It's not an excuse it's a reason.

[Xenia]

I have a relative who has embraced such a negative outlook on wealth creation and investing that it is almost impossible for him (while he holds that belief) to do anything other than work from pay cheque to pay cheque. Not that there is anything wrong with that, in fact it's right for him, he has obviously chosen it.

His outlook is: It's unethical to buy investment properties" His belief is that it pushes prices up and locks out the fist home buyers. (he overlooks the fact that fist home buyers also contribute to pushing prices up).

I myself years ago had a belief that "property investing was only for uneducated people" not for people like me who had university degrees - obviously that had to give way if I was to get ahead.

what excuses or "reasons" have you heard or have yourself against wealth creation?

 

[moyjos]

Greed.... Only greedy people invest in (houses, stocks, business etc etc) "Normal" people work for a living.

Criminal Acitivity....You cannot make that much money legally. There must be a catch.

Ripping off the tax payer....By "avoiding"tax you are ripping off good honest tax payers.

Pure Luck.....Only the "lucky"people make any money out of property/stocks/ business

Lying....."Those people" don't really make that sort of money they are just big noting themselves.

Unfortunately I/We have all of these directed at us

 

[Deltaberry]

Avoiding tax? Haha in Asia when you do business, you sometimes have to offer under the table bribes. It's negotiated.

Here there's a license to ask you for 46.5% + 1.5% flood levy from you. Non-negotiable.

 

[joeExpat]

His outlook is: It's unethical to buy investment properties" His belief is that it pushes prices up and locks out the fist home buyers.

He is exactly right, investors have an unfair advantage over first home buyers in Australia. I beat a NSW FHB young family to a purchase in the past & it bugged me for a while, I think the advantages should be the other way around. But when an unethical taxation system (negative gearing for investors) offers you legal tax avoidance on a plate sometimes it's hard to ignore.

 

[jaycee]

I think I've heard most of the ones above.

Obviously it comes down to "education" for lack of a better word.

I get talked about like that by some musicians. Cause I know they are not human and therfore I will therefore never be able to play like they do. They tell me it just takes practice, but I know the real truth.

 

[oracle]

His outlook is: It's unethical to buy investment properties" His belief is that it pushes prices up and locks out the fist home buyers. (he overlooks the fact that fist home buyers also contribute to pushing prices up).

Ask him does he expect to get paid when he goes to work? In the same way a property investor expects to get paid for the risk he takes (over-supply causing increased competition, interest rates rising), and managing the finances (mortgage/rent) and all the property related stuff (paperwork for taxman).

PI is providing a service to the society by making housing available to rent to people who cannot afford or choose not to buy. Just like any service provider expects to get paid for the services they provide PI expects to get rewarded for the services they provide. In case of PI the rewards can be in form of CG and/or income


I should also add people usually forget about the risk/reward rule. Because the PI takes on the risk where he could get no CG and/or rent increase for long time, uncertain and huge property maintenance expenses etc. the rewards should be proportionately higher when things do go his way, othewise why bother with PI??

Cheers,
Oracle.

 

[lizzie]

He is exactly right, investors have an unfair advantage over first home buyers in Australia. I beat a NSW FHB young family to a purchase in the past & it bugged me for a while, I think the advantages should be the other way around. But when an unethical taxation system (negative gearing for investors) offers you legal tax avoidance on a plate sometimes it's hard to ignore.

i'm putting in an offer today on a property that i know a fhb couple also looked at and are keen.

but!

i'm putting in a low offer with excellent conditions. if they want to put in a higher offer (still below asking) and are accepted instead then great ... but don't then tell me that i was pushing the price up.

especially when the grants were exceptional - many times i was out-bid by fhb's as the higher price they were prepared to pay meant the figures didn't stack up as an investment.

maybe it was the unexperienced investors - who were in the "buy buy" mode (been there years ago) - that got swept away in the mini boom, that helped push the fhb's higher ... i don't know ... perhaps

 

[VYBerlinaV8]

People will always find a reason to justify their own situation.

I don't think investors push up prices - if anything they pull them down. What investor goes and pays top dollar? The reason why investors often push out other buyers is because they move quickly, and have finance well sorted. There's absolutely nothing stopping a FHB from getting finance pre-approved, turning up to a property for sale, negotiating a deal on the spot and getting the property off the market. Hell, negotiating the deal and leaving a holding deposit doesn't even compel them to buy. If they want out they get all their money back!

On several occasions I've looked at a property, made an offer on the spot and had the property off the market ten minutes later. I've never made a written offer in my life.

Bottom line, whingers can complain all they like, I really don't give 2 craps.

 

[RumpledElf]

My parents don't have excuses or reasons, they are simply taking the safest route they know and anything outside of their comfort zone doesn't even get a mention let alone an excuse.

Other people I know that don't/won't/can't invest in shares/property/whatever again, don't seem to come up with excuses ... they just don't do anything. Some are in excellent financial positions, others have assets that could be improved upon, others simply fritter their money away on what I consider to be highly unnecessary things. So investing just silently doesn't happen.

The few people I know out in the real world (not members of this forum) that actively invest in property seem to be just like us ... its a bit of a slow road, they mutter at the council dragging their heels or a property that is slow to sell, but it happens eventually. Another investor I know has few properties and minimal income, but they still manage to do something but overall they are quite upbeat about the whole property investment thing, and again, mutter at banks and councils and their bank balance and so forth, but they're still getting ahead. Nothing wrong with whinging about it *as* you do it, as long as it still gets done.

I think the only thing that stands between investors and not is simply action - doing anything (no matter how small, or how slow) vs doing absolutely nothing at all. I can think of plenty of reasons myself not to invest in anything, and I've been told plenty of good reasons not to ever be a landlord by various non-investors, but we're still doing it anyway. Just Really Slowly.

 

[The Y-man]

Avoiding tax? Haha in Asia when you do business, you sometimes have to offer under the table bribes. It's negotiated.
.

Prefer to use the word "fees".....

The Y-man

 

[BuildingBlocks]

Prefer to use the word "fees".....

The Y-man

Just like getting pulled up for one reason or another by police around many poorer countries ..."Can I pay an on the spot fine?"

---------------

I find people (who don't invest) often don't want to buy in areas where they themselves would not want to live, despite any returns.

They can't afford the single expensive IP in a blue chip high negatively geared suburb and are not willing to settle for anything less.

 

[KJ#]

what excuses or "reasons" have you heard or have yourself against wealth creation?[/QUOTE]


A work colleage took offence to my excitment when getting our first DA approved to build six units.

"How do you sleep at night knowing you are lowering peoples standard of living? Forcing people to live in units instead of building houses?"

KJ#

 

[Monopoly]

what excuses or "reasons" have you heard or have yourself against wealth creation?


A work colleage took offence to my excitment when getting our first DA approved to build six units.

"How do you sleep at night knowing you are lowering peoples standard of living? Forcing people to live in units instead of building houses?"

KJ#

Tell him that it's not YOU who is lowering people's standard of living its governments not allowing the release of more land to build adequate housing on that is (among other things) doing that!!

 

[Xenia]

"telling them" anything will just result in a downward sprial as they try to bring you down to their level - lessons from SS

There is a lot to be said about allowing others to have their view while you continue to develop and do what you want.

KJ you are still developing and sleeping well right? Even despite a negative point of view? Can they stop you?

the idea of this excerise is to catch ourselves out in also having those negative beliefs. (and they are only negative if you have a goal in the opposite direction)

 

[jaycee]

"telling them" anything will just result in a downward sprial as they try to bring you down to their level - lessons from SS

There is a lot to be said about allowing others to have their view while you continue to develop and do what you want.

KJ you are still developing and sleeping well right? Even despite a negative point of view? Can they stop you?

the idea of this excerise is to catch ourselves out in also having those negative beliefs. (and they are only negative if you have a goal in the opposite direction)

Perhaps you can assist by showing us how this applies to you ?

 

[Telejazzer]

.

His outlook is: It's unethical to buy investment properties" His belief is that it pushes prices up and locks out the fist home buyers. (he overlooks the fact that fist home buyers also contribute to pushing prices up).

I think gullible people with money (even worse for people who don't) pushes the price up. When somebody pays too much money for a property that is suppose to be an 'investment' then it defeats the purpose.

Investing according to www.thefreedictionary.com is to 'commit (money or capital) in order to gain financial return'.

 

[Monopoly]

I think gullible people with money (even worse for people who don't) pushes the price up. When somebody pays too much money for a property that is suppose to be an 'investment' then it defeats the purpose.

Investing according to www.thefreedictionary.com is to 'commit (money or capital) in order to gain financial return'.

Layman's terms for someone who invested too much (or more than they should/could afford) money or capital in order to gain a financial return is a LOSER!!!!

 

[jaycee]

I think gullible people with money (even worse for people who don't) pushes the price up. When somebody pays too much money for a property that is suppose to be an 'investment' then it defeats the purpose.

Investing according to www.thefreedictionary.com is to 'commit (money or capital) in order to gain financial return'.

That could happen to me, Im no expert...

Would many first or even 2nd etc home buyer's be that much more epxert tha nme and therfore immune for paying too much ?

I dont think it's as simple as "Its all THEIR fault"

 

[Monopoly]

I dont think it's as simple as "Its all THEIR fault"

IMO if...

They haven't done their homework FIRST
or
They had a gun held to their heads and told "pay this amount or else"!

Then you're absolutely correct, it is by no means, simply their fault.

 

[Xenia]

Perhaps you can assist by showing us how this applies to you ?

I want to be super thin but love chocolate