‘Don’t buy $19 smashed avocado’: Tim Gurner

Discussion in 'Investor Psychology & Mindset' started by Sackie, 15th May, 2017.

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  1. Biz

    Biz Well-Known Member

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    It's all about cloud eggs son.

    [​IMG]
     
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  2. Foxdan

    Foxdan Well-Known Member

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    Seems perfectly reasonable to me. My wife and I had 2 normal incomes and about 50% went to the mortgage when we started out. We lived on second hand ****** furniture donated from friends and family. We barely saved any money above mortgage and living expenses - but it gets easier as your wages go up slowly. I'll add that we live in Sydney and purchased in 2008. It was hard then because interest rates were nearly double what they are today. Homes may have doubled in pricing but with interest rates so low - outgoing mortgage repayments for someone would be the same today as we paid in 2008.
    It's ok to do it tough to start out - every single generation is the same. I'd argue that it's just expectations that have changed.
     
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  3. TMNT

    TMNT Well-Known Member

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    I find if you do it tough at the start or at any point you tend to appreciate things and stay grounded
     
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  4. TMNT

    TMNT Well-Known Member

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    I actually Google the recipe of that . It seems interesting but I feel it' doesn't sit well as a breakfast dish.

    Doesn't matter. Put it at $9 each and get a bearded chef who wears a tie in the kitchen with piercings and the world will go nuts for it
     
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  5. Whitecat

    Whitecat Well-Known Member

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    Such as?
     
  6. Whitecat

    Whitecat Well-Known Member

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    I agree. The struggle is real for many. Whilst it's a dumb strategy to throw in the towel I can see why many do. So much of one's income. It would have a real impediment on lifestyle for many and I'm not talking about unnecessary things - I'm talking about having a balanced life. That's important for health and wellbeing.
     
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  7. Biz

    Biz Well-Known Member

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    Lifestyle my @$$. That's the problem with people today, they think if they don't go on holidays every year, drive late model cars, have kids doing 3x different sports, have kids parties every year, eat out twice a week etc then they have no lifestyle :( :( :( .

    Cry me a fricken river. Priority number one is to have a roof over you head, second priority is a full belly. An expensive lifestyle is just something that has been marketed to us and now become part of people psyche. You can have a fantastic lifestyle for next to nothing if you truly understand what makes ones life of value.
     
    Last edited: 16th May, 2017
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  8. bob shovel

    bob shovel Well-Known Member

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    Not really "everything handed on a platter". He got 34k so he could put his coconuts on the line and run a business. 34k is a chunk of money but i wouldn't call it super significant
     
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  9. Whitecat

    Whitecat Well-Known Member

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    I really feel it has gone beyond that with the rise in house prices to extreme levels relative to [Australian] incomes. I am talking about people still being able to afford even quite a basic lifestyle.
    Some have high incomes and waste them on cars and expensive holidays. Others have a couple of kids, a low income and after paying mortgage repayments have really very little and will be in quite a downtrodden position with a mortgage. Those are the families I am referring to.
    I don't think this is excuse making and needs to be considered in relation to market analysis.
    The shot in the arm for Australia has been Chinese and other overseas money.
    I think it is a naïve position to think that the affordability crisis we are hearing so much about is just people having a grizzle.

    Don't get me wrong I am all for individual responsibility etc. I grew up in quite tough circumstances, public housing etc. and I have made a lot of sacrifices myself over a long period. But I am convinced housing affordability is a genuine problem for many people.
     
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  10. Biz

    Biz Well-Known Member

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    There were exactly the same threads about affordability on Somersoft 5 years ago when prices were half of what they are now. Same people having a sook.

    Hey, I get it, we can't all have our **** together and be making a go of it but the whingers will be there regardless. Yes, historically houses are now more unaffordable but we are at the tail end of a boom. It happens. Lets see how many people who don't own a home actually learn from this, make the sacrifice and actually get into the market in 5 years time. Not many i'll wager!
     
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  11. Daisycutter4

    Daisycutter4 Well-Known Member

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    E.G Moorooka. Second hand units (1970s/80s) two bedroom with garages close to transport with renovation potential. No-one wants them at the moment because of overbuild on new stock close to town.
    Capital gains would be very (very very) long term but as a foot in, they seem fine. There's services and facilities nearby and they could form a basis for a future property portfolio. Prices would be in the $270K and up to $330k. Not pretty, but functional.
     
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  12. Perthguy

    Perthguy Well-Known Member

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    Looks like a strange dessert.
     
  13. larrylarry

    larrylarry Well-Known Member

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    Let's not get upset over Mr Gurner's comments. i eat out quite a bit and I'm happy not to save every penny because I want to enjoy life. Life's too short really. On the other hand, if one doesn't prepare for the future and spend carelessly then he or she will have a problem during old age. This debate will recur every few months and the smashed avocado or something new will stay... like the horrible cronut milkshake kinda thing.
     
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  14. Cimbom

    Cimbom Well-Known Member

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    I'm a westie too but from Melbourne originally. Whether other people have done it before is irrelevant. It's all about timing. I personally wouldn't risk it - what happens if one person lost their job? You really think that 700k house in a non-descript suburb is still going to go up to say $1.5 million? I have a 400k PPOR mortgage and that's the perfect amount. I can pay it on my income alone, have disposable income and can save too. That's considered a high mortgage in most parts of the world.

    His whole argument is an exaggeration. I stopped taking his opinion seriously as soon as I read that. I don't think I've seen a Bentley in person in my life. He portrays young people in a very ridiculous and condescending manner.

    Yeah, and especially when your house doubles in value. That's not happening again for a long time.

    Except there's no "starting out" any more. House prices are so high that you'd be lucky to pay off your mortgage by retirement, especially if you take out the $1 million ones that are apparently so normal and reasonable according to this thread. I'd want a nice house too if I was going to be paying for it until my 60s.

    Well said. I work with people in their 30s who have said they will have to choose between buying a property (likely an overpriced unit) or having kids. These are professionals. I can't believe people think there is nothing wrong with this. I can't think of too many things worse than renting in Australia as a pensioner.
     
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  15. Biz

    Biz Well-Known Member

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    If they are in their 30's want to have kids and still don't own a house what the hell did they do with their 20's?

    Ahhhhh that's right, they were busy having a "lifestyle"...
     
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  16. Daisycutter4

    Daisycutter4 Well-Known Member

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  17. Michael M.

    Michael M. Member

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    People criticise that Gurner got $34k from his grandparents - I'd like to see those people turn $34k into almost half a billion. Most will probably blow it on lifestyle.

    It's not about where the money came from - it's what you do with it
     
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  18. zed_kid

    zed_kid Well-Known Member

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    I think it’s not about the money but the contacts he had. There are posters on this site that have $200k-$500k in cash and are asking for advice, will they get to $500m?
     
  19. Gonx

    Gonx Well-Known Member

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    when I worked as a web designer in the mid 2000's in Sydney city all my co-workers and the boss would spend $15 -$20 on lunch plus another $10 - $20 on morning or afternoon snacks and coffees. This was over $50 a day sometimes, just ridiculous. I used to sneak away and eat my sandwiches I made at home :) , certainly saved me a lot of money plus I prefer my own food, I know what goes in it and who's hands have touched it.
     
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  20. larrylarry

    larrylarry Well-Known Member

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