Learnt another lesson

[sue78]

After reading all of these wonderful stories on Lizzie's thread, I wish I would feel motivated but instead I am just depressed.

The biggest lesson I've learnt is not to sell. If we had kept all of our properties we would probably have another $200 to $300k in equity. Instead, we made a lot of money and the more money we made the more we spent. Yes, some of it can be accounted for like new car, new expensive furniture, plasma, lots of overseas holidays, medical fees but the more money we have the more we spend and I really have no idea where most of it was spent.

I feel so silly. Takes months to build and months to sell and in the mean time, the repayments is a killer. I could buy 3 properties in that time and have it all rented out. Not only that, it's so stressful and so much more work.

Or at least I should have bought land/dwellings with potential for redevelopment.

I wished my partner could think outside the box. He doesn't know anything at all. I feel like I don't have time to do anything. It's too hard.

I don't think I can do it. It's such a struggle. I feel like giving up. I think I have missed the boat. Maybe I'm just depressed because of the RBA announcement tomorrow.

I was just about to sign a contract on another 450sqm block on the weekend but I cancelled it. I can't do this anymore. I want bigger and better deals but I'm scared.

 

[The Y-man]

Better to have done than not done and better a lesson learnt than a class not taken.

Cheer up, you are still better off than people who spent it and have it still on their credit cards... and most of all you have valuable knowledge (which you can pass on to us! ).

Could be a case of the grass been greener on the other side syndrome too - buy and holds aren't necessarily always an easy thing either (especially when you get vacancies or ferals, topped with a bad PM and negative captial growth)

Is it possible to sacrifice some gain, but lower the workload?
Can you ease the repayments thru some creative means of financing?
Remember that even if you have (had?) equity, there still may be issues in drawing it down and servicing the loan.

Cheers,

The Y-man

 

[Kennethkohsg]

After reading all of these wonderful stories on Lizzie's thread, I wish I would feel motivated but instead I am just depressed.

The biggest lesson I've learnt is not to sell. If we had kept all of our properties we would probably have another $200 to $300k in equity. Instead, we made a lot of money and the more money we made the more we spent. Yes, some of it can be accounted for like new car, new expensive furniture, plasma, lots of overseas holidays, medical fees but the more money we have the more we spend and I really have no idea where most of it was spent.

I feel so silly. Takes months to build and months to sell and in the mean time, the repayments is a killer. I could buy 3 properties in that time and have it all rented out. Not only that, it's so stressful and so much more work.

Or at least I should have bought land/dwellings with potential for redevelopment.

I wished my partner could think outside the box. He doesn't know anything at all. I feel like I don't have time to do anything. It's too hard.

I don't think I can do it. It's such a struggle. I feel like giving up. I think I have missed the boat. Maybe I'm just depressed because of the RBA announcement tomorrow.

I was just about to sign a contract on another 450sqm block on the weekend but I cancelled it. I can't do this anymore. I want bigger and better deals but I'm scared.

*************************************************
Dear Sue78,

1. I think you are presently facing the issue of "SELF- challenge" , SELF-RESPONSIBILITY, SELF-CONTROL and SELF-MASTERY, in property investing.

2. It has been said that as property investors, one of our greatest enemy is "OURSELVES" - our fears(false expecatations appearing real), our inertia /procastination, our EGO, blaming others around us other than our own SELF( issue of SELF-RESPONSIBILITY) etc.

3. May I humbly recommend you read the third book which is written by Jan Somers in 1998: "Creating Wealth:- Story by Story" and be inspired by the various real-life stories of property investors who have once made it in life through residential property investing and then wander off their property investing path and lost all their wealth subsequently. Some of them are consequently re-starting their property investing journey once again.

4. Your experiences seemed to have also been similarly profiled/outlined as one of the written stories in Jan 's book.

5. So, I strongly encourage you to invest and to read Jan Somer's book and be truly inspired by it and truly learnt from its various real life stories of property investors who has wandered off their successful wealth creation path and lost their wealth as well as how some of them ultimately to continue to stay on course and eventually succeed in life.

6. For your kind update and considerations, please.

7. Thank you.

regards,
Kenneth KOH

 

[Kennethkohsg]

After reading all of these wonderful stories on Lizzie's thread, I wish I would feel motivated but instead I am just depressed.

.

++++++++++++++++++++++++++++++++++++
Dear Sue78,

1. Don't "wish";- just simply make it happen it your own life.

2. The issue at hand, is one of "MIND" over "EMOTIONS".

3. Of course, you can do it if you simply want to.

4. If you fail to master this area of your own life, you will forever be struggling in it!.... Yes, struggling within yourself and over the issue of SELF-CONTROL + SELF-MASTERY.

5. For your kind update, please.

6. Thank you.

regards,
Kenneth KOH

 

[Kennethkohsg]

Dear Sue78,

1. By your post, you are simply letting your negative emotions and "BLAMING" attitude to take control over yourself.

2. If you truly think that you are defeated, so you will be truly defeated in life subsequently.

3. However, you can simply replace this kind of negative thoughts with positive thinking and a more optimistic attitude as follows:

"I have done it once, I am sure that I can do it again when I want to."

"... I am confident of doing it again but this time in a much shorter time than I have done before;- even if I have to re-start the property investing journey all over again!"

4. From your post, your key challenge is not about succeeding in your property investing.

5. To me, I think that your personal key challenge is how NOT to let your EGO + EMOTIONS control you and cause you to splurch away all your wealth once you have acquired it .

6. Perhaps, unknowingly or subconsciously, you are doing this to yourself as a form of "SELF-SABOTAGE" in wealth creation that Billy Zheng talks about in his new 2 months mentoring programme. The underlying cause is because you present TRUE underlying mindset is one which does NOT really want or/and fear being RICH, for one reasons or the others that is best known to your goodself.

7. If you are consistently doing this to yourself in other aspects of your life too whether unknowing or/and subconsciously, then I think either you learn to "re-parent" yourself where neccessary or may I humbly suggest to you to seek professional help to "un-cover" your true underlying fear and learn to overcome it in life together with the help from the counsellor.

8. For your kind update, considerations and further comments, please.

9. Thank you.

Cheers,
Kenneth KOH

 

[Lil Skater]

After reading all of these wonderful stories on Lizzie's thread, I wish I would feel motivated but instead I am just depressed.

Hi Sue78

Don't simply wish to be motivated, just stop thinking about the money you have spent (whether it be in the right or wrong manner) and pick your head up and stop being depressed about the issue at hand.

If you keep thinking about it in a "depressed" way nothing good is going to come out of anything. Change your lifestyle, now that you have all that money comming through you have to learn how to mannage it or you will spend it on things that aren't completly essential. I'm not saying NO to anything fun or that makes you happy just stuff like a plasma T.V. etc. And explain to your partner what you are doing.

Stop being upset by what you are doing because you were doing everything right just not mannaging it in the right way for you although i agree i think you should've rented out the properties.

I don't know if i really helped much because i don't understand everything that is going on because my mum's not home to explain but i hope that help's you a bit

Little Sk8er

 

[sue78]

Thank you for all your replies. I have read Jan Somers book and will look into the book you recommended Kenneth.

Does anyone feel that property investing also has alot to do with luck/blessing? I have to build 5 houses to make equity of about $400k whereas someone can buy a house in Perth and make that amount in 1 year CG.

It's hard work and along with new baby and my job it has taken its toll. I don't have that excitement for it anymore. Like when you buy your first house. Spending nights on the pc doing research until 1 am.

But I know I have to keep going. We are still much better off, at least have money to live and quite a bit of equity on paper (but even that will decrease now with the interest rates rise).

We need to build another 5 houses before we reach the $1mil mark so probably another 3-4 years.

Doesn't anyone get a bit tired? how do you keep the enthusiasm going?

 

[aef]

Hi Sue,

I can relate to your comments! We too have sold along the way and I still sometimes add up the 'lost' assets values.

When I start to feel the way you describe I think back to the following quote:

If think you can - you are right

If you think you can't - you are also right

This always jump starts me.

Regards
A

PS: Another method I am currently using that has me energised towards my goals is 120 day goal planning. I set goals for the upcoming 120 days (I read about this in some management magazine).

I find this period of time really concentrates the SMART (specific, measurable, attainable, realistic and time bound) principles in my goal setting.

120 is up on December 1 for a goal I have for non-employment income. I'll let you know how I go.

 

[The Y-man]

.
Doesn't anyone get a bit tired? how do you keep the enthusiasm going?

I keep trying new ways to grow my wealth, when one method "cools down".

When we found our IP portfolio stopped growing in value in 2003, we focussed our efforts on other sources - shares and options. The variety is keeps it very interesting, studying new methods and strategies (also diversifies in the process)

When the returns keep coming in, you don't feel tired.

Cheers,

The Y-man

 

[skater]

Sue, you sold some assets. So what!!!! You have still done more than 99% of the population. Different people use different strategies. If yours is build & sell & it works for you, then that's right for you. At the end of the day you have to do whatever gives you a good SANF. You might now be ready to diversify into a buy & hold. Don't worry about the past, that can't be changed.

 

[johnnyb]

It's hard work and along with new baby and my job it has taken its toll. I don't have that excitement for it anymore. Like when you buy your first house. Spending nights on the pc doing research until 1 am.

Maybe you just need to take a break from investing for a bit. A couple of years ago we had several changes - job change, moved interstate, new babies(twins). These things do take energy to manage (especially the baby thing!). I can't even imagine staying up to 1am doing research on the internet. We made the choice to stop putting energy into investing (just kept my eye on things to make sure there weren't any problems looming, and tweaked a few things here and there - certainly no major purchases were made) and just concentrate on being a family for a while.

Sure, we have probably missed some opportunities for growth of our portfolio, but family is the most important thing after all. After two years of putting investment on hold I am now just starting to get back into it, and I actually feel motivated to do stuff. I also realise that I have learnt heaps in the last two years just from reading books and the forum, so the time hasn't been wasted in terms of investment.

So, my advice is chill out, take a break, enjoy your new baby.

John.

 

[tonyd]

Hi Sue,

Sounds like you need a holiday!
Or at least some time where you can take a mental break and switch off.

My wife and I are "building our way to wealth" too and the repayments can be tough to budget for, especially towards the end of construction.
And if you go for bigger and bigger deals, it doesn't get easier.

On top of that, as I am working fulltime, most house issues are dealt with by my wife. And she is looking after our two young children as well, which is exhausting. So she is always running around and never has time to take a breath. Hell, she's even started smoking again after stopping for 4 years.

Some people just need a kick up the backside to get them enthusiastic again.
But from the tone of your first post you may need to take some time out, or try something different investing-wise if you think that will work. You don't want to hate your own existence.

You obviously know what you need to do to be financially independent.
Who cares if it takes an extra few months or years to get there.
Do it at your own pace and keep your sanity!

Oh, and talk to your husband about it too.
Let him know how you are feeling.

Good luck!

cheers, Tony

 

[thedude]

I find this period of time really concentrates the SMART (specific, measurable, attainable, realistic and time bound) principles in my goal setting.

Hi aef,

Can i ask where you learnt SMART from? A previous employer of mine (in Adelaide) drummed that into me with a sledge hammer! I havent seen/heard anyone else mention it.

Cheers,

Damon

 

[aef]

Thedude,

I learnt it at a management training course I was on through work a couple of years ago.

Not much else from the course stuck but for some reason this acronym resonates with me. I try to apply it because it makes sense to me.

I wouldn't use it if it was forced on me.

Having said that I used to have an employer like you mentioned. Except we were force fed whatever the latest management/psychobable fad was.

I have another less memorable acronym you could have used in the situation you described. LMAJLMDMFJ.

Translates to Leave me alone, just let me do my job (you know what the F stands for!)

 

[Twitch]

Takes months to build and months to sell and in the mean time, the repayments is a killer.

My suggestion is to stop building. Why not do some buy and holds? A simple buy existing house and rent it out through a property manager is very very low involvement compared to build and sell.

 

[lizzie]

if i ever said it was easy then i apologise. it is definately not easy and sacrifices have to be made along the way. yes, we've made good money out of property - but take heart - it sound like you guys have as well. $400k over 5 years is not shabby at all - but i also don't work outside the home. the property investing is my job.

all of us get dishearted occasionally - and then refind the spark. it's what makes property investing so much fun (when you have the spark that is!!). i too have sold properties i regret, bought ones i regret and everything in between. and i am sure that my property friends gave me advice along the way as "don't sell that one" and "don't buy that one" which i totally ignored - it was a lesson i had to learn when i was ready for it, and only i could learn it. as long as the motion is forward (or should that read upwards) i don't mind now.

one thing a few seem to have missed in various threads is that the base for our investing was set during the last lull period. yes, the boom was very nice but we set ourselves to take advantage of the rising market years before it happened, around 1998/9 - and in total ignorance of booms and busts. so now is the time to act, before the next boom. don't worry about the one you missed, get yourself ready to ride the next one.

 

[Kennethkohsg]

Thank you for all your replies. I have read Jan Somers book and will look into the book you recommended Kenneth.

Does anyone feel that property investing also has alot to do with luck/blessing?

I have to build 5 houses to make equity of about $400k whereas someone can buy a house in Perth and make that amount in 1 year CG.

It's hard work and along with new baby and my job it has taken its toll. I don't have that excitement for it anymore. Like when you buy your first house. Spending nights on the pc doing research until 1 am.

But I know I have to keep going. We are still much better off, at least have money to live and quite a bit of equity on paper (but even that will decrease now with the interest rates rise).

We need to build another 5 houses before we reach the $1mil mark so probably another 3-4 years.

Doesn't anyone get a bit tired? how do you keep the enthusiasm going?

++++++++++++++++++++++++++++++++++
Dear Sue78,

1. If you believe in luck, then seek the Lord's guidance each time before you invest.

2. If you believe in human efforts as many members do in this forum, then examine how you can further improve on your outcome of your own property investing strategies such as achieving better quality research work putcomes with shorter research time required, better social networking and sticking around among those constantly and ever "lucky" investors and try to learn from them how to create better luck for yourself etc.

3. Good on you that you have concluded that it is better to invest than not to invest.

4. 3-4 years time will quickly pass and soon you will achieve your A$1 million mark if you remain focused and persistent in holding onto your property long term over more than at least the time frame one property cycle to frun its full course, each time so that your existing properties will all double in values in due course.

5. Tired of property investing? No way!... Not if we know how to constantly re-charge ourselves and take proper care of ourselves, like giving ourselves a little pat on the back and say "Well Done!" to ourselves from time to time as we successfully move forward from one milestone to another milestone during our property investing journey.

6. Do give ourselves a much deserving rest/sleep where neccessary, have a warm spa bath to pamper yourself occasionally or/and together with a monthly/quarterly enjoyable meal so as to openly celebrate our own achievements as our income/cashflow comes in so much as our minds can vividly register more successes than "failures", learn to naturally see and postively embrace all the "obstacles/problems" as "opportunities", and to regard/treat temporary setbacks as "zero personal failures but delayed success only."... so much so we begin to remember only the endless and overflowing joys and passions in every aspects of our own lives.

7. For your kind update, please.

8. Thank you.

Cheers,
Kenneth KOH

 

[lizzie]

My suggestion is to stop building. Why not do some buy and holds? A simple buy existing house and rent it out through a property manager is very very low involvement compared to build and sell.

or use your knowledge to buy and large, subdividable block. build a second house on the block, subdivide and sell the old one and hold the new one. it should mean you get the land for you new buy and hold practically for nothing (or very cheap), so with only the cost of building you may find yourself positively geared ... do some numbers, such as:

buy large block with old house $300k
build and subdivide $200k
sell old house (maybe with reno) for $230
land for 2nd house cost you only $20k - total cost for 2nd house $220 but may be worth $300k and rent for $320/pw.

these are just really rough figures but give you an idea ...

but first .... take time out to look after yourself - no one else will do it for you and others will only continue to suck you dry if you let them.

you have to look after yourself because you can't give emotionally, physically or mentally to others if you have nothing left to give ... sometimes an afternoon spent in the sun reading gives me the biggest recharge possible, or an early night in bed with a good book for a few hours before hubby joins me.

 

[sue78]

Thanks for all your advice. You all make good sense and there's something valuable to take with me in all the posts I've read.

It's great to talk to people that can actually understand.

I would love to take time out but I know that I have to do as much investing as possible before the 2nd child comes along as I would have even less time and less opportunity to take greater risks.

After work today, I went to inspect our development. The frame, roof, windows are all completed. As I walked through the house, I did feel quite excited about this project. The fact that it's all coming together. But dreading the finishing touches where we play our part, I don't know wher we are going to find time.

I too, have learnt so much from you guys and this forum. It's great.

 

[Mr. Fabulous]

Sue,

With the finishing touches bit, try not to look at it as one big job, but a series of little jobs. Write down the steps you need to take from start to finish and concentrate on each one seperately.

When you finish one step, tick it off and bask in the glory of having completed one more small task. I do something similar in my everyday life and at work. I have a sheet titled 'Daily Goals' that I write everything down on and do what needs to be done. Instead of having one huge pile of stuff to do, I have 10 little things to do everyday.

It works a treat and I'm constantly amazed at how much I am now able to get done (but then I take it a step further and prioritise, doing the most important stuff first). Remember - we all have exactly the same amount of time to get things done in a day it just depends on how you use the time given to you.

Mark