Catalyst for Investing
- Thread starter Harro
- Start date
Something rather left field for me,
Had seen others do it, and knew it was with in my grasp.
My girlfriend tells me when she goes shopping it makes her happy for days after when she reminds herself of what she has bought
I get that feeling when i settle on a property x100. Every move i make is bringing me closer to financial freedom and i feel a instant sense of accomplishment towards.
looking forward to the future ... when my holdings have doubled along with the rents.
Had seen others do it, and knew it was with in my grasp.
My girlfriend tells me when she goes shopping it makes her happy for days after when she reminds herself of what she has bought
I get that feeling when i settle on a property x100. Every move i make is bringing me closer to financial freedom and i feel a instant sense of accomplishment towards.
looking forward to the future ... when my holdings have doubled along with the rents.
My father introduced me to managed funds as a teenager.
Learning about and understanding compound interest and leveraging were what did it for me. To obtain the lifestyle I want for my family, I need to do more than compulsory super.
BR
Learning about and understanding compound interest and leveraging were what did it for me. To obtain the lifestyle I want for my family, I need to do more than compulsory super.
BR
Ditto here !
However, at one stage I thought they were pretty handy business wise, well they were running a great business but never ever invested in anything but PPOR.
My catalyst moment came when wife brought home a Jan Somers book for me to read and then action upon.
I nearly didnt read it, dismissing it as some spruiking trap.
Lucky I came to my senses and read it cover to cover before putting it down and saying to myself. "How long has this **** been going on...?"
Massive light bulb went on and within months bought PPOR and built portfolio up from that!
I had no idea about investing, obviously because parents didnt either.
I saw the stress and politics my manager had to deal with at work - didn't want that
Saw how hard my parents are working well into their 50's with little time to enjoy life
Then I came across Nathan's videos at Binvested and that was the aha moment! Shame all the earlier videos are gone now
Saw how hard my parents are working well into their 50's with little time to enjoy life
Then I came across Nathan's videos at Binvested and that was the aha moment! Shame all the earlier videos are gone now
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Something like that.
When I was 17 my dad wanted to try his hands at share trading. I dabbled too. Made a little, he lost a lot and it didn't make sense to me that others made money and he didn't. He also bought a place in Magrath Hill (my sis and I helped pay for) for $300k that after 10 years is worth a touch over $400k (Crap).
Then I read a book about breaking down the barriers you were raised with (a religious book actually).
So I started researching a lot and started meeting mentors who taught me a lot.
Property started when I went to buy my 'first' place and the $500k apartment rented for $440/week. It didn't make sense to me. 2 years later I purchased positive geared properties in St Marys.
Dad still see's shares as evil and is generally anti anything too far out of his comfort zone. He just spent all morning calling me a fool because I'm gearing up to expand my portfolio by a handful of properties in the next couple of months.
I have always loved boats. When I was young I was out on the river with my dad in our little boat, which I knew that dad had been saving up to buy.
We were driving past all these really massive boats, worth probably millions each, I asked dad how can people afford such boats?
Dad responded that he didn't know - he said that people who own those boats do something different. I pressed more asking what? he didn't know and said I should research to find out - then I can buy one too.
So I did.
I can't afford a million dollar boat, but can certainly afford a much larger boat than what I grew up with.
Blacky
We were driving past all these really massive boats, worth probably millions each, I asked dad how can people afford such boats?
Dad responded that he didn't know - he said that people who own those boats do something different. I pressed more asking what? he didn't know and said I should research to find out - then I can buy one too.
So I did.
I can't afford a million dollar boat, but can certainly afford a much larger boat than what I grew up with.
Blacky
The catalyst for investing in property was my mother-in-law.
My wife's family (and my family) came to Australia as refugees, having lost everything and risked everything to give their children a chance of a future. My wife's parents grew up as farmers and did not to school in their origin country, and could not read or write. But they worked hard when they came to Australia - 20 hour days, and the little money they managed to save, they invested in property. They didn't know how to read any of the sale contracts or bank documents, but knew that buying houses was good. When the children started working, we were encouraged to also invest in property.
If it wasn't for my mother-in-law, we would have blown all our money on flash cars, bling and world holidays. Oh hang on...
My wife's family (and my family) came to Australia as refugees, having lost everything and risked everything to give their children a chance of a future. My wife's parents grew up as farmers and did not to school in their origin country, and could not read or write. But they worked hard when they came to Australia - 20 hour days, and the little money they managed to save, they invested in property. They didn't know how to read any of the sale contracts or bank documents, but knew that buying houses was good. When the children started working, we were encouraged to also invest in property.
If it wasn't for my mother-in-law, we would have blown all our money on flash cars, bling and world holidays. Oh hang on...
For me it was No?l Whittakers first book , Making Money made Simple which I think first came out in 1986 when I was about 20 . My girl friend got it for Christmas and some how I ended up with it as she 'didn't care about money'
Still have the book too ...
Still have the book too ...
I grew up in a household where my accountant father and property manager mother used to invest in different asset classes - primarily shares and residential property. Mum and dad actually had much better success with shares than with property - looking back, they typically bought poorly, and sold when the market was just starting to rise (and therefore missing out on major capital gains).
However I did learn about negative and positive gearing at an early age (first discussion on this when I was about 12), and my dad was always happy to discuss investing principles, as well as legal ways to minimise tax.
Fast forward to when I was 21, and I was living with my boyfriend of the time. We tended to live very much on a week to week basis, but I still managed to put aside $2K for a home deposit through Keystart Homes. When the BF and I split up, we kept it in both names for about a year and half, then I bought him out.
I did eventually sell that property, and ended up with $22K cash in hand. I put this into shares as a medium term arrangement, and it stayed there until my (now) husband and I bought our first property together, which is our PPOR. That was December 2005 - since then we've bought nine properties and sold two of them (and we sold them ourselves, no RE agent, which I've always been proud of).
I think that I have always felt that for a really secure life, you need something other than just your income. My folks planned for their retirement really well, and I remember both mum and dad saying that the worst scenario is retiring on the pension, because that's not living, but existing. It obviously made an impression, anyhow.
Edit: Wow, sorry for the novel!
However I did learn about negative and positive gearing at an early age (first discussion on this when I was about 12), and my dad was always happy to discuss investing principles, as well as legal ways to minimise tax.
Fast forward to when I was 21, and I was living with my boyfriend of the time. We tended to live very much on a week to week basis, but I still managed to put aside $2K for a home deposit through Keystart Homes. When the BF and I split up, we kept it in both names for about a year and half, then I bought him out.
I did eventually sell that property, and ended up with $22K cash in hand. I put this into shares as a medium term arrangement, and it stayed there until my (now) husband and I bought our first property together, which is our PPOR. That was December 2005 - since then we've bought nine properties and sold two of them (and we sold them ourselves, no RE agent, which I've always been proud of
).I think that I have always felt that for a really secure life, you need something other than just your income. My folks planned for their retirement really well, and I remember both mum and dad saying that the worst scenario is retiring on the pension, because that's not living, but existing. It obviously made an impression, anyhow.
Edit: Wow, sorry for the novel!
I can't pin down a specific incident. I have always been a good budgeter and saver and seemed to have known investing was a good idea for a long time but thought would be out of reach financially. So I just saved.
I had noticed how much house values appreciated over time but I used to think in order to have an investment property, I'd need to be able to cover almost all of the mortgage myself.
The day I went researching investment more seriously and found out how little it would cost to hold an IP, it was game on.
I had noticed how much house values appreciated over time but I used to think in order to have an investment property, I'd need to be able to cover almost all of the mortgage myself.
The day I went researching investment more seriously and found out how little it would cost to hold an IP, it was game on.
Never wanted to live on the pension filling forms etc. to determine my fortnightly allowance.
Read jans book developed a dual occ in the 90s when it was all new, and no one was doing it. Didn't really understand financing.... sold to take the equity out ( big mistake) and then sat on my hands for over a decade with only cash (not a lot) invested in shares.
Read lomas, reread Jan and had an aha moment, read all I could and found ways to get my hands on neutral / positive cash flow property.
Now looking to use equity and invest in shares...... And a couple more properties.
Read jans book developed a dual occ in the 90s when it was all new, and no one was doing it. Didn't really understand financing.... sold to take the equity out ( big mistake) and then sat on my hands for over a decade with only cash (not a lot) invested in shares.
Read lomas, reread Jan and had an aha moment, read all I could and found ways to get my hands on neutral / positive cash flow property.
Now looking to use equity and invest in shares...... And a couple more properties.
Hit 40 and started to realise I wasn't rich, wasn't a high income earner, and wasn't going to live forever...
and never wanted to live like pensioners do.
13 years later; still an average wage earner at best, and closer to dead.
At least the asset base has increased.
But, you've gotta have a crack at stuff or go backwards anyway.
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