Dealing with Negative People

But then on the other hand, let’s put the shoe on the other foot and have a look at the situation wearing a different hat and through a different set of glasses.

I’ve chatted with quite a few couples at parties etc, with them being unaware of our property background. One couple in particular I remember were carrying on like pork chops about all of these fantastic deals they’d been finding and how the REA was explaining to them what an opportunity it was to get in “on the ground floor of this landmark development”. They’d never bought an IP before and were still paying off their PPoR which they’d purchased 3 years previously and had made a “packet”.

When they explained the details, the unit was out in whoop whoop, had zero land content, the tenancy profile expected was very average….and the future capital gains expected were way over-stated. On top of all this the vendors had done a financial projection for them, where it cost them only $ 120 per week after taking into account expected tax refunds and depreciation benefits……

Now – call me a negative Nelly if you want…..but this was a clear case of a developer making a packet off uninformed newbies. I started to delve a bit deeper, but could see the stars were glittering in their eyes and nothing would sway their opinion. They were “happy” with the deal and the numbers really stacked up !!

This couple were so “happy” with their new found fantastic deal, that they went ahead and eventually bought it for 6K less than asking price. big flurry of fanfare and celebrations all round. More talking and chinwagging over BBQ’s….investors they were now.

We found out later, with much hulla balloo and dramatic fanfare, that new tenants moved in and proceeded to trash it, causing 11K worth of damage and 7 weeks of unpaid rent before the PM appointed eventually had them evicted with the bailiffs assistance. much drama and hand wringing. Suffice to say the 4 week bond wasn’t quite adequate. They still have it, but aren’t quite so gung ho about it…..and it hasn’t gone up in value at all. Conversations at parties and BBQ’s aren’t so enthusiatic and colourful anymore, yet everyone in the “circle” constantly asks how their property portfolio is going.

Anyway, just wanted to throw that little story in to balance up the discussion.

Perhaps….just perhaps….when people give you “negative” comments…..they may in fact be helping you avoid a massive pothole on the road to wealth.

My tactic – if encountering a negative viewpoint, is to simply ask what their suggested alternative is for the allocated funds. If they say “Oh I dunno, but I certainly wouldn’t do what you are suggesting”….then rightly dismiss their negativity.

Over the last two years, I’ve also found talking about investment properties to elderly folk to be one of the most ‘positive’ aspects of investing, and indeed have landed one absolute cracker of a deal via word of mouth…no advertising…..simply by having a chat.

It would be a shame to miss out on a doozy all because you were very tight lipped and didn’t share stories / experiences with family / friends, or indeed with complete and utter strangers like we are all doing right now on these forum boards.

Hi Dazzling,

I haven’t always agreed with you in the past, but you get my gong for this comment. Hehe – as if it matters [blush2]

In fact, your total reply in this thread has been very worthy – but I particularly liked the above quote – shows you in quite a different light. Onya, Dazz

Benny