1st mistake – not getting the best hsc marks & going to uni on preference #4 – completing that course with honours & working fulltime throughout the course
2nd mistake – doing post graduate study in related fields
3rd mistake – buying a site for potential
4th mistake – using all my capital for the required 50% deposit (tight monetary policy)
5th mistake – paying out the loan in the shortest possible time
6th mistake – buying vacant industrial land with easements, renting it out & selling to the tenant
7th mistake – not mixing property with family thus not getting involved in frequent development work
8th mistake – not challenging vg on land valuation when I had the chance
9th mistake – holding assets in joint names
10th mistake – selling up to realise cg, reduce debt & further investment opportunities
11th mistake – realising that some properties may be great opportunities but are out of reach
12th mistake – having to be the winner @ auction
13th mistake – watching, waiting & pouncing at the most opportune moment, Then negotiating hard.
14th mistake – enjoying the rewards.,
This is a great thread. Glad it got bumped. It's been enlightening reading through the mistakes of others. We always read of successes…the success of a single, very capable (or lucky) person. Nice to see the failures or mistakes for once.
Personally, my biggest mistake (in the two short years of knowing and learning about property) was not listening to my Dad's recommendation to buy when it was Jan/ Feb 2009. At that time I thought only a fool would be investing in property, as the world seemed all doom and gloom and people were talking about property prices crashing 40% (they're still talking about that now).
If I had listened to my Dad and bought, I might have a heap of equity right now. I don't know about you guys, but I realised that my parents are almost always right in the end. It's a funny thing, because sometimes I like to think I'm smarter than them. I've got to learn that this is not the case. The amount of wisdom they have accumulated over the years is much more than I have achieved in my short life so far.
A big thanks to all those that have contributed to this thread and shared their experiences so that we can all learn from another
Being in my early 20s and having only commenced work this year after graduating from university, I have limited experiences in investing, and haven't made many mistakes yet
I'd say my biggest mistake so far is what you guys would refer to as 'analysis paralysis' and letting family/friends, who care about me and think they know what's best to influence me
After many months of watching the price of gold/silver rise, and analyzing the financial statements and portfolio of mining companies, I finally took action last month by purchasing shares in mining companies I have confidence in. The fundamentals and technical for Gold/Silver were all there, but what finally triggered me to take action was the announcement of 'Quantitative Ease 2', which is basically a fancy name for 'printing/digitizing currency'
I strongly believe that Silver is biggest investment of this decade. Not only has it been a monetary metal for thousands of years, but it is also an industrial metal used in all sorts of applications (http://www.silverinstitute.org/silver_uses.php). I am so confident about Silver that I have invested all of my funds into Silver Bullion and Silver Equities, and with my portfolio increasing by 30% in the past month I am glad about my decision, and am excited to be able to participate in this great bull market
Great thread,
Mistakes along the way:
Not starting early enough in life.
Wasting my deposit on holidays.
Didn’t have a solicitor that understood SMSF to handle the fund when buying property.
And I’m sure there will be a few more to go.
Terry said it best. Its better(and a lot cheaper) to learn from others mistakes.
My mistakes, or at least those I’ll admit to
1. Giving up to early and not buying before we moved over seas
2. believing we couldn’t afford property when we moved to Perth in 2002 and then watching prices soar over the next 4 years
3. When we eventually bought, buying too quickly because we were living in a B&B after moving to a new town!
4. Not finding out about offset accounts until this year 3yrs after buying our first property – oh the interest we could have saved
5. Buying a property for purely emotional reasons!!!!!!!!Thankfully now I am being more careful in doing due diligence and view my property purchases as commercial decisions. 2011 is the year of buying 2 cash flow positive properties and cementing some equity in one of our properties by paying the cash flow positive amount we are already earning onto the mortgage instead of squandering it
Cheers
Ruth
kong71286 wrote:A big thanks to all those that have contributed to this thread and shared their experiences so that we can all learn from anotherBeing in my early 20s and having only commenced work this year after graduating from university, I have limited experiences in investing, and haven't made many mistakes yet
I'd say my biggest mistake so far is what you guys would refer to as 'analysis paralysis' and letting family/friends, who care about me and think they know what's best to influence me
After many months of watching the price of gold/silver rise, and analyzing the financial statements and portfolio of mining companies, I finally took action last month by purchasing shares in mining companies I have confidence in. The fundamentals and technical for Gold/Silver were all there, but what finally triggered me to take action was the announcement of 'Quantitative Ease 2', which is basically a fancy name for 'printing/digitizing currency'
I strongly believe that Silver is biggest investment of this decade. Not only has it been a monetary metal for thousands of years, but it is also an industrial metal used in all sorts of applications (http://www.silverinstitute.org/silver_uses.php). I am so confident about Silver that I have invested all of my funds into Silver Bullion and Silver Equities, and with my portfolio increasing by 30% in the past month I am glad about my decision, and am excited to be able to participate in this great bull market
Good timing Kong, its those game changing events that you should be watching out for.
Also note that according to resource depletion charts I have seen, silver will be the first material to run out based on current consumption rates. Amazingly, known silver deposits will only last another 30 years!! It will run out before oil.
Theres been a few….
Took my eye off current rents and before long we were missing out on hundreds a month
Purchased OnTel shares……ok they may come good one day.
1. As a 20 year old listening to others thinking it was good advise knowing now it was not.
2. Not having the guts / balls to step out and have a go.
3. listening to banks what I can manage to do.
4. Failing in the 3 Ps
5. Not reading enough and acting
6. No real investment goal / planJust a few an now I am working on all the above.
Briankong71286 wrote:I strongly believe that Silver is biggest investment of this decade. Not only has it been a monetary metal for thousands of years, but it is also an industrial metal used in all sorts of applications (http://www.silverinstitute.org/silver_uses.php). I am so confident about Silver that I have invested all of my funds into Silver Bullion and Silver Equities, and with my portfolio increasing by 30% in the past month I am glad about my decision, and am excited to be able to participate in this great bull marketdefinitely a post for the mistake thread, silver is a bubble, dont store too much of the physical, when it crashes and it will, every parabola does, physical gold and silver holders will stubbornly hold or will be selling well below spot. Also no matter the result its a bad investment with that allocation of funds imo.
As a trade however its awesome..
Hi White_goodman,
Thank you for raising your concerns.
I agree with your comment about all bubbles eventually bursting.
But I don’t quite understand how you’ve come to the conclusion that Silver has increased parabolically and is currently in a bubble.
One of the most common aspects of bubbles such as the dot.com bubble, the Tulips bubble, the South Seas bubble and the Florida Housing bubble is that they were all characterized by a excessive buying by the public, leading to unsustainable prices – speculators just buying because they notice rapid rise in the price of the asset and are anticipating further rises, rather than buying an asset because it is undervalued. Right now I don’t see this happening with Silver, and despite the fact that Silver has increased by 70% this year I still believe it is extremely undervalued.
Brent Harmes summarizes the three phases of a bull market quite well and it appears that we have not reached the 'Euphoria phase' yet and are still in the second phase of the bull market, the ‘Wall of Worry Phase’
In conclusion, I agree gold and silver will eventually become bubbles (some say the ‘ultimate bubble’), but I do not agree that they are in a bubble right now.
Regards,
Kong
Mistakes – Using RAMS because they had good interest rates but they dont have any offset accounts….
getting too personal and relaxed with a vendor i bought my first IP from. He allowed 2 weeks early access and thought we had a friendship happening. Had alot of extra clean up to do as he left so many things that he thought we would like…
Talking 1 on 1 with my tenants instead of going thru the property manager. There is a reason why you have an inbetween. Tenants who get annoyed turn up at your doorstep all of a sudden.
Never again.
settled on a property that the bank valued at twice its actual value and I didnt realise was only half built and the builder then went broke. BSA denied an indemnity claim. The bank or their valuer stuffed up but they dont care they just see it as my problem
Lesson – regardless of what the bank lends or values the property at, get your own valuation and pay for it yourself so that you can sue the pants off them if it all goes wrong
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