The end game

[DaveM]

Have you tried living on the Northern Beaches or the Eastern suburbs? I think that it would be safe that most westies would swap cabramatta or mt druitt for the eastern suburbs, northern beaches or the north shore if they could afford it. There may be a scarce few die hard westies who may stay around for family reasons but generally, I find that most westies aspire to be in the east or north. This is commonly seen in children of immigrants - growing up in the west, becoming a professional and then moving out of the west. You are going from average house prices of 500k to 1.4mil Generally, unless forced by economic circumstances you will not find someone moving from Vaucluse to Mt. Druitt

I was a long time north shore boy, wollstonecraft, st leonards etc. Moved from my PPOR in Killara to a house in St Clair (just up the road from Skater).

Much prefer where I live now.

China, when was the last time you visited somewhere west that wasnt an imagination drive down sensationalist news lane? Its not all molitov cocktails and jeeps with turret guns mounted on them.

"Westie" bashing is the local sport for the east and north shore occupants, as they sit in a cafe sipping a latte and talking about how their houses have lost 20% value and their share portfolio has taken a 100k+ hit.

 

[OKFFW]

I'm pretty new to the forum so I might be dead wrong but I think it's becoming very clear from China's last few posts that he is now just trolling for fun. The massive generalisations, "westie" bashing, constant arguing for want of something better to do is pretty indicitive of your usual troll.

Been an interesting read up to that point though and thanks to everyone who has taken the time to share their thoughts and experiences. Gives me motivation and inspiration to get this done myself.

 

[Thann]

I'm afraid I must agree with OKFFW... It's been an interesting read

 

[daniellee]

Hi China,

If only you got straight to the point instead of all the constant back and forth. J'ust say you are ultra conservative investor and want to explore property investing in a similar manner.

Have you thought of reading Anita Bell investing books?

1. Your mortgage and how to pay it off in 5 years
2. Your money: Starting out and starting over
3. Your investment property: how to choose it, pay for it and triple your returns in 3 years

Her approach is highly conservative, and works on the notion of paying off the PPOR first, using a cash deposit for an IP, focus on paying off that IP, then buying another using the same method.

She stated that she was happy with just 3 unencumbered IPs and her mortgage free PPOR gave her the sleep at night factor she wanted. Also, she has little desire to take risk.

You should do read up on them. The basic idea is there although the time at which the books were writen was a few years back.

Regards,

Daniel Lee

 

[Hados]

I'm pretty new to the forum so I might be dead wrong but I think it's becoming very clear from China's last few posts that he is now just trolling for fun. The massive generalisations, "westie" bashing, constant arguing for want of something better to do is pretty indicitive of your usual troll.

Been an interesting read up to that point though and thanks to everyone who has taken the time to share their thoughts and experiences. Gives me motivation and inspiration to get this done myself.

I agree. In another thread he stated that he doesn't own a television amongst other things. Maybe it helps to pass the time?

 

[VYBerlinaV8]

I'm pretty new to the forum so I might be dead wrong but I think it's becoming very clear from China's last few posts that he is now just trolling for fun. The massive generalisations, "westie" bashing, constant arguing for want of something better to do is pretty indicitive of your usual troll.

Been an interesting read up to that point though and thanks to everyone who has taken the time to share their thoughts and experiences. Gives me motivation and inspiration to get this done myself.

Good point, and welcome!

 

[MsAli]

http://en.wikipedia.org/wiki/Troll_(Internet)

 

[BayView]

http://en.wikipedia.org/wiki/Troll_(Internet)

And an oxygen thief

 

[china]

I was a long time north shore boy, wollstonecraft, st leonards etc. Moved from my PPOR in Killara to a house in St Clair (just up the road from Skater).

Much prefer where I live now.

.

What has led to such a fall from grace? People move from Killara to the west mainly because they cannot afford to live where they grew up. However, many successful people who grew up in the west will move to the north shore the moment the bank approves their one mil mortgage.

 

[sanj]

What has led to such a fall from grace? .

hahaha awesome

pls dont ever change china

 

[china]

Also, if I spend an extra $1m on my PPOR, then that ties up resources for investing. You don't earn an income from a PPOR. I'd rather have my $450k home & 4 average $250k rentals, each bring in $300pw in rent than a PPOR worth 1.4mil.

Because someone growing up in Vaucluse with a silver spoon, believes the stereotypes. Most have never been out west, not even for a visit, and like I said before, Mt Druitt isn't the only place in the West.

There is a certain pleasure living in a 1.4 mil ppor versus a 450k home. Essentially, you get what you pay for. Sure you need to invest but at what cost in terms of sacrificing your quality of life and that of your children.

 

[sanj]

quality of life?

you have a mattress on the floor and a largely empty house just so you can afford your 750k property and a deep rooted fear of losing your standing in society, where exactly is the quality of life and how sustainable is it?

 

[china]

Hi China,

If only you got straight to the point instead of all the constant back and forth. J'ust say you are ultra conservative investor and want to explore property investing in a similar manner.

Have you thought of reading Anita Bell investing books?

1. Your mortgage and how to pay it off in 5 years
2. Your money: Starting out and starting over
3. Your investment property: how to choose it, pay for it and triple your returns in 3 years

Her approach is highly conservative, and works on the notion of paying off the PPOR first, using a cash deposit for an IP, focus on paying off that IP, then buying another using the same method.

She stated that she was happy with just 3 unencumbered IPs and her mortgage free PPOR gave her the sleep at night factor she wanted. Also, she has little desire to take risk.

You should do read up on them. The basic idea is there although the time at which the books were writen was a few years back.

Regards,

Daniel Lee

Yes, I have read the first two books that you mentioned above. I liked her approach of paying off one property at a time. However, I found it hard to agree with her methods of frugality. She describes going to the local macdonalds to pick up free sugar packets to take home. And other similar stunts.

 

[china]

quality of life?

you have a mattress on the floor and a largely empty house just so you can afford your 750k property and a deep rooted fear of losing your standing in society, where exactly is the quality of life and how sustainable is it?

Agreed, that is why i need to invest to upgrade most urgently.

 

[Deltaberry]

Yes, I have read the first two books that you mentioned above. I liked her approach of paying off one property at a time. However, I found it hard to agree with her methods of frugality. She describes going to the local macdonalds to pick up free sugar packets to take home. And other similar stunts.

Haha what an idiot this McDonalds person... if someone adopts that strategy, they'll probably get hit by her car halfway through their strategy and never enjoy anything in life.

 

[DaveM]

What has led to such a fall from grace? People move from Killara to the west mainly because they cannot afford to live where they grew up. However, many successful people who grew up in the west will move to the north shore the moment the bank approves their one mil mortgage.

Ok now you are just trolling!

Fyi grew up in newcastle, moved to sydney, rented then bought on north shore. So not really moving away from where I grew up due to not being able to afford it.

Took my couple of hundred k profit from ppor sale, rent a modest house, invest in ip's for the future and live debt free.

 

[geoffw]

Ok now you are just trolling!

Not just now.

I've wasted too much time with this troll myself. Any replies are only designed to provoke more responses.

Had me fooled into thinking he was serious.

 

[skater]

What $700-800k gets you in the Eastern Suburbs
http://www.realestate.com.au/property-house-nsw-mascot-110498765
http://www.realestate.com.au/property-house-nsw-rosebery-111095939
or Northern Beaches
http://www.realestate.com.au/property-house-nsw-frenchs+forest-110483737
http://www.realestate.com.au/property-house-nsw-narraweena-110843703
What you get in the West for around $450k
http://www.realestate.com.au/property-house-nsw-werrington-110978983
http://www.realestate.com.au/property-house-nsw-plumpton-110060417

Yep! I can see why you’d want to pay nearly twice as much to live in the traffic & congestion of something closer to the city. Living in a home with minimal furniture because you’ve spend all your dough on the house.

Living in the West is soooo hard. I mean, newer homes, larger blocks of land, large open spaces. It’s such a sacrifice! Terrible quality of life really.

Sure you need to invest but at what cost in terms of sacrificing your quality of life and that of your children.

quality of life?

you have a mattress on the floor and a largely empty house just so you can afford your 750k property and a deep rooted fear of losing your standing in society, where exactly is the quality of life and how sustainable is it?

And that, my friend, is exactly what will keep you in the poor house. At age 37, you really haven't got all that long to go, if you want to build your assets for the future. You've got all your worldly possessions tied up in an expensive home. There's nothing left to invest (especially as your too scared to 'risk' the home).

If you had the guts & you wanted/needed to keep this house. Then you could mortgage it & use the funds as a deposit for several IP's, but I'm betting that your predjudices will come into play when it's time to invest too. So....you'll end up with something you'd like to live in, but brings in a measly return, meaning that you will have a nice large shortfall to pay each week. A couple of years of that & you'll be selling up because it costs too much to invest.

Me! Well, I've got my 'cheap' home. I'm quite comfortable. I've got a swag of IP's bringing me an income each & every week. Like a pig in mud really!

 

[china]

Haha what an idiot this McDonalds person... if someone adopts that strategy, they'll probably get hit by her car halfway through their strategy and never enjoy anything in life.

Anita Bell is a best selling author on personal finance. I guess that there is no formal, external validation of her methods and advice.

 

[devank]

At age 37, you really haven't got all that long to go, if you want to build your assets for the future.

Ouchh... here I thought I still have two cycles to go through before I retire

I tried to see how I'm different to China given both of us are 27 and have similar attitude towards 'risk'. I can even understand many of his views because deep down I also worry about those risks as I have 3 kids. To make things worse I spend a lot on necessary items! Then how is it possible for me to be in a slightly better position than him? I think the answer is ‘action’.

I think from Napoleon Hill’s book, you need ‘Desire’, ‘Faith’ and ‘Action’ to succuss anything in life . Probably we both have same amount of ‘Desire’. Even though I don’t want to accept we both have the same ‘Faith’. But I decided to take ‘Action’ which slowly improved my ‘Desire’ and especially ‘Faith’!

Here is another personal example. I joined an organisation 4 years ago just before having our first kid. My manager asked me what sort of training I would like to do. I told them that I’m not interested in any small courses but I want to do masters in this field as I’m new to this field. They laughed and said it is impossible with work and family commitments. There was 'Desire' but no 'faith'. I had to take 'Action' to bring that 'faith' back into the equation.

First I proved myself to the organisation that I'm a worthy employee. Then I managed to find a topic which my organisation is interested in so they are happy for me to do it during work time! To top it I managed to get a gov scholarship to pay for the research masters. I had the ‘Desire’. No one had the ‘faith’ but my ‘Actions’ took care of it!