Why are smart people so stupid.

[Marina]

Hi to all,

Over the last week, I have come across 2 cases of intelligient, high paying
professionals being negative and uneducated towards property.

First example, a top notch professional from a major property corporation
meets me at my new IP. He will be organising free landscaping for me as
part of the deal , when I bought the land was Free Landscaping.
Anyway he walks through my home, and absolutely loves it.

First words were " I cannot believe you are going to rent this out, what if
the tenants wreck the place"

Enough said about that one.


The 2nd example was a Manager from an architecural firm who is doing
some plans for us. He overheard my hubby talking to our property manager
about the latest IPs being leased out.
He did not hesitate to comment " Property will not be going up anymore"

True to my words, that is what he said. Again enough said.

So there you have it, people who just love to have a 9- 5 job, and nothing else.

Kind regards
Marina

 

[convert2online]

I always thought that professionals in the property industry had it great they get to learn everything about properties and investing in them while getting paid for it. I guess some people don't realize they have a good thing right under their noses but don't make use of it.

I wonder what percentage of the professionals in the industry don't invest in property themselves, do you think it would be a high or low percentage?

 

[Les]

I wonder what percentage of the professionals in the industry don't invest in property themselves, do you think it would be a high or low percentage?

Of the two dozen or so RE people I've got to know over time, I think MORE are investing than LESS. So I would be surprised if the answer to your question ("What percentage DON'T invest for themselves") was more than 50% - more likely 30% from my perspective. i.e. 70% DO invest IMHO.

Regards,

 

[D.T.]

Hi Marina,

Dont worry about it, you know you're doing the right thing. Those people you mentioned are just like ~90% of the population I bet.

 

[JohnK]

Hey Marina,

I think alot of us have shared a similar experience. It's like been talked out of something that you were going to do which you know and feels so right by somebody who was a non-professional or unbiased person! I've come across people like that many times and I just laugh to myself..They'd say, you shouldn’t buy an investment property people trash them, or don’t invest in the share market – in 1987 I lost a bundle. We all at some point hear or try and take bad advice which you dont wanna let in because that person is only trying to bring you down to there level.

Jim Rohn once said, "we must banish the bad thoughts from our heads and banish those who choose to destroy us" I don’t think he means say to your friends get lost! But we just have to choose not to listen. Say thanks for that opinion, but I have made up own mind and I’m buying that house. I am very happy with my decision, I have researched it well. And every time you say that, you are reinforcing that you’re on the right track!!

As dtraeger2k mentioned, we find that there are so many people around us who have this bad mental attitude and which is why 95% of population are not becomming wealthy and its difficult, if not impossible, to become wealthy when people like that around you are tearing you down. In order for us to become wealthy, we have to cut ourselves off from all of that.

And the next time you see him or her, or even someone else who comes across with the dont buy that property investment line, just say...your ignorance is not my problem.

 

[grubar30]

your ignorance is not my problem

That's a solid comeback. It's cutting but in a smart way. That one's going in the memory bank.

Hey Marina,
Don't worry about it. They're "the glass is half-empty " type of people. They'll never get it because they let fear run their lives. Risk scares them. However, they don't understand that there's calculated risk and then there's stupid risk. They’re ignorant.

They might be "smart" people, but they're smart in an insecure type of way. Just look at their work – they’d be lost without their safe, secure (perceived!) 9 to 5 jobs. They find solace and comfort in them. How boring and predictable.

In essence, they’re scared to take a chance. I think the second fellow was simply admitting his inferiority by criticising your courage to do something that involves a certain level of risk – something he’ll never be able to do.

I guess no one's ever told these two that you'll get nowhere in life by doing someone else's bidding.

 

[geoffw]

Not everybody does well in real estate though.

I know somebody who bought a house in England for $125,000 in 1988, spent months renovating it, held it for the longer term (always very negatively geared), and sold it twelve years later for $140,000. That's about 2% pa capital gain- negative growth allowing for inflation- only achieved in a very bouyant market, and nowhere near enough to cover the cash put in out of pocket in that period.

Fortunately I found Peter Spann and learnt a few things, so I invested in real estate again.

 

[Ray Brown]

Half a glass.

Hi all,

before we all get too cosy about IP investments and how they will never collapse, perhaps we should discuss the possible nasty scenarios more often.

Don't get me wrong, I've gone from having about $20K equity in 1999 to $428K today - all thanks to careful property investment. (and a couple of good books on the subject)

But there are some strange things occuring out there in Mums & Dads IP investment land.

Living in Cairns, I think I can be cynical. The investment-unit machine has been left on again, and it will end - with an over supply of units.

Some friends of mine bought an 'investment unit' in 1991 for 125K.
They sold it in January for 120K. Brilliant return, not.

But this time it might be different. Who knows?

IMHO I think the internet has had the greatest upward effect on IP's.

Everybody can own one.......even me.

 

[Merovingian]

Jim Rohn once said, "we must banish the bad thoughts from our heads and banish those who choose to destroy us" I don’t think he means say to your friends get lost! But we just have to choose not to listen. Say thanks for that opinion, but I have made up own mind and I’m buying that house. I am very happy with my decision, I have researched it well. And every time you say that, you are reinforcing that you’re on the right track!!

As dtraeger2k mentioned, we find that there are so many people around us who have this bad mental attitude and which is why 95% of population are not becomming wealthy and its difficult, if not impossible, to become wealthy when people like that around you are tearing you down. In order for us to become wealthy, we have to cut ourselves off from all of that.

In my opinion, a corollary to this is to choose who you speak about property investing with. Personally, I don't really know many people in real life who do invest in property, so I tend to keep it to myself. I don't bother trying to explain my future motives or strategies to people as it tends to wash off "like water off a duck's back" — why waste my breath?

This also reminded me of something Robert Kiyosaki wrote in one of is books, using Ray Kroc, the "founder" of McDonald's as an example. He said that one must know the difference between their business and profession, and to "mind their own business". i.e. The landscaper would say his/her profession is landscaping, but their business is landscaping. Ray Kroc said that his profession is as a salesman, but his business is in real estate.

To me, it's just another difference that sets the "sophisticated investors" apart from the "crowd". (I'm not really keen on labelling 90% of the population as "lower" than the rest in this respect, as I believe we all still have something to offer).

And the next time you see him or her, or even someone else who comes across with the dont buy that property investment line, just say...your ignorance is not my problem.

I like that quote — short, sharp, and simple.

I'll use that in the future, if the time arises...

 

[Jakk]

And the next time you see him or her, or even someone else who comes across with the dont buy that property investment line, just say...your ignorance is not my problem.

That's a solid comeback. It's cutting but in a smart way. That one's going in the memory bank.

Personally, I'd say nothing.
Insinuating that someone is Ignorant or making a cutting remark in a smart way, is not a good way to Win Friends & Influence people.
I will leave you with 3 of Dale Carnegie's quotes to ponder over.

When dealing with people, remember you are not dealing with creatures of logic, but creatures of emotion.
Dale Carnegie

Any fool can criticize, condemn, and complain - and most fools do.
Dale Carnegie

Those convinced against their will are of the same opinion still.
Dale Carnegie

regards

 

[JohnK]

Hey Marina,

somebody who was a non-professional or unbiased person!

oops, i meant a non-professional or biased person.

 

[House_Keeper]

Personally, I'd say nothing.
Insinuating that someone is Ignorant or making a cutting remark in a smart way, is not a good way to Win Friends & Influence people.
I will leave you with 3 of Dale Carnegie's quotes to ponder over.

When dealing with people, remember you are not dealing with creatures of logic, but creatures of emotion.
Dale Carnegie

Any fool can criticize, condemn, and complain - and most fools do.
Dale Carnegie

Those convinced against their will are of the same opinion still.
Dale Carnegie

regards

I agree.

Thanks for reminding us of theses excellent quotes Jakk.

When you are a bit too familiar with a subject, and you see opportunities that others don't, it's easy to label others as "stupid". The "Others" may well be building great wealth from shares, or building up their own business. They may think you are "stupid" for not doing it their way.

There are more than one way to achieve wealth. Labelling those who don't do it your way as "stupid" seems a bit arrogant to me. Be thankful that they are competing against you. When everybody is focused on the same investment, it's usually time to get out.

Cheers,

 

[markpatric]

I agree with Geoff, Marina you sound like you think R/E investment is a sure bet?, this is a dangerous attitude, I am thinking R/E agents see both sides of the coin.
You can do as much due diligence as you want, and read as many books as you like, attend all the seminars but at the end of the day all investment has risk, you might be able to minimise it....with some luck on your side but it is far from a sure bet for many.
Was it you in the other thread that was having problems renting a property?, I could come up with many more scenarios which would make you think twice about the notion that R/E is easy money.

 

[Marina]

I agree with Geoff, Marina you sound like you think R/E investment is a sure bet?, this is a dangerous attitude, I am thinking R/E agents see both sides of the coin.
You can do as much due diligence as you want, and read as many books as you like, attend all the seminars but at the end of the day all investment has risk, you might be able to minimise it....with some luck on your side but it is far from a sure bet for many.
Was it you in the other thread that was having problems renting a property?, I could come up with many more scenarios which would make you think twice about the notion that R/E is easy money.

Hi to all,

I just want to clarify my point of view on some aspects. Where am I saying it
is easy money and a safe bet Mark patric.? I never advise anyone this is the way to go. This is my passion and my passion alone and I love it.

Yes it is me who was having a few problems renting out 2 properties.To date one is leased and only 1 more to go.I love the fact that I can come on here and ask for advice when I find things tough going.

Property is never easy and there will always be hiccups and problems.
This is no big deal. Part and parcel of investing and always a challenge.
If it was easy everyone would be doing it is my motto.

MY gripe and the whole reason for this thread is with OTHER PEOPLE TRYING TO INTSTILL NEGATIVITY IN ME WHEN I HAVE NOT ASKED FOR THEIR OPINION.
It goes through one ear and out the other and it does not bothere me , but I just wanted to tell you all what happened last week.

The only reason these professionals were invited into my home was to do
some work for me and NOT TO DISCUSS PROPERTY INVESTING nor TO GIVE
ME ADVISE.

It is when smart people give me unwanted and uncalled negative advice that is the problem.
When they say stupid comments like
"won't the tenants wreck the place, and property won't grow anymore", that is annoying. If they were so smart they would know that these risks can be
alleviated.

As you all know if you take out the appropriate insurances and buy in strong
capital growth areas then all should be O.K.

This is my chosen field of investing and I never push my ways onto anyone.

Kind regards
Marina.

 

[Marina]

I agree.

Thanks for reminding us of theses excellent quotes Jakk.

When you are a bit too familiar with a subject, and you see opportunities that others don't, it's easy to label others as "stupid". The "Others" may well be building great wealth from shares, or building up their own business. They may think you are "stupid" for not doing it their way.

There are more than one way to achieve wealth. Labelling those who don't do it your way as "stupid" seems a bit arrogant to me. Be thankful that they are competing against you. When everybody is focused on the same investment, it's usually time to get out.

Cheers,

I think this post is getting a bit misconstrued and misunderstood.

Houselkeeper writes " Labelling those who don't do it your way as "stupid" seems a bit arrogant to me. "

I would like to add that I for one did not label thesepeople stupid if they do not do it my way.

I gave them a stupid label because of the stupid comments they made to me.

One comment was " I can't believe you are not going to live in this beautiful home, what if the tenants wreck the place"

This is what I call an uneducated comment coming from a very smart professional person working in the property industry.

2nd comment was " property will not grow anymore."
This particular person said full blank PROPERTY EVERYWHERE WILL NOT GROW ANY MORE."

This has to be a really stupid stupid comment , to say property will not grow anymore, Just look at the last 50 odd years.
My Dad has been saying this since 1995 and to this day still believes it.!


King regards.
Marina.

 

[Les]

G'day Marina,

First words were " I cannot believe you are going to rent this out, what if the tenants wreck the place"

I wonder if you wrecked HIS dreams !!! By this, I mean you have (guessing) bought through his business, and he has "pre-conceived ideas" about who is going to live there, and enjoy HIS work..... Then you come along, and you're WHAT???? You're going to RENT IT?????

Might be enough to turn the poor bloke to drink!!

Anyway, I appreciate your post....

Regards,

 

[chrispy]

Timing

I am enjoying this thread very much

I remember when I bought the first apartment in Cairns, I was told the market had not moved there in years and "Was I crazy?"

Has not moved in years? WOW must be the time to buy says I

I bought a mortgagee repossession the woman had owned it for 8 years and could not get her money back, she has paid $95k, I bought it for $52,500 and guess what? in 12 months it was back to $95k.

I have always felt very sorry for that woman.

BUT I will always remember that property can go down as well as up

Chris

 

[House_Keeper]

I think this post is getting a bit misconstrued and misunderstood.

Houselkeeper writes " Labelling those who don't do it your way as "stupid" seems a bit arrogant to me. "

I would like to add that I for one did not label thesepeople stupid if they do not do it my way.

I gave them a stupid label because of the stupid comments they made to me.

One comment was " I can't believe you are not going to live in this beautiful home, what if the tenants wreck the place"

This is what I call an uneducated comment coming from a very smart professional person working in the property industry.

2nd comment was " property will not grow anymore."
This particular person said full blank PROPERTY EVERYWHERE WILL NOT GROW ANY MORE."

This has to be a really stupid stupid comment , to say property will not grow anymore, Just look at the last 50 odd years.
My Dad has been saying this since 1995 and to this day still believes it.!


King regards.
Marina.

Fair points Marina.

My apologies. I agree that my post was a bit harsh.

Cheers,

 

[markpatric]

I see your point Marina but I suppose I do not understand why you would get upset by these comments, property will not likely go up in value for quite some time and it would be a shame if tenants were to rough up a beautiful house, it could be that being a woman they assume you may not be "in the know".
Being a tradesman and owning a few properties people very rarely give me advise with regard to property when they do I find it very easy and satisfying to ignore what I don`t agree with simply because I have proven my own methods too many times to be swayed by the majority.
More than likley they may simply be jealous and trying to bring you down a peg or two.

 

[Ajax]

Any comments on this post on a sharetrading forum....a friend explained that a negative BIS Shrapnel report was one reason for him selling a 3 bedroom waterfront unit in Drummoyne, Sydney about 8 years ago. Had he held it would have easily doubled in price. The poster below is also relying on BIS Shrapnel forecasts.

"Most unbiased experts are saying at best property prices will hold these levels until around 2010 before moving up again.
Of course this is only if rates dont rise...or unemployment rises...we get a depression etc etc.

So why anyone would be looking to invest in property in this environemt has me stumped.

The IMF said that every australian capital is extremely overvalued when compared to wages except for darwin which came in at overvalued.

Thos who think property rises every year are in fantasy land...if you pay too much at the wrong time expect to lose money...this is what will happen over the next few years.

When nobody thinks property is a good investment anymore is the time to buy...there are still too many first homebuyers and inexperienced investors in the market for this to happen.

BIS Shrapnel calling for a 2.5% increase in rates over the next few years...so you can add around close to 50% on top of your repayments.
There is no way the banks will lend money like they are now in that environment.

Property boom is well and truly over already and after every boom comes a bust...is the way it has always been and always be...human emotions of greed and fear.

Good luck...hope to be buying your properties in 2 or 3 years at a 20-30% discount."