Hi everyone,
I thought I’d pose this question.
What does ‘responsible investing’ mean to you?
This is something I was interested in after reading Steve’s post “A rare breed indeed…”
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1979If you made money by doing property investing, how would this change your life?
Cheers
Sooshie [
]“Giving is a Blessing, receiving is the bonus”
Hi,
I don’t aspire to drive ferraris, live in huge mansions or anything like that… I would just like to be able to have FREEDOM, in that if I don’t need to work for someone else, it would be nice if I didn’t have to.
I would also like to create some wealth to pass on to my kids and their kids, so they all get off to a good start.
That’s not to say I wouldn’t mind some creature comforts, because I would ie a big screen tv, a trail bike to zoom around the farm on and a decent holiday each year… but that’s about it.
Cheers
Rthanks sooshie. the fundamental thing is diversification. if you hedge your bets you cant go wrong. from what im reading on the forum most people are diversified but only from within the one asset class – ie property.
g’day richmond – its a great goal to have – one i would also love. the problem is what if everyone had the same goal. who would do the work. i think this is whats happening now and hence the bubble. the market will reach a point whereby it can only accomodate a certain amount of passive income investors. sooner or later soemone needs to do the work. the practicle side of this is the diminishing rental returns. soem would argue we are close to that point
cheers
In my mind responsible investing is all about having integrity. If you say you are going to do something then do it. Integrity includes being honest, ethical and open. Integrity is being true to your word. Without integrity you may make money but you will not hold onto if for long.
Ohhh Sooshie… this is a bit deep for a Friday afternoon.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auaussierogue, I’m sure society can do without one less journo… heh heh
seriously though… the key thing in my post was “work for someone else”… I’d like the freedom to do my own thing… be it a bit of farming, running my own business, writing movies or books… something like that…
r
Hi all,
What does ‘responsible investing’ mean to you?It could mean a few things:-
For the investor: Having – ‘Good Debt verses Bad Debt’, and on the other end of the scale making sure that the person on the receiving end don’t get ripped off!Richmond – I’m with you, we want out of the rat race and into freedom………
aussierogue – I don’t believe that there could ever be to many investors and not enough workers as most people don’t want to step out of their comfort zones, they are happy to go to work and ‘work for money’ even when they moan and groan about it, it’s safe to them, they couldn’t bear the thought of taking risks and buying extra houses. It takes alot of courage to invest in anything that is different from the norm….. I have been reading Robert kiyosaki’s Book ‘Rich Dad Poor Dad’ and apart from thoroughly injoying it, he makes alot of sense when referring to two sorts of people, the people who want to live in the ‘Rat Race’ and those that choose not to…..
I think I am starting to ramble [
] SorrySee ya
BeckyInvest in People for a Prosperous Future!
Hi all!
I like your responses!!! Stu, it’s true I guess it’s a bit deep for Friday arvo…but I like your answer. I guess, reading your answers make me breathe a little easier.
Becky, I think I agree, having witnessed the reluctance of someone close to me wanting to move out of his/her comfort zone.
I think it’s also important to know what type of person you are. I’m scared of heights and there is no way, I’m jumping out of an aeroplane, I don’t care how much fun other’s think it would be!!! And NO thanks, I don’t want to challenge my fear. []
In fact, when I took the seaplane to Otto and Fanny’s, the pilot said,
“In emergency, pull the leaver and jump out” ,
so all the way (45 min ride from base)I thought to myself
‘if the plane did go down, how can I save Simon, without having to jump? How can I make him survive the drop and keep his head out of water and keep him from getting hypothermia? Can I tuck him in my t-shirt and trackies and hold on to the leg of the seaplane? There’s no way I’m jumping…perhaps I can jump last minute…’ I mean, does that sound like the mind of someone who likes heights???
Okay, so I divert…
If people don’t want to move from their comfort zones, why push them? I watched Mike try to pull a hermit crab out of it’s shell, when a Fijian said they made good bait. Hermit crab 1, Mike 0.
Dinner – bought at local shop! Why fight nature! (Hmmm…interesting point…need to think more on that one…what would have happened if Mike had won, would we have had that dinner? Would we have had satisfaction of eating our fish even after killing 2 creatures in order to have it?)
Aussie, I don’t know about bubbles popping. There will always be good deals. Even in a bear market, resilient investors make money. I do agree with diversifying your investments.
I guess we were talking about the bubble going to pop last year and late last year…well…has it happened yet? In the mean time, how many people have bought and sold property and made a profit?
Richmond, have you chosen your holiday destination yet? []
Freedom to choose, Integrity… Wow… I’m impressed, let’s keep going and see where we get to. [^]
Thanks for your replies. It was a serious question, so thanks for taking the time to respond…keep up the good work, I’d love to see where this post takes us..
“To Infinity and Beyond” (Toy Story, Buzz Lightyear)Cheers
Sooshie []“Giving is a Blessing, receiving is the bonus”
Responsible Investing ? I guess its a bit like responsible driving ? know your road rules ( dos and don’ts ) know your vehicle ( what will fund your journey ) know your destination ( end goal ) and know how you intend getting there ( your road map or plan ) ? Know the road conditions ( wet & slippery and bumpy ? dry and hard and smooth ? )
Finally know your driving limitations ( some of us are better or safer drivers than others ) Also know the limitations of your vehicle ( try not to recklessly drive it like an F1 racing car down city streets ) Manage your risks in the context of these limitations.
Watch out for the pot holes, road work signs and strewn debris along the way. Try not to become a casualty and then a statistic.
Drive Safely and with Caution !
[
]Responsible investing – do the numbers. Do the numbers. Do the numbers *yourself*. Do the due diligence. If you don’t then you don’t know what your risk is. If you know what your risk is in a worst case scenario and you’re Ok with it, then do it.
If you are investing on behalf of other people i.e. breadwinner investing on behalf of a family, then be very careful and do the numbers one extrs time, plus do a bit of extra due diligence!!!>the problem is what if everyone had the same goal. who >would do the work.?
In the east coast of America all the rich boys go to harvard law school or study finance. Nobody does medicine or science any more. So all the doctors there are indian and asian imports. So if nobody wants to be a labourer but the investors all need labourers, labourers can name their price.
Some investors will go back to being labourers, if they can do better….>the market will reach a point whereby it can only accomodate >a certain amount of passive income investors…….the >diminishing rental returns. some would argue we are close to >that point
Put it this way, if capital gain goes sideways in Sydney a lot of people losing money on a weekly basis with negatively geared properties will dump their properties with all sorts of repercussions for the market. However it will also create some opportunities. i think the market is neither good nor bad – it just ‘is’. It’s only good or bad if as an investor you want it to be a certain way. If it changes, then you change along with it.
I have a friend who is losing tens of thousands a day at the moment, because he is a commodity trader, and there isn’t any of his commodity to trade. if he doesn’t do something different, he will continue to lose and lose. Why are people so reluctant to change?
*musing*
MiniOn a more philosophical slant, If you are happy for the rest of your life, one could make a case that you invested responsibly. Some may say that if one leaves this world in a “better” state than when they entered it, they invested responsibly. Some people say wealth is a state of mind. [
]In answer to the post, for me, “successful” investing could be differentiated from “responsible” investing. Again both quite subjective as most things qualitative generally seem to be.
One could be “responsible” but less “successful” and vice versa or both or neither. Yet one could also see the two words as meaning the same or going hand in hand.
One could be more pragmatic or more philosophical in ones interpretation. At the end of it all, one is left either happy or unhappy or somewhere in between, depending on ones perspective.
In a general sense, the term “responsible investing” even pertaining to property, can take of a broad context of meaning. I think one has to find their own peace, with whatever they do in life, some of which may include, responsible investing.
More pragmaticly and again in awnser to the posed question, how would it change my life if I were successful in property investing ? Hmm, I think for me it could buy me time to persue things that I may otherwise not have time to do. That said, some say there’s no time like the present. Make of that what you will.
I suspect this could apply to many of us. It seems to me that as one gets older, time can seem to become more important, as clearly life in this conscious world seems finite.
I know that probably didn’t answer much, but well it just came to mind, thus I thought I would offer a different slant for variety and perspective.
[
]Hi everyone,
I have just joined the site as a novice looking to buy my first investment property. This is a great site, but I am having trouble keeping up with all the postings.
As for responsible investing, it probably means different things to different people depending on their goals and strategies. Apart from the obvious ‘do unto to others…’ there is reponsibility to yourself and your family. Some would say it’s irresponsible getting into the market at all at this time with so many warnings of the market being overheated about.
My goals are to get in and hold any property long term (i.e. 10 years+) and so short term predictions of market fluctuations are not so important to me. The market may well be heading towards a peak but I believe there are still good opportunities out there you just have to be flexible and work harder to find them. at this stage I figure it may take me up to 6 moths to be in the position I want to be in before taking the plunge (it may come sooner but I want to make sure the first one is really what I want.) Any advice is very welcome.
WallyWally I see ur point about being responsible. I guess Trevor Hendy would say, well if you understand how the tide flows and know how to handle the rip, then you can go where others fear to swim with safety and confidence. You can even swim with the sharks, so long as you know when they were last well fed. [
] And Renee would say and thats no Gobbldy Gook ! But then look where it left him yet some how it seems the slippery fish still got away.My turn on the Soap box ![
]Responsible investing – The ability to do it without adverse affect on you, your family and anybody else.
Successful investing – The ability to increase wealth with the least amount of loss and stress.
Thankyouverymuch [8D]
[8D]
In consolidating the previous posts in a more definitive sense, I add the following.
responsible = being accountable for your actions, successful or otherwise.
successful = end goal achieved, responsibly or otherwise.
Thus you can be “responsible” or “irresponsible” in process and still achieve your end goal or otherwise. Then it may become a matter of conscience and or financial success or failure.
Or you can be “successful” or “unsuccessful” in end goal, yet have been responsible in process, or otherwise. Then it may become a matter of conscience and or financial success or failure.
The two terms are not essentially inclusive, however could be seen to form a more realistic measure of overall success on a more holistic scale. i.e. also qualitative and not just quantitative.
We have a 4 state binary condition here. Basically represented by two bits of information each represented by two recognized states, one being the affirmative and one being the negative, be them to some degree subjective in interpretation. [
]Clearly the two words go hand in hand and in process, can have wide sweeping impacts on ourselves and on those with whom we interact, on one level or another.
[
]HWD007,
Are you a psychiatrist?[]g’day all
hi mini. youre friend whose a grain trader. i probably know him/her!!! gotta name??
im a trader also hence i know a little about markets and the way they work. im probably too negative though due to some of the experiences ive had being a trader.
i agree with you. i guess the point is always being in a position to change. if you over expose yourself it becomes difficult.
cheers
‘responsible investing’ – if you are responsible
‘successful investing’ – if you are successful.learn – invest – success
$ $ $ $$ $ $ $
$ One problem solved! $
$ Next problem arrive! $
$ $ $ $$ $ $ $hi rogue,
>hi mini. youre friend whose a grain trader. i probably know >him/her!!! gotta name??
no way! *looks around nervously*
*quickly goes and edits previous post*
it’s not my life to share -, though i still think anonymous anecdotal stories are OK though….>im a trader also hence i know a little about markets and the >way they work. im probably too negative though due to some >of the experiences ive had being a trader.
tell, tell!!
All I know is the profession has a high burnout rate due to ultra high stress-levels. And being a trader is still a job, so if you stop trading, you stop earning, right? it’s not really being an investor, who makes money even if he or she takes a year off. (ideally – and which is why long-term investments are much more attractive to me personally.)>i agree with you. i guess the point is always being in a >position to change. if you over expose yourself it becomes >difficult.
Yes, I think the whole lemming discussion here stems from fear of a possible changing market, and whether people’s current strategies are going to work in this changed market. Good thing to be thinking about – always re-evaluation ones’ strategies to make sure they are still performing as desired.
cheers-
MiniHi there,
I’m really impressed with the posts I’ve read. I found this and thought I’d share it with you … it was written by Hybrid property consulting group.
Building your property portfolio is just like building a bridge. To build any bridge you first need to work out exactly what your foundation consists of and then crystalise exactly what your desired destination is. Then carefully utilise your limited resources to maximize your progress whilst maintaining strict risk minimisation techniquesWhat do you think? Is it acurate?
(When’s the spell checker coming [])Cheers
Sooshie []“Giving is a Blessing, receiving is the bonus”
ToeEdge no, just a would be patient of one. hehe [
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yet some how it seems the slippery fish still got away.
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