Regretted buying an IP
- Thread starter Jocker10
- Start date
Hi JFEWSTER / John.
I find your comment on no negative experiences interesting.
I've found this forum often shares the bad and the good - more often in response to a question that purely starting a negative thread.
Overall, I find the forum a positive group. Any experience can have good and bad attributes. The people here choose to take the 'lesson', learn and move on.
Look at any posts on "should I invest together with friend", and PM questions, Tenant questions, should I buy / sell and you will often (but only when relevant) get people (including myself) highlighting potential downfalls. The forum also highlights the SANF - Sleep At Night Factor. This includes covering off for lose job/partner/other problems and having a buffer to cover these.
In short, the forum's definitely positive, but not blind.
Keep on posting John!
Cheerio,
Simon.
ps. You are right on one thing though, post a totally negative, doom and gloom message, and odds are you'll get fried. The trick is to phrase it differently so you get peoples considered opinion, rather than their reaction.....
And when you learn how - teach me !
I find your comment on no negative experiences interesting.
I've found this forum often shares the bad and the good - more often in response to a question that purely starting a negative thread.
Overall, I find the forum a positive group. Any experience can have good and bad attributes. The people here choose to take the 'lesson', learn and move on.
Look at any posts on "should I invest together with friend", and PM questions, Tenant questions, should I buy / sell and you will often (but only when relevant) get people (including myself) highlighting potential downfalls. The forum also highlights the SANF - Sleep At Night Factor. This includes covering off for lose job/partner/other problems and having a buffer to cover these.
In short, the forum's definitely positive, but not blind.
Keep on posting John!
Cheerio,
Simon.
ps. You are right on one thing though, post a totally negative, doom and gloom message, and odds are you'll get fried. The trick is to phrase it differently so you get peoples considered opinion, rather than their reaction.....
And when you learn how - teach me !
Hi
Just a thought starter on the negative side of the forum.
If I wanted the negative side of the investment arguement about investing, I would only have to ask my family for advice or ask most people at work, or a financial advisor who knows nothing about property.
If I only wanted the positive side of the story, I would listen to Pushy RE agents and adds in magazines and seminars.
This forum seems to have more than its share of experienced people to learn from, but I guess its like most things, it's up to the individual to sort out what they think is reasonable, and what is not reasonable, and confirm this knowledge before acting on it.
Simon - agree with your PS and will add, in my opinion, anything totally negative is not a balanced view.
jahn
Just a thought starter on the negative side of the forum.
If I wanted the negative side of the investment arguement about investing, I would only have to ask my family for advice
or ask most people at work, or a financial advisor who knows nothing about property.If I only wanted the positive side of the story, I would listen to Pushy RE agents and adds in magazines and seminars.
This forum seems to have more than its share of experienced people to learn from, but I guess its like most things, it's up to the individual to sort out what they think is reasonable, and what is not reasonable, and confirm this knowledge before acting on it.
Simon - agree with your PS and will add, in my opinion, anything totally negative is not a balanced view.
jahn
We bought our first IP in 1992 for $125K. Eight years later, in 2000, it was still valued at $125K.
Lots of regrets, thought we were idiots, etc, etc.
Our accountant and our financial advisor (two separate organisations) told us we had bought a "lemon" and "advised" us to sell. We were too busy growing our business (plus we had the same tenants in the IP for the whole 8 years) that we did not sell. It is now valued at least $280K.
Now, no regrets, considered ourselves to be smart investors, etc, etc
Like other have said (including Jan in her books), it is about time in the market. Also have learnt some valuable lessons - still have a lot more to go!!!!
Lots of regrets, thought we were idiots, etc, etc.
Our accountant and our financial advisor (two separate organisations) told us we had bought a "lemon" and "advised" us to sell. We were too busy growing our business (plus we had the same tenants in the IP for the whole 8 years) that we did not sell. It is now valued at least $280K.
Now, no regrets, considered ourselves to be smart investors, etc, etc
Like other have said (including Jan in her books), it is about time in the market. Also have learnt some valuable lessons - still have a lot more to go!!!!
Now that sounds familiar Keiran - we purchased our first IP as a married couple ( I had an IP with my brother several years before) - in Mudgeeraba (SE QLD) on our honeymoon in 1993.
Purchase price 130k, and around 2 years ago would have been worth around 95k. Did nothing for 8 years - biggest regret of our lives etc etc..
But it has been yielding around 8%, so paid for itself - so we kept it.
Now it has gone up to around 200k. Patience is the key in Real Estate - even a bad purchase like this one can become a reasonable one in time !!!
Purchase price 130k, and around 2 years ago would have been worth around 95k. Did nothing for 8 years - biggest regret of our lives etc etc..
But it has been yielding around 8%, so paid for itself - so we kept it.
Now it has gone up to around 200k. Patience is the key in Real Estate - even a bad purchase like this one can become a reasonable one in time !!!
Surely there's no such thing as a negative - simply a positive learning experience
Anyone who spends all their time 'woe is meing' over the negatives is unlikely to learn from them and move on.
All the negative experiences specifically talked about in this thread have demonstrated this. People have learnt & moved on. Sometimes the decision that appeared negative at one point in time or from one perspective is highly positive from another viewpoint.
An experience/decision is entirely neutral. If you look for negative outcomes you'll find them. If you look for positive outcomes you'll find them. There's no such thing as a totally negative experience, just a totally negative person.
Cheers,
Aceyducey
Anyone who spends all their time 'woe is meing' over the negatives is unlikely to learn from them and move on.
All the negative experiences specifically talked about in this thread have demonstrated this. People have learnt & moved on. Sometimes the decision that appeared negative at one point in time or from one perspective is highly positive from another viewpoint.
An experience/decision is entirely neutral. If you look for negative outcomes you'll find them. If you look for positive outcomes you'll find them. There's no such thing as a totally negative experience, just a totally negative person.
Cheers,
Aceyducey
Hi Kierank
That's a good example of what we should expect from the "average' property, as it equates to nearly 7% pa compounding capital growth over that time. Inflation averaged about 2.5% pa, so you've effectively made 4.5% pa, whilst not startling, it really adds up over time.
If you replicate that for the next 12 years the MV will be $475K.
And (the steak knives) you have had an increasing level of income, essentially linked to the capital value. If the rent is a conservative gross 5% of MV, that will equal $23,750 pa. in 12 yrs.
As Mr Einstein said, there is nothing more powerful than compounding interest.
GarryK
Hi Acey
There is never a negative? Every experience is positive? You are kidding surely.
That reads to me like a quote from some “new age” author trying to convince himself/herself that life always smiles on you. Well it doesn’t!
There are negative experiences -yes you can pick yourself up, learn from them and move on but you can’t change the initial experience – it happened!
"An experience/decision is entirely neutral" is a simplistic and unrealistic belief, I think. Human emotions do come into it for most of us because we are human
We cannot be entirely neutral about experiences - what if someone close dies suddenly or war happens? No one consciously decides to make that a negative or positive experience – it is just what it is and we all emote it in some way.
How on earth can you prepare to be "neutral" about some event that is going to pull on emotions you might have never experienced before?
Honestly Acey, that read to me like a bad cut and paste job from some rebirthed guru!!!
I’ll go say my affirmations now
ani
Originally posted by Aceyducey
Surely there's no such thing as a negative - simply a positive learning experience
An experience/decision is entirely neutral. If you look for negative outcomes you'll find them. If you look for positive outcomes you'll find them. There's no such thing as a totally negative experience, just a totally negative person.
Cheers,
Aceyducey
There is never a negative? Every experience is positive? You are kidding surely.
That reads to me like a quote from some “new age” author trying to convince himself/herself that life always smiles on you. Well it doesn’t!
There are negative experiences -yes you can pick yourself up, learn from them and move on but you can’t change the initial experience – it happened!
"An experience/decision is entirely neutral" is a simplistic and unrealistic belief, I think. Human emotions do come into it for most of us because we are human
We cannot be entirely neutral about experiences - what if someone close dies suddenly or war happens? No one consciously decides to make that a negative or positive experience – it is just what it is and we all emote it in some way.
How on earth can you prepare to be "neutral" about some event that is going to pull on emotions you might have never experienced before?
Honestly Acey, that read to me like a bad cut and paste job from some rebirthed guru!!!
I’ll go say my affirmations now
ani
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Hi Acey, I'm with ani on this one.
Just finished reading the Fin Review about a guy who will lose his house because of his involvement with Mr Kaye. Wife, 2 young kids, one on the way.
I think he'll have trouble finding the positives right now, and he wouldn't have to be a negative person to be feeling that way. I bet he was positive when he first started out.
If he is really lucky, and has marriage holds up, and he still has a family, he might one day be able to look back and say, gee, what a great learning experience that was. Will he wish it had never happened? I'd bet yes.
GarryK
Just finished reading the Fin Review about a guy who will lose his house because of his involvement with Mr Kaye. Wife, 2 young kids, one on the way.
I think he'll have trouble finding the positives right now, and he wouldn't have to be a negative person to be feeling that way. I bet he was positive when he first started out.
If he is really lucky, and has marriage holds up, and he still has a family, he might one day be able to look back and say, gee, what a great learning experience that was. Will he wish it had never happened? I'd bet yes.
GarryK
Ani, that's my point.
It's not the experience itself that is positive or negative, it's how you emotionally react to it.
I've seen people upset at only making a few thousand dollars or happy to earn 50c. It all depends on how you choose to react to it emotionally.
And you can choose how you respond to events - that's one of the key things that makes us human....we don't respond totally via instinct
BTW this is not new age thinking, it's been around for thousands of years - ask the Buddhists.
And Garry - you're absolutely right on your point that the guy will wish it never happened - but you can't change it, you can only accept it, move on & use the experience to your benefit. Why let events bring you down?
I'm not arguing denial, I'm arguing change your mindset to one that will give you positive returns.
Cheers,
Aceyducey
And if that person went into the card game deliberately to lose that money ... ???
Humans are complex beings.
Nothing is as it first seems.
Our motives are hidden even from ourselves.
OOoooooohhhhhmmmmm!!!!
Humans are complex beings.
Nothing is as it first seems.
Our motives are hidden even from ourselves.
OOoooooohhhhhmmmmm!!!!
A friend got divorced in 2000 after 10 years of marriage. She could have bought her husband out of the family home, but decided to sell and split the money instead because she thought the market had peaked. She put the money in the bank... and went to live in a share house. The present value of her former family home has probably doubled by now. But... she met her current husband through the flatmate. That wouldn't have happend had she kept the family home. So was this experience positive or negative?
Cheers
Nic
Cheers
Nic
Leapyeah,
Joseph definitely has a point. But don't confuse CHOOSING your reaction with choosing to SUPPRESS your reaction.
Have you ever heard of laughing clubs? They're groups of people who get together to have a good laugh. It's therapeutic, it's fun & it helps you get through negative emotions to a state of mind where you can draw the positive from experiences in your life.
BTW - I've never needed to attend one myself
With a positive attitude you can overcome or bypass every obstacle.
With a negative attitude you're likely to fall into suppressing your emotions sooner or later simply to be able to function in society as Joseph sez.
Cheers,
Aceyducey
Being humans, of course we will always react to experiences in a human way, meaning we cannot escape negative or painfull emotions. If you drop a hammer on your foot you WILL feel pain. If a loved one dies you WILL feel grief. But Acey is right - we can choose our reactions to the situation and that INCLUDES REACTION TO THE NATURAL EMOTION that has arisen in us. Most people habitually RESIST both the negative situation and their reaction to it. This denial is what real negativity is. Woe-meing is just one form of such resistance. If you accept the world as it is (there is no other world out there after all), then you can find beauty in even a saddest emotion or situation.
To illustrate my point, here's my favourite story. A Zen monk was crying after the death of a close relative. Another monk remarked that it was inappropriate for a follower of Zen to be so attached to the world. To which the first replied: "Don't be foolish. I cry because I want to!".
Having given this little sermon, I must admit that I am a very negative person by habit. But I accept this situation, so there!
Cheers
Nic
To illustrate my point, here's my favourite story. A Zen monk was crying after the death of a close relative. Another monk remarked that it was inappropriate for a follower of Zen to be so attached to the world. To which the first replied: "Don't be foolish. I cry because I want to!".
Having given this little sermon, I must admit that I am a very negative person by habit. But I accept this situation, so there!
Cheers
Nic
