Limiting Beliefs about the property journey

[monalisa]

Thanks Monalisa.
Gosh, just lookep up the rental market around this area... And it seems like my PPOR is only yielding <5%

Where is your PPOR if you don't mind sharing?

Don't be sad - different strategies work for different people. Your place may be located in a high growth area and you may benefit more from capital growth.

 

[tess85]

Thanks Monalisa.
Gosh, just lookep up the rental market around this area... And it seems like my PPOR is only yielding <5%

That's why it's your PPOR and not an IP! Gotta look at it that way.
The gross rental yield in my PPOR suburb is 3% Good thing we only invest in IPs with over 7% yield too. There is a strong case for renting in this suburb while investing in other higher yielding suburbs, but we preferred to have the security of having our own place.

@MsAli, that's so cool that your mum is supportive of you and your sis.

Re: your rental formula, looks like you calculate gross rental yield. I like to look at net yield and consider various outgoings like strata levies, council rates etc. Over 7% gross yield is good but if strata levies are $4k pa then obviously it's not so good...!

 

[Charlotte30]

Limiting beliefs in the Property Journey

My limiting beliefs were that I needed to be a tradie or a male to be able to understand/build or invest in property. (This was 20 years ago) Neither of those beliefs turned out to be true. I had a tradie uncle who offered to help me Project Managing a new home build. His help was support and quidance while I did the work. Once completed a light bulb went off and I thought, "I can do this". I have continued to invest in property.
Charlotte30

 

[sash]

My limiting belief is that I can't stop buying properties....is there a Properties Anonymous??

 

[InspiredByProp]

Thanks Monalisa & Tess for your thoughts.

It's a brand new unit within 2 mins walk to Harris Park Station or 5mins to Parramatta St.
I understand from most investors saying landed property (houses, townhouses) would typically have more CG than apartment units.
Hope that's not applicable in Parramatta CBD area ?

 

[MsAli]

@Sash, it's a nice problem to have...!

@InspiredByProp...How many bedrooms is it? Sounds expensive to me

 

[pennyk]

Thanks Monalisa & Tess for your thoughts.

It's a brand new unit within 2 mins walk to Harris Park Station or 5mins to Parramatta St.
I understand from most investors saying landed property (houses, townhouses) would typically have more CG than apartment units.
Hope that's not applicable in Parramatta CBD area ?

I think it is generally applicable to all areas... but it doesnt mean you wont get capital growth though - assuming you have bought in a good location at a good price!

 

[monalisa]

Thanks Monalisa & Tess for your thoughts.

It's a brand new unit within 2 mins walk to Harris Park Station or 5mins to Parramatta St.
I understand from most investors saying landed property (houses, townhouses) would typically have more CG than apartment units.
Hope that's not applicable in Parramatta CBD area ?

A premium price is paid for brand new property, and you may find as it is modern there aren't too many comparables, and the available comparables are selling at lower than the newer properties.

 

[monalisa]

My limiting beliefs were that I needed to be a tradie or a male to be able to understand/build or invest in property. (This was 20 years ago) Neither of those beliefs turned out to be true. I had a tradie uncle who offered to help me Project Managing a new home build. His help was support and quidance while I did the work. Once completed a light bulb went off and I thought, "I can do this". I have continued to invest in property.
Charlotte30

I have a belief that searching for properties in regional areas and visiting these is challenging... have to change it to "can do".

 

[InspiredByProp]

It's 3 Br with 2 car spots. Although internal is slightly less than 100m2 excluding balconies.

 

[Dan_p]

Hi all,

I'm 26 and have 2 IP's in Sydney's West now (and four in total between me and my twiney). I got into property around 23 and bought my first one at 24. Just to give a background I moved to Australia at 15 with my family from South Asia. All I had then was education that could take me forward. Dealing with challenges of being in a new culture and the fact that I met a lot of people who had been in Australia for many years and were financially well settled (or so it seemed at the time) I knew I had to be heads down and tails up and it's been quite a journey for the past 11 years and 9 months!

Last but not the least...I have a fear of losing it all....something I'm working on to change.

MsAli

Hi,

You are both doing a terrific job. Just to get started at your age is great. Not to add coming from another culture/country. You have brought some of the traits which are much needed in our country. A strong work ethic, drive, ambition and so on. Your a good example to follow for the vast majority of second/third generation australians to follow.

I married into an asian family and have personall grown from the family culture. Families seem to be stronger compared to western ones, In my opinion. Like you said with your mother is coming to every open house with you guys.

How do you think your investing will change when you and/or sister are married and start your own families?

I like your point as well.
I met a lot of people who had been in Australia for many years and were financially well settled (or so it seemed at the time)
Often the ones who look wealthy really are not wealthy at all.

My wife and I started buying property only 5 years ago in our early 30's with a small child. We did try a few times beforehand which didn't eventuate. I am envious of you and where you will be in the future. Good work and well done.

 

[aussierogue]

Hi Ms Ali

What you have described is not unusual for newly landed immigrants. This is a pettern that is long held and repeated over the decades. Same happened with my family who arrived from various war torn areas in the 40's and 50's and within a relatively short period of time had built up significant wealth.

So yes - it is partly about you and your personality but it is also about your families situation. Newly arrived peoples have huge motivation to improve their lot in life. Financial, cultural and social motivations. Social Motivations imo tend to be the driving ones. And then the financial and cultural ones thend to fall in line. You are craving status (status anxiety) and want to be like other respected people you see walking into shops, working in your office etc etc.

So my prediction for you is this

1. You will make lots of money, save well and not really enjoy it too much for fear of losing it all (back in the old country)

2. Your children will maintain this wealth and enjoy the trappings and return to their cultural routes on a contiki holiday and come back saying that felt a real connection to the locals

3. Your grand children will be spoilt living of your hard work and spend it all

And so it goes...

I think being number one on the above scale is great....its a time when there is a clear focus...survive and thrive. At number 2 stage...you have been molly coddled growing up and have too many options...then at stage 3....this gets worse. So enjoy it!

Cheers
Aussie

 

[Dandin]

Hi MsAli,

Just tumbled upon your thread and thought of sharing some of my thoughts.

Like you, I arrived in the land of OZ at the age of 15, though it does seem like a lifetime ago now.

Unlike you, I bought my first IP at age of 31 - before rather busy with Uni, travelling, then new family, etc. - so you have a 7-year gain on me now. Wish I had your insight at the age of 23-24 regarding investments and wish I have started back then.

Your first challenge of comparing yourself with others - people your age, those who have lots more experience, those who have done 'awesome' - is always a good thing to do. It's a natural thing to do when you started out with not much, coming to a new country, learning a new language, settling into a new environment.

It's good that you are are taking inspiration from others and want to be there too, but with what you have achieved so far, you realise you ARE an inspiration to many others!!

Nothing against those who sitting there, being spoon fed and have things going their way without doing much of the hard work, but I cannot count many of those - esp. those with a migration background.

If you feel like you are running out of time at the age of 26, how do you think people like myself feel in our late 30's?

It's good to look into the past decade to see what you have done, but 10 years from today, you'll look back again and realise yet how far you have come. Anything takes time, but let 'time' do it's work

Your 'fear of losing it all'...Not that it will help much but I tend to think of it this way.

I also started my journey with empty hands. I fear 'I could lose it all', but then...I'll end up with empty hands. Anything better than 'empty hands' I'll take.

I - like you - dream big. But ensure that you have your own goals and dreams, have a plan to know how to get there - keep eyes on YOUR prize as - 'all roads leads to Rome', if you know what I mean.

My 2cents for what it's worth.

From a fellow immigrant.

 

[sash]

Very true....especially the ones about the people who are rich or give the perception of wealth are not very wealthy at all.

Over the years I have got know a few people with over $5m in wealth....and believe me they know the value of the dollar.

Having said that it is also important to enjoy your money. I truly believe that spending some of your money also ensures good Karma by it returning 10 fold. Particularly...if you help people who are less fortunate than you!

Hi,

You are both doing a terrific job. Just to get started at your age is great. Not to add coming from another culture/country. You have brought some of the traits which are much needed in our country. A strong work ethic, drive, ambition and so on. Your a good example to follow for the vast majority of second/third generation australians to follow.

I married into an asian family and have personall grown from the family culture. Families seem to be stronger compared to western ones, In my opinion. Like you said with your mother is coming to every open house with you guys.

How do you think your investing will change when you and/or sister are married and start your own families?

I like your point as well.
I met a lot of people who had been in Australia for many years and were financially well settled (or so it seemed at the time)
Often the ones who look wealthy really are not wealthy at all.

My wife and I started buying property only 5 years ago in our early 30's with a small child. We did try a few times beforehand which didn't eventuate. I am envious of you and where you will be in the future. Good work and well done.

 

[MsAli]

You are both doing a terrific job. Just to get started at your age is great. Not to add coming from another culture/country. You have brought some of the traits which are much needed in our country. A strong work ethic, drive, ambition and so on. Your a good example to follow for the vast majority of second/third generation australians to follow.

I married into an asian family and have personall grown from the family culture. Families seem to be stronger compared to western ones, In my opinion. Like you said with your mother is coming to every open house with you guys.

How do you think your investing will change when you and/or sister are married and start your own families?

I like your point as well.
I met a lot of people who had been in Australia for many years and were financially well settled (or so it seemed at the time)
Often the ones who look wealthy really are not wealthy at all.

My wife and I started buying property only 5 years ago in our early 30's with a small child. We did try a few times beforehand which didn't eventuate. I am envious of you and where you will be in the future. Good work and well done.

Hi Dan, Thanks for your supportive words. I can't see what you see yet, however I hope that I'd be able to in due course once I see the results, learn from mistakes and move forward!

I'd actually beg to differ on the family structures. I've met so many Anglo Aussies with great family lives and who prioritise their family. I find in the South Asian culture though there are a lot of families who would show on the surface are great but really are not. In the west people have a choice to walk their own way by the way of getting divorced but in the east usually people stick together just because what will the extended family or friends think.

True about a lot of people who show wealth aren't wealthy. Though since my eyes just opened up financially, I'd keep observing and see choices people make and learn from them!

I feel we could have bought 2 more IP's each had we not done a few overseas holidays...but those were essential to see family and go else where than Australia...I would try not rue it and look forward to the next IP

Thanks again Dan!

Hi Ms Ali

What you have described is not unusual for newly landed immigrants. This is a pettern that is long held and repeated over the decades. Same happened with my family who arrived from various war torn areas in the 40's and 50's and within a relatively short period of time had built up significant wealth.
3. Your grand children will be spoilt living of your hard work and spend it all

....this gets worse. So enjoy it!

Hey Aussie, good points. Are you the third generation in your family

Like you, I arrived in the land of OZ at the age of 15, though it does seem like a lifetime ago now.

Unlike you, I bought my first IP at age of 31 - before rather busy with Uni, travelling, then new family, etc. - so you have a 7-year gain on me now. Wish I had your insight at the age of 23-24 regarding investments and wish I have started back then.

Thanks Dandin. It would be nice to move faster - yet I understand it doesn't matter how many IP's only, what matters is the quality of those IPs

It's good that you are are taking inspiration from others and want to be there too, but with what you have achieved so far, you realise you ARE an inspiration to many others!!

Thank you!

Nothing against those who sitting there, being spoon fed and have things going their way without doing much of the hard work, but I cannot count many of those - esp. those with a migration background.

Really ? I see a FEW in my circle!

It's good to look into the past decade to see what you have done, but 10 years from today, you'll look back again and realise yet how far you have come. Anything takes time, but let 'time' do it's work

Agreed, the past decade was also spent working towards today. Don't think I could do without the income I have...which probably isn't as high as many here...but still relatively high for my age.

I - like you - dream big. But ensure that you have your own goals and dreams, have a plan to know how to get there - keep eyes on YOUR prize as - 'all roads leads to Rome', if you know what I mean.

Thanks Dandi...agreed and nice to hear about your journey too!!

 

[Dan_p]

I'd actually beg to differ on the family structures. I've met so many Anglo Aussies with great family lives and who prioritise their family. I find in the South Asian culture though there are a lot of families who would show on the surface are great but really are not. In the west people have a choice to walk their own way by the way of getting divorced but in the east usually people stick together just because what will the extended family or friends think.

I know a lot of asian cultures are big on saving face. That is a good thing as well, western counterparts could learn by doing the hard yards of a marriage instead of taking the easy way and divorcing when things are not so rosy. Sometimes divorce is the only option, I do think it is a bit too easy and common here. Just my opinion.

Some of the other attributes I have noticed which seem to be more prevalent is a genuine wish for family, including extended family members to do well. Less selfish.

Im not saying all western families are bad, just these traits seem to be stronger in asian families I have met.

 

[aussierogue]

I know a lot of asian cultures are big on saving face. That is a good thing as well, western counterparts could learn by doing the hard yards of a marriage instead of taking the easy way and divorcing when things are not so rosy. Sometimes divorce is the only option, I do think it is a bit too easy and common here. Just my opinion.

Some of the other attributes I have noticed which seem to be more prevalent is a genuine wish for family, including extended family members to do well. Less selfish.

Im not saying all western families are bad, just these traits seem to be stronger in asian families I have met.

Having lived in asia and now have family in asia i respect the cultures there but for me they can be very paternalistic. Not just within the home but also in the workplace.

Scandanavian countries take it to the other extreme and pretty much expect there children to grow up quickly and leave home at 20.

One of my Spanish friends believes Australia has the mix just right.

 

[C-mac]

Great thread here folks

I think for young and aspiring investors it is important to be open to different 'kinds' of property investment. There is no 'one size fits all' approach to it, and depending on the background you come from, age, income, etc, every person who gets in to it carves our their strategy and approach; which is usually quite unique.

There's so many ways to invest; singularly, with family/friends, buy and hold, renovate and hold, flipping etc... You need to find out what is right for you.

Cameron McEvoy
http://www.propertyspectator.blogspot.com.au/2012/05/different-strokes-for-different-folks.html

 

[M.Investigator]

Great thread here folks

I think for young and aspiring investors it is important to be open to different 'kinds' of property investment. There is no 'one size fits all' approach to it, and depending on the background you come from, age, income, etc, every person who gets in to it carves our their strategy and approach; which is usually quite unique.

There's so many ways to invest; singularly, with family/friends, buy and hold, renovate and hold, flipping etc... You need to find out what is right for you.

Cameron McEvoy
http://www.propertyspectator.blogspot.com.au/2012/05/different-strokes-for-different-folks.html

There are alot of different strategies for property investing and each person has their own unique circumstances.

However, I also think that the many opportunities available to us (including the option to "do nothing at all") can be a limiting belief too for some people especially when they take it to the extreme of analysis paralysis.

Many people in the forums talk about figuring out the right strategy for themselves, and then never end up doing anything about it. Some people even procrastinate on the decision to choose a strategy (due to being overwhelmed and confused) that many years pass and then they wake up one day to find that they have no wealth and no investment properties after so many years.

Therefore, even though I recognise that there are many options for different circumstances, I also suggest that you must make a firm decision and take action to choose a strategy and then work on it.

 

[mumbai]

Indeed a great thread started MsAli. Congratulations for what you have achieved so far.

Gosh! I feel like a dinosaur. I am 34, an immigrant from South Asia, landed in Oz 7 years ago. I bought my PPOR last year and in the market now to buy my first IP.
It is all the more difficult with a 2yo kid, but I am sure I will reach my goal of financial independence sooner or later.