinking about it for a few seconds and then tossed the thought into the waste basket as I would a used kleenex.

6 years on the plans for the Porsche Boxster are about to become a reality. And yes, what the heck, you do only live once, and what is the point of all this investing and money making if you don't indulge every now and then.

Cheers,

I agree wholeheartedly Oscar. Good on you. :)

[Francesco]

'I do not invest in shares or others because I lost my money on xxx before.' Prisoner of history complex. The person became expert in budgeting and relying on the Age pension. :confused:

[jjnshell]

Top thread Acey,

I bought my first real investment when I was in grade 9 which was 2000 Suncorp shares on float. I remember at lunch time when I called my broker and discovered I had a nice little CG of a grand or so I was bouncing around the school like I was a billionaire. One of my good friends said to me "My dad lost money on the stock market. You'll do the same too"

How unfortunate is it that my friends parents experiences have probably set him back decades of investing experience.

I absoluty can't wait until my kids are old enought (1 and 3 at the moment) to start them on the way. Hopefully they will be at it sooner than I was.

Another good one is "It's ok for you, but I'm stupid" If you say so I reckon.

Jeff

[Marney]

Reason given by a 61 year old for not investing in real estate: "I'm too old to go broke."

[quiggles]

"But YOU were so lucky! I'm NEVER that lucky!"

[Corsa]

Over the weekend....

My friends boss is setting up a new franchise and getting some of his existing staff in another franchise to go over to help set up the new franchise. The comments some of the guys were saying "He is just loving it going around setting up all these franchises and he's rolling in it....", says another guy "Well you have to have money to make money...."

Another friend, just bought a car on finance for around $17,000 using equity built up in PPOR. Some of the guys were saying that she was silly for getting a car loan and her respsonse "you only live once" and "i will have paid it off in 2 years".

[Jacque]

"But YOU were so lucky! I'm NEVER that lucky!"

Ah, the old lucky argument. Luck, as far as I'm concerned goes hand in hand with action. Even the lotto winners had to make some effort to get to the newsagency :)

[<KS>]

heh

My parents use the luck one, they say its a fluke I am more well off than them - my dads an accountant so I have buckleys chance convincing him otherwise.

But my funnies I ever heard was along these lines:

"They can keep their money, who wants to be a rich anyway. People only like them for their $$?"

Good old fashioned spite.

<KS>

[luce.rocks]

" I don't need to invest because I have THE INHERITANCE"

My friend, who had just migrated from England.

I kindly had to explain to her that it is not in our custom to openly talk about such things. In her family, their inheritances were openly spoken about even by the people who it was from.

She was terribly embarassed because she couldnt work out why people at work used to give her strange looks when she spoke about her inheritance.

Mrs Bird

hi, sorry to bring an old thread to life again, but i saw a link to it, and as i was reading through i saw this post and i just had to ask if it's true? i mean, i've never actually heard someone talk about 'their inheritance' but i didn't know it was because of manners. i mean, i hear people talk about money, salary, investments, sometimes their parents' houses, etc, all the time, so i just kind of figured if people weren't talking about inheritances it was because they didn't have one? i know talking about money used to be crass, but people seem to do it all the time now. god knows if i had an inheritance and someone asked me about my financial plan for retirement or something, i wouldn't hesitate to say that there was a family trust or estate or whatever... anyways. can someone tell me what the done thing is? cheers :)

[sailor]

I guess there are a variety of reasons why people don't discuss their inheritance:

talking about it might put a hex on the person bestowing and they might die sooner
it could be seen as impolite to discuss inheritances
if one expects an inheritance, the person bestowing might bring them down to size by cutting them out of the will
it could be seen as bragging
siblings might get jealous
...and there are bound to be others.

[lizzie]

i loved reading the excuses. the two best i heard were:

what are you buying this old dump for? (reno'd and made $100k profit in 12 months).

tenants will wreck the place. (this from someone who'd made good money out of ip's but had one bad tenant and sold the lot).

[Bantam Roosta]

can someone tell me what the done thing is? cheers :)
I believe it comes from the fact that you don't get an inheritance until they die. You are effectively saying, 'When my parents/uncle/aunt die......'. It could be construed that you are hanging out for them to die.

I don't talk about it because although I know I'm getting something from my parents, I have no idea how much. They could lose the lot between now and when they die and I've gone and planned my future lifestyle around relying on them to leave me x amount. Dangerous stuff.

BR

[DavidMc]

"But properties aren't cheap anymore like when YOU bought them".

My favourite - "I don't believe in property investing". I think it's because he thought it was immoral, makings others pay more for their houses.

[AmandaBS]

Funny thing is my parents do the "Why are you buying all these houses when one day you'll have all this!!!"
I'm not prepared to drift through life waiting for some inheritance to save me when I'll probably be to old to enjoy it. Hey I want a BMW (cerise pink of course) before I need a blue rinse!

Another classic is "Oh I don't have that much ambition in life so I intend to spend/enjoy the lot now"

[Tikor]

I have a mate who kept emailing me dire stories about Peak Oil, and asking me if he should sell his IPs: "after all when the oil price skyrockets, the economy will crash and property will be worthless." I suppose he's right. We'll all have to move out of our houses and go live in cardboard boxes. I haven't heard from him since I made that suggestion.

[Petal]

Mostly we get the "you are lucky you bought yours before the (2003) boom) This from exactly the same people we tried and tried and tried to convice to buy a couple (which they had the means to do) in 2001!!!!

[Sungam]

Best one I heard was after a discussion on property cycles with my former boss was "I'm going to invest just before the next boom" I should ask him when that boom is about to start!

[wish-ga]

The dog at my 'Domain'

[jingo]

Was around at one of my IP's tidying up the garden before tenants moved in and got chatting to the neighbour. It seemed she wasn't interested in investing and making money 'just to leave to her children' and in her view 'her children should work hard and support themselves' just as they had!

[Xenia]

"If I had known property prices were going to go up that much, I would have invested too" (from a family member)

Good one! Did anyone here have a crystal ball before they began?

[The Y-man]

Looks like the years go on, but the excuses never change :)

I am surrounded at work by "coulda's". I find it rather amusing.

When I used to talk about property in 2000-2001, people were saying "That's so risky man!"

By 2003 they were saying, "well, anyone coulda made money in property over the last few years" - and pretty sure they could have - but they didn't.

Why not join the game now then? "Nah, they're overpriced now!"

When we started going heavily into shares (and managed funds) in 2003, it was "That's so risky man!"

Here we are in 2007 and they're saying "well, anyone coulda made money in shares over the last few years" - and pretty sure they could have - but they didn't.

Why not join the game now then? "Nah, they're overpriced now!"

Ok, so I tell them where I'm putting my money next....

The response? Yep, you guessed it. "That's so risky man!" :)


Cheers,

The Y-man

[willy1111]

So . . . . . where are you putting your money now/next?

[The Y-man]

So . . . . . where are you putting your money now/next?

I was going to put it in there, when a little voice said - hell, what if someone actually listens! :eek: :p

For what it's worth, 100% geared share / hedgefund portfolios and gold bullion :)

Cheers,

The Y-man

[kathryn d]

I was going to put it in there, when a little voice said - hell, what if someone actually listens! :eek: :p

For what it's worth, 100% geared share / hedgefund portfolios and gold bullion :)

Cheers,

The Y-man

That's so risky man! LOL

[jingo]

I was going to put it in there, when a little voice said - hell, what if someone actually listens! :eek: :p

For what it's worth, 100% geared share / hedgefund portfolios and gold bullion :)

Cheers,

The Y-man


Hi Y-man,

I tried a gold warrant last year and got burnt!!! (I didn't invest a high % of our portfolio though, and I also had $ in shares which more than made up for what I lost!) Regards Jason.

[The Y-man]

Hi Y-man,

I tried a gold warrant last year and got burnt!!! (I didn't invest a high % of our portfolio though, and I also had $ in shares which more than made up for what I lost!) Regards Jason.

I guess for me, gold is actually a risk hedge more than an investment in its own right. It is more a "buy and hold" proposition until needed in a high inflation / recession economy.

I also failed to mention above that all of the 100% leveraged products carry a captial protection (although not a capital guarantee), so the theoretical worst case scenario is the loss of interest money only.

Cheers,

The Y-man

[jingo]

I guess for me, gold is actually a risk hedge more than an investment in its own right. It is more a "buy and hold" proposition until needed in a high inflation / recession economy.

I also failed to mention above that all of the 100% leveraged products carry a captial protection (although not a capital guarantee), so the theoretical worst case scenario is the loss of interest money only.

Cheers,

The Y-man

Hi Y-man,

Yes, I'm sure you've set this up in a clever manner. The trouble with my warrant was that it had an expiry date, and was in effect "taking a gamble" with the market. My overall philosophy is 'buy and hold', and I guess I just extended my boundaries a little. I learnt a valuable lesson from this experience. In my view there is no such thing as 'fast money', and if you do make 'fast money', you are likely to loose it anyway doing something risky to create more. I have learnt a very valuable lesson from being burnt through the gold warrrant. :D

Regards,

Jason.

[The Y-man]

Hi Y-man,

Yes, I'm sure you've set this up in a clever manner.

Regards,

Jason.

Nah, nothing clever at all - I literally buy gold bullion for storage in a safe :) Some people buy it as jewellery or coins, we just prefer it in bullion form.

http://www.ausbullion.com.au/
http://www.perthmint.com.au/gc/default.asp

Cheers,

The Y-man

[jingo]

Nah, nothing clever at all - I literally buy gold bullion for storage in a safe :) Some people buy it as jewellery or coins, we just prefer it in bullion form.

http://www.ausbullion.com.au/
http://www.perthmint.com.au/gc/default.asp

Cheers,

The Y-man

Thanks for the links,

Regards Jason.

[want2bewealthy]

Yes, there are so many people in our every day lives who dont know enough about PI, think its risky, are scared, think its too expensive now, that like to tell you all about it, funny thing is, theres basically nothing else that makes this much money with so little effort, the only thing you need is time,
I just had a daydream of me at age 50, stepping off the yacht in QLD with my wife beside me about to dig into a great seafood lunch, I dont care how much it costs cause Im so rich, thats gonna be great and provided I dont die in the mean time, thats how its gonna because life is what you make it, Im makin it the best I can.

[crazylikeafox]

Damn, you are all so arrogant!

[sailor]

Damn, you are all so arrogant!

Crazylikeafox....are you joking?:)

[mja]

Excuse: "It's all luck - you have to be in the right place at the right time".

Me: "So.... you'll only invest if you think you're lucky?"

-- MJ.

[Alanna]

Excuse: "It's all luck - you have to be in the right place at the right time".

Me: "So.... you'll only invest if you think you're lucky?"

-- MJ.

We get that all the time: "You guys are so lucky to have bought when you did." What a load of cr*p! We weren't lucky, we made a decision, took action and worked on properties instead of borrowing $30k to go to Europe.

[Altitude]

I guess we are lucky.

Lucky that we are disciplined enough to have acquired good money habits.
Lucky that we are open to the idea of investing.
Lucky that we come across the IPs that we bought.
Lucky that we live in the lucky country.
Lucky that we are alive.
Lucky that we have supporting partners in our investing journey.
Lucky that our partners more or less have similar good money habits.
Lucky that we have a ripper Treasurer, Peter Costello.
Lucky that we started investing.
Lucky that we are open to learning.
Lucky that we deal with the problems when they crop up.

So, all in all, I guess we are lucky.

What a lucky bunch of people we are.:)

[MadMax2]

Saw recently a sign on a plumber's wan:

'We come to repair what your husband's fixed.' :D

[sailor]

Saw recently a sign on a plumber's wan:

'We come to repair what your husband's fixed.' :D
One of our local sparkies has "we fix your shorts" on the side of his van.:D

Who'd have thought these guys would be so witty.

[tubs]

What about the one that a lot of curtain and blinds people have:
"CAUTION: Blind man driving"

(not sure what this has to do with the topic though...):confused:

[tremolo]

I just bought a place, and the girls at work couldn’t get over it.

“Why are you wasting your youth (I’m 22), now you’ll be stuck with a mortgage for the rest of your life!”

I politely declined to take advice from a bunch of 30+yo women who rent and live at home (really), and spend 300% of their annual income on clothes/makeup/cocktails.

[Rixter]

So, all in all, I guess we are lucky.



My acronym for luck is -

Luck = Labouring Under Correct Knowledge!

[Rixter]

The funniest excuse Ive heard is from a bloke who said he sold his investment property because he got sick of getting the council rates in his mail box!

[Mark Laszczuk]

Damn, you are all so arrogant!

Thanks! A little bit of arrogance goes a long way.

Mark

[alexlee]

Thanks! A little bit of arrogance goes a long way.

Mark

I agree. A bit of arrogance is good. It allows you to do things even though other people (in their limited understanding) don't think is a good idea. The best balance is of course confidence without arrogance but if you're talking about arrogance vs lack of confidence.... I'll take arrogance.
Alex

[lizzie]

i've been called "condescending". does that mean i don't suffer fools and laziness?

yep - guess i am condescending.

[Jase H]

"Oh its easy for you, you both work and don't have kids"

"When I earn a bit more money i'll be able to invest"

"Money just doesn't interest me" (material possessions seem to though)"

"I want to enjoy life when I'm young I'll invest when i'm closer to retirement" (at 29 and 33 we like to think we are close to retirement :D )

Jase

[Scott Graham]

"Oh its easy for you, you both work and don't have kids"

"When I earn a bit more money i'll be able to invest"

"Money just doesn't interest me" (material possessions seem to though)"

"I want to enjoy life when I'm young I'll invest when i'm closer to retirement" (at 29 and 33 we like to think we are close to retirement :D )

Jase

Hi Jase,

Funny, I have heard almost verbatim comments.
Maybe we hang we the same crowd or know similarly inclined people? :)

A lot comes down to taking personal responsibility for our own financial future and a significant proportion of the population are clearly unwilling.

Scott.

[bort]

Nah, nothing clever at all - I literally buy gold bullion for storage in a safe :) Some people buy it as jewellery or coins, we just prefer it in bullion form.

http://www.ausbullion.com.au/
http://www.perthmint.com.au/gc/default.asp

Cheers,

The Y-man

a small hijack regarding gold and mr buffet .. but interesting nonetheless ...

http://www.gold.org/jewellery/news/article/6700/

[Glucose]

I've let my parents know that I don't expect any inheritance whatsoever from them and that they should enjoy the fruits of their labour, rather than worrying about leaving it to any of us five offspring. Must be taking my advice seriously, as they are off on an 8 week European trip this year and have been eating out a lot lately at some pretty swish places :eek:
I've also told them about reverse mortgages and hope that they never go without simply to ensure we each get the "inheritance". We all are masters of our own destiny. Long live financial independence!!!! :)

I agree. Am totally okay with the SKIN's philosophy. Why on earth should parents go without in their old age just to be able to leave an inheritance to their adult kids. We should ALL make or break on our own. If we do well then we can look forward to a great retirement ALL the more enjoyable because we've achieved it on our own. I, too, have heard that excuse for not investing in property "But we'll inherit Mum & Dad's house when they die"!!
I hope the parents of those people live (comfortably) to be 110!!:D

[Glucose]

Crazylikeafox....are you joking?:)
Hope he is, Sailor. It seems to me though, that many 18yr old students are the arrogant ones. You know the funny sign around that goes something like this "Teenagers, sick & tired of your stupid parents harassing you (or you could say, elders advising you)? Well, get out, get a job & start paying your own bills while you STILL KNOW EVERYTHING!"

[Ahmad Azimi]

"Why should I invest in a brand new property and let someone who cant afford to buy a house live in it while I live in an old house?"

Past Client

[Mrs Bird]

OK, not totally related but I just couldnt resist.

Neighbour of my Dads came to visit him the other day and she was telling him that she had inherited her brothers entire estate...not that she needed the money BTW. She was telling dad that she tried to off load some cash to her daughter but she wouldnt take it because she would have to pay too much tax..LOL. The neighbour was quite upset that she had too much money and couldnt even give it away.

How funny is that...is it possible to have too much money?

Mrs Bird:)

[Ajax]

"We want to buy an investment property but won't go into debt to do it" That's a classic...if you aren't prepared to take on some risk you can't expect any sort of reward.

"[property forecaster xxxxxx] is saying the Sydney property market will probably fall after the Olympics"

From the operator of a very successful business who has a a large taxable personal income and correspondingly large income tax bill "Buying more than one house is just greed. My business partner keeps buying more houses...I think he has some sort of psychological illness"


Ajax

[GoAnna!]

"you think money just falls from the sky" close relative too scared to invest in anything!

[sailor]

"you think money just falls from the sky" close relative too scared to invest in anything!
Tis not from the sky...tis from the bank!:rolleyes:

[wylie]

Regarding a previous post outlining how lucky we all are....

We are "lucky" enough to be

- up a ladder painting a ceiling on boxing day - pretty hot up near the ceiling
- laying turf in the back yard of a 906sq m block in the sun (having to move it to allow a truck to get past the pile of turf, and LOL, having to move it again to let him get back out
- scraping 15 years of cigarette smoke off the walls before we are lucky enough to be able to paint them
- cleaning up after feral tenants left enough trash to fill a skip
- able to have painted, renovated etc 30 houses in 30 years (not all ours, some more than once).

How "lucky" we are.

People who say we are "lucky" just make me laugh. We have worked bloody hard for a long time to get where we are today. I actually think we could be a lot further ahead, but that is lifestyle choice, me not wanting to "work" at a job.

Luck has absolutely nothing to do with it. I drove a crappy old car with a heater that would not turn off - great in winter but not so good in a Brisbane summer. My friends were tripping off overseas and buying new cars every couple of years. I wanted to buy houses. Each to their own.

Interestingly, one friend who bought new cars regularly now has a few IPs. She will be 50 next birthday so got her travel and cars out of her system before dipping her toe into IPs. The biggest difference is that she has no children, which makes a huge difference to expenses - two people making good money.

We found children cost more and more as they get older, but that is not news to anyone.

Wylie

[crazylikeafox]

"you're too young, don't put too much pressure on yourself"
Not entirely bad advice, just annoying. As If I hadn't thought of that myself!

[Andrew_A]

"you're too young, don't put too much pressure on yourself"
Not entirely bad advice, just annoying. As If I hadn't thought of that myself!Translates as 'Don't make us look bad by achieving too much at a young age' perhaps?

[Welcome]

Heard a good one last night when I was telling someone with $20k sitting in their bank about the co-contribution and how they should make to their super before end of FY....

"I can afford to give $1000 away........"

30 mins explaining with compound interest calculator convinced her otherwise :D .

[want2bewealthy]

My dad, he's 55 and says " Im too old to invest, I dont want anymore money anyway"..

[kingchevy]

Best one I heard was I'm not going to buy a house unless it is the one I'm going to live in.

[alexlee]

Best one I've heard recently is that it's because this entire 40+ years of the history of the world has been one big financial scam.
Alex

[LynnH]

alex

Whaaat???

That would have to be the wackiest, most off-the-planet reason/excuse I think I've ever heard!!! Why would he/she think this way, do you know??

Cheers
LynnH

[BoatBoy]

alex

Whaaat???

That would have to be the wackiest, most off-the-planet reason/excuse I think I've ever heard!!! Why would he/she think this way, do you know??

Cheers
LynnH

I think it comes from living in a cave for to long while studying economic theory.

Dave

[LynnH]

LOL, Dave!!! :D

Cheers
LynnH

[Petal]

An excuse we get up here in SEQLD sometimes is

"Investment properties are too dear for me to buy as all the people from NSW are buying them up and sending the prices skyhigh" :cool:

[sailor]

An excuse we get up here in SEQLD sometimes is

"Investment properties are too dear for me to buy as all the people from NSW are buying them up and sending the prices skyhigh" :cool:
Goodness me! There are no PI's in Qld?:rolleyes:

[HandyAndy888]

Makes you wonder...:p

[Petal]

Goodness me! There are no PI's in Qld?:rolleyes:


yeah, pretty silly. apparantly the PI's from QLD are ok, THEY are allowed to buy, but those bloody New South Weshmen are the ones to blame. The logic escapes me too!!

[Debt Junkie]

yeah, pretty silly. apparantly the PI's from QLD are ok, THEY are allowed to buy, but those bloody New South Weshmen are the ones to blame. The logic escapes me too!!

Oh No! Wait for it ... when they (work) found out I was buying a PI (in Qld & I'm from Qld) the comment was ... 'so you're the reason my children can't afford to buy a house' ...

Some other smart ar5e had the gall to say 'are you sure you can afford it?' ... uh, I work in a finance area and spent the last year managing a $2B budget, I think I can handle a little personal finance .... (plus the Q came from my boss!)

From the same smart ar5e 'I can't afford to buy' .... hmm, so what did happen to your recent $40K per annum pay rise? (That's the pay rise that put him on twice my salary ...)

Okay, just slip that soap box back under the desk and settle down now ...

DJ

[jingo]

I think it comes from living in a cave for to long while studying economic theory.

Dave

lol!! How nice, I've found a sanctuary in a part of the forum that doesn't contain the grafiti of the D+G mob! I had better not speak too soon.

Regards Jason.

[burty85]

hahahahahahahahahahahahaha a girl i work with says she dont want to have big det, yet she just took out a loan of 40,000 for a new 4x4!!!!

[The Claw]

"But prices might not double this decade."

Pretty foolish eh?

[BayView]

alex

Whaaat???

That would have to be the wackiest, most off-the-planet reason/excuse I think I've ever heard!!! Why would he/she think this way, do you know??

Cheers
LynnH

Ask them; their names are YM and HG.

[sailor]

Heard a beauty the other day:
My boyfriend is buying his PPOR and we might be moving to another locality.

What that has to do with buying an IP is totally beyond me! Oh...and she had just purchased a brand spanking new car on credit. I guess at least she can take it with her.

[GoAnna!]

[QUOTE=sailor;338194]Heard a beauty the other day:
My boyfriend is buying his PPOR and we might be moving to another locality.
QUOTE]


For a moment there I thought you were telling me the latest on your love life :D

[sailor]

[quote=sailor;338194]Heard a beauty the other day:
My boyfriend is buying his PPOR and we might be moving to another locality.
QUOTE]


For a moment there I thought you were telling me the latest on your love life :D

Get real!:p :D The beau wants to buy another IP.;)

[wylie]

I also read it (just the first bit, read it again and thought "what a shame, you have just done the lovely beach house".

When I read further, I realised you were talking about someone else :)

Wylie

[Dean1337]

My work mate said "Investing is just another word for gambling."

I tried to explain the difference between the two but he wouldn't accept my argument. Surprisingly he is actually making money playing poker. He is very solid, consistent and plays very calculatively. However he doesn't make any where near to what I make in a year with shares. I just think of what he could accomplish if he focused more on investing. He would easily out do me.

[bort]

mmm poker is fun, but i still have lots to learn myself .. but as long as you play odds, have rakeback and play bonuses its not too difficult to be a long term winner ;)

so i guess it is kinda like investing if you play with the odds on your side ...

[BayView]

"you're too young, don't put too much pressure on yourself"
Not entirely bad advice, just annoying. As If I hadn't thought of that myself!

95% of the population have this mindset.

That's why 95% of the population is still broke at retirement.

[alexlee]

Originally Posted by crazylikeafox
"you're too young, don't put too much pressure on yourself"
Not entirely bad advice, just annoying. As If I hadn't thought of that myself!

Bad advice, if you ask me. The problem is that if you DON'T manage your finances when you're young, you're more likely to develop those nasty money habits that screw you up for life. Ask any person looking for their first home whether they wish they'd 'put more pressure' on themselves when they were younger. I sure don't regret it.
Alex

[ianvestor]

the one i hear, is
debt is bad, i'm not going down that road!and this is from my parents/family.
since then they've seen my bank balance, and still tell me that getting into debt is bad!
sigh,,, you just cant teach someone who doesnt want to learn.
oh well, when i get my z3 bmw at the end of this year it may change their tune.

shaun

I doubt it Shaun. They will probably just say you were "lucky".

[investwest]

Have a friend who was in a brand new house at Regents Park SE Qld, paid $150k for the house and land in around 2001. After a year said "We better get out now before the market go's bust". Sold for $230k, then proceeded to buy new Santa Fe, a few toys and got married. House was listed last year for $325k and mate is currently renting with no cash. Sad story but I couldn't convince him! I had as many people as possible call him (broker, bank manager, REA's etc etc) to say that the market wasn't going to bottom out in 2002!! Unsuccessful though!!

Dos Thats so sad.

[investwest]

My favourite is "the market is too high/ could go lower/ moving too fast", etc (take your pick).

For some, procrastination is a terminal disease. ;)

Its funny, we have bought all our properties at the bottom of the market. My angle is simple, buy when no one else is. The first investment property we bought was in 2004, pretty much just before things started to take off in Melbourne again. We got it for less than the rates valuation. At the time our non investor friends said its the wrong time the market is crashing,Boy were they wrong, and now they want to invest when the market is booming again, I dont get it at all.
We bought land early 2000. A year before the first home builders grant was introduced. We bought in an outer western suburb, our yuppy friends laughed at us and wondered why, one quote was I would never live out this far, (that person actually rented a property off us in the same suburb years later), thought that was funny, any way what I am trying to say at the time our friends thought we we mad to buy to build, as the GST had just been introduced, land was worth nothing because of the higher cost of building, and because of the newly introduced first homebuyers grant for established homes thats where the market was. Ha, Ha, we go to build after a year, after paying the 75'000 block off, (now worth $300,000) put down our initiall deposit for a house at a cost that would jump 20% the following week to build, because that following week the first home builders grant was introduced, so the builders more than factored that in to raise the prices, needless to say not only did we get the grant, but the house 20% cheaper than what it would have been had we signed a week later. This happened because we chose to go against the crowd, use our intuition, not wait to just see what happens, and take a risk.

[BayView]

Isn't it interesting when, whenever you buy something, there is someone close by saying: "don't buy now; it's not the right time".

Luckily I'm very deaf.

What?

[alexlee]

Isn't it interesting when, whenever you buy something, there is someone close by saying: "don't buy now; it's not the right time".

And people who say that usually don't own any property.
Alex

[buzzlightyear]

Isn't it interesting when, whenever you buy something, there is someone close by saying: "don't buy now; it's not the right time".

Luckily I'm very deaf.

What?

What? I can't hear you LAA, you are a long way away!

A variation to that theme is one where friends are looking and mind you have properties, (but being priced out of the area they are looking in), and they know you have just bought. The reaction can be a little more negative than those who don't have properties. It stunned me to be honest. I know what not to bring up in conversation again.

In trhis scenario, one of them knew I was going to an auction from a few weeks before the day, however, at the time, I was pretty sure, I wouldn't be able to purchase it, so had no issue with telling them. As you would to friends that you are supposedly close with. Lessons learnt however. I'll keep my trap shut in the future. I'll use this forum to express myself/vent!

[HandyAndy888]

Here is a classic...(I can't believe he actually said this)...

"The prices are going up!!!":confused:

I almost fell of my chair...:D:D:D:D

[Rino]

I worked with a lady once who told me she had never invested because, and I quote:

"When you invest money, you've got to give away half of everything you make to the government as tax".

I thought I had imagined it, but some time later we were doing the whole 'what would you do if you won the lotto' thing and she came up with:

"The best thing to do with any cash windfall is to spend it as quickly as possible, that way the government doesn't see a cent of it".

You probably think I'm making this up and I don't blame you for thinking that. The sad thing is I reckon a fairly significant portion of the population is this stupid.

[Lamingtons]

There was one guy who said that he's waiting until he can buy his house entirely with cash. I think he's still waiting.

[bailz66]

And the one that is going around at the moment non stop

House prices will go down by 40% in april... march.. xxx next year i will buy then

[sailor]

And the one that is going around at the moment non stop
House prices will go down by 40% in april... march.. xxx next year i will buy then
Good grief...now I've heard everything. Obviously these people don't research, don't look at history and don't ask questions. How naive is that?

[buzzlightyear]

Here is a classic...(I can't believe he actually said this)...

"The prices are going up!!!":confused:

I almost fell of my chair...:D:D:D

Can't buy because house prices are going up

And the one that is going around at the moment non stop

House prices will go down by 40% in april... march.. xxx next year i will buy then

Can't buy because house prices will go down....

Just waiting for the trifecta to come in now.....can't but now because the market is flat...anyone....anyone....:rolleyes:

[alexlee]

'Don't buy now, property isn't going anywhere!'

[buzzlightyear]

'Don't buy now, property isn't going anywhere!'

Wohoo! Bingo! (or is that Yahtzee!)....We have a winner.......:D

[Jase H]

'But you guys were really lucky to get in before the boom. It's too late to buy now."

[celica]

Have a girlfriend who only ever had to rent in the best part of town, bought $200 shoes (unfortunately you cant buy anything decent under that - talking 2001) I bought my own house (in a really crappy neighbourbood) and she openly rubbished the suburb (one can only live on the East side of town). Finally, when she shifted to Perth I talked her into buying, which admittedly she went into huge debt because she had to live on the river (last $10,000 on credit card which made my blood run cold) but, 6 years on its now tripled and probably worth $700,000, so some finally listen.

[Blue Card!]

i think my sig says it all for me.

it basically sums up everyone i've ever had the the pleaseure of growing up with, including my whole family bar my wife and her dad.

a lot of people think wealth is what you can flaunt - but then, the prob watch Today Tonight too...

i can't wait for them to eat their negative attitudes when i pay my PPOR off before they even have kids.

[markp]

'Don't buy now, property isn't going anywhere!'

ALL property?

[markp]

i think my sig says it all for me.

it basically sums up everyone i've ever had the the pleaseure of growing up with, including my whole family bar my wife and her dad.

a lot of people think wealth is what you can flaunt - but then, the prob watch Today Tonight too...

i can't wait for them to eat their negative attitudes when i pay my PPOR off before they even have kids.

Hi Blue Card
I agree rich people act differently.
Rich people read books and poor people watch movies.

[HandyAndy888]

'But you guys were really lucky to get in before the boom. It's too late to buy now."

lol..have heard this one a dozen times, goes hand in hand with the .."you were lucky" statements...:)

[HandyAndy888]

i think my sig says it all for me.

it basically sums up everyone i've ever had the the pleaseure of growing up with, including my whole family bar my wife and her dad.

a lot of people think wealth is what you can flaunt - but then, the prob watch Today Tonight too...

i can't wait for them to eat their negative attitudes when i pay my PPOR off before they even have kids.

dido...I'm in a position, where I could theoretically pay off a house of mine as a PPOR...unfortunately we are going for a bigger fish...but still way ahead of teh average 28 year old I think...

I really like the thought behind that sig....:)

[kinga4610]

The main reason I hear is that "the tenants will trash the place". Then go on to mention the various ACA or Today Tonight stories which have gone to air recently.

[want2bewealthy]

My Dad said this to me over the weekend,
He saw me checking out a house on rea.com,

He says "are you thinking of buying it?"
I said "yea"
He said, "I think youre much better off buying your own house, Ive heard that investment properties really tie people up".....

Now, my old man has done o.k for himself, hes old fashioned and believes in hard work,
he owns his own PPOR and buisness, owns that building outright too and is now 57, he plans to retire at 65 and live off a lifetime of hard work, day in, day out,
I see it much differently, I want to be retired, semi retired by age 40 and dont want to have to work after that if I dont want to, seems much easier t me and is certainly attainable without the stress of owning and running my own buisness.

[james_w]

excuses we have heard property is going to go back down to amounts like 20k in a cq coastal town with lots of miners lol everyones selling,nothings selling

rates are to high your crazy meanwhile they just bought a 50k car with 16% interest .
to hard,to expensive I believe all this is rubbish I have found properties

either way at good prices with good cg and good returns but most of my friends want a mansion but pay reno prices lol they forget we started with a measly 15k acreage in the sticks and now think it is unfair they slave for a wage just to pay bills and we sit on our ASSets:D

they all seem to be experts in re since we started in the game but none have ever bought.

as the old saying goes poor people spend money rich people invest and spend what's left :p

[Novar]

It's great when people pull up these old threads.

I talked a relative into buying their mine supplied 4 bed house for $70,000 few years ago. Mostly because they owned nothing and spent everything (on junk) and were hopeless money managers. Thinking at least at the end of their working life they would have something.

The deal was instead of $20 a week rent they paid $70 a week out of their $700 wage. They managed till they got the first rates bill, then sold it back to the mine and pocketed about $2,500 with the buy back and promptly spent it. It was a once ONLY opportunity. Houses now in the area sell for $300,000+

They also ended up with $20,000 on the AMP float ...gone in less than a month!

They are now nearing retirement and still have nothing!!
Who cares? .... not me.

[james_w]

It's great when people pull up these old threads.

I talked a relative into buying their mine supplied 4 bed house for $70,000 few years ago. Mostly because they owned nothing and spent everything (on junk) and were hopeless money managers. Thinking at least at the end of their working life they would have something.

The deal was instead of $20 a week rent they paid $70 a week out of their $700 wage. They managed till they got the first rates bill, then sold it back to the mine and pocketed about $2,500 with the buy back and promptly spent it. It was a once ONLY opportunity. Houses now in the area sell for $300,000+

They also ended up with $20,000 on the AMP float ...gone in less than a month!

They are now nearing retirement and still have nothing!!
Who cares? .... not me.

whoa they must be kicking themselves now my mum has a house on 2.5 acres in a place like this and never intends to sell. my friends rellie also bought alot of the houses before there went up and mines boomed his got 3 bottles of wine from the bank:p

[travelbug]

I just bought a place, and the girls at work couldn’t get over it.

“Why are you wasting your youth (I’m 22), now you’ll be stuck with a mortgage for the rest of your life!”

I politely declined to take advice from a bunch of 30+yo women who rent and live at home (really), and spend 300% of their annual income on clothes/makeup/cocktails.

Best advice I got was "only listen to those people who have what you want". i.e not people from work who know nothing.

Lady at work asked about my new property which has good rent "but if the rent is too high you won't be able to claim tax". Oh no!!!!

A friends parents are entertainers. They are on the pension and work and hide their money (tens of thousands) in their house because they worry about losing the pension.

My mum bought her house in 1963 for $7,000. Neighbours said she was crazy as it cost a few dollars more than renting. They are still renting.

I also get the "it's easy for you, no kids etc". But there was a time when I was at Uni with 2 kids and had to borrow money to live. I experienced the lineups for rental properties seeing people in their 50s trying to find a place to live (in the 80s) like now and was determined to own at least a PPOR.

I was living on the north shore and was a single mother with the opportunity to get a low doc loan for a new house. Everyone said I was crazy moving "out there" Oakhurst. Well I did and paid $55,000. Sold 7 years later for $122,000 (with a $20,000 loan) and bought in Baulkham Hills. Never looked back.

It is difficult when all those around you are telling you that you are wrong. Get informed and follow advice from those like minded people.

[vincenzo]

"...i wouldn't buy now, there might be a recession..."

[HiredGoon]

Best advice I got was "only listen to those people who have what you want". i.e not people from work who know nothing.


The trouble is.... what if 50% of people who take their actions go bankrupt, and since you're only asking the ones that survived (this is called survivor bias) then you'll get an incorrect grasp of risk.

Also, if you ask about something in a speculative bubble - of course people that bought into that thing at the time did well - .com millionaires were the thing in the late 90s - bubbles work really well up until they burst.

[wylie]

HG, sometimes you just have to hold your nose and jump in.

[Andrew_A]

The trouble is.... what if 50% of people who take their actions go bankrupt, and since you're only asking the ones that survived (this is called survivor bias) then you'll get an incorrect grasp of risk.

Also, if you ask about something in a speculative bubble - of course people that bought into that thing at the time did well - .com millionaires were the thing in the late 90s - bubbles work really well up until they burst.You get a breath taking lack of appreciation for survivor bias from API magazine with all of the pat on the back... just have to get into the market and borrow as much as you can for as long as you can type advice..

However.. The real trouble as I see it is if your chosen alternative to taking this type of false view with property is listening to the aforementioned 30 year olds, then you have a 100% chance of not achieving much. The penalties for failure in regards to risk taking with money are very light compared to the alternatives in our society, but that will come back to what you define as a risk.

[jingo]

The trouble is.... what if 50% of people who take their actions go bankrupt, and since you're only asking the ones that survived (this is called survivor bias) then you'll get an incorrect grasp of risk.

Also, if you ask about something in a speculative bubble - of course people that bought into that thing at the time did well - .com millionaires were the thing in the late 90s - bubbles work really well up until they burst.

Lack of confidence in one's ability and fearing the worst are common reasons for not investing. (HG's example above is fairly common).

[shady]

Not really funny as its my father but he told me last month, 'Once bitten twice shy'. My parents have 1 IP about 500m away from their place. They bought a 2b townhouse in 2005 and of course it hasnt appreciated much since then BUT!!!! He hasnt put the rent up since then either! They have had the same tennant since then who is regularly late with the rent makes up some sob story and she promises that she'll pay it all next month and low and behold she does.
The tennant pays $260pw market rent is somewhere closer to $340pw.
Dads excuse for not putting the rent up is that the tennant is having a hard time paying the rent now, she cant possibly afford to pay more.

Thing that gets under my skin is that he complains about buying IP's.....


This is coming from a guy that did the reno thing way way way before it was common place,

Sad really

[Andrew_A]

Not really funny as its my father but he told me last month, 'Once bitten twice shy'. My parents have 1 IP about 500m away from their place. They bought a 2b townhouse in 2005 and of course it hasnt appreciated much since then BUT!!!! He hasnt put the rent up since then either! They have had the same tennant since then who is regularly late with the rent makes up some sob story and she promises that she'll pay it all next month and low and behold she does.
The tennant pays $260pw market rent is somewhere closer to $340pw.
Dads excuse for not putting the rent up is that the tennant is having a hard time paying the rent now, she cant possibly afford to pay more.

Thing that gets under my skin is that he complains about buying IP's.....


This is coming from a guy that did the reno thing way way way before it was common place,

Sad reallyShady get him to complain about his health and free time, both of which are in short demand so subsequently he will have to employ a property manager from now on to manage the place and he wishes the tenant all the best and a happy and productive life but from now on all enquiries will be made through the agent. Sounds like he could be being taken for a ride by the tenant, we always find both sufficient time and money for our main priorities.

[Blue Card!]

well, after my dad pi55ing in my pocket about property investing, i sent him to seminars with free tickets (he was late) and got him all kinds of research materials, made him get a laptop so he could check things out online and use excel for calculations.

well, now he has "some stuff" to sort out before he goes and gets organised to get an IP.

he listens to "experts" on Today Tonite and regurgitaes the crap they spill, like Nigel Satterley telling people to buy in places he has estates because they're "Set for growth"...

he doesn't want ANYTHING neg geared because it'll eat into their "holiday fund".

oh and that stuff he wants to sort out is test riding a few more motorbikes before he takes his loan out so he can combine the two.

[BayView]

The trouble is.... what if 50% of people who take their actions go bankrupt, and since you're only asking the ones that survived (this is called survivor bias) then you'll get an incorrect grasp of risk.

Also, if you ask about something in a speculative bubble - of course people that bought into that thing at the time did well - .com millionaires were the thing in the late 90s - bubbles work really well up until they burst.

HG, It all comes back to the onus on the investor.

If I learn about a particular thing; say driving a car (or investing), it's up to me to practice driving to get better in the back streets and in the Coles carpark (say; equivalent to buying a cheaper-end price range 2 bed unit in a normal suburb) before I go out onto the shark infested roads, and I would do it with someone in the car next to me for guidance (a mentor, or this forum, or read books etc).

Then, once I am educated and competent enough, I do it on my own, and hopefully I have the INTELLIGENCE to drive (invest) with safety and caution.

Anyone who listens to the 22 year old driver (newbie or reckless investor or investor with no success) who says; "Yeah, driving (investing) is easy; go as fast as you can everywhere - I do and have had no worries" is asking for death.

Or; listen to the old nanna who has never driven a car (the "armchair investor" or gloom and doomer - there's a few on this site) who sits there and says "I never drive (invest) it's too dangerous. I've seen too many people get hurt".

While she is correct that it is dangerous, she never gets to go anywhere and have a life - the investor never gets rich.

Or, listen to the car salesman (Mortgage Broker or Financial Advisor) who flogs the newbie driver (investor) a car (slick loan or over-priced property or managed fund with high fees) and says how great it is to drive, but never explains the road dangers, and maybe doesn't even drive (invest) himself.

So, HG, while you are demonstrating such noble concern for everyone about losing their shirts, it comes back to the same thing; investing has risk, but the educated people learn to minimise the risks and make money in all markets.

Asking the survivors what they do is smart; the survivors are educated, but have still made mistakes, so we learn from them, learn how to protect our endevours, and make money.

Many of us here are talking from a position of having driven in a few Bathurst 1000's, and tell people how to drive safely.

[skater]

Wow! What a great analogy.

[steveadl]

I'll second that, nice one Marc. :cool:

[BayView]

Thanks; I thought it was just another one of my useless ramblings, designed to annoy HG.

[Perchy]

My work mate said "Investing is just another word for gambling."

Had a real estate agent say the same thing tp me when I bought shares (that went up multiple times in value)...

[RumpledElf]

Friends of mine are telling me to fix my IP up and sell it, not rent it out. Eww, you'll get tenants, why would you want to do that?

They own quite possibly dozens of vacant allotments close to their house, including several vacant houses that they've collected over the last 5 or 6 years. They pay rates on all of them, they have to maintain all of them, and they only earn money whenever they kill a cow that eats the grass from them. But they don't want neighbours, so they won't rent any of them out or resell them, and they haven't had any urge to get the separate blocks merged together into acreage so they pay less rates. They intend to sell the lot Real Soon Now and move to Tasmania.

[want2bewealthy]

Oh here's another from my SISTER of all people, she's supposed to be proud, so youd think anyway. .

I didnt even get a congratulations, not even a word from her then a few days later I bought it up and she says to me. .

"ohh half a million dollars in debt. . I couldnt handle that, its not a good idea. . Id be too uncomfortable with that"

This is laughable. . coming from someone who lives a pay to pay existance and has dreams of home ownership but isnt financially fit enough to be able to service a loan, even though she and her partner earn a combined income of 3 times mine. .
Funny that huh ;)

[Kim5]

A co-worker paid off his ppor about 10 years ago after getting an inheritance from his parents, he also got a nice little redundancy package as well. I couldn't believe what I was hearing he was having a convo with the new guy talking about how he has fully paid off his mortgage, and he was sounding so very proud of himself with how well he is doing financially. I'm thinking quietly to myself ohhhh please!! your nuts.

He works a 2nd job as well and guess what he does with his money, he puts it in the bank. I asked him if he has thought about investing his money, but he's told me a few times that he his happy to put the money in the bank.

If only I was in his position!! He could easily have 10 ips by now, but he just puts it into his measly bank account. What does he end up earning after inflation eats away at it.... lol. He's crazy!!

[Petal]

Oh here's another from my SISTER of all people, she's supposed to be proud, so youd think anyway. .

I didnt even get a congratulations, not even a word from her then a few days later I bought it up and she says to me. .

"ohh half a million dollars in debt. . I couldnt handle that, its not a good idea. . Id be too uncomfortable with that"

This is laughable. . coming from someone who lives a pay to pay existance and has dreams of home ownership but isnt financially fit enough to be able to service a loan, even though she and her partner earn a combined income of 3 times mine. .
Funny that huh ;)

W2BW, you will find that the most unsupportive are often family members as they feel you are "getting above your station in life" so don't give it a second thought. Keep doing what you are doing and keep talking to us who WILL support and encourage you. I have just been re reading Jan's book "Building Wealth Story by Story" which is definitely my favourite of all of her books!! If you can get a chance pick yourself up a copy and you will love it!!

[Rixter]

What does he end up earning after inflation eats away at it.... lol. He's crazy!!

Not only inflation but taxation as well.

[Kim5]

W2BW, you will find that the most unsupportive are often family members as they feel you are "getting above your station in life" so don't give it a second thought. Keep doing what you are doing and keep talking to us who WILL support and encourage you. I have just been re reading Jan's book "Building Wealth Story by Story" which is definitely my favourite of all of her books!! If you can get a chance pick yourself up a copy and you will love it!!


I finally got around to ordering her other book.

:)



Mum and dad thought i was better off buying my ppor first afterall thats why i moved in with them so as to save for my first ppor. But over the past few months I've been gradually educating them about ip and easing into the topic about what my goals are and what i want to achieve through ip to get them used to the idea that im better off buying ip's first and renting.

They see how much effort i am putting into educating myself and how much i have learnt and are supportive of me. I know I have a long way to go, but I have made a good start and will learn more through experience... when I jump in and start buying ips. I am eager to buy now but not yet financially ready. Half way there.

The other thing is my parents had a bad experience with an ip. They signed up for an ip off a salesperson at "one of those seminars" mum regrets she didnt listen to her intuition about investing in that suburb. They had trouble finding a tenant, there were undesirables living nearby everything went wrong and ended up having to sell at a loss. Anyway she is a bit concerned about me investing in suburbs she doesnt know much about, I have told her dont worry I will do my dd make I'll choose correctly. They also know that I wont go jumping into everything. lol everytime I go to a seminar they say to me... dont go signing up for anything, I assure them I wont.

[Kim5]

Not only inflation but taxation as well.

yeah rather than do that he'd be far better off salary sacrificing through super seeing he'll prob retire in 5 - 10 years.

[ernie]

A co-worker paid off his ppor about 10 years ago after getting an inheritance from his parents, he also got a nice little redundancy package as well. I couldn't believe what I was hearing he was having a convo with the new guy talking about how he has fully paid off his mortgage, and he was sounding so very proud of himself with how well he is doing financially. I'm thinking quietly to myself ohhhh please!! your nuts.

He works a 2nd job as well and guess what he does with his money, he puts it in the bank. I asked him if he has thought about investing his money, but he's told me a few times that he his happy to put the money in the bank.

If only I was in his position!! He could easily have 10 ips by now, but he just puts it into his measly bank account. What does he end up earning after inflation eats away at it.... lol. He's crazy!!

Well at least your co-worker paid off his mortgage and saves his earnings. Certainly heaps better than most who just go round and round the earn-spend cycle. Perhaps he just needs some sort of catalyst for the lightbulb in his head to switch on.

I have a co-worker who is very similar to the one you describe. Puts his money into an online savings account because of the high interest. When I asked him about investing, he said he's tried a few times before but got burned so retreated to the safety of the bank account. Although he is aware of the fact that he could be earning much more if he invested, he says he just doesn't want to lose any more money. Seems the pain of losing money overrides the joy of making money. He's a great bloke who knows the value of money, budgeting and saving and has paid off his home so I don't think he'll ever be in trouble financially. Hopefully someday he'll get enough courage to try investing again and get better results but at worst he'll have the capital gain from his PPOR and all the money he's saved away.

[Blue Card!]

I have a co-worker who is very similar to the one you describe. Puts his money into an online savings account because of the high interest. When I asked him about investing, he said he's tried a few times before but got burned so retreated to the safety of the bank account. Although he is aware of the fact that he could be earning much more if he invested, he says he just doesn't want to lose any more money. Seems the pain of losing money overrides the joy of making money. He's a great bloke who knows the value of money, budgeting and saving and has paid off his home so I don't think he'll ever be in trouble financially. Hopefully someday he'll get enough courage to try investing again and get better results but at worst he'll have the capital gain from his PPOR and all the money he's saved away.

nothing wrong with this approach, it's just conservative.

if everyone was half as good as this with their finances the world would be >

http://capefeare.com/lawyer_thumb.jpg

[steveadl]

I have a co-worker who is very similar to the one you describe. Puts his money into an online savings account because of the high interest. When I asked him about investing, he said he's tried a few times before but got burned so retreated to the safety of the bank account. Although he is aware of the fact that he could be earning much more if he invested, he says he just doesn't want to lose any more money. Seems the pain of losing money overrides the joy of making money. He's a great bloke who knows the value of money, budgeting and saving and has paid off his home so I don't think he'll ever be in trouble financially. Hopefully someday he'll get enough courage to try investing again and get better results but at worst he'll have the capital gain from his PPOR and all the money he's saved away.

Just a guess, but it sounds like he's had some bad runs on the stock market. He should read a property book.

[joeExpat]

If only I was in his position!! He could easily have 10 ips by now, but he just puts it into his measly bank account. What does he end up earning after inflation eats away at it.... lol. He's crazy!!

Cash is probably the best place for money right now, he's far from crazy.
Leveraging into 10 IPs would backfire in the current environment. He'll be in a much better position in 3 years than someone who did that.

[McBrain]

Cash is probably the best place for money right now, he's far from crazy.
Leveraging into 10 IPs would backfire in the current environment. He'll be in a much better position in 3 years than someone who did that.

That's a bit of a general statement!

I'm sure there are many here who could do much better than bank returns with minimal risk?

[ernie]

Just a guess, but it sounds like he's had some bad runs on the stock market. He should read a property book.

Got it in 1! :)

Risk-averse guy, so is spooked by the relatively large amount of money required to buy into property.

[steveadl]

Got it in 1! :)

Risk-averse guy, so is spooked by the relatively large amount of money required to buy into property.

Explain to him it's relatively less of his own money in property, and there's extremely little chance of a margin call. You could also do what I do with people - buy them a copy of Jan's 'More Wealth' and let them go through it in their own time. Then they come to you. ;)

[BayView]

That's a bit of a general statement!

I'm sure there are many here who could do much better than bank returns with minimal risk?

mmmm...Bank interest rates.

8% about now for an on-line account? or maybe a few Term Deposits? I wouldn't know these days.

Factor in less tax, and inflation erosion of your capital - call it about 6.6% if you are on the lowest tax rate.

That's a staggering 1.4% nett.

I only need one rent increase of around $10 per week per property this year, and I've killed that percentage. One IP just had a $30 p/w increase.

Did I mention all the tax benefits and maybe a few % of cap growth as well?

I'm sellin' up the portfolio tomorrow! I think I've still got ING on speed-dial.