i was chatting to someone today and we started talking about money. i brought up that i was just starting my portfolio with property investing and oh my goodness! did she get her back up or what!
she started going on about how property investors are "stealing away" the houses for those who are trying to get their first house but cant afford it. about how property investors "push up the prices by out-bidding those who are on a modest income trying to purchase". she says that because of property investors all the houses she wants she cant afford. she got all fired up.
i honestly could not believe it! she was acting like i was so evil for wanting to invest my money in property.
i sat in disbelief while she stood on the soapbox and preached it – but afterwards i just calmly explained to her that property investors are doing the community a service. every house that is tenanted is owned by a property investor. and if they all stopped investing in property than what would happen to all those families who NEED that housing? they would be on the streets. i told her that the government cannot provide housing for everyone in australia who doesnt buy their own house – and thats where we step in.
but she was adamant. so i changed the subject, not wanting to cause a disagreement over something so silly. i mean, if someone was off buying bread would she go up to them and say "oooh ur nasty because your buying that loaf of bread and if u buy that bread it means that someone else cant buy it … and ur pushing up prices of bread because your increasing demand for bakery food".
has anyone here come up against something similar?
she was so emotional and adamant about it.
I'm often told that investing in property is a risky business, usually by people who have never owned a property.
Yes. I have. You are not alone. I have a colleague who had exactly the same opinion as that lady. And that explained perfectly why he stays where he is now — struggling. Please do not pay any attention to opinion like that, actually I also suggest you stay away from people like that the best you can.
I agree with you that we investors are helping the government to provide housing which is very expensive to do by government alone. My colleague also argue that investor shouldnt have any negative gearing benefit at all. He thinks it is the greed and speculation that push we (investors) to the property market and make them less fortunate. I think this is also B.S, as we get tax benefit only if we incur a lose, even though we can claim some depreciation, but over time it will decrease and as rent goes up, we investors will be positively cashflowed eventually , hence contributed to the tax revenue. when we sell and buy, we also pay stamp duty and CGT , which is also benefit to ATO.
I think the reason they said that is because they are frustrated that they can not get ahead, But feel the need to find someone else to blame. If they have to come up with reasons why they cant do this, or that. They choose to pick us, because it is easier and make it ok for them to do nothing. Dont listen to them, they want to blame, let them. I bet with that sort of attitude, you can imagine what they will end up with. They can stay where they are blaming the whole world, while we go ahead and snatch a couple of more cash cow for our retirement. As by the look of it, the Goverment is not going to do that for us.
Good luck.
Hi, it happens all the time.
And the ones who can't get ahead are the ones who did not take the 1st step.
Share this experience with you. Someone in 1994 had enough savings to buy an IP. Talked about it, looked at dozens of houses, wanted to squeeze the seller, would not offer the price asked. This one is not good enough, that one is not worth the money.
My 2nd house, [1st IP if we wish to call it that], I offered asking price $175K [which my agent told me was very low] as the owners had divorced and rental was a bit difficult. I later found out they paid $194K two years earlier so they'd have lost about $50000 all in when they sold to me.
I told the 94 couple about it and he [a home maintenance man] said he would not offer more than $160K.
After I'd bought IP 4, they urgently phoned to ask me [1 year later] what I paid for it – $88K. They refused to pay more than $88K for the one in the same suburb that they'd seen with an asking price of $105K and she said 'it's mad'
That was in 2001. And guess what? That house is $300K now.
They are bitter and jealous and I don't mention property in their hearing.
He's been on carer's pension for a few years and she works in aged care.
I can go on and on but I won't.
KY
julee.d wrote:I'm often told that investing in property is a risky business, usually by people who have never owned a property.
ahhh, how true and also family members, who may or may not be just a tad jealous.
Results1 wrote:julee.d wrote:I'm often told that investing in property is a risky business, usually by people who have never owned a property.
ahhh, how true and also family members, who may or may not be just a tad jealous.
i have family members like that too. one in particular springs to mind.
Ha Ha Ha. Look up a bell curve showing the distribution of IQ of the population. It will clearly demonstrate to you, what anyone with a reasonable understanding of statistics already knows – there is alot of dumbasses out there. In fact, by definition, half of the population have below average IQ. Couple the dumbasses with the fact that very few people actually have any understanding of or education in economics, and you have some of the reasons for our current Labor government. And, when you understand just how commone stupidity and lack of education are, it is surprising that PI's and other forward thinking economic achievers are not assailed more often by people accusing them of ruining it for all the dumbasses and losers. They should shut their faces, cause our taxes pay their welfare, and the government is primarily responsible for pushing up the cost of housing by doing stupid things like FHOG, making land development so very expensive, allowing the banking system to lend so much more than people can truly afford and failing to ensure there are enough tradesmen to build houses for our growing population.
Next time someone so stupid has a comment, there is no point in trying to educate them. Just agree and then say something about how you heard there was some radical opinion out there about the Earth actually being round….
Dumbasses – they make you laugh, but hey, you gotta love them. Who else is going to mow my lawn, clean my house for me etc etc for about 1/5th per hour of what I earn? And who else is going to rent my IP's off me? Long live the dumbasses, glad I'm near the top of the food chain. Hope there are lots of dumbasses in the years to come to help me stay there!
S'there is alot of dumbasses out there'
So I guess trying to educate you on how to write is pointless Shales?
I would argue that the first home buyers grant has pushed up the price by allowing first home buyers to get $24,000 given to them rather than them saving up the money as property investors prior to 2000 had to.
I have an $18,000 hecs debt I would love the government to give me $18,000 for nothing without having to pay it back.Prices have been pushed up by a combination of many things. FHBG, easy credit, land banking, state government initiatives, speculative investing, overpriced labour, REAs, single person homes, high divorce rate, ageing population, boomer retirement strategies, a transfer of the dot com credit bubble debt and, also, a rise in the number of PIs.
ummester wrote:'there is alot of dumbasses out there'So I guess trying to educate you on how to write is pointless Shales?
You'd be one of those people paying off someone elses house, now wouldn't you?
Yet you criticise me for, what, lazy writing? I'm too busy issuing invoices and playing with my kids to worry about doing a grammar and spellcheck on what is really just an informal conversation on an internet forum, not a university paper.
Lighten up and keep paying rent god bless you.
SSHales wrote:ummester wrote:'there is alot of dumbasses out there'So I guess trying to educate you on how to write is pointless Shales?
You'd be one of those people paying off someone elses house, now wouldn't you?
Yet you criticise me for, what, lazy writing? I'm too busy issuing invoices and playing with my kids to worry about doing a grammar and spellcheck on what is really just an informal conversation on an internet forum, not a university paper.
Lighten up and keep paying rent god bless you.
SBy paying of someone elses house, I don't have to bother with invoices and have both time to play with my kids and teach them how to speak.
I am being light – don't take it so personally. You should expect to get flamed if you come out with arrogant posts like you did before.
Unmester, do you own a house? Have you noticed the cost of cement, bricks, timber etc have ALL gone up? Plus the cost of connections, water, electricity etc etc?
For 5 days, we've been trying to get the tradie to fix the ceiling. And give us quotes on other repairs + painting.
The painter woman we previously asked is booked up to August.
There're a lot of houses requiring updating. That comes with a price tag, attached to the names of the workers who spend their hours and expertise on the job. Who'd want to deny them their income?
Natural wear and tear, inflation and demand for land first and foremost establish the price of a house, not FHB or investors or realtors.
Anyone who feels houses are too expensive, very simple, go live in a tent.
KY
I lived in a tent…
back on topic
I only show my tattoos to people who have tattoos and i only talk about property with people who have some
( with the exception of very small children who find both interesting and have no preconceptions about either ! )
i have found this to be a really good policy
hope it helps youcheers and good luck !
kum yin lau wrote:Unmester, do you own a house? Have you noticed the cost of cement, bricks, timber etc have ALL gone up? Plus the cost of connections, water, electricity etc etc?For 5 days, we've been trying to get the tradie to fix the ceiling. And give us quotes on other repairs + painting.
The painter woman we previously asked is booked up to August.
There're a lot of houses requiring updating. That comes with a price tag, attached to the names of the workers who spend their hours and expertise on the job. Who'd want to deny them their income?
Natural wear and tear, inflation and demand for land first and foremost establish the price of a house, not FHB or investors or realtors.
Anyone who feels houses are too expensive, very simple, go live in a tent.
KY
Mr Jelly,
Houses are quite reasonably priced for what they are. the land is too expensive. Living in a tent wouldn't save squat.
ummester wrote:SHales wrote:ummester wrote:'there is alot of dumbasses out there'So I guess trying to educate you on how to write is pointless Shales?
You'd be one of those people paying off someone elses house, now wouldn't you?
Yet you criticise me for, what, lazy writing? I'm too busy issuing invoices and playing with my kids to worry about doing a grammar and spellcheck on what is really just an informal conversation on an internet forum, not a university paper.
Lighten up and keep paying rent god bless you.
SBy paying of someone elses house, I don't have to bother with invoices and have both time to play with my kids and teach them how to speak.
I am being light – don't take it so personally. You should expect to get flamed if you come out with arrogant posts like you did before.
The arrogance was intended to be light. Sorry if you missed that. Might have gone over your head seeing as I am obviously an arrogant property investor.
Great, we're two great big balls of light. The invoices having nothing to do with our investment portfolio, more to do with the business. I'm glad you're teaching your kids to speak. At least they will learn that skill, which may help overcome the disabled attitude they are bound to have towards wealth creation. Lots of literate little rent payers, that's what we want. That way they can hold down a job to be able to afford to pay off our rental properties for us. You're certainly doing your bit for the economy, and I applaud you.
S
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