Are these the most challenging times?

S

simbi99

Is this the most difficult it ever has been in modern history to generate wealth?

One day rates are rising in 2015, the next oil prices are crashing and rates are tipped to be cut. The dollar on the plummet, calls for measures to be taken to stem the rise in prices in the property sector?
Big business laying off employees left right and centre
Numerous zoning and overlay laws and provisions on landing preventing development.
Are these times more difficult than any other to generate wealth or is it nothing new?
 
If you're only focussing on a single year, then your timeframe isn't broad enough to make money.

If you're under 40 (like myself even) - you havent seen 'bad' times yet, just 'not good' times.


pinkboy
 
Yeah, these are shocking times eg house prices in Sydney up a min 100K in the last 18 months......real shocking times lol.....keep shocking me lol
 
Only just turned 20, so in no way am I speaking from experience, merely economic history.
It just seems as if rewind 20 years ago and the generation of wealth whether it be through means of the property market or elsewhere seemed a more achievable goal
 
simbi99 said:
Is this the most difficult it ever has been in modern history to generate wealth?

One day rates are rising in 2015, the next oil prices are crashing and rates are tipped to be cut. The dollar on the plummet, calls for measures to be taken to stem the rise in prices in the property sector?
Big business laying off employees left right and centre
Numerous zoning and overlay laws and provisions on landing preventing development.
Are these times more difficult than any other to generate wealth or is it nothing new?
Click to expand...

I think these are among the best times to rate wealth. There is an enormous amount of opportunity out there an info is easily obtained.

I will say though that it is probably a bit harder to just coast and di bugger all and get by (in the great aussie tradition of doing just enough to not get fired) because there are a lot less jobs for life out there.
 
simbi99 said:
Only just turned 20, so in no way am I speaking from experience, merely economic history.
It just seems as if rewind 20 years ago and the generation of wealth whether it be through means of the property market or elsewhere seemed a more achievable goal
Click to expand...

Well its an illusion. You should probably not worry about it and get onto the job of doing the best you can in these "circumstances".
 
I agree with all that, history is always seen with a sense of nostalgia, way I see it, those who are brave enough to act will always prevail over those who ponder
 
Saw an article where an almost 18 year old in America is approaching $100m net worth from share trading. Obviously very tough times. Can't believe only one 17yo is worth that much.
 
I would certainly rather be playing in a rising market and we have had a few of these recently.:)

For me there are more challenges today in terms of finance as I was investing when we had lo doc and no doc, extraordinary times, basically servicing was not required, imagine how wonderful that was and what could be achieved in a short time frame.

In saying this I think as an investor there will always be challenging times regardless, no one can predict when the market will peak, or something like GFC hits, or impact of 9/11 how this effected markets etc.

Its probably more important that the investor can manage market conditions and how they manage the risks when markets turn, if they can do this then they probably have a very good chance of surviving and building wealth.
 
j_p said:
Saw an article where an almost 18 year old in America is approaching $100m net worth from share trading. Obviously very tough times. Can't believe only one 17yo is worth that much.
Click to expand...

Yes and also tens of thousands are homeless and dying of hunger, seen many articles on that? No probably not
 
Nemo30 said:
Just out of curiosity, what do consider 'modern history'?
Click to expand...

Say for forums sake, 1930 or just before the Great Depression.

I mean to me it seems as if doomsdayers and fear mongers are present amoung every single generation there has ever been and will be
 
For example on why today's climate is far more challenging to generate wealth than any other time.
To be a property developer today with any sort of success, you have to have a sound understand of
The macro environment, including but not limited to, unemployment, inflation, supply and demand, reasoning behind the cash rate and why interest rates change and what hints at changes
You also need to have a sound understanding Of micro environmental factors which effect you personally, such as your pay, your ability to finance a loan, tax breaks ect, this is nothing new but you still hve to be on top of or)
On top of this you also have to be a town planner on the side, and have a firm understanding of town planning, overlays and zoning.

Rewind 30-40 years it seemed all you need was a piece of land and a hammer
 
simbi99 said:
For example on why today's climate is far more challenging to generate wealth than any other time.
To be a property developer today with any sort of success, you have to have a sound understand of
The macro environment, including but not limited to, unemployment, inflation, supply and demand, reasoning behind the cash rate and why interest rates change and what hints at changes
You also need to have a sound understanding Of micro environmental factors which effect you personally, such as your pay, your ability to finance a loan, tax breaks ect, this is nothing new but you still hve to be on top of or)
On top of this you also have to be a town planner on the side, and have a firm understanding of town planning, overlays and zoning.

Rewind 30-40 years it seemed all you need was a piece of land and a hammer
Click to expand...

What the...? Where are you getting this crap from?

If anything, its never been easier a time to become a property developer. With the advent of the internet and resources like somersoft, its possible to learn everything from the comfort of home, or very near everything.

It wasn't that long ago that you pretty much had to have a mentor or otherwise there was nearly no way to learn from anywhere else.
 
simbi99 said:
Only just turned 20, so in no way am I speaking from experience, merely economic history.
It just seems as if rewind 20 years ago and the generation of wealth whether it be through means of the property market or elsewhere seemed a more achievable goal
Click to expand...

Comes down to attitude.

Some people will say that property will crash, other say it will increase, it really depends on what your thoughts are.

To me there is a housing shortage and the population is increasing, with supply and demand I would find it hard to see the property market crashing.

I bought my PPOR about 4 years ago and it has increased by $100k (conservatively), it would of been very hard for me to save this amount in the same time. Possible as I had done it previously but I have lived a better life and increased my expenses during this time (wedding, baby, overseas holidays, new car (previous one broke), and drinking nicer wines ($20 avg).

These are now personal choices I have chosen, but to save $100k in that same time I would have to have cut some of these costs.
 
simbi99 said:
For example on why today's climate is far more challenging to generate wealth than any other time.
To be a property developer today with any sort of success, you have to have a sound understand of
The macro environment, including but not limited to, unemployment, inflation, supply and demand, reasoning behind the cash rate and why interest rates change and what hints at changes
You also need to have a sound understanding Of micro environmental factors which effect you personally, such as your pay, your ability to finance a loan, tax breaks ect, this is nothing new but you still hve to be on top of or)
On top of this you also have to be a town planner on the side, and have a firm understanding of town planning, overlays and zoning.

Rewind 30-40 years it seemed all you need was a piece of land and a hammer
Click to expand...

I'm with thatbum on this, where are you getting this POV from??
 
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