A letter to the young people in Sydney and Melbourne

I normally would be but I see nothing in nobody since 2005.

Now i dont vote. If you vote you cant criticise because with the two party preferred system you are always voting for the two major parties. So you get what we have. This is not a democracy on any universe. I wont get accused of voting for these idiots in and so am free to criticise.

 

when exactly was this?

cheers,
Inertia

 

The oldest bankers maxim is where it comes from. For hundreds of years banks knew to never lend out more than 3.5x annual salary after tax. If they did so they knew they would go under. It was based on irrefutable statistics that long term showed was the maximum that most people could afford without risking the banks money.


When the money is truly yours and is not insured by somebody else i.e. banks in Australia lend out more because they are not ultimately liable, they know the goverment will bail them out with tax payers money. Or mortgage insurance. A bank will act in such a way as to guarantee they can claim that mortgage insurance as its easier and it will mean leading you down their garden path until you realise too late you are in a trap. I would never take mortgage lenders insurance, ever. Your case is treated differently and its easier for the bank to claim the insurance and hand liability over. They know the US Fed will bail out their debts. They have their backsides covered. In all cases its someone else who will wear the loss not the bank.

Banks now in Australia really carry no risk as they have the laws stitched up to favour them and their people in politics or in the key institutions or are doing perfect lobbying. If you think anything will come of this royal commision into banking you are dreaming. It's there to make the banks stronger and take the risk off of government and back onto the people and insurers.

 

When men and women chose dignity and were not controlled by their vices, lusts and alcohol or other drugs. When they chose the higher things in life. Dont worry it never happened much in Australia in the last 200 years so am not holding my breath it will.

Have you seen the latest episode of million dollar listings?

 

So when profit was made on the backs of actual slavery? Is that the era of when "we human beings knew how to live freely, in harmony with nature, and with each other"...?

When the expansionist policies of many countries were annihilating "lesser" races off the face of the earth?

And you do know that opium usage was extensive in the 1700s, right?

I'm still not sure when this rose coloured era you are referring to was...

I don't even know what that is.

Cheers,
Inertia

 

Our democracy isn't perfect but it's great in comparison to many developing countries where they have dictators and people getting massacred just attempting to vote.

If you don't like any of the major parties vote for an Independent.

 

This is unsurprising because Melbourne actually is the most popular city for British emigrants. Where you live near the Mornington Peninsula actually has a huge British emigrant community which may not be replicated in Perth. Therefore it may feel more homely over here even if you ever felt like moving back. 8.5% of residents in the Mornington Peninsula are actually UK born. Mt Eliza, Mt Martha, Safety Beach also have a large UK born community compromising 13% of each suburb's population. Maybe the victorian style architecture and acceptable weather is more homely.

 

Hey,

Do u think this advice is still applicable for us youngsters?

Thanks

 

I think nowadays there are ways to make money much faster and exponentially. Property investment is hard work and very hands-on for even a little bit of cash flow.

Look at how people come up with a social media platform or a search engine or just whatever on the internet imaginable and made billions through IPOs. Then look at how much, as a percentage invested, Mom and Pop investors can make? A big difference isn't it?

BUT, you still need to venture out, live on a shoe string, travel (because such mega pipe dreams never existed in Australia - try US and China), and embrace uncertainties - sometimes for years... You might get lucky and become the next Zuckerberg.

The short answer is: As a youngster, you have youth, ie., time, in your hand. That is your best capital! You can use it to find the most unimaginable opportunities, and make it BIG. But please make sure you implement it, not just talk and dream, as no one rewards one's dream and chit chat.

That's my 2 cents worth...

 

That is 100% true. In fact my whole current business is based online! I've been doing social media since i was 16 years old.

The good thing about it is, you can make money instantly if you know what you're doing. The bad thing is that it's not a hard asset. Who knows where the online market will be 100 years from now, i know real estate will be there forever.

 

It's 100% possible today to make millions and billions using social media BUT you have to take a gamble on APP development costs, advertising costs etc and if people don't interact with it or it doesn't go how you planned it and you have invested your money then you are ******

It's a success + scaling your business/product game.

Apps, E-Commerce & Video Revenue is the way to go.

Look at the dating app "Bumble"

Initial release date: December 2014
As of December 2018, the four-year-old app had over 47 million users and estimated annual revenue of $175 million.

Now Bumble is worth 1 Billion USD.& Bumble + it's sister apps together are worth $3 Billion.

 

Young man, presumably you are as you said you are a youngster. Everything is a gamble mate!

Bought a house and it turns out you bought at peak and the Covid19 came! It's a gamble. Imagine you bought property in Hong Kong or China when the CG was faster than the SpaceX rocket, then US sanctioned HK! It's a gamble. Imagine you bought the best investment property and your tenant lost his job in Covid19. He asks for rental relief or something bad can happen. It's a gamble. Or you rented it to a tenant who wrecked your house, it's a gamble!

I think what I was trying to say is you take calculated risks, then have a go. Monitor the situation and steer your direction. We human beings are normally risk averse. It's natural. I am and and I am sure many are. But I think a book worth reading: Who has moved my cheese? Book Summary: "Who Moved My Cheese?", Dr. Spencer Johnson is a good reminder for myself and maybe useful for you too.

Anyway, I'd better stop here...

Oh, by the way, don't buy LV however you like it. Use the money you save from it to either invest in yourself or something of growth potential. Sorry have to make one more comment.

 

We have enough Sydney people on the GC, locals are struggling to buy due to being outbid by Sydney peeps! Go West.

 

I agree with you on that one!

I'm gonna invest in property however on the side i'm going to also pursue my dreams of starting something huge or becoming a big personality.

"But please make sure you implement it, not just talk and dream, as no one rewards one's dream and chit chat."

Time is more valuable than anything to me man so i'm going to try and do my best!

Oh, by the way, don't buy LV however you like it. Use the money you save from it to either invest in yourself or something of growth potential. Sorry have to make one more comment.

Buying LV is the dumbest thing one can do IF they don't have passive income lmao. I'm just a fan of the brand since i was young, i've bought lots of designer in my teen age. Now i am highly disciplined. I'm never gonna buy stupid **** like a brand new or expensive car, designer clothes, trips to vegas until i get my money right and working for me, paying me!

Cheers for the heads up

 

You will do well mate, you will! I shall stand next to you for the photo shot when you become the next Zuckerberg and claim some credits for my PC post... Good on you mate...

 

This all sounds good to me except for the financial part - you would have better earning power in Sydney wouldn't you?

Also, if you can buy a property in Sydney I would say go for it. If you can't afford near the CBD you could go further out west. Also, history has shown that you would get better capital growth in Sydney compared to anywhere else. QLD is also a nice option.