Bunch of jealous whiners

[smallbuyer]

Hello,

After reading this article and the comments the amount of whining, jealous complaining and essentially praying for people who have worked hard to fail is getting really ridiculous.


http://www.smh.com.au/business/new-reality-owing-more-than-you-own-20111221-1p4l2.html

I have a number of investment properties because i started young and didn’t p.iss all my money up against the wall like most people my age did (many were earning way more than me). I tried to get my mates to do as i did but few listened. I would have loved to drive a brand new SS commodore when i was in my early 20’s or have the latest furniture and big flash tv but no my money went to my houses. If anyone thinks i (or anyone else who has worked hard to get ahead) should be sorry for getting ourselves ahead they are dreaming. Jealousy is one thing but why on earth would people be praying i lose all this? I certainly don’t go around praying others lose the product of their hard work and savings.

Seems to so many people these days people who own an investment property are evil, these are also the same people who complain that there is nowhere to rent .....

People praying for a huge (40 %!!?) drop in RE prices are really kidding themselves. From what I’ve seen there is an undersupply of property and cost to build are high and rents are rising fast (im in WA). Most houses in WA cant be built for 60% of the current sale price let alone the cost of doing the subdivision (heaps these days) and the land itself!!

Anyway there is a rant for people to comment on
have a great day

Smallbuyer

 

[Aaron Sice]

let them bleat.

 

[Dan_p]

There was a few nasty comments written below there.

Who cares if the value of properties went down next year, they are a long term investment.

A lot of the late payment and defaults are from people who probably should not have a mortgage in the first place.

 

[Dan_p]

In my opionion it is a terrific time to buy. I can see inflation coming our way with the amount of government borrowing. Our dollar will be worth less. Carbon tax, and increase in power etc will push the price of living so people will have to ask for more money from employers. Government is already doing this for the non workers.

I read somewhere that the carbon tax alone will increase the amount of money it costs to build a house by a tens of thousands. Now if it will cost more to build then how can house prices come down by loads?

At least if you buy property and if we have inflation then you are borrowing on yesterdays money. In time rents will rise along with everything else, does it really matter if your property value goes down (I am not saying that it will). It would only effect people trying to further their ip portfolio and who are highly leveraged.

 

[james_w]

Hello,

After reading this article and the comments the amount of whining, jealous complaining and essentially praying for people who have worked hard to fail is getting really ridiculous.


http://www.smh.com.au/business/new-reality-owing-more-than-you-own-20111221-1p4l2.html

I have a number of investment properties because i started young and didn’t p.iss all my money up against the wall like most people my age did (many were earning way more than me). I tried to get my mates to do as i did but few listened. I would have loved to drive a brand new SS commodore when i was in my early 20’s or have the latest furniture and big flash tv but no my money went to my houses. If anyone thinks i (or anyone else who has worked hard to get ahead) should be sorry for getting ourselves ahead they are dreaming. Jealousy is one thing but why on earth would people be praying i lose all this? I certainly don’t go around praying others lose the product of their hard work and savings.

Seems to so many people these days people who own an investment property are evil, these are also the same people who complain that there is nowhere to rent .....

People praying for a huge (40 %!!?) drop in RE prices are really kidding themselves. From what I’ve seen there is an undersupply of property and cost to build are high and rents are rising fast (im in WA). Most houses in WA cant be built for 60% of the current sale price let alone the cost of doing the subdivision (heaps these days) and the land itself!!

Anyway there is a rant for people to comment on
have a great day

Smallbuyer

They have been saying this for years I also Highly doubt properties would drop 40% in quite a few areas in Queensland the tide is starting to turn again we are now at the bottom it seems our market hasn't sold for years now houses are getting snapped up pretty quick could be Just the Christmas holidaymakers though.

They say they can't afford property and praying for the prices to drop however the majority seem to want to be close to the cbd and get a macmasion as there first PPOR I only started about 6 years ago and my first property was a few acres and a 30 year old rural home there is plenty of property around Australia for under 200k still bout time people realize we buy property to make money and we are not a bloody charity.

 

[evand]

Where the jealousy? Looks like an article in negative equity/high LVRs to me.

 

[pieman]

Where the jealousy? Looks like an article in negative equity/high LVRs to me.

Evand, there's clearly an us and them mentality in those comments, not simply about LVR's

 

[evand]

Ok, I thought the op was referring to the article only.
The commentators can have their opinion, no biggie. But I agree there is an element of jealousy etc in the comments.

But there is aways a chance things could get nasty. I wouldn't be getting too cocky.

Evand, there's clearly an us and them mentality in those comments, not simply about LVR's

 

[lizzie]

Unfortunately this "me" generation is all to common - and we parents are to blame by giving them whatever they wanted.

It means that they "want it now" without having to sacrifice, and ergo expect to be able to buy, straight off, the house their parents took 30 years to build up to.

Ignore them. The best revenge is success.

 

[Ideo]

Unfortunately this "me" generation is all to common - and we parents are to blame by giving them whatever they wanted.

It means that they "want it now" without having to sacrifice, and ergo expect to be able to buy, straight off, the house their parents took 30 years to build up to.

Ignore them. The best revenge is success.

That, with all respect, is just nonsense.

Get rid of the us/them mindset. Especially based on generational matters.

And a lot of areas of Sydney have undergone massive increases in price. You can't deny that. Can you blame people for getting a bit annoyed about the prospect of a 3 hour commute each day simply to afford to buy a house to live in?

Don't forget, investors have had massive incentives over the years to accumulate more and more property and that has had an effect on how easy it is for people starting out to get on the property ladder.

The snobbery about "generations" and not wanting to work for anything are just as rude and offensive as those about rich selfish investors.

 

[myoung]

The often overlooked ingredient

The thing that strikes me about these types of articles comments is it always winds up being a debate between the market is going to crash and it is all the fault of greedy investors vs the it will be OK and your expectations are inflated beyond reality argument.

The item continually overlooked in most of these debates is the other main snout in the trough - Governments at all levels have played a huge part in the unlying costs of properties and I'm not refering to the FHOG.

The costs levied by Govt's on the developement and transfer of property have a huge impact on the underlying cost of propoerty in Australia, both local Govt through it's rediculous charges on subdivision etc and State Govt's rolling in Stamp Duty.

Think about what a block of land would be worth in the outer suburbs/new estates with these costs removed. This flows all the way through the market.

 

[Deltaberry]

Unfortunately this "me" generation is all to common - and we parents are to blame by giving them whatever they wanted.

It means that they "want it now" without having to sacrifice, and ergo expect to be able to buy, straight off, the house their parents took 30 years to build up to.

Ignore them. The best revenge is success.

Look what you say has some social truth to it.

But I agree with evand - we shouldn't get too complacement and dismiss counter-arguments just because we don't like the suggested outcome in them.

At the end of the day, we should be basing our investment thesis on unemployment/mortgage rates/liquidity/relative performance of asset class/rent returns/government policies etc.

 

[VYBerlinaV8]

There are lots of different people in the world, with lots of different circumstances. There are people who have been dealt a bad hand, and are doing what they can to get through the day, there are people who were dealt a reasonable (or good) hand who have seized opportunity and done well. There are also people who who ignored opportunity because they were too stupid and/or lazy (I know quite a few in this category), and those who tried but failed. I think there are definitely generational tendencies to through into the mix, as well as good old-fashioned whinging. There are also the rare people who succeed in spite of their situation.

There are lots of in-betweens as well.

Ultimately, the market is what it is. We can argue and even complain, but it won't change anything. If people need to whinge and whine to feel better about themselves, so be it. Constructive debate is more welcome, but hey, that's the way things are.

None of the above will stop me from seeing residential property as a potential investment, and from using what I've learnt to improve my wealth.

 

[gottabespotless]

And a lot of areas of Sydney have undergone massive increases in price. You can't deny that. Can you blame people for getting a bit annoyed about the prospect of a 3 hour commute each day simply to afford to buy a house to live in?

Sorry, but I agree with Lizzie on this.

Nothing has changed. Back in the 1960's my parents had the opportunity to purchase my Grandmother's house in Annandale (at a discounted price) in Sydney. As they both worked in the CBD this would have been great for them however, despite their two full-time incomes, they couldn't afford it and had to settle for purchasing their first home in the far western suburbs.

What's new? What's changed? Nothing, except a generation who want more from day one.

 

[smallbuyer]

hello

some interesting comments

The jealousy and whining i was talking about is usually in the comments not the articles.

Im not saying prices will go up or down in the short term but when i look at the lack of housing in the long term its about supply and demand

http://www.abc.net.au/news/2011-12-21/housing-shortage-set-to-keep-growing/3742438?section=business

if people want to complain about something ask why the gov doesnt use the criminally high amount of stamp duty they charge to build affordable social housing. or housing for low-mid income essential workers in places with really high rents (karratha, pt hedland) were they are living in caravans in peoples drivesways for $380pw (just for the site byo van)?

smallbuyer

 

[Sunfish]

Evand, there's clearly an us and them mentality in those comments, not simply about LVR's

There was clearly an "us and them mentality" in the OP mixed with a little smug superiority.

 

[CHam]

I agree with Aaron.

Let them moan. There will always be people who do nothing and then complain about their lot in life.

Sit back and enjoy their little rants whilst knowing that you are comfortable with what you have achieved.

 

[wisty]

Hello,

After reading this article and the comments the amount of whining, jealous complaining and essentially praying for people who have worked hard to fail is getting really ridiculous.


http://www.smh.com.au/business/new-reality-owing-more-than-you-own-20111221-1p4l2.html

I have a number of investment properties because i started young and didn’t p.iss all my money up against the wall like most people my age did (many were earning way more than me). I tried to get my mates to do as i did but few listened. I would have loved to drive a brand new SS commodore when i was in my early 20’s or have the latest furniture and big flash tv but no my money went to my houses. If anyone thinks i (or anyone else who has worked hard to get ahead) should be sorry for getting ourselves ahead they are dreaming. Jealousy is one thing but why on earth would people be praying i lose all this? I certainly don’t go around praying others lose the product of their hard work and savings.

Seems to so many people these days people who own an investment property are evil, these are also the same people who complain that there is nowhere to rent .....

People praying for a huge (40 %!!?) drop in RE prices are really kidding themselves. From what I’ve seen there is an undersupply of property and cost to build are high and rents are rising fast (im in WA). Most houses in WA cant be built for 60% of the current sale price let alone the cost of doing the subdivision (heaps these days) and the land itself!!

Anyway there is a rant for people to comment on
have a great day

Smallbuyer

What you think is "fair", and what every mug reading the SMH thinks is "fair" are both equally irrelevant to what the market ends up doing. You can pray for a 40% rise. They can pray for a 40% drop. Either way, I doubt God will listen

I think that negative equity is a potential turning point. It's the point where banks start seeing individual risks to *their* balance sheets, so they have to force sales rather than just leaning on the borrower to sell some time in the next year. Forced sales can drive it down a notch, forcing more people underwater, but that doesn't mean the banks won't get stupid.

 

[smallbuyer]

I would say 40% plus or minus any time soon is unlikely, more like <10% up or down more possible. Rent on the other hand is going insane i wouldnt be surprised if rent went up 40% in many parts of WA in the next few years.

I think, for homeowners at least, foreclosing on homes where people are paying the mortgage would be unlikely to happen. Multiply the whining by about 50 if people started losing homes they were making payments on and govt would step in as to many voters own homes.
May be a bit of a risk of happening for investors though (especially commercial) I think the greater risk is they jack up the rates heaps ignoring the RBA rate like parasites such as RHG and macqaurie did in the GFC making it hard for people to make their payments and default. Hence why i think wise not to mortgage everything to 95% and have no cash reserves (unless its your 1st house).

Anyway only time will tell what happens

Smallbuyer

 

[Property Meister]

I can definitely say we are living in the "ME ME ME" generation, the amount of parents say 35 and under who justify what I call as poor judgements on behalf of raising their kids eg giving them a budget of $1000 for christmas presents per kid or a kid having a PS3, XBOX 360, 1 DS, a PSP and a family WII, by saying "I just want my kids to have the best"

in conjunction with many people (especially graduates) lasting 3 months into the job because they werent given payrises in weeks, and couldnt handle the fact that they were as special as they had been raised to be,

and many of us look down on them saying they are spoilt little brats which they are, however ,if they dont know better, then its time to start 'blaming' other causes eg not all terrorists are evil, weird psychos, some just do it because thats all they know and they've been brainwashed

as for the people who hate investors, its all a bit of tall poppy syndrom and jealously,

when people say to me "you are so lucky for having good genes, you are well built, healthy and never put on weight no matter how much you eat" I simply reply, "nothing to do with luck, I work my butt off to acheive it so I deserve it all"