From: GoAnna !

News report from ninemsn for your info.

Nearly two-thirds of Australian workers are finding themselves overwhelmed by debt, according to a new survey.

A poll conducted by online recruitment firm asked employees how their personal debt affected their work earnings.

A total of 59 per cent of respondents said they were being overwhelmed by debt.

Thirty per cent said they faced heavy debt and were unable to save at the end of the week, while a further 29 per cent said they don't earn enough to even pay their bills, let alone save money

GoAnna !
"The real measure of your wealth is how much you'd be worth if you lost all your money."
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Reply: 1
From: Robert Forward

I've just read that too...

It's scarey isn't it. But I dare say that a large amount of these people that can't pay there bills are the 20 somethings. Living beyond there means....

It really does say a lot for a good budget, one like TW's Budget book, of which I use.

Check out the website to read about it.


The Sydney "Freestylers" Group Leader.
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Reply: 2
From: Michael Croft

Hi Goanna,

I find it interesting that most of the debt people complain about is of the non productive type ie. "bad", and that it is self inflicted.

The other thing is that the people I see looking at my rentals have unrealistic expectations. Fifty years ago a family of 7 was raised in my home and it was 11 imperial squares (100m2)with no garage. We are a family of 4 and the house is more than twice the size with a 6 car garage/workshop. The point being many of my tenants wouldn't accept my house to live in. It's not up to their high level of expectations.

I do a property inspection and see a new Harley Davidson, big screen TV, surround sound and DVD, new white goods, designer/brand clothes shoes caps sunglasses, fox tel, leather lounges - the list goes on. Then there's the lifestyle things; clud/gym memberships, magazine subscriptions, 6 rental videos/dvds on the floor, matches from expensive restaurants, tickets to the Whitsundays. One tenant has enough $50 stuffed fluffy animals for a deposit on a house - fills 2 bedrooms and the lounge!

These same people tell me they can't afford to buy a house and when I ask why the following is one the main reasons. They expect to move into a four bedroom + ensuite + family room + double garage as new home, just like mum and dad have. They forget that it took 20 or so years and several upgrades for their parents to get there.

For a lot of my tenants it seems to be image driven, they must be seen to be successful and to have it all - now! There is no concept amongst them that a bit of work or effort might be required. Nor will they accept the need to budget or save, it will just happen - like winning lotto.

It's hard to be sympathetic when people say they are being crushed by debt, particularly when you know its partly self inflicted by unrealistic expectations, and partly induced by the simplistic solutioneering and marketing offered by the mass media.

Hhmmmmmmm enough rambling me thinks.

regards, Michael Croft
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Reply: 2.1
From: Owen .

I might add my ramble to yours Michael.

A friends son and his partner have settled today on their new apartment. They got excellent help from a great broker, got their FHOG, it's nice place and we helped them out with some knowledge and experience when we were asked too. It's great to see them getting ahead.

However, they are typical early 20's. Got to have the latest clothes, shoes, mobile phones, doodads etc. They have been buying up big on whitegoods which they need for their new place but they have also bought a new stereo, big screen TV and DVD, loads of new bed linen because their current stuff didn't match the bedroom colour, new floor rug for the same reason and on it goes. Playstation2 was on sale in Kmart the other day it had to be bought for $500 plus a $100 game even though they already have a PS1 not to mention a grunty PC which plays games better than any Playstation can. Foxtel is already hooked up and paid for.

This is all before they even have their first mortgage payment. They will be stretched as all 1st homebuyers are just by the mortgage and costs and I am trying to slow their buying frenzy down a bit and convince them there is no race to have everything at once. I even loaned them RDPD but although they read it, it really didn't sink in.

I think this is a common problem but I guess from the investors point of view, if this is the norm then at least it keeps me in tenants.
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Reply: 2.1.1
From: Michael Croft

Hi Owen,

No complaints about my tenants either! I might even offer to subsidize their doodad purchases as it keeps them in my properties longer ;^)

regards, Michael Croft
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From: Michael G


If you're with NRMA there's a thing called the "shoppers network" I also get access through our companies benefit package.

So, I assume that this "network" is accessible via an annual fee.

My thought then is;

1) Find out how much it costs to join.
2) Factor cost into rent.
3) Then create a nify "member card" to give to your tenants :)

Just a thought.

Michael G.
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Reply: 2.2
From: Miakat .

Hmmm...I'm a young twenty something with debt up to the eyeballs. Lucky for me it's good debt :eek:)

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Reply: 1.1
From: Rolf Latham

Hi Robert

My experience suggests in all truth its the "any somethings:, age and life experience appears to ha elittle to do with $ Management.


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Reply: 2.3
From: Rolf Latham


This Phenomenon is very common in Germany where I come from in that most people know they will never own their own home, so its a nice trip and new car every year.

There is a common thread of thinking in that image driven stuff and it does relate to that they may as well feel good about something.

Its not till someone sits them down and does some work with them that they realise they can do it - its just a paradigm


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Reply: 2.3.1
From: PT Bear

I inspected our property a few months ago (when the asked me to do some maintenance). I was very pleased to see the Harley in the garage and all the little dodads around the house. The tenants looked as if they were completely at home.

I couldn't stop grining for weeks. ;)

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From: Felicity W.

It reminds me a lot of too many friends of ours who are starting to realise that we're on the investing track and making good progress. They're the ones who tell us how LUCKY we are to be able to do it.
Yeah, right, so I'm a stay at home mum with only my husband's income, and they're both working? Who drives the old bomb of a car? Who has the 15 year old TV (that rarely gets watched)? And whose husband will be retiring from full time work by the time he's 40?
And how come we're lucky enough to be doing this on one income and they can't do it on two?
Oh boy, I'd better get down off this hobby horse now, the sarcasm is getting thicker by the second.
Keep smiling
Felicity :cool:
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From: Michael Croft

Hi all,

Just had to share this one! One of my long term tenants has rung tonight and wants to know if I'm going to sell the property anytime soon? No says I, thinking they want to buy the property and having said no I'll have to relet because they'll now try to buy elsewhere. "Oh that's great," the tenant says "because we were wondering if we could install a portable spa?"

The 'portable spa' turns out to be a $9,000 doodad! What good news, they'll be there for a couple more years at least. And to think, spa + FHOG could = deposit on house for them.

I love my tenants, but fools and their money ...............................

regards, Michael Croft
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From: Dave :)

hehe...that's great Michael!

Maybe you could celebrate with them, by buying a bottle of champagne and
sharing it with their new spa.


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From: Sergey Golovin

Do not jump into the spa Michael, otherwise they will send you bill and stay at your place for free.

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From: The Wife

speaking of tenants and things they do,

I went to see if I could help extract some rent from a non willing to pay renter, for a friend of mine, and upon chatting to tenant, and extracting rent, and then discussing the state of the garden,

they informed me, that they dont pull the weeds out till they are hip high, because then they dont have to bend. I thought this was one of the most ingenious excuses for not looking after the garden I have heard of late!

~If the King's English was good enough for Jesus, it's good enough for me! - "Ma" Ferguson, Governor of Texas~
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From: Anonymous

Posting anonimously due to some personal info. in the post. I know that people love their doodads, but bloody hell! Some people are just too stupid. My partner and I are saving for our first IP. We currently rent in St. Kilda, nice 2br, pretty decent rent.
Okay, so here's our situation. We earn (combined) around 50K. We live on my salary (slightly higher than my partners) and put ALL of hers into our IP account. A standard savings account but higher interest rate (switching to one of those ING style internet only deals soon to take advantage of a maximum rate) if anyone has any ideas on how to better maximise savings, I would love to know, but only if we can have access to our money right away.
When we want to buy something, we save for it, whether it costs $50 or $5000 doesn't matter. That's with money left over AFTER rents paid, bills are paid, food is bought etc. and a couple beers down the pub (priorities...). We have a list of things that we need (called, funnily enough our 'need to buy' list - this DOESN"T include fancy cars or playstations either).
Yes, our lifestyle is restricted, but we are looking ten years down the track when we will be (hopefully) retired or at least semi-retired and doing whatever the hell we want to do, not kissing arse to some a..ehole boss. Makes all those sacrifices worth it, I reckon.
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From: The Wife

Brilliant Brilliant Brilliant!!!!

IPGodspeed to you!

~Life is a daring adventure, or nothing at all~
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