Getting Started

[WebBoard]

From: Mike .


Friends
From: Trish
Date: 5/8/00
Time: 6:13:36 PM

Why is it that so called friends look at you as if you have two heads when you talk about investments; no matter the type, property or shares. It is so hard to find people to bounce ideas off. Thank goodness for forums like this.

 

[WebBoard]

Adam

Reply: 1
From: Mike .


Re: Friends
From: Adam
Date: 5/8/00
Time: 8:02:23 PM

If I had of listened to my friends, I would probably own a couple of Ostrich farms at the moment.

Regards, Adam

 

[WebBoard]

Helen

Reply: 1.1
From: Mike .


Re: Friends
From: Helen
Date: 5/8/00
Time: 10:38:18 PM

Good call Adam!!!! We also experience negative comments from friends about investing especially in property...I guess that's why only 5% of retirees are financially independent and 1% is wealthy!! I know which group I'm aiming to be in! Stick to your goals and tell no-one if that's what keeps you on target. I also agree "thank goodness for this forum". It's a great idea!

 

[WebBoard]

Julie

Reply: 1.1.1
From: Mike .


Re: Friends
From: Julie
Date: 5/9/00
Time: 10:44:55 AM

Isn't it funny when you mention these types of things to family and friends how they're so negative. I started speculating in shares 2 yrs ago and am doing very well, guess I have the last laugh now.

Now my husband and I are ready to start with property and this forum is fantastic. I look forward to reading it everyday. I've already learned a lot from all the info posted here and of course, reading books, urls and seminars. Thanks to all and keep the good work up.

 

[WebBoard]

Andrew S

Reply: 1.1.1.1
From: Mike .


Re: Friends
From: Andrew S
Date: 5/9/00
Time: 1:27:28 PM

I think the main reason for the negative reaction is that people are either scared or embarrassed by what they don't know. Most people are not investment savvy and when the conversation turns to 'investments' they don't want to show what they don't know. They put the wagons in a circle, get defensive and try to change the subject.

I've just finished reading Rich Dad Poor Dad by Robert Kiyosaki (I heard about it through this forum) and it really hits the nail on the head about the lack of 'money education' most people receive. He also gives plenty of examples of investments he did really well out of but friends had told him he should not do.

Well that's my 2 cents worth anyway.

Andrew

 

[WebBoard]

Leisa

Reply: 1.1.1.1.1
From: Mike .


Re: Friends
From: Leisa
Date: 5/13/00
Time: 7:04:54 AM

I'm glad other people have the same troubles with friends as my partner and I do! It is so frustrating when we have dinner with people who spend a lot of money on doo-dads, and then treat us like the poor relatives because we have a crappy car, crappy furniture and live in a crappy unit, but we are in our mid twenties and have three I/P's and are working hard on the fourth!! What keeps us going at times is the thought that one day we'll be the ones laughing! Keep focused and keep in touch with like-minded people, even if it is just through forums like this!

 

[WebBoard]

geoff

Reply: 1.1.1.1.1.1
From: Mike .


Re: Friends
From: geoff
Date: 5/13/00
Time: 4:55:02 PM

right on Leisa, We were living in crappy 1/2 house in a so-so area in 1979 (rented the other 1/2). friend/relations had nice homes and we drove a really crappy car and we were always told to spend up you could afford it. Well 13 years later we still had a crappy car (85 corona) but enough property to leave work forever.

Today I still see those workmates occasionally. They are miserable, stressed and cranky working longer and longer hours for their weekly handout (wage). Their total focus is the carrot of super hanging at the end of a 35 year long pole. Meanwhile the properties are going up & up with 2-3 years capital growth (no taxable) equaling their 35 year super payout. Property (well located well chosen well managed) will give you a degree of lifestyle and time to do what you want to do that 'they' can only dream about...and its so damn interesting too.

Leisa drive the crappy car (cars depreciate), live in the crappy unit(homes don't bring income) and keep investing in income producing property and one day they may ask you how you achieved your assets and lifestyle and you may say ...Well you know, I must have just got lucky.

 

[WebBoard]

Gee Cee

Reply: 1.1.1.1.1.1.1
From: Mike .


Re: Friends
From: Gee Cee
Date: 5/13/00
Time: 7:43:08 PM

It always seems the case that the if people have not done it but have heard of failures or have fears themselves then it should not even be attempted by you.

I bought my first do upper house back in 1979 @ 19 years of age. It cost a whopping $23000 and rented at $45 pw.

My father thought I was off my head & would soon be bankrupted. Then 6 months later I bought another in share with my 18 year old brother. Man we were considered crazy.!!!!!

All my friends were getting BIG Loans to buy Sandman Vans.

(They were fancy panel vans that were decked out with mattresses in the back so if you went to a party and had more than 2 drinks you would have somewhere to sleep. Or at a drive in movie you could park backwards and have a comfortable seating arrangement)

Well the 2 houses doubled in value in the 1979-1982 property boom and set me up for investing from then on. I had made in 2 years what my father's super was going to pay him after 30 years of working. He never made any comments, still thinks I am crazy but have just been lucky.


I like many of the people from Forum Land drove the same vehicle for 17 years. (A 1969 Holden Panel Van that I stayed in after parties if I had more than 2 drinks)

But any spare money was ploughed back into property investments.

I admit that not all properties have been successful ventures but I have always learnt from each and moved on.

I am now semi retired @ 42 and spend most of my time tuning my portfolio,looking to other ventures & looking after our twin baby boys.

Certainly better than most of the old mates that have sent the Sandman off to the scrap yard and now have large mortgages, jobs that they hate and no motivation of learning how to get out of that rut. Their children I feel will just follow on & repeat the cycle.

That is why I never listen to people unless they have been there and done that.

A good read is the book "The Millionaire Next Door by Thomas Stanley & WilliamDanko.

It relates to the fact that most people with no money continually try to look rich whilst those with money just look average.

Happy investing, Gee Cee

 

[WebBoard]

Andrew S

Reply: 1.1.1.1.1.1.1.1
From: Mike .


Re: Friends
From: Andrew S
Date: 5/13/00
Time: 8:25:17 PM

Hi Gee Cee,

The mention of the 'Sandman' makes me realise just how fast I'm aging!

I wish I had started in property investing at 19. We have only just recently purchased out first (of many if things go to plan) at 36. The only consolation is that we at least own our home which provides about $200K of equity for investing in other IP's.

Oh yes and we also have 11 month old Boy/Girl twins.

Thank goodness for forums like this where it is possible to discuss property investment away from the negative attitudes of the masses.

-Andrew

 

[WebBoard]

Gee Cee

Reply: 1.1.1.1.1.1.1.1.1
From: Mike .


Re: Friends
From: Gee Cee
Date: 5/13/00
Time: 8:35:39 PM

Dear Andrew S

Great to hear from you.

Are you sitting up at present doing a early feed or just relating to the fact that the world is still out there beyond the walls of the house. Nappy changes & bottles of formula. (Our boys are just over 9 mths old.)

If you have your own home paid out and now on the investment trail life can only get better & of course more interesting.

What with the family life and property investing along with so many informative people through the Forum we can all only move forward.

All the best, Gee Cee

P.S. Do you get more than 3 hours straight sleep a night? Everyone says it gets easier, I am still waiting.

 

[WebBoard]

Andrew S

Reply: 1.1.1.1.1.1.1.1.1.1
From: Mike .



Re: Friends
From: Andrew S
Date: 5/18/00
Time: 8:31:08 PM

Hi Gee Cee, and any other Dad's out there in forum land.

I guess with comments like these we almost need another forum, it is becoming a bit like "Dad's Page".

Anyway to get the family stuff out of the way first. Gee Cee, we do get more than 3 hours sleep, but I guess we are spoiled. The twins go to bed between 7 and 8 pm and usually wake about 7 am except for the teething.

Now to matters more related to this forum. I guess I really am wishing we had considered property investment earlier in life, but the big focus was to pay of the house. At least that provides a great source of equity (and a roof over our heads of course). I guess we went into our first IP with only minimal knowledge but what we've learned since has suggested that we've got a pretty good deal, but there are better ones around. Anyway we will likely be looking at number 2 in early 2001 so I plan to use so use that time to learn how to find the best deals.

One significant point I have gleaned from this forum is to buy below the real value, the problem is I don't know how to go about finding properties like this. There has been some suggestion of sale by mortgagee's in possession but how do you find out about these?

Any comments would be greatly appreciated.

Andrew

 

[WebBoard]

Gee Cee

Reply: 1.1.1.1.1.1.1.1.1.1.1
From: Mike .


Re: Friends
From: Gee Cee
Date: 5/20/00
Time: 6:55:55 PM

Dear Andrew

thanks for the positive remarks from another father of twins.

Actually the boys are not to bad now. They usually sleep at least 3 - 4 hrs so it is getting easier.

As to finding bargains in a rising market.

I have found that it seems to be easy to find mortgagee auctions when things are really going bad.(eg High interest rates, rising unemployment , slow growth, bankrupt sales etc, etc.)

These are the times when no one is buying and everyone is pessimistic.(Tending to just dump property)

At the moment however property is getting towards flavour of the year so everyone wants to jump on board. (The actions of crowds).

My 1 to 2 year outlook at the moment is to develop a number of properties for quick re-sale. Usually before completion. (Take the $ & RUN)

In 3 to 5 years I believe the profits from these will then be put back into properties that are being sold up by financiers as mortgagees in possession.

It sounds cruel but from years of investing and having been through a number of property cycles it appears to be how the system repeats.

However keep on searching, get to know agents but do not get emotional about it all. Remember it is just another vehicle to make some $.

Regards, Gee Cee