Forum Replies Created
- zenq wrote:Good to see Pete has weighed back in, and is taking some action and has benefitted from the considerable advice proffered.
I'm 35, and felt just the same a year or 2 out of Uni. I know myself, I was used to getting good things pretty easily: a Uni degree, overseas travel: left Uni with credit card debt ad Hecs debt.
I've invested in real estate, always borrowing to my limit, often using credit cards to complete steps, gearing very heavily and carrying lots of debt (more than anyone I know). Over the next year I'm hoping it will pay off as I complete a rural subdivision. I'm hoping to pay off my home and purchase another, larger rural block.
I add my story not to say "look how easy it is" but rather to put these points forward:
1. I looked and looked for something I could afford: Eventually bought a 8acre bush block in a rural subdivision area (1 acre blocks) for 50k: less than the 1 acre blocks. I found it by walking 10k from town out to the subdivision: had I driven I would have missed it because it was so overgrowth with weeds. I've yet to see a cheaper block in the region I live in (Cairns). It really was an ugly duckling. I have worked incredibly hard on the block to improve it over the last 5 years.2. I've had to curtail my lifestyle a fair bit, but I must admit I'm hopeless at tightening my belt and continually struggle with credit card debt etc: I just haven't developed a frugal attitude/lifestyle: I guess like Pete I think lifes for living. I really believe we aren't as tough as previous generations: I know I've had an easy life and glad of it. Having said that, often the experiences, the travel, the education, the technology pay off to improve our sophistication as workers/investors/creative thinkers. Being frugal is really great, but sometimes, in the world we live in, its not the best way: it may be part of your strategy but its not a complete strategy, it has to be balanced with proactive actions like hunting for deals or using leverage.
3. In my situation, I've only kept moving forward rather than going broke through steady price growth in my region. I had some tough times initially where I would spend money on construction on a vacant block, to find the improved block wasn't worth what I spent on it. I did most of the work myself on a budget, and perhaps I would have been better (or worse) off employing a builder. I have to be realistic: its only price inflation of the real estate I'd bought that kept me bouyant (because I'd started with no savings and $35k income, and debt). In a declining market, I would have had to abort, or even gone bankrupt. looking back, I see myself as impatient, greedy and reckless. It looks like it should pay off.
Reading Petes original Post, its clear to me now how I wanted things now! I could see (from media and sites like this) that a boom was coming and I needed to get on the train or miss out. I was impatient and greedy, but with good reason. I've now got tonnes more debt, but two great properties and an exit strategy which should leave me in a good position. I got close enough to bankruptcy to realise in slightly different circumstances how easy it is to fail when the boom-tide changes unexpectedly
I know a lot of my generation wants the nice house in the nice suburb straight out of Uni. Clearly, it wouldn't kill them to save for a few years, do it tough for a while, go without etc. They are hard things to hear, with the impatience and impetuousness of youth: I'm sure human nature hasn't changed.
My advice: keep looking for the deal or the ethical method that will build your wealth. Don't be afraid to take baby steps: as people have said, its all good education. I spent 6 months solidly researching and hunting before I bought my first place, and years since learning more. There are opportunities out there: they take time and money, but you have both, and plenty more to come.
Good luck if you do decide to push the envelope and improve your circumstances. The anger you feel is felt by many: it sounds like you will be one of those who uses it to change their situation rather than let it defeat them.
We need that sort of discomfort to motivate us to improve our lot.
Thank you for your imput it is greatly appreciated.
L.A Aussie wrote:Peter, that was a good post that ended badly.Good to see we have helped you change your mindset and get stuck into it, but…..
The old people I know who are tight are that way because they have no money.
The old people I know who are rich are very, very generous and live life well.
When you consider that the current "old" generation consists mostly of pensioners, then it stands to reason that you will run into a lot of old people who annoy you with the comments that you mentioned.
Go easy on them; you'll be old one day.
Instead, listen and learn from the poor oldies how not to end up like them – don't do what they have done, and do what the rich oldies have done. They've been there and done that.Old people are not necessarily full of shit. If you remember back to your original post; you were full of shit and it pissed all of us off.
The old people did have it tough;
they had the depression, the second world war (conscription), vietnam and agent orange, one-car families (if they had a car at all).They didn't have;
Ipods, computers, on-line banking, atm's, email, HD tv, dvd's, GPS and mapquest, google, microwaves, drive thru take-away, 24 hour trading, no interest for 2 years finance on everything, Hecs, bulk billing, luxury 4 wheel drives, cheap air travel, credit and debit cards, packet everything food, fan-forced fridges, climate control, ensuites, disneyland, flu shots, plastic bags, aluminium beer cans, vending machines, cell phones, cordless phones, no operator long distance calls, text messaging, fax machines, light weight pushbikes and tents, freeways weren't invented, infra red rays, supermarkets, home delivery pizza, pre-mix spirits in a can, imitation gas log fires, velcro, gore-tex, 38 hour weeks, insinkerators, webcam, digital technology, netflixDO I NEED TO GO ON??
Marc,
Aren't Ipods, computers, atms, internet banking, etc etc all just apart of "progress" in general if we didn't have these technologies and convieniences Austalia would be a backward 3rd world nation. After all it has been said that today we are in the Information Age and not the Industrial age.
As for the 38 hour week, who work those anymore????????? Last I heard Australia had overtaken Japan in average hours worked per week to become ranked I think number 2 in the world of developed nations for average hours worked per week.
Besides as much as the above mentioned technologies make life easier by stream lining day to day life it also makes it alot faster/harder.
Since the advent of moblies and esspecially emails you can pretty much be contacted anywhere anytime has many advantages but just as many disadvantages.
L.A Aussie wrote:Have you got the message yet Pete?Hi Marc,
To tell you the truth I'm quite overwhelmed by the total responce this post has created.
The many arguments from all sides has certainly given me a lot t think about.
I still think more debate needs to be created on the issue in society as a whole, the issue definately gets some coverage in the media but considering the amount of people affected by the issue I think it certainly needs a whole a lot more.
For those interested in what I've been up to since I started this thread back in November last year I'll sum it up for you;
– I've gotten out of the ratrace…..otherwise known as Perth. Elders have given me my first country posting in Lake Grace which a small wheatbelt town located in the Upper Great Southern region of WA.– I've joined a political party (young nationals), represent of the regions is an issue I believe in (I don't see any open pits mines or broadacre crops in St Georges Tce or any of the other CBD districts of other capital cities). It also given me the opportunity to raise these issues with politicians.
– I've organised finance to $150K (I could go for more but I see investing, property or otherwise as a process and i do not wish to bite off more than I can chew to begin with).
– Places that i have been looking to invest include Morwell, Mildura, Moe and Sale in regional VIC or Duddo in Regional NSW. I've been checking these places out on the internet and from what I can see some of the properties in these locations represent good value. Most are within a couple of hours drive to the nearset capital city, all have populations of 10K+ and these is a decent amount of public services in these areas eg trains etc.
– Now i have to look at managing the risks associated with buying an investment property sight unseen. I know in many ways it would be smart to start by buying something a little closer to home but WA is too vast in many cases and the pace where posative cashflow properties are available are in the rural regions eg Lake Grace where no Property Management services are availiable. Anything else wihtin a 4 hour radius of Perth and a population of 10K+ I feel lacks value.
Anyways I'm getting a little off track now.
Once again thanks everyone for your replies and if you could please keep them coming the arguments and point of views raised in this thread can be used to raise further issues.
P.S. Looking at some of the comments where an overly great amount of THRIFFTYNESS is involed is something I do not agree with. …………….Yes I agree people need to be responsible with their money (something thats needs to be taught a school over some of the less practial subjects like calculus) but life is meant to be lived and so long as you stick to a budget (which includes entertainment expenses) and pay off non-deductable debt 1st eg credit cards these nothing wrong living a little (so long as you can afford it). I've found most of the older generation that go on about how hard they had it compared to kids of today are just plain "full of sh*t) or tight old miserable bast**ds.
Marc ( L A Aussie) with the news article you supplied me with more or less proving my problems, what am I to make of it?
I would like to thank everyone that contributed to this thread, both posative and negative.
It has certainly given me alot to think about.
Once again thanks to everyone[biggrin]
That’s fair enough Lena but where do you live while your renting your property out?
Peter
Hamlon davies is a very good accounting firm in the busso area. Talk to a guy named Phil Hall
Thanks for your help everyone
thank you kim, I’m after positive cashflow around the southwest area, can u help?
Quote:Hi Peter.im from south west too and just getting into it ive been studing prices for a couple of months and have found plenty that fit the 11 sec rule in and around the south west. check out some of the smaller towns thats where most of them are located.
p.s most are under 70 000 so shouldsuit you well.Thanks for your help I was just wondering which areas in the south west are you talking about collie, capel, donnybrook, etc?
quote:
Hi Peter.im from south west too and just getting into it ive been studing prices for a couple of months and have found plenty that fit the 11 sec rule in and around the south west. check out some of the smaller towns thats where most of them are located.
p.s most are under 70 000 so shouldsuit you well.
