The secret to my success

[missmonopoly]

The secret to my success whether it relates to finances, health, relationships, etc has been to monitor what the majority of people are doing and then do the opposite.

If I want to be financially independent I don't follow the majority to the local lotto agent every week

If I want to be healthy I don't hang out at the masses of fast food outlets

If I want to be happily married I don't hang around single people at bars and nightclubs

Have a clear goal of what you want out of life and then find people who have achieved that goal.

Learn everything you can from them by reading, researching, watching, understanding and then doing.

Once you start doing (and making mistakes)you then realise that you need to go back and read, research, watch , understand and do again.

Rinse and repeat

There is so much to learn in life that it is impossible to learn everything before you start doing anything...........learn as you go. Always improve yourself

 

[hobo-jo]

I've seen property booms before and I think we will see them again . We bought our first PPOR at the peak of the late 80's boom which saw prices double in close to one year . There have been booms in the 60's and 70's .

I think there's skill to picking the right locations for each cycle, but it's unlikely the next 50 years will replicate the last 50 (as far as property price growth goes).

Unless property investors expect private debt to double relative to GDP (300%)?

 

[devank]

The secret to my success whether it relates to finances, health, relationships, etc has been to monitor what the majority of people are doing and then do the opposite.

The definition of majority is a bit relative. Being on this forum makes me think that majority of investors are buying in Brisbane.
I sense that majority of cleaver investors are moving to a different state. Does it mean we should avoid that because of the 'majority'?
(I'm not arguing against you missmonopoly.. just thinking aloud )

 

[Deltaberry]

I have a mate who's family are into the finer things in life. (Actually I have a lot of friends like that). Their parents actively encourage them to pursue nice stuff. Eg. they can't have normal honey, hells no, they gta have that pimp honey made by only the finest bees.

His mum (whos is like my second family) gave me a spiel after I dropped out of ballroom dancing recently because I said it was too expensive a hobby.

She said life was to be enjoyed. I got that, and frankly didn't disagree, but I also enjoy rock climbing and camping. It was an interesting thought.

Hobbies are great, but if your hobbies are art collecting, ballroom dancing and taking full advantage of the ski season at $1000/weekend, you're going to need a lot more cashflow than if you enjoy rock climbing, camping and street dance fighting.

Interesting. I know and know of some fairly wealthy families (again, iconic brands). And certainly, their life revolves around ballet dancing, art, culture, and if any business is involved, grand ideas hardly any desire to execute the ideas.

You'd think this kind of mentality would only exist in the upper echelons in China, Europe and USA, but it's the same in Australia.

I think the problem is their lives have no risk. Think about dynasties, empires. The 6th generation is motivated because there's a risk they get invaded, overthrown.

 

[Deltaberry]

I think there's skill to picking the right locations for each cycle, but it's unlikely the next 50 years will replicate the last 50 (as far as property price growth goes).

Unless property investors expect private debt to double relative to GDP (300%)?

Is that gross debt or net debt? Doesn't sound right to me also. Our public net debt to GDP is a lot lower than that. I'm surprised private debt is that high

 

[MTR]

I think there's skill to picking the right locations for each cycle, but it's unlikely the next 50 years will replicate the last 50 (as far as property price growth goes).

Unless property investors expect private debt to double relative to GDP (300%)?

Hobo j
I keep reading this stuff by a number of posters, find it really weird, if this is what you believe then that will be your reality. I say this because there have and are booming markets now, have been making some silly money over the last 2years in a short time frame, I call it a boom in specific areas.

Comments like this are general and you can not put all markets in one box, it just makes no sense whatsoever to do this.

MTR

 

[The Fence]

Whats happening with the gold boom?

Seems a little unloved for quite awhile now. Whats up, or should I say, down?

 

[see_change]

The definition of majority is a bit relative. Being on this forum makes me think that majority of investors are buying in Brisbane.
I sense that majority of cleaver investors are moving to a different state. Does it mean we should avoid that because of the 'majority'?
(I'm not arguing against you missmonopoly.. just thinking aloud )

Good points . Depends whether you want to get in before anything happens or as things are starting to happen . Late last year in Brisbane , there weren't many buyers where we were looking and , from talking to agents in Logan that we knew , no buyers in Logan so you could low ball .

Now there are more buyers , the market has started to move so you're unlikely to pick up bargains and if you want to buy at the bottom end of Logan , you'll have a lot of competition , but it hasn't moved much and to the best of my knowledge the bottom end in Logan is still below its peak from the last cycle .

To me it looks as though it's at the place it was when we started investing in the last cycle .

The fact that everyone here is talking about investing in Brisbane doesn't mean it's too late . If everyone was talking about their 50 % profits ( as they are in sydney ) then I'd be looking elsewhere .

If you already had good exposure in Brisbane and wanted to diversify , then maybe elsewhere .

If you know Brisbane , have already bought there and want more exposure there ........

Cliff

 

[missmonopoly]

The definition of majority is a bit relative. Being on this forum makes me think that majority of investors are buying in Brisbane.
I sense that majority of cleaver investors are moving to a different state. Does it mean we should avoid that because of the 'majority'?
(I'm not arguing against you missmonopoly.. just thinking aloud )

Devank,

The fact that you are even on this forum puts you in the minority.

Whatever strategy you choose, whether to invest in Brisbane or elsewhere really doesn't matter.

You think differently to the majority of Australians - you are investing in property not lotto tickets

 

[hobo-jo]

Is that gross debt or net debt? Doesn't sound right to me also. Our public net debt to GDP is a lot lower than that. I'm surprised private debt is that high

Net of what?

Public debt is relatively low in comparison: http://2.static.australianindepende...ault/files/styles/full_width/public/Keen2.png

 

[see_change]

Ho-Bo jo and deltaberry

If you want to have a debate about debt etc about that can you take it elsewhere .
It's not the reason why people have engaged with this thread .

Cliff

 

[nhg]

I think there's skill to picking the right locations for each cycle, but it's unlikely the next 50 years will replicate the last 50 (as far as property price growth goes).

Unless property investors expect private debt to double relative to GDP (300%)?

Maybe this is said in every generation, and I'm likely wrong. I agree with the above, I don't think the property game will be what it was, not in Sydney at least.

Still not sure how to play the new game, don't know anyone who has, not starting from this far down the equity food chain.

 

[MTR]

Ho-Bo jo and deltaberry

If you want to have a debate about debt etc about that can you take it elsewhere .
It's not the reason why people have engaged with this thread .

Cliff

Amen
This is a great thread, lets keep it informative and on the right track.

 

[The Fence]

So debt is not part of IP success ?

 

[see_change]

Hobo j
I keep reading this stuff by a number of posters, find it really weird, if this is what you believe then that will be your reality. I say this because there have and are booming markets now, have been making some silly money over the last 2years in a short time frame, I call it a boom in specific areas.

Comments like this are general and you can not put all markets in one box, it just makes no sense whatsoever to do this.

MTR

Spot on MTR . If you look for reasons not to do things you can always find them .

For the last 13 years I have seen a progression of people give ping reasons not to invest , and saying things will be different going forward .

Maybe this is a timely reminder of that. Hence people define their level of success. Their expectations define their results .

Cliff

 

[see_change]

So debt is not part of IP success ?

Vast majority of people go into debt . I'm referring to a discussion of the negative way it is being portrayed by hobo jo as taking this thread away from its objective which is how to succeed , rather than why people will find it harder to succeed in the future ... That's a different discussion .

If ho-Bo jo wants to start that thread elsewhere he is welcome to and he can have a pointless debate there in which no one will concede a point ......and no one will change their minds . Being prepared to listen and change your mind is integral to success .

Cliff

 

[Player]

Vast majority of people go into debt . I'm referring to a discussion of the negative way it is being portrayed by hobo jo as taking this thread away from its objective which is how to succeed , rather than why people will find it harder to succeed in the future ... That's a different discussion .

If ho-Bo jo wants to start that thread elsewhere he is welcome to and he can have a pointless debate there in which no one will concede a point ......and no one will change their minds . Being prepared to listen and change your mind is integral to success .

Cliff

Listening is a key attribute on the path to success. Or should I say, ACTIVE LISTENING. Some people hear but they don't listen. As the old adage goes.......we are given two ears and one mouth and should use them in that proportion. The late Jim Rohn would put it this way....." Where ever you are, be there."

Following on from being able to actively listen in the present moment also allows one to be the master that changes their mind (by their own free will and critical decision process) and doesn't have it changed by circumstances, the masses, the datasphere and so on.

This is an excellent thread, Cliff

 

[The Fence]

Vast majority of people go into debt . I'm referring to a discussion of the negative way it is being portrayed by hobo jo as taking this thread away from its objective which is how to succeed , rather than why people will find it harder to succeed in the future ... That's a different discussion .

If ho-Bo jo wants to start that thread elsewhere he is welcome to and he can have a pointless debate there in which no one will concede a point ......and no one will change their minds . Being prepared to listen and change your mind is integral to success .

Cliff

Fair enough.

But it really is something that many have had to overcome, their fear of "debt".

I know it was something incredibly hard for my wife to get used to but after a couple years where she wasnt arrested for having debt and saw how rents and tax advantages fed into the equation and then to see the "equity mate" !

So yes, part of the secret is overcoming these fears and treating them objectively and mitigating risks.

Of course we now call it "liabilities v assets" rather than debt which for many conjours up nothing but fear.

As jan said, get used to large figures of both liability and asset.
Bigger the figures the bigger the % slice turns out in $$ format.

yes it is a good thread. Any thread that makes one think is good.

 

[Deltaberry]

Net of what?

Public debt is relatively low in comparison: http://2.static.australianindepende...ault/files/styles/full_width/public/Keen2.png

Net of savings. Common sense no? I may have a lot of outstanding debt, but maybe my debt is entirely offset by cash in offset account. Everything comes back down to the most basic, fundamental things.

@ sea_change: no I don't believe in these debates. They're useful, but economics is just something you have to get your head around. Japan has a public gross debt to GDP of over 200%. I haven't seen it bust yet. Australia is around 30%.

 

[hobo-jo]

Net of savings. Common sense no? I may have a lot of outstanding debt, but maybe my debt is entirely offset by cash in offset account. Everything comes back down to the most basic, fundamental things.

see_change is right in this case, discussion is off topic for the thread, you're welcome to continue here where I've responded to this post: http://somersoft.com/forums/showthread.php?t=101322