Conversation with a colleague....

[monalisa]

Hi all!

I was talking to a colleague today about property, and she questioned whether there was a housing bubble, and that apparently the housing shortage number is not a true reflection of people looking for accommodation, as it includes those not looking for property (e.g. homeless?). She was questioning as she is aware that I am interested in property, and wish to use it as a vehicle to replace active income.

She also raised the question of unemployment, which may mean people are unable to pay for their mortgages, and decide to sell, which may lead to oversupply, and a subsequent drop in property prices.

I have had a no-limit thinking when it comes to property, and think this is the way to financial freedom - and have a 10 year plan! Now I don't have a crystal ball to determine how it will all pan out.

Anyway, the conversation just highlighted the other side of the picture - which I should perhaps be considering! However, unsure of what to make of the conversation, as I am unaware of any of my colleagues (accountants) investing, apart from superannuation!

So I can choose to ignore people's views, as I just don't want it to get in the way of my dreams, so long as I take calculated risks.

What are your views?

 

[wobbycarly]

*snip*
What are your views?

While it's good to have opinions/positions challenged, I try and avoid those who either a) don't understand what I'm trying to achieve or b) those who haven't done, but have strong opinions.

Without having a kumbuya hug-in, I try to spend more time with those who have similar goals who can encourage and motivate.

For those at work who try to 'diss' property, I avoid speaking about it. (Won't back down, but don't bring it up.)

 

[matto_]

negative influences, and other opinions about property (or anything else) is what makes us human.

It happens in everything.

This is but one of the things which our positive mindset which we build and maintain will need to endure.

It is particularly pertinent in things which not everybody does/understands and also things which other are jealous of.

If/when things pan out - people will then go onto say - you must be lucky, as opposed to you researched thoroughly had the right mindset, made sacrifices, and look they have paid off.

 

[Charlotte30]

Conversation with a Colleague

I agree with other comments above. Do your own analysis. Keep it simple, if your plan works for you keep going. Sometimes colleagues think they have the same goal but it is more of a wish list.

Cheers
Charlotte30

 

[devank]

What is the real number of homeless people? It can't be higher than the immigration number.

 

[Jake D]

...If/when things pan out - people will then go onto say - you must be lucky, as opposed to you researched thoroughly had the right mindset, made sacrifices, and look they have paid off.

I see a lot of this.

Also, my wife and I have a bit of an ongoing conversation about some of our friends' attitude to money; spending big on frequent holidays, loading up credit cards, never investing or looking to the future.
It's sometimes disheartening to be the guy always saying "No thanks, we can't afford it right now" despite knowing that in most cases we actually pull in the same amount or a lot more base income than them. It is slightly encouraging to know that in 5, 10, 15 years time I'll be in a much better position because of our hard work now, though.

 

[MsAli]

Also, my wife and I have a bit of an ongoing conversation about some of our friends' attitude to money; spending big on frequent holidays, loading up credit cards, never investing or looking to the future.
It's sometimes disheartening to be the guy always saying "No thanks, we can't afford it right now" despite knowing that in most cases we actually pull in the same amount or a lot more base income than them. It is slightly encouraging to know that in 5, 10, 15 years time I'll be in a much better position because of our hard work now, though.

We actually copped quite a bit of flak for being really focused in school and at University - even at work. Because people would make it sound like you are really "missing out" by not going bizerk on US or Europe trips. I do hear people saying...you gotta have fun when young. Well, my idea of fun is working towards my goals and hence delaying gratification due to the sacrifices in the current moment. Sure there is an argument, you never know about life and what will happen the next moment. Whatever floats people's boats...I don't TELL them to NOT go on multiple overseas holidays every year either...

I tried to convince an old work "friend" a couple of times. When I told them we were off IP shopping, they emailed me saying motivate me to get into the "property bandwagon". I didn't like that term - "property bandwagon" because it needs the individual to be interested in what they are doing. So following that after hearing much cry me poor story about how they had responsibilities towards the family home.....(along with two trips overseas/interstate a year), I offered them to just for once do their numbers and even offered to share my spreadsheets to help them. The response was a lack of interest or motivation...so I stopped saying it all together.

While others who'd post statuses on FB - now that they were back from their month long US holiday they had a "damn" credit card bill to foot. It's hardly anything to show off or be proud off...And how they weren't looking forward to this "horrible thing called a mortgage"...

We go overseas but we like to manage our priorities and it's not for the showing off...

Sometimes it can be a challenge not bringing up your interests in conversations. But I'm learning to keep my excitement to myself...

 

[willair]

What are your views?

From one who been shown the door many times when you get into the longterm debate about property vs someones super fund you just want too tell them,I don't need too be inspired by your ideas as i already know that i'm already inspired by my own and they work..

 

[Aaron_C]

monalisa - lots of my friends are the same as your colleagues. In the end you just let everyone make their own decisions and they should accept the things that do / do not flow from a result of that.

 

[devank]

MsAli ~ There are certain things you can't do once you pass certain stage in life. It is fine as long a you won't regret not doing those things in the future. For example, we regret that we never went to UK and worked for few years before settling down.
Maybe this sort of mentality is why I don't have 10+ IPs

 

[travelbug]

There would need to be one giant unemployment problem before it translated to massive oversupply and discounting of properties.


First thing I'd do is ask about her property investing.
When I was buying a unit in 2008 a colleague said "the only people saying it's a good time to buy property are real estate agents". I didn't seek his opinion. He actually heard me talking to another staff member.

Work people now know that I invest in property but I don't talk about it unless someone asks. Usually it's sarcastic like "How many do you have NOW?".
No-one else buys property. A few ask how it's going, particularly now that they know I'm going part time soon. But no-one is interested in the process. One person said "what happens if you lose your job?" I said "Nothing, the tenants will keep paying rent which pays the mortgage. What will happen if you lose your job?" That shut her up because I know she'd lose her house.

I saw an ABC show with Nathan as a young (I think 21yr old). All these young people were talking about going out drinking all weekend and there was Nathan talking about his properties. They were saying how he was wasting his youth. I'd love to see where they are now and see how they feel now that Nathan no longer has to work at 26yrs old.

Some delayed gratification for future planning is great. But I do understand that you also need to have a life. Balance is good.

 

[MsAli]

Great post Travelbug. I had a similar question from a friend..."It won't impact you, will it, if you lost your job?". I said "Nopes". What they actually wanted to hear is "OMG OMG, it will be a disaster"

 

[tvadera]

Keep doing what you are doing MsAli, I had read your interview and you have done well. Keep going.

For me its the opposite, friends always talk about properties and brainstorm ways to get in, risk / reward benefits, using SMSF, etc

I too have encountered concerns like what happens when you loose your job, I would say I would find another job and would take care of the mortage, they then say you are strong headed

 

[SeafordSunshine]

Dear Ms Ali

Hello,
I am the middle child of migrants who arrived in Oz with a suitcase...
We didn't have savings or relatives to financially fall back on so
'Saving for a rainy day' was something that was in our lexicon I remember being told that was what I had to save for

I have to say that I too did regret not working in the UK as I was 'too old to get a work visa' (26) at the time, but before that I had bought my own home, (without parental help)
I bought IPs while working 2 jobs, and I told people that I had a plan. I didnt consciously surround my self with people that had the same attitude, but when I bought that second IP I threw a barbeque in the park to celbrate.

Perhaps there there are 2 attitudes to life
1. the migrant kids (Me)
2.the ones who's families didn't move for generations

(Giving my age away)
Led Zeppelin 'Stairway to heaven'
there a 2 paths .....

 

[xanh]

I was gonna invest more in IPs..but then I found a bustle in my hedge-row..

 

[Fifth]

There's a difference between someone debating fundamentals and/or considering possible outcomes and someone just trying to make your life difficult. Sometimes it can be outright mean.

I had one family member who thought it was cute to constantly make jokes about how when the inevitable financial armageddon hit, my husband would lose his job (he works in the financial industry). He seemed to really enjoy gloating about how all the greedy city dwellers would be fleeing to the country in droves, desperately seeking refuge from the post-apocalyptic wastelands that our cities would become. I'd never, ever discuss investment of any kind with this person and was even reluctant to buy a property in their neck of the woods (even though I thought the prospects good) for fear of them finding out.

So I removed this person from my life.

I guess it's the difference between having a conversation and being lectured.

 

[travelbug]

At a seminar last year I met a lady who had 20 properties and was beginning to sell down to retire.
She said many years ago she and her hubby bought her first IP. Family rubbished them as they said they couldn't afford "luxuries". Anyway they decided to tell no-one about their buying. Now family is asking how they can afford to build their dream home and retire. Time to tell them I think.

It's great getting together with others who have the same passion. I've met a lovely group of ladies (sorry Dave- you too). We met on Saturday and had a great lunch and chat.

 

[sash]

What you have described below is the years of brainwashing that even the Stasi, the Communists, and Nazis would be envious. Most people in Australia have EQ (Emotional Quotient) and IQ (intelligence)....but very few people have FQ (Financial Quotient) to be truly wealthy. This is why rich people know and understand the value of a dollar. Some of the tightest people are are also the richest...I even know some on SS....I am not telling though!

People are happy to keep swapping jobs (particularly when they are young) in order to earn fabulous salaries. I know quite few 28 year olds on over $150k pa. and some 40 years olds on over $250k pa. But should their incomes stop....they are on a house of cards with debt!

This is great but unfortunately ....they are too focused on their stressful jobs to realise that whilst they are earning good money they also need to invest to keep their livestyles up. They seem to wake up in their mid to late forties and realise that they have less than 20 years to retirement and their financial planner has told them they will not have $1m in super to retire..so that they can have $50k pa in income.

You will hear the screams, the whingeing, and grumbling when they are put out to pasture at say 50 via retrenchment.

Keep doing what you do.....buckle down in your 20s...and you will have a carefree life in your late 30s on. I know...because I did this....now if I can only convince my employer to retrench me!

We actually copped quite a bit of flak for being really focused in school and at University - even at work. Because people would make it sound like you are really "missing out" by not going bizerk on US or Europe trips. I do hear people saying...you gotta have fun when young. Well, my idea of fun is working towards my goals and hence delaying gratification due to the sacrifices in the current moment. Sure there is an argument, you never know about life and what will happen the next moment. Whatever floats people's boats...I don't TELL them to NOT go on multiple overseas holidays every year either...

I tried to convince an old work "friend" a couple of times. When I told them we were off IP shopping, they emailed me saying motivate me to get into the "property bandwagon". I didn't like that term - "property bandwagon" because it needs the individual to be interested in what they are doing. So following that after hearing much cry me poor story about how they had responsibilities towards the family home.....(along with two trips overseas/interstate a year), I offered them to just for once do their numbers and even offered to share my spreadsheets to help them. The response was a lack of interest or motivation...so I stopped saying it all together.

While others who'd post statuses on FB - now that they were back from their month long US holiday they had a "damn" credit card bill to foot. It's hardly anything to show off or be proud off...And how they weren't looking forward to this "horrible thing called a mortgage"...

We go overseas but we like to manage our priorities and it's not for the showing off...

Sometimes it can be a challenge not bringing up your interests in conversations. But I'm learning to keep my excitement to myself...

 

[The Y-man]

.....how when the inevitable financial armageddon hit, my husband would lose his job (he works in the financial industry). He seemed to really enjoy gloating about how all the greedy city dwellers would be fleeing to the country in droves, desperately seeking refuge from the post-apocalyptic wastelands that our cities would become..

Hey that sounds like me.... are we related?

The Y-man

 

[Fifth]

Hey that sounds like me.... are we related?

The Y-man

hah. Now that would be rather awkward...