The "don't"s of wealth creation
- Thread starter Monopoly
- Start date
i have to say the biggest issue for me is parents
but who listens to them anyway....
my mother who has no investment knowledge at all and money burns holes in her pocket gets worried when i talk about investing in property as soon as she hears words she doesnt know or things she doesnt understand she tries talking me out of it
and my old man thinks paying the houses out asap is the best choice.
i think you have to be strong minded enough to brush off the fears others create and get in there and do it
the only thing slowing me down is limited cash and fear of not doing correct DD, buying in the right place etc
my SANF would be fine if i was leveraged up to 100%lvr if i knew what i was doing
my SANF atm would be bad at an lvr of 70% as i don't know if im making the correct choices or not
it helps i have a really great mentor helping me to get my first one and all the people on the forums
but who listens to them anyway....
my mother who has no investment knowledge at all and money burns holes in her pocket gets worried when i talk about investing in property as soon as she hears words she doesnt know or things she doesnt understand she tries talking me out of it
and my old man thinks paying the houses out asap is the best choice.
i think you have to be strong minded enough to brush off the fears others create and get in there and do it
the only thing slowing me down is limited cash and fear of not doing correct DD, buying in the right place etc
my SANF would be fine if i was leveraged up to 100%lvr if i knew what i was doing
my SANF atm would be bad at an lvr of 70% as i don't know if im making the correct choices or not
it helps i have a really great mentor helping me to get my first one and all the people on the forums
My mother says there is about to be a massive property crash, a few months away...........................since 2001
Problem is, I listened to her.........she recently said "this time, there will be a massive crash around the corner"
Problem is, that if there were to be a crash around the corner, it would be pure luck and nothing else, but for her, that would equal, "a license" to predict everything about everything
Problem is, I listened to her.........she recently said "this time, there will be a massive crash around the corner"
Problem is, that if there were to be a crash around the corner, it would be pure luck and nothing else, but for her, that would equal, "a license" to predict everything about everything
LOL at you talking about mothers. What about Mother in Law's
The parents/parents-in-law being negative toward investment doesn't bother me or affect my approach to things. What bothers me is their attitudes and habits that will leave them all on the pension without even a PPOR behind them and then my wife and I as the most financially responsible children of the lot will be expected to compensate their lifestyles.
I just said the MIL as people were on here stating their mother was saying this and that etc.....usually you will find MIL's will go against anything your for....unless of course you one of those lucky people
I'd like to summarise my do's and dont's in basic form.
Do's. Buy well, get your depreciation reports in order and maximise cashflow, you want to feel strong if any unforseen costs arrise. Wait for many years, but constantly watch and question your investment performance. For instance, selling an old PPOR that has now become a rental may cost you tens of thousands of dollars if you miss the 6 year CGT exempt rule etc etc. It is very important to monitor your plan to see if it is right for you, and to make sure it's performing or will do into the future.
Dont's. Don't be impatient, don't become sick of maintenance calls, they will **** you off but it's part of the price of (eventual) freedom. Don't sell the assett until it has done a job, or if it's a real dog, consider moving it.
Thats pretty well it and I believe this is the advice many pay thousands for at seminars. The MOST important thing of all is that you DO something.
Do's. Buy well, get your depreciation reports in order and maximise cashflow, you want to feel strong if any unforseen costs arrise. Wait for many years, but constantly watch and question your investment performance. For instance, selling an old PPOR that has now become a rental may cost you tens of thousands of dollars if you miss the 6 year CGT exempt rule etc etc. It is very important to monitor your plan to see if it is right for you, and to make sure it's performing or will do into the future.
Dont's. Don't be impatient, don't become sick of maintenance calls, they will **** you off but it's part of the price of (eventual) freedom. Don't sell the assett until it has done a job, or if it's a real dog, consider moving it.
Thats pretty well it and I believe this is the advice many pay thousands for at seminars. The MOST important thing of all is that you DO something.
Interesting that people talk about listening to their mothers and mother-in-laws.
I'd say, never listen to people, especially those who are not financially successful role models themselves. Even if they were successful, their word is sometimes as good as yours.
At the end of 2008 (ie post GFC crash) my friend and I were looking at entering the market on a relatively large scale, but my friend's father was heavily against it, saying that the market would fall one more leg.
He was a very financially savvy person and probably one of the largest and wealthiest private subdividers in Victoria outside the likes of listed-companies. Any way, we listened to him, and he got it wrong.
I'd say, never listen to people, especially those who are not financially successful role models themselves. Even if they were successful, their word is sometimes as good as yours.
At the end of 2008 (ie post GFC crash) my friend and I were looking at entering the market on a relatively large scale, but my friend's father was heavily against it, saying that the market would fall one more leg.
He was a very financially savvy person and probably one of the largest and wealthiest private subdividers in Victoria outside the likes of listed-companies. Any way, we listened to him, and he got it wrong.
He only got it wrong because of government interference which was out of line with what was happening in the market. ie they bump up the first home buyer massively etc.
Cheers
I must be one of the lucky few, then. Both my MIL and FIL have offered great advice, including being honest about what didn't work for them, and yet don't get bent out of shape if we do something different.
Of course, having in-laws who own a dozen or so properties themselves probably helps the situation.
Of course, having in-laws who own a dozen or so properties themselves probably helps the situation.
In Laws / Nay sayers
We have tried to share our plans with the inlaws and of course they are horrified that we are going to take on a high level of debt and purchase x properties. You can tell that they think we are delusional.
Interestingly BIL recently invested in a Ponzi scheme and goodbye $. He didn't understand how it worked or how he was to make money. He took his mate's word. Then after he joined he tried to convince us to join (thats when we discovered how little he knew). My DD said is was not a good investment so I declined - simple google search. 1mth later the scheme folded. I am still shocked that he did this becasue he has analysis paralysis when it comes to property, has been waiting 12 years for property to come down so he can buy again, thinks we are totally insane...
Same situation - MIL invested in Banksia based on her 'advisor's advice. No DD of her own. She did not know that for the same low return she was getting at Banksia she could have put her hard saved dollars into the main four and had gov protection - especially at her age. Stubborn lady, head in the sand, happy to pay this guy fees and commission instead of doing her own DD. Money is a taboo subject and you can't discuss it with your obviously money hungry vulture children whose only intention is to rip you off blind (so she thinks) - except she had to tell them all that she 'lost' her money in Banksia; end of discussion. She will probably revert back to storing cash under the mattress now.
How many elderly people are in this situation?
We have made our fair share of mistakes. But we are learning and going onwards and upwards. Slowly cutting the strings of the weight holding us down.
We have tried to share our plans with the inlaws and of course they are horrified that we are going to take on a high level of debt and purchase x properties. You can tell that they think we are delusional.
Interestingly BIL recently invested in a Ponzi scheme and goodbye $. He didn't understand how it worked or how he was to make money. He took his mate's word. Then after he joined he tried to convince us to join (thats when we discovered how little he knew). My DD said is was not a good investment so I declined - simple google search. 1mth later the scheme folded. I am still shocked that he did this becasue he has analysis paralysis when it comes to property, has been waiting 12 years for property to come down so he can buy again, thinks we are totally insane...
Same situation - MIL invested in Banksia based on her 'advisor's advice. No DD of her own. She did not know that for the same low return she was getting at Banksia she could have put her hard saved dollars into the main four and had gov protection - especially at her age. Stubborn lady, head in the sand, happy to pay this guy fees and commission instead of doing her own DD. Money is a taboo subject and you can't discuss it with your obviously money hungry vulture children whose only intention is to rip you off blind (so she thinks) - except she had to tell them all that she 'lost' her money in Banksia; end of discussion. She will probably revert back to storing cash under the mattress now.
How many elderly people are in this situation?
We have made our fair share of mistakes. But we are learning and going onwards and upwards. Slowly cutting the strings of the weight holding us down.
My parents retired from Public Service jobs just over 30 years ago, with enough Super to pay cash for three median Brisbane houses. Brother and I both worked in banks at the time and could not for the lives of us convince them what we thought they should do with it.
Mother spent quite a bit on junk, then Father listened to a "mate" from his work and invested the remainder into some start-up building society that went broke within a year. They were both living off pensions within two years of Dad turning 60. Mum thinks she's hit the mother-load now that she receives a war widow's pension and all the associated goodies that go with it.
Brother and I can both claim to be millionaires if we stretch the definition far enough.
At that time you could claim some pensions at age 60.
Mother spent quite a bit on junk, then Father listened to a "mate" from his work and invested the remainder into some start-up building society that went broke within a year. They were both living off pensions within two years of Dad turning 60. Mum thinks she's hit the mother-load now that she receives a war widow's pension and all the associated goodies that go with it.
Brother and I can both claim to be millionaires if we stretch the definition far enough.
At that time you could claim some pensions at age 60.
Thanks for the helpful tips. I have been reading this forum for a few months now.
Your friend's father made the same mistake as me, he assumed that the governments of the day would not destroy the future of their own nation for the benefit of the worlds bankers.
The statesmen of the past who created the economic world as we know it would be appalled by the greed and corruption which currently grips the western societies.
The younger generations of the western world are going to have an awful time for 10 or 20 years, probably more ! No wonder they are rioting
The statesmen of the past who created the economic world as we know it would be appalled by the greed and corruption which currently grips the western societies.
The younger generations of the western world are going to have an awful time for 10 or 20 years, probably more ! No wonder they are rioting
Really? I've had some pretty good advice from my accountant and financial adviser over the years. I would have said don't take advice from someone who gets paid a commission.
I'l put in another way.
I'd rather be taking advice from a self made successful person, rather than someone who has to be paid a salary and is probably too scared to take his own advice.
