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I actually say this all the time with a small but i feel significant difference.
Working for the man is for suckers.
I've been an employee of quite a few different organisations over the years. Not one of those jobs has paid me what i believe my actual worth is, I have rarely felt job satisfaction, managers point the finger when the shit hits the fan and tend to forget the little people when things go right.
When i compare these jobs to my own business, the business where i get up at 3am every sunday, the difference is clear. I get paid exactly the amount i deserve (sometimes more than i deserve) Every sunday lunchtime I'm happy with the job i've done, and whatever the results are, good or bad, it all comes down to what i did that day.
In my opinion being an employee is definitely being a sucker. Unavoidable for the time being, but definitely on my list of things to not do.
so, if the idea of averaging 10% growth over the next 30 years is absurd, then what can we expect?
What I mean is, I'm yet to join the property market and from a lot of books the strategy seems the same.
1. Buy
2. Wait
3. Buy more against equity
4. Repeat.Now if a huge downturn can be expected…or even a long "levelling off" period where things stay the same, surely everyone running this kind of strategy is in ALOT of trouble.
I hate to be pessimistic but it seems like something terrible is going to happen and nobody seems to be mentioning it.
Should i just follow the pack, buy hold and ignore the inevitable..or should i do like chicken little and stay out of this crazy business?
so what happens next?
well, the power of negative gearing depends at least partly on your income. Obviously someone on minimum wage would be in a world of trouble here.
I think more information is needed for this one. Annual income (both rental and otherwise) would be a good start.
i think what people are trying to tell you is that the wrapper and the wrappee are two very different people. Both get something out of the transaction, the question is which do you want to be.
Wrapper gets $$$, lots of it. A wrapper is looking to make passive income, a wrapper is looking for financial indepedence.
Wrappee's on the other hand are just happy to own 1 house. Wrappee's don't have thoughts of investing, the only thing they want is the great australian dream…home ownership.
What's it gonna be?
p.s. If i was Steve McNight i would also be encouraging people to purchase on vendor finance. I mean, that is how he makes at least some of his income. Telling people not to do it would be a bit counter-productive, don't you think?
Thanks very much for all that. I'll definitely be contacting an accountant to get some of the finer details sorted out. Any recommendations in brisbane?
and yeah, brisbane still feels way out of my comfort zone, and i'm dead against units and townhouses because
1. buildings fall down, land doesn't
2. Units don't allow me to add value to them(well not as much as houses do anyway)Is there a flaw in my anti-unit thinking?
thanks for the help so far guys. Just a couple of queries.
1. first home owners grant. I won't be living in it, so i couldn't get it….right? Fiancee is not a permanent resident, so she can't get it, so what's the ruling if we bought a house together?
2. Rural areas. Yes, i'm aware of the problems with rural areas, but I'm confident with the area i've chosen to perform well and with my father's ability to see a good deal, having dealed in the area for 40 years now. Brisbane prices, on the other hand, have gotten way too high for me and i don't see myself having the ability to enter the market there just yet.
3. When it comes to pooling our money, while i understand the legals of us splitting up, what i'm more interested in is the financial side of things. like…will the artificial lending ceiling hit us sooner if we borrow as one entity? How will our tax returns be affected (i really don't understand how that one works). should we maybe even kick things off in a trust, or does that come later?
Thanks very much for all your help so far L.A Aussie and hleung it's really appreciated!
bruxism
