Finally bought Rich Dad Poor Dad book

I too read RDPD in one sitting. Rather than change my mindset, it reaffirmed it. :)

The problem is he is a business man who plugs being your own boss; this is all nice and good, but it's hard to 'step across' once you're established in a decent government position. :(
 
About the PPOR / asset matter raised earlier.

Remeber when we were little and the Olds used to tell us the Australian mantra: "Buy a house when you grow up, it will be your greatest asset".

RK reminds us that the PPOR for those who do not invest at all is not an asset but something that costs $$$ every month. Writing to people on Somersoft is preaching to the converted, we already know how to turn a PPOR into an asset.
 
JennD said:
Agreed - cf+ hard to find, unless you're out West. Could buy US properties though? While my brain says no, I'm increasingly interested in what I can put my money to over there...
Click to expand...

Take a measure of your risk profile an go from there I'd say... Personally I'd rather invest in a hyper-risky oz mining town than in the US. Majorly different kettle of fish over there - it seems that instead of doubling every 7-10yrs, they're halving! I'm sure there's a reason why interest rates are 1-2% and their govt keeps inflating their $ with further injections...
 
Cloudy_ said:
Take a measure of your risk profile an go from there I'd say... Personally I'd rather invest in a hyper-risky oz mining town than in the US. Majorly different kettle of fish over there - it seems that instead of doubling every 7-10yrs, they're halving! I'm sure there's a reason why interest rates are 1-2% and their govt keeps inflating their $ with further injections...
Click to expand...


True. I hadn't really analysed the CG yet and definitely don't want to lose on that front. More due diligence from me required!

I guess the attraction of US over mining towns here is that the entry prices are so temptingly low (almost droolishly so). I would hazard a guess there are some good near-mining towns with lower prices and a decent "ripple effect" coming their way though. Hmm.
 
HandyAndy888 said:
I too read RDPD in one sitting. Rather than change my mindset, it reaffirmed it. :)

The problem is he is a business man who plugs being your own boss; this is all nice and good, but it's hard to 'step across' once you're established in a decent government position. :(
Click to expand...

Haha, that's true. I'm stuck in the rat race and enjoy it greatly... but it would be nice for it to be a choice. Currently my plans are to purchase a crappy property in a place I'd like to retire with a nice block of land - then, with the hopes of CG (planned well), in thirty years or so I'll knock it down, rebuild and move in w/ no property debt. Would also try and buy some CF+ in meantime as the investments to hold until that time too. Each time it grows significantly, the equity would be used to keep purchasing.

Unfortunately, a lot of the places that I want to retire seem to have no hope of CG and thus this part of my investing journey is somewhat stymied.
 
Hello Jenn, Have you thought about just investing in growth areas for now, then when it's time to retire, buy an appropriate place then. You might change your mind in the next thirty years, too. The town I once thought I would want to retire to is now overun by pesky tourists and young families with noisy kids.
 
Angel said:
Hello Jenn, Have you thought about just investing in growth areas for now, then when it's time to retire, buy an appropriate place then. You might change your mind in the next thirty years, too. The town I once thought I would want to retire to is now overun by pesky tourists and young families with noisy kids.
Click to expand...

This is a good point - retirement is a long way away for me and the area could change dramatically. CG properties might be the way to go - especially if not too much of a financial drain.

So much thinking to do always! Thanks for the advice :)
 
JennD said:
This is a good point - retirement is a long way away for me and the area could change dramatically. CG properties might be the way to go - especially if not too much of a financial drain.

So much thinking to do always! Thanks for the advice :)
Click to expand...

The benefit of CG is you don't have to sell and the house saves your next deposit for you (tax free through equity) often at a much quicker rate than the CF+ props putting $20 a week in your pocket...

Our strategy (one of many thousands out there - see where your risk profile lies!) is:
Buy a prop in blue chip area,
Add value (subdivision/reno etc)
Hold

Ideally the adding value part will turn the CF- aspect to at least neutral. Rinse and repeat!

Once you get enough of an asset base, when retirement comes for you (hopefully really soon!), you can buy anything you like to retire into. It's often said to buy your family dream home 'last'.

Are you going to read his other books now Jenn? I think Cashflow Quadrant is next? It's really good also!
 
Cloudy_ said:
The benefit of CG is you don't have to sell and the house saves your next deposit for you (tax free through equity) often at a much quicker rate than the CF+ props putting $20 a week in your pocket...

Our strategy (one of many thousands out there - see where your risk profile lies!) is:
Buy a prop in blue chip area,
Add value (subdivision/reno etc)
Hold

Ideally the adding value part will turn the CF- aspect to at least neutral. Rinse and repeat!

Once you get enough of an asset base, when retirement comes for you (hopefully really soon!), you can buy anything you like to retire into. It's often said to buy your family dream home 'last'.

Are you going to read his other books now Jenn? I think Cashflow Quadrant is next? It's really good also!
Click to expand...

As long as I can bring the prop up to neutral fairly quick, then I'd be happy with it. The income situation isn't the best right now, and I don't think I'd manage well being drained by much each week. I think knowing this is causing analysis paralysis to kick in some...


I'm thinking cashflow quadrant will have to be the next - especially as I saw the thread go up in here and I just looked at it a bit dumbfoundedly!

Another book I'm thinking of reading is called The Richest Man In Babylon that an accountant/investor recommended to me the other day. Have you read it?
 
JennD said:
Another book I'm thinking of reading is called The Richest Man In Babylon that an accountant/investor recommended to me the other day. Have you read it?
Click to expand...
It's fairly straight forward, and easy to read. It's told in the form of a fable with deeper stuff underneath- sort of like Rich Dad Poor Dad really.

There's probably a free electornic copy you can download somewhere.
 
Hey Jenn, we can't afford the cash drain either... It all gets worked out with a thorough budget and feasability study, but this is maybe a convo for a different thread!

If you liked RDPD, you'll enjoy CQ!

And no I hadn't read the Babylon one (but will now thanks Carly!). Probably about 10 others on my shelf though! PM me if you need a list of some more good ones to read!
 
I really like the concepts in richest man Babylon.

Still can't get over rdpd is a fable.

Other one for a read is Think and grow rich.
 
Re being a fable: didn't you find it convenient that RK would always remember and be able to reel off all those great one-liners?! Granted it took me a few chapters to click, but there had to be some form of narrative/storyline to keep it interesting and simple and digestible by the masses!
It's no Lord of the Rings, but thinking of Rich Dad drawing up lessons on a piece of paper on the balcony of one of his penthouses in Hawaii really helped immerse me!
 
You must log in or register to reply here.

Similar threads

J
Cheap Book - "Rich Dad Poor Dad"
2
Replies
33
Views
6K
Colin Rice
Colin Rice
J
FIFO - a question of fairness
2
Replies
38
Views
5K
BayView
BayView
O
Rich Dad Poor Dad Goes Bankrupt !
Replies
2
Views
1K
one world
O
D
help getting started
Replies
7
Views
2K
Jake D
Jake D
O
Timing of selling investment property.
Replies
6
Views
2K
Paul@PFI
Paul@PFI
Back
Top