What have your friends been saying to you .

[see_change]

In a recent post someone said that they had noticed a change in what people were saying about property investing on the shop floor , that PI was now no longer the falvour of the month.

I was interested in this because my experience has been the opposite. Over the last two years we have talked to numerous friends about Property investing , hoever as most of the people on the forum have found, most people ( not on the forum ) are not interested.

In the last couple of months , I've actually had friends who have previously put property investing down, say they should get together with us and pick our brains ( no rude comments please . They don't seem to be interested in quick gains, more a feeling that they shoud do something, because they will need to retire at some stage.

What have other people on the forum had happen to them ? Has there been an increase in interest from non investing friends or has there been the opposite?

Please no grandstanding theorising about " the sky's about to fall in " .

See Change

 

[Peter_Tersteeg]

I've got a friend who was negative about it 3 years ago, but about 6 months ago started to get interested. He's looked around and decided to go with a third party because he doesn't want to do the legwork <<cringe>>.

At this point he's totally convinced that investing in a Melbourne appartment will produce better capital gains than a house. He's done a lot of numbers, but doesn't seem to appreciate the effect that pulling $15k out of his own pocket (after deductions) will have on his lifestyle, especially if he doesn't get the gains he's been told to expect.

It seems to me that there are still a lot of people who have very little idea about the market out there. They know that we may be at the top of the market, but they don't seem to be able to understand what that could mean of they buy know and expect to see easy results.

 

[sbe]

Of those who I've heard talking about it, most people seem to think there's a slight softening about to occur.

I know people who 'are about to get something', but then, they always seem to be doing that too.....

I dont really talk to many people about it from my perspective because you get one of these responses :
- Haven't you got enough already (no)
- You must be rich (no, just more disciplined than you)

What's funny, is you can tell those who listen to the media as their only source of information (8 months ago, gotta get property!!!, now of course the sky is falling.....), versus those who take a more - shall we say educated view? - and expect a slow down / slight softening.

Of course, then there's Niel.......

Cheerio.

 

[Aceyducey]

The people I talk to are taking the long view. Some are considering buying their first property now and don't really care what happens in the short term as they appreciate that property is long-term. Generally they'd have liked to buy in a bit earlier, but their situation wouldn't allow it.

I'm met a few people who are waiting for the market to fall and then expect to buy up big on the backs of all the investors going bankrupt, but they're the same people who are always looking for that one big win & take the short view.

On the whole I've found people in general are better educated, less greed-focused and more intelligent than some posters on Somersoft seem to credit.

Cheers,

Aceyducey

 

[OPM-addict]

Most of the people I see when they ask about IP's are not interested in educating themselves about property investment.

Their opinion is:
"risky in this current enviroment"
"I wait until the prices go down"
"You dont know what the governments going to do with interest rates"

and my personal favourite:

"I will start looking in a few months. When I have more time"
I hear it alot.

When I talk to them again and ask what book have they read or have they visited this website their usual response in NO.
But they tell you all about something they saw on Today Tonight or A Current Affair.

Then I change the subject. Cars, travel and partying.

Respect, Peace, Out.

OPM-addict

 

[bbg2003]

It seems to me they really have no opinion and are happy to repeat whatever they hear on the news, tv or even worse the sunday papers.
They love repeating what they read in those advertorials you find in the thick weekend papers about how apartments are the best type of real estate investment. It's the "Meriton effect".

Now that property is "supposedly" cooling off, they no longer think it's necessary to bother.
This leaves an open path for those share gurus who will dazzle and frazzle the innocent and uninitiated and sheep like with numbers and forecasts on the best kept investing secret in the western world: shares and managed funds. Stock pickers will be rubbing their hands with glee as the reserve bank, once again, kills the economy instead or aiding it. The new gurus will have even bigger cigars and boats, and shame on you if you don't know them by first name...don't you understand investments!?
It's really easy you see, just plant your money over there in that garden and it will grow you a tree.

Get ready for a new party topic folks, james bone will soon be the talk of the town...

 

[astroboy]

Most of my coworkers are very active in investing, none see their super contributions sustaining their retirement lifestyle.
All are active mixers/switchers among three main assest classes depending on the current economic environment.
I am the only one currently standing by residential property.
My response to their critism of that... whatever....
They all have and are doing quite well thankyou.
astroboy

 

[Kevin]

When I talk about investing with family they tend to brush the subject, because they dont understand.

Friends have there heads in the sand and live for the day or the week. They also tend to brush the subject or quote the media "you will lose out when the market crashes"

So thats why this Forum is so important.

 

[duncan_m]

Originally posted by astroboy
Most of my coworkers are very active in investing, none see their super contributions sustaining their retirement lifestyle.
All are active mixers/switchers among three main assest classes depending on the current economic environment.
I am the only one currently standing by residential property.
My response to their critism of that... whatever....
They all have and are doing quite well thankyou.
astroboy

Hi this is unusual, may I ask what profession you are in?

 

[manny]

Well, I don't really talk property to many of my friends, as they are either not interested, in the stock market OR love doo-dads (cars, girls, booz, etc..)... the few that are into IPs have been saying the following:

* Now's not the time to buy
* Prices will go down
* (the share investors are saying ->) you will lose money, so sell (thinking u treat IPs like shares)
* Will look for opportunities in 12 months time
* Prices are too high, yields too low
* Fear of further rate hikes
* Vacancies being a concern
* Few commented in trying to find rural +ve cf IPs, but not actually doing anything more than just research
* Friends that don't know IPs think we will go bankrupt with the buble burst (I always laugh at this, but then again they don't know our LVR levels, which are very low)

I haven't had any of my IP investor friends actually say they are buying, except for one, that is looking at doing a development...

As for myself, well I'm not buying, want to do some work within portfolio (looking at a subdivision to keep my going for this year), although looking out for any opportunities if they arise...

Cheers,

MannyB.

 

[astroboy]

Originally posted by duncan_m
Hi this is unusual, may I ask what profession you are in?

IT Duncan, tho a highly specialised & somewhat "niche" area these days.
ab

BTW we are pretty well all in our early 40's

 

[see_change]

I'm more interested in seeing what peoples non IP friends are doing / saying.

We had two buy their first "IP's" in last few months ( If you call a block of land an IP - they not want the hassels of tenants , and a highly negatively geared unit on gold coast with very high management fees ... )

These occured prior to rate rise, but we have had about three people ask us re investing since the rate rises.


See Change

 

[manny]

SC,

u got me thinking of some of my non-IP friends, well a family member of ours HATES me talking IPs to her, which I avoid, but funny enough did state that she should have bought a few years back when I was telling her & would have doubled her money (although cash is still in her term deposit earning peanuts)... she does get very defensive & u can see from her body language that she burns inside when ppl talk about IPs, kind of funny... We've had a few run-ins because of it, but then crawls back to me... Oh, she wasn't happy when I got her an IP book for Xmas

Well a few guys at work that were interested in IPs for some time now that haven't bought are just procrastinating, always looking around & not making that final move... & when they miss an opportunity they just talk on&on&on about it... Unfortunately these ppl think of property as if it was shares... look for a quick gain, which as we know property should be seen as a long-term investment (in most cases)... Oh forgot to mention, the latest rate rise did quieten them down, don't mention IPs now (as I don't instigate such conversations)...

Cheers,

MannyB.

 

[Puppeteer]

My experience with Friends and Family has been extremely positive.

Three of my workmates are seriously looking at using IP (and other investment methods) to increase their future wealth. One has already put an offer in on a property, and joined these forums (so I'd better be careful what I say )

Another has got Jan's book, and is examining her options from her current situation, but realizes that super probably won't be enough.

A third was excited about it all, but has gone off the boil a bit with some other issues, but will probably look at investing again soon.

Of my other workmates, most have some significant form of investment from intellectual property, to shares, property, large managed fund portfolio's and most have a mixture.

Of my non investor friends, most are in awe of what I've managed to do at my age, and many don't believe that they will ever do it, but are positive about my experiences. Quite a few have also managed to buy houses to live in (and it needs to be noted, that many of my friends were from broken homes and had hard lives in their youth's so this is no small feat for many of them). Many of these people are looking to building wealth in the future.

Some of them now realize that they should be working to build wealth for their future, but most haven't taken the next step of educating themselves. I'm working on them (subtly)

Most of my current friends now are investment savvy, and some I've met through forums such as this one.

Most of my family think that what I'm doing is good. Some of them are doing similar things, and we often discuss our strategies with each other, and analyse each other's deals.

Even those few of my friends that have been doom and gloom predictors in the past, have come to realize that it is possible to accrue wealth even in bad times, and while they don't believe that they can be "so lucky" themselves, realize that there are opportunities out there.

I think I'm unusually fortunate to have so much support amongst my friends and family, but I am also very grateful, because it makes the whole experience much easier, and makes me more confident.

 

[Aceyducey]

Our families are generally quite supportive of what we're doing, and certain rellies already owning an IP have been spurred on to increase their holdings (and have done really well out of it).

However siblings & cousins are focused on the now...always complaining they're too busy, problems at work, etc - but are not prepared to consider alternatives.

Their eyes glaze over when talking about investments of any type...

Give them ten years and their thinking may change

Cheers,

Aceyducey

 

[willair]

The people i talk too everyday dont worry about the economic
front in real estate,they all still have imagination and everyday
live for the next property to fall into thier lap,I agree some
property investors will face major consequences in the next
24 months,but not for the shrewd and intelligent,as they say
the bigger the trajectory the greater the fall.....
good luck
willair..

 

[Corsa]

My view is that the people in my life, opinions are mixed.

I have a small group of friends and my mum and dad who are investing in the same way that I am (more than one IP, shares etc) and I really value the time spent with these people discussing finance, opportunities etc it keeps me constantly challenged and informed.

My other friends (effectively single income no kids, double income no kids) are either:
a: have bought a PPOR and can no longer come out anymore as they have no money left after contributing to the mortgage repayment
b: have no IP, no PPOR, and tend to go on annual overseas trips and spend a lot of money on material things cars, furniture packages interest free for 24 mths etc

Most of my work collegues have a lot of financial commitments at present time like kids and PPOR etc but are generally using the equity built up over the past few years to fund renovations. I wouldnt classify people who engage in home renovations as investors but sometimes I get the feeling that they consider themselves investors as a result of this activity.

I guess other people in my life like other family members, friends etc who generally know how much I invest have been known to make comments like:

be careful, I know a lot of people who have been burnt investing in QLD...

the boom is well and truly over....

we are searching for a PPOR every other weekend....

I am going to wait till all those people who can no longer afford a mortgage panic sell and then buy up...

I am worried about interest rates rising....

Generally, these comments are made in the best of intentions but I really dont pay that much attention to it. For me, I know what I am doing is right for me and if I am unsure of something then I will either go to my investing friends or use this forum for advise and support.

My personal view is each to there own, I am here if anyone needs to discuss anything with me and my friends and family know that.

 

[Robyne]

A few months ago everyone I knew (well almost) wanted to get into IPs. Some of them had some unusual ideas on what they were going to do. None of them have actually done anything about it. Most have stopped talking about it.

Maybe waiting a little while is a good idea. That's what we are going to do re IP number 3.

Robyne

 

[Jacque]

I tend to find that most of my non investing friends simply reiterate what's in the media most of the time, when discussing property. The old Doom and Gloom theory is alive and well, and they're waiting for the 30% drop in prices (!!) before they buy anything.
The rest of my friends are property investors themselves and I'm happy to say that we enjoy lively discussions where property is concerned.
I honestly try not to bring the subject of IP up amongst my non investing friends, as most of them are simply not interested. We always find something to talk about though....

 

[RPI]

Family

I have 3 brothers who invest. They have positive opinions.

lots of friends are really interested in what we've done but only 1 I know has done anything, the rest of this bunch are gonna's.

The next group are the aren't you lucky, hasn't youre gambled paid off, it's too risky, the media says this and that, never going to do anything types.

The gonna's are the most frustrating as I've spent hours with some going through figures and what they could do and they're always gonna do something soon, soon just never comes.

As far as talking about the market, most of the non investors I know are talking abouth their expecting a crash, they really ffed off what the Today Tonight type journalists are saying

Darryl