Personal Responsibility

[mbl]

Being a libertarian at heart who believes in personal and civil liberties, but also personal responsibility, I want to ask a simple question.

Who would you blame if all you investments do not turn out as you planned, be it because of personal or external factors (e.g increase in interest rates, loss of steam in the market etc.).

Would you blame yourself ? The Banks ? The Government ? The real estate gurus ?

If the RBA (because of worldwide trends) was to increase interest rates over the next 2 years, by 2-3 %, who would you blame ?

If buyers simply stopped buying, who would you blame ?

If banks start recalling loans, who would you blame ?



I would be very interested to hear some replies.

Where does blaming others stop and personal responsibility kick in ?

cheers MBL.

 

[The Y-man]

I don't think I would "blame" anyone. I will however take responsibility for any investment decision I have taken.

I would have taken that decision as the best I could have made at the time I made it, and be it right or wrong, that a decision was better than no decision.

Cheers,

The Y-man

 

[Simon]

Why would I need to blame anyone or anything? No one has made me do anything I didn't choose to do.

If something happens then I deal with it and make changes if required.

 

[alexlee]

I wouldn't blame anyone. To me, it's not a matter of blame. Personally, I knew the risks when I started buying property and shares. If the risks pay off, I get to take the credit. If they don't, I bear the responsibility. That's how this game is supposed to work. I'd re-assess whether I was wrong about the risk in the first place, refine my strategy, and get back up.

Everything is a risk. There is risk in just holding cash too (as anyone who has sat on cash in the last 20 years can tell you).

You invest, you have the potential to make high returns. You also, of course, have the potential to lose it all.

In my personal case, I run stress tests based on 6 months vacancy and a 3% immediate increase in interest rates. I also think it unlikely that banks will call my loans unless I start defaulting (there is, of course a chance). If buyers stopped buying rents start increasing (hence why I buy cheaper properties that get the benefit of 'trading down' effects if the market tanks).
Alex

 

[The Y-man]

I run stress tests......

Alex

Oh man, that sounds stressful!

Cheers,

The Y-man

 

[willair]

If the RBA (because of worldwide trends) was to increase interest rates over the next 2 years, by 2-3 %, who would you blame ?
If buyers simply stopped buying, who would you blame ?
If banks start recalling loans, who would you blame ?
Where does blaming others stop and personal responsibility kick in ?

Did any of this stop people from buying into real estate/equitys markets
artwork several other markets over the past 4 years,look today for yourself
the way the ASX finished for the 4th year in a row, i still trying to understand how someone with 20 years in investing in property and what ever can have a mindset like yours and end up with one cent left in your back pocket at the end of the week..
BTW,THE ONLY PERSON YOU BLAME IS YOURSELF...
good luck willair..
btw you write the same as one so called doctor that posted doom and gloom a few years ago,on this site,he must be sitting back now thinking
what a waste of three years..

 

[mbl]

willair.

Just wait until all this 'fixed for 3 years' loans reset.

What exactly don't you understand ? It's called 'value investing'....and living within your means, and obviously hard work.

I am not a doctor....and for the last time, this is the first time I have been on this forum.

Thanks for the reply though. It's great to see people believeing in 'personal liability'.....especially in this forum.

regards, mbl

 

[lizzie]

I wouldn't blame anyone. To me, it's not a matter of blame. Personally, I knew the risks when I started buying property and shares. If the risks pay off, I get to take the credit. If they don't, I bear the responsibility.

spot on as usual, alex, and i totally agree.

 

[handyandy]

willair.

Just wait until all this 'fixed for 3 years' loans reset.

What exactly don't you understand ? It's called 'value investing'....and living within your means, and obviously hard work.

I am not a doctor....and for the last time, this is the first time I have been on this forum.

Thanks for the reply though. It's great to see people believeing in 'personal liability'.....especially in this forum.

regards, mbl

Maybe you have never had a loan 'reset' as you call it.

In the case where a loan finishes its fixed term and rate, it is fairly standard (at least with all the ones I have had) that they simply roll into a standard variable P/I loan. There is no new agreement or loan documents and no valuation to be done.

The bank is in business of keeping its money working, thats it's 'product' they don't want it back unless its in default.

Cheers

 

[yo yo ma]

Who would you blame if all you investments do not turn out as you planned, be it because of personal or external factors (e.g increase in interest rates, loss of steam in the market etc.).

Would you blame yourself ? The Banks ? The Government ? The real estate gurus ?

I don't think any of my investments will turn out as I plan for them... Some will do better, others not so good. Them's the breaks in a big city. Live & learn from them & move on... Next time I won't make the same mistakes & hopefully others can benefit from them when I post them on here.
No one to blame... That's life!
Steve

 

[poppy]

Just wait until all this 'fixed for 3 years' loans reset.

I like many people have a variable rate loan. I believe that in Australia the majority of loans are still variable not fixed.

 

[mbl]

I like many people have a variable rate loan. I believe that in Australia the majority of loans are still variable not fixed.

I know....scary isn't it ?

 

[Xenia]

If you don't take absolute responsibility for all that happens in your world and you do not believe that you are the cause of it then you have no hope of every being able to change things.

Taking responsibility is everyones first stepping stone to success!

 

[lowb]

Hear hear!

 

[Simon]

I know....scary isn't it ?

Why does that scare you?

You seem very worried about what other people do. What do you do?

 

[yo yo ma]

I like many people have a variable rate loan. I believe that in Australia the majority of loans are still variable not fixed.

That is confirmed here
http://www.mfaa.com.au/default.asp?artID=1937
We are a bit of a gambling nation betting on horses, football, any other sport, pokies, keno, lotto, scratchies etc etc... why not have a punt on interest rates too! I have & if they go down, that's great... If they go up then I have made the choice not to fix & can live with my decision... no-one elses fault! Not the goverment (or the future goverment) or the banks or anyone else
Steve

 

[Norwester]

Myself well..............????

Of course I would blame all these fine people on the good ship Somersoft ( and few other forums that I lurk on)........... as obviously it would be all their fault.

Is that what you wanted to hear? Sheesh.........gimme a break.

If for some reason what I am doing at the moment crashes and burns there will be no one to blame other than myself.

MBL,

So who would you blame, if in ten/twenty years time you're not quite where you want to be?

ciao

Nor

 

[Tizzy]

No point to getting all bitter and twisted when your plans don't work out. You just have to make the best of the situation, pick yourself up and try again.

We lost a bit on one place in 1992 because we made a choice to sell an IP in a down market. We've made up our loss since then. We certainly didn't think it was the fault of anyone at the time, it was our choice to sell.

If the market came crashing down around my ears now, the most I could possibly lose after all my contingency plans fail, is bricks and mortar. I'd still have the family that helped put it together in the first place and we'd be fine.

 

[Aimjoy]

Mmmm, if I remember the words of Peter Spann that have stuck in my mind since I did one of his share investing seminars a few years back (btw thanks heaps for that one PS - I made a motzza)

"The market does what the market does and it does not do it to YOU.

If YOU make money then YOU are making money and if YOU lose money then YOU are losing money." Although this was spoken in relation to the share market, I think it equally applies to the property market IMHO.

It's ALL about personal responsibility. You can't blame ANYONE or ANYTHING.

You just take your learnings and get back on your feet and go again.....

Cheers,
Aimy

 

[Aimjoy]

'if' by rudyard kipling

This poem is becoming more and more to the forefront of my thinking lately, probably because the words below are relevant to what happened to me recently. "If you can make one heap of all your winnings
And risk it all on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breath a word about your loss"

Here's the whole thing:


'if' by rudyard kipling

If you can keep your head when all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you,
But make allowance for their doubting too;
If you can wait and not be tired by waiting,
Or being lied about, don't deal in lies,
Or being hated, don't give way to hating,
And yet don't look too good, nor talk too wise:

If you can dream - and not make dreams your master,
If you can think - and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two impostors just the same;
If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build 'em up with worn-out tools:

If you can make one heap of all your winnings
And risk it all on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breath a word about your loss;
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: "Hold on!"

If you can talk with crowds and keep your virtue,
Or walk with kings - nor lose the common touch,
If neither foes nor loving friends can hurt you,
If all men count with you, but none too much;
If you can fill the unforgiving minute
With sixty seconds' worth of distance run,
Yours is the Earth and everything that's in it,
And - which is more - you'll be a Man, my son!

Rudyard Kipling (1865-1936)