50 Victorians a week lose their homes

[alexlee]

If you need it translated, here goes: I feel more pity for a family that loses one home and their only home, than for some cashed up investor who has a home already but loses one property on the side... he will not be kicked out on the streets unlike the first family, GET IT?

Why exactly would a cashed up investor lose the property in the first place? If interest rates went up I'll just grin and bear it (and pass on some of the pain to the tenant). And if the first family was cashed up, why would they lose THEIR one and only home?
Alex

 

[Harris]

If you need it translated, here goes: I feel more pity for a family that loses one home and their only home, than for some cashed up investor who has a home already but loses one property on the side... he will not be kicked out on the streets unlike the first family, GET IT?

I reckon you are more confused than you realise yourself.

If I was you .. i would take a deep breath or 2 and pick the golden bits of advice from this thread and make the most of it.

Average and neagtive mindset translate into average and negative outcome.

Good night

 

[IndexFund]

Why exactly would a cashed up investor lose the property in the first place? If interest rates went up I'll just grin and bear it (and pass on some of the pain to the tenant). And if the first family was cashed up, why would they lose THEIR one and only home?
Alex

WHy are then 50 houses get repoe'd every week in Melbourne? Am i missing something or the people that are losing their houses are all a bunch of financially inept crackheads?

 

[alexlee]

A cashed up investor would probably BUY the property from the (obviously not cashed up, or they wouldn't be in this situation) first family in your example.
Alex

 

[alexlee]

WHy are then 50 houses get repoe'd every week in Melbourne? Am i missing something or the people that are losing their houses are all a bunch of financially inept crackheads?

Don't know about the crack, but financially inept, yes. Bought too much house, expected rates to be low forever, swags of consumer and credit card debt. With a dose of unemployment, illness, divorce, family (e.g. have a kid and lose one income), etc throw in to break the camel's back. That includes investors who overstretch. So what? That happens.

What I don't get is how you think a cashed up investor would lose a property in the first place. Cashed up investors will be BUYING. I know I'm not in danger of losing any of my properties. There are plenty of financially inept people who will fall of the cliff first before it's my turn. The RBA will achieve what it wants WAY before I lose properties.
Alex

 

[IndexFund]

Don't know about the crack, but financially inept, yes. Bought too much house, expected rates to be low forever, swags of consumer and credit card debt. With a dose of unemployment, illness, divorce, family (e.g. have a kid and lose one income), etc throw in to break the camel's back. That includes investors who overstretch. So what? That happens.

What I don't get is how you think a cashed up investor would lose a property in the first place. Cashed up investors will be BUYING. I know I'm not in danger of losing any of my properties. There are plenty of financially inept people who will fall of the cliff first before it's my turn. The RBA will achieve what it wants WAY before I lose properties.
Alex

Maybe I should do some reading on investment property as I fail to see the big picure.. Any books you recommend?

 

[BayView]

Do you really, honestly believe that?

That's not my experience at all.

Everyone feels happy and sad at different times; it's part of being a human.

But from personal experience, having been both poor and more comfortable with money to do stuff; it's far better fun to live life rich than poor.

That statement of yours is the "excuse" mindset of poor people who want to believe that to be rich doesn't guarantee happiness, so therefore it is ok for them to be poor and think they are just as happy as the rich person.

Maybe they are happy, but it's certainly more fun to have some cash to play with while you're being happy.

It's a self-justification for their (poor) financial position and helps them to accept it in their own mind.

 

[nomadic]

being a pedant for a moment but a Bimmer is a car, a Beemer/Beamer is a motorcycle (both made by BMW)

 

[jingo]

Im not wishing harm to investoirs, I am simply bitter about the current situstion with RE thats all.

Check out this site - full of bitter people. It ain't pretty!

http://forum.globalhousepricecrash.com/index.php?act=idx

Come on IndexFund - don't stay bitter, get even! Go out there and start investing, you'll never look back!

 

[jingo]

Maybe I should do some reading on investment property as I fail to see the big picure.. Any books you recommend?

The ironic thing is that you are on a forum supported by an author who has written one of the most authorative and clear texts on property investments. Go check it out IndexFund!!

 

[alexlee]

Maybe I should do some reading on investment property as I fail to see the big picure.. Any books you recommend?

Jan Somers' books to start with. Also, try to stop resenting things, especially investors and property (you are actually rsenting it for being too expensive). Mindset is very important. If you resent something, it's going to be hard to make money from it.

You need to read what most people don't. Most people read ninemsn. Most people aren't even investors. Ask what investors read. I have a huge list of stuff to read about business if you want it, but I'd start with the Jan Somers books.
Alex

 

[sailor]

I think this is an excellent thread...debating the pros and cons of investor psychology. Tis true...successful investing is all about the frame of mind one has...one's philosphy on investing and risk assessment.

Attitude is everything in this IP venture. Fear only promotes failure. Some people imagine the worst...and then go live in that fantasy...and then get even more scared. Fear stops them from succeeding.

Others get educated, get their facts straight, do their homework (DD), get advice and opinions, and do the sums. Having an optimistic and positive attitude helps us to succeed. If the dream or fantasy is positive, and we keep out goals and actions aligned with that, success can and does happen.

 

[Harris]

very succinct way of summarising it sailor - I agree 100% and kudos to you.

Harris

Attitude is everything in this IP venture. Fear only promotes failure. Some people imagine the worst...and then go live in that fantasy...and then get even more scared. Fear stops them from succeeding.

Others get educated, get their facts straight, do their homework (DD), get advice and opinions, and do the sums. Having an optimistic and positive attitude helps us to succeed. If the dream or fantasy is positive, and we keep out goals and actions aligned with that, success can and does happen.

 

[hfw]

lol good question... when I think of a person who has at least 12 "properties" I picture a fat, balding guy driving a Ferrari and each one of his fingers has a gold ring with diamonds... however, something tells me most people on this forum that do have 12 + properties... are no where near that kind of lifestyle??

Sorry to disappoint you, but I wear $5 paint stained track pants and haven't bought a tshirt in 3 years. I drive a 1990's falcon and have no desire to get the aircon fixed. I have a modest wedding ring, am 65kg and 178cm. About 75% of everything I earn is funnelled into an account in readiness and I sold the majority of my portfolio over the last year in preparation to bring my gearing to about 20%. Bring it on.

 

[skater]

I know of a guy who has over 12 IP in his name... and guess whats happening? he is ****ting himself because of the interest rates rising so often.

Index, a lot of us here have in excess of 12 properties, & I would guess that most of those are not worried about the rate rises. If the properties have been bought over several years, then there is considerable equity built into the price that can be drawn on if necessary. There is also the considerable rises in rents that we are able to implement.

lol good question... when I think of a person who has at least 12 "properties" I picture a fat, balding guy driving a Ferrari and each one of his fingers has a gold ring with diamonds... however, something tells me most people on this forum that do have 12 + properties... are no where near that kind of lifestyle??

Sheesh, you really have no idea of the mindset of a lot of investers, do you. A Ferrari is something that I have absolutely no interest in. The properties are a means to an end. They are there solely to fuel the (early) retirement. So there is sufficient cashflow to live on without the constraints of having to "work" for a living. I don't intend to live a lavish lifestyle with luxury cars etc, just have the freedom to do what I want, when I want to do it & to travel extensively in moderate comfort.

Cheers Alex, good points. I agree with you on whole, just kinda makes you feel unsure buying the first property. And at the end of it all, I would be very happy owning one or two properties in my name, having enough cashflow to travel overseas and live comfortably (not on credit) and finally owning an extic car or two. And my goal is to achieve all this while I am still with brown hair... not grey or worse still... white.

And you intend to do this with one or two properties??? I would really love to see that. Even if you only had one IP, fully paid, plus a fully paid out PPOR, you are going to be earning less than the amount of rent you get in each week (bear in mind that you will have maintenance, rates, etc), plus a small pension (providing you can pass the assets test). Have fun trying to travel overseas on that.

 

[skater]

Yep cheers! I think owning anymore than 5 properties would be a full time job plus overtime anyway... I dont know how you guys do it with even more.

It's called a Property Manager. They get paid to deal with all the garbage that we don't want to deal with.

 

[BayView]

And at the end of it all, I would be very happy owning one or two properties in my name

This whole property caper creeps up on you. The zeros on the end keep suddenly appearing.

You may say that you'll be happy as Larry with one or two IP's NOW, but when you get those two tucked in bed, and you've seen how easy it was, you'll be looking for no.3 soon enough.

 

[Dis]

There are many people out there that are way more happy than you and I and have no money, homes or cars... because they have a different mindset. There are people that have billions of dollars and they still feel emotionally poor and angry all the time.

Do you really, honestly believe that?

That's not my experience at all.

Everyone feels happy and sad at different times; it's part of being a human.

But from personal experience, having been both poor and more comfortable with money to do stuff; it's far better fun to live life rich than poor.

That statement of yours is the "excuse" mindset of poor people who want to believe that to be rich doesn't guarantee happiness, so therefore it is ok for them to be poor and think they are just as happy as the rich person.

Maybe they are happy, but it's certainly more fun to have some cash to play with while you're being happy.

It's a self-justification for their (poor) financial position and helps them to accept it in their own mind.

I'd agree that "Everyone feels happy and sad at different times; it's part of being a human." To have a pervasive low mood would class you as depressed while being elevated all the time would class you as (hypo)manic. I'm asuming that we are talking about normal people here without mental health issues. For such people studies have found that

a) It's comparison with your peer group's wealth that tends to give you happiness rather than the absolute $ value of your wealth. So, if you lived in the remote areas of the Amazon jungle, you may be very happy owning a motorised canoe and living in a tin shack. Far happier than some millionaire living in a $15M Gold Coast mansion with his own private yatch tied up outside.

b) In our (Australian) society, earning more than about $70-80K have deminishing returns on happiness. Ie being poor can (and often does) make you unhappy, because its hard to get by and basic choices are restricted. Being rich, however, does not make you increasingly happy (and most definitely does not guarantee to make you happy). After the $70-80k pa mark people are comfortably affording what is normal for their peer group. The big gains in happiness after this level come from cultivating solid relationships and being involved in meaningful activities. Acquiring material possessions (eg a BMW) may give a brief hit of happiness but it soon fades. People who go down this track often find themselves always pursing the next acquisition to get that brief hit of happiness. Sadly it never lasts for long. In fact it can lead to unhappiness if the pursuit of material goods starts eroding other aspects of your life. The example most quoted on these forums is the comfortably well off couple who mortgage themselves to the hilt, buy all the latest doodads and then live a very uncomfortable life - especially when the RBA rocks their world...

Alot of the unhappy rich are not satisfied with what they have, have poor relationships, and are not involved in activities which give them satisfaction. Index is correct when he says: "There are people that have billions of dollars and they still feel emotionally poor and angry all the time. "

 

[Dazz]

You may say that you'll be happy as Larry with one or two IP's NOW, but when you get those two tucked in bed, and you've seen how easy it was, you'll be looking for no.3 soon enough.

Agreed.

 

[casper007]

IndexFund ... what I don't get is what are you doing on this forum?
The idea behind property investment (or any other pursuit) is to learn from people who are successful (at it) and when you are one of them yourself ... then you have earned the right to make comment ... until then, look for a forum for venting anger ... most of the Metro newspapers have those types of forums...