just having a think last night – as other have discuissed its very difficult at the moment to decide where we are gonna see good (7% and above) returns in any asset class over the next say 5-7 years….
preoperty bubble, sharemarket overheating, defensive assets in vogue (gold, cash etc)
im confused how to find nice income generating relatively safe assets without taking too much risk…
came to the sobering conclusion that should things go pair shaped in general (recession or small growth) our greatest assets may infact be our own ability to earn an income. ie to have a secure well paying job….to keep cashflow at a good level to take advantage of the deals as they come during a downturn
which flies in the face of my goal to have passive income asap so i can retire and do what i want…
anyone else agree with this apparent catch 22 -considering the times ahead!!!
I hope I can befinancially indapendent by the age of 30, if our biggest assest becomes our jobs I geuss I’m f#$#%# as I have no uni education, oh well ‘Such As Life’. I’m just going to do what works now and if times change then I’ll do what works then.
Hey Aussie,
I guess there are no right or wrong answers, it really just depends on one’s level of risk tolerance (or aversion) and determination.
I am a firm believer in “nothing for nothing” and without some element of risk, education (knowledge base….I am not necessarily referring to a uni degree) and level of motivation, you will get nowhere very fast, but as long as you’re happy to be there…at the end of the day, who cares, right???
No your job is not your greatest asset, but it does help to buy them!!!
Do your best, and above all, be happy!!! [biggrin]
Cheers,
Jo
Hi Aussie
I agree in part. Yes, you need income in a downturn to give you the cashflow to buy the low priced assets, but jobs are not always secure at this time. I think the catch 22 is short term only, until you are able to get some passive income to give you some consistant cashflow. Like anything you need a plan to cover these times. This may include a secure job, or it may be other methods of securing income. Sometimes, having a secure!!! job can cause you to be lazy about looking around for other ways of making money (and I am a classic example).
Then again, how do you define ‘secure, well paid income’, and how much do you enjoy what you are doing. I like “our greatest assets may infact be our own ability to earn an income . To me though, this is not the same as having a ‘secure, well paid job’ unless I have created this myself.
CalderOriginally posted by aussierogue:came to the sobering conclusion that should things go pair shaped in general (recession or small growth) our greatest assets may infact be our own ability to earn an income. ie to have a secure well paying job….to keep cashflow at a good level to take advantage of the deals as they come during a downturn
Hi Aussie,
People often overlook the high unemployment rate of the early nineties (~11.5% from memory) and the effect this had on a whole raft of economic matters.
You can bet your bottom dollar that people in work at the time considered their job their greatest asset.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping.
Your BRAIN is your greatest asset. You can still make money if you don’t have a job – eg: self employed, invent something, etc.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
g’day – yep all good points and calder you are quite correct. i guess what im saying is any secure income could be an advantage – doesnt need to be be a high income…
derek – maybe a job will come back into vogue!! god help me!
I reckon buy long term put options in listed property companies. Like you were saying aussie – the property “bubble” is more than likely going to pop at some stage in the next 5-7 years, (Probably before 5 even) and the sharemarket has to s@#! itself at some stage – it always does.
Just my thoughts, whaddya reckon?
Spank
Age doesn’t negate effort – you can never be too young or too old.
I seriously doubt, and I don’t think you have to be an Einstein to figure it out….You’re not going to get a burst bubble or any market sh**ing itself BOTH at the same time….if that were true, we’d all be well and truly f***ed!!!! [eh]
Hi All,
I am a believer at the moment, my ability to earn an income IS an asset at this time of my life!
Especially as am frantically trying to pay off this investment loan, to free up more borrowing power for the next property.
I think think the higher the income the easier it would be though, so i am looking for ways to improve myself and so my earning power.
I generally enjoy my job but want more time for me which is why I invest.
[biggrin]Trisha
jo – why dont you say what you really mean!! lol
Ausse, what can I say??? [whistle]
[idea]I know……….
[kiss] MERRY KISS-MASS EVERYONE [kiss]
Originally posted by Monopoly:I seriously doubt, and I don’t think you have to be an Einstein to figure it out….You’re not going to get a burst bubble or any market sh**ing itself BOTH at the same time….if that were true, we’d all be well and truly f***ed!!!! [eh]
The trouble is Eistein was no economist.
In the early ’30’s both property and real estate did indeed s**t itself at the same time!
In other words, the big “D” (if/when it happens) will do it.
Plenty of credible economists are talking about that vey possibility…but not the respective wall street and R/E industry cheerleeding squads. You won’t hear these views very often on boomberg or cnn.
Plenty of people prospered during the great depression, just not those who weren’t prepared for it.
Cheers
You’re forgetting the “End of the World” or Apocalypse predictions as well, these too are real to many believers.[blush2]
I don’t doubt possibilities of War, global warming, natural disasters, even The Second Coming, as they all have some level of credibility, but I don’t live my life in fear of their fruition.
Either way, as far as I’m concerned, bring it on….my bags are packed, my house in order and I’ve got plenty of munchies to nibble on during the ride!!!![biggrin]
Oh and btw (again)…..
SEASONS GREETINGS!!!
It is not a matter of fear. It is a matter of contingencies, my rhetorical friend.
Apocolypses seem to only happen once every few hundred thousand years, whereas depressions HAVE occurred roughly every seventy years since the onset of the industrial age.
A modest difference to say the least, don’t you think?
Have a great Christmas!
Why worry about the past. The future is very different. People are forgetting the internet and the economy becoming a global one.
You can buy viagra from the USA, a phone from China, sarongs from Indonesia and shares from anywhere.
The interent enables people to move quickly in the event of adverse moves in their investments (excluding property). If Australia has a stock-market issue, funds can be moved in seconds to the USA or wherever. I cannot see another Depression, let alone Rescession happening any time soon. In the past only a small group had access to information and now it is everywhere.
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdYeah Rob,
It’s different this time :-o
Aussierogue,In my humble merry opinion,I plan to keep my self in the style to which I am accustomed to by keeping my job and dealing with any dramas as they arise, with my safety stash and wage. I will ride it out for however long it takes and reap the benefits in say, 10 years.
Inezif our biggest assest becomes our jobs I geuss I’m f#$#%# as I have no uni education, oh well ‘Such As Life’. I’m just going to do what works now and if times change then I’ll do what works then.In response to femaleage20, if you read Robert Kyosakis book (? spelling) ‘retire young retire rich’ you may realise that you don’t necessarily have to work at all if you change your mind set and use what Steve has done as a bit of guidance.
Food for thought anyway
[suave2]
I don’t think it is a dichotmous thing. People get into this all or nothing mindset that results in unbalanced decisions : all security or all slavery, all risk or all security, all independence or being completely dependent.
Life is about being able to deal with these conflicts, and being able to love and work well in a balanced and integrated way.
There is a fantasy amongst some people that making a small fortune, “retiring” or whatever will somehow solve their problems, when this is just avoidance of their central problems (usually interpersonal and self esteem). A secure job is not a panacea but it is a potential asset as is an education. The real task is in negotiating and adapting to lifes uncertainties and ones conflicts with these resources.
The question is : if you did lose everything, if your portfolio because of fate or chance fell through the floor, WOULD YOU BE A FAILURE ? If this is the case you should wonder if you are (over)compensating for areas in your life that may also need attention.
There is obsession with money, and then there’s obsession with money…
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