Was appalled to read the SunHerald on May 16th! As always i browse through the investor section, only this time here it is what i read…
“We are both 28, earning a combined income of $100000. We have a credit card debt of $5000 each and pay dead rent of $180 a week. I have $20 000 owing in HECS. We would like to invest amd have heard of people buying property off the plan and then reselling when completed and making a reasonavle profit. Is this true?”
His response:
“You have a long way to go before buying a property”.@!!!!!!!!!!!!! He does get worse than this but my god! If i were in their financial situation i could be doing heaps! I am a full time student and work my butt off in a bar every night earning only $20000 a year and have two IP’s. If i can afford to save i don’t understand why everyone doesn’t have an investment property or even any form of investment?!?!?!?
Any views to settle me down??
Tink[confused2]Tinkerbell, was the advice to buy shares or managed funds perchance?
I often get annoyed when I read the answers in those sort of write in sections, but when they’re financial planners, you don’t expect much different.
There are some that will give advice on property, but not too many I’m afraid.
However, perhaps the advice to stay away from OTP properties was not totally bad. Plus these guys sound like they have no savings habits if they earn that much, pay that little in rent, and still have debts…..
Cheers
MelTink,
those ppl all part of the buy now pay later crew. They want it all NOW NOW NOW!!! They are not prepared to make sacrifices and hang in there for the end product. THey rush through their lives and never really get to appreciate the simpler things.It’s hard to not be like those ppl, but it’s all worth it eventually.
Success is 1% inspiration and 99% perspiration.
i earn $40k and manage to live off about $15k per year with $0 debt. the people in that article obviously have some bad spending habits they need to address before even thinking about investing.i agree with melbear i’m sick of hearing advice to buy into managed funds.does anyone know of somebody becoming financially free by letting someone else handle their money?
I read Australians spend 105% of their income….
“We are both 28, earning a combined income of $100000. We have a credit card debt of $5000 each and pay dead rent of $180 a week. I have $20 000 owing in HECS. We would like to invest amd have heard of people buying property off the plan and then reselling when completed and making a reasonavle profit. Is this true?”
His response:
“You have a long way to go before buying a property”.Damn right!! These people seem to be morons. They say they want to resell off the plan units – Why??? TThey already earn $100K per yr. I think these people should be focusing on CF+ properties (as how easy would it be to save for a deposit!).
Rgds.
Lucifer_auTinkerbell,
It’s hard to properly answer this because we don’t have the full picture of what th advisor replied to them- so it’s out of context. Did the advisor caution them to wait because he saw their OTP aspirations and didn’t want them to go out and get a 600k over-supplied apartment? Maybe he wanted them to spend a few months educating themselves with books before they blew their money? Which would be GOOD advice, not bad advice, in my opinion.
and who said 28 year olds all over Australia are fully educated about RE? I bought my first place when I was 29, and I know MUCH more now, at 37, than I did back then.
As to their income… 100k is not actually that much between two people- it’s only an average income. Having said that, they could also afford to buy a couple of growth properties- sorry Lucifer :o) I do think growth properties will hold up decently well in any property slump.
kay henry
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