Just got onto the property ladder at 48....after a career in banking

Envy and greed are very strong motives for most people, they see their neighbours and friends or family member doing well with properties, shares or business or whatever and that is all they see, I can do the same and be rich and have money without given any though into the effort, life style, the sacrificed and what is required to drive that people to where they are today.

I seen friends, even family members got burned like that and end up in slightly worse position than they started.

 

Absolutely! Your son sounds like his having a ball and will hopefully look back with great memories and relationships.

To have the privilege to pursue his own life (thanks to dad no doubt) is a great blessing and is real wealth.

While there are some "corporate types" in my work place like what is described here, there are more who are hard working and manage their money diligently. I also know many mid to senior management people who are good people but are struggling with multitudes of issues professionally and personally. The stress is huge! Up or out! (.....for some its fail and promote haha)

The "lifestyle" is also expected so that they can be influential and perform their role. In a high tax system like Australia, the "Elite" PAYG professionals gets a bad wrap from society and in reality probably a bad deal to them personally.

 

Up in QLD, most of my 30's social circle is around:

• $150k - $210k net
• $600k - $800k PPOR
• $0 - $400 car payments / month

& everyone is pretty comfortable. The people with the most expensive house are also the ones with the biggest income & are on track to be PPOR home loan free (like the rest of us) before 40.

Sounds like you posh Sydney-ites are living 2x the expenses without 2x the income. Not surprising given the insane property market boom.

 

Yep another reason...why places like Brissie...parts of Melbourne...and Geelong will continue to perform.

 

ABC bank recruit very young blocks who has no skills on banking. Just high school kids who doesn’t know much about numbers. Just waste of time, went three time to solve small matter which could have been done by competent person in one go.

 

How do you know this? Last time i looked into a bank job, you had to have a university degree.

 

I am in her age group, and originally from Sydney. Glad I made the move to Brisbane and bought a house at 20. Reap what you sow, but better late than never.

 

This is awesome work passing on to the next generation.

They have husbands yet?

 

Only the eldest, the twins are still studying at uni to further their careers. I think they want to be Gods.

 

Few years ago when I was lecturing two of my students were working in the ABC. You probably looked something higher job ad. As far as I know if the candidate pass certain intelligent questions within allocated time then they qualify. I am not too sure now days though, but the people they have tell the story they haven't changed much!!.

 

Great Cate. To buy a property in Brisbane you don't need to move to Brisbane though. I stayed Sydney and bought few there even did renovations too... In my profession Sydney pays me well though little expensive here. Actually I am originally Queenslander, will be back when I retire..

 

No, you don't need to move to Brisbane to buy here. But back in the day, most people had never heard of "rent invest". Happy to have been able to buy a house less than 12km in a good area in Brisbane at age 20 (with no parental help or assistance). My kids are able to do the same, Sydney is overrated, they are too hung up on where they live and keeping up with everyone else- and that is why I do invest there. I am semi-retired, but I won't be retiring in QLD!

 

My story is slightly different but I agree with you "rentvesting" is a new terminology and concept.
I live in Sydney bought my first PPOR 30 years ago BUT invested 19 years ago into BRI and other states just because of the cash available and the strategy I chose to follow. I could afford many more IPs in BRI as opposed to Sydney. To me it's all relative if an IP returns are similar let's say 4% gross yield 8% capital growth, then I don't mind my investment being located elsewhere. The only regret is I wish I invested earlier.
However, I still like to hold investments in various states, as property rises are not constant and uniform in their rises or falls in any states, so diversification is the key there.
Not all people is Sydney keep up with the Joneses, I have lived South West for 20 years... now I choose to live in Lower North Shore, now it's my choice and that is what is great about generating passive alternate incomes.
It enables me to have a choice what I do now and where I want to live now, shouldn't life be about that, enabling us to make our choices if we can afford to?
I have lots of family and friends living in BRI too so I don't rule out moving up there...never know...maybe one day...? Sometimes this cold chilly Sydney weather plays on my decisions.. until I am in QLD and then in such hot humid temperatures... I revert back. So we are never fully satisfied, right?

 

We still have friends and family in Sydney, get them in one room and the conversation turns to "Lower Northshore", "What is Northshore", "Inner West", "Hornsby is not Northshore", "Best school catchments", "why do you live there", "so and so can afford this". I don't get the same level of conversations here in Brisbane. Even as a 20 year old, I noticed the difference straight away. I couldn't care less what school my neighbour sends their child to, while my child the same age goes to another. There isn't that continuous "private verses public", "what car do you drive?", "where are you going os for holidays". No, I don't miss that continuous chatter. I think we are more laid back up here. I don't believe that my children would have had the same opportunities in Sydney as we have been able to provide in Brisbane, and we would still have been working fulltime. But it is all what you want. I bought my first IP at 23, a dud, but I learnt and continued to invest. I will be retiring to a hinterland location, but near the beach- but I don't see a time where I will retire completely, there will still be the odd reno.... There is always a regret or two, but that's life.

 

I have friends that live all over SYD and BRI and VIC yet most conversations of ours really relate to our values or beliefs.
School catchments are quite vital as there is now some research that surrounding suburbs may grow more in value over the long term so being a property investor this would be of interest to me.
Do school catchment areas affect local property prices? - OpenAgent
I agree with you about BRI people being more laid back and I do like that, I only learned about the Joneses concept when I migrated to this country... but too it is irrelevant to me.
My reply to '...grass is greener on the other side' is.."..if you don't like how your grass looks then start looking after it yourself, water your own lawn!". Similar approach I take to how I live!
I try not to judge people on their power, position, title, status, financial wealth, where they live, where they have been, what they do, instead I spend time with those that hold similar values to mine.

 

Nothing beats investing sash. Doesn’t have to be houses but corporate is a sure way not to get rich unless you’re Ahmed Fahour or Rex Tillerson

 

Yep,

I see it this way, assuming every one earns the same
In your lifetime You earn salary x 45 years,
Some choose to buy a house or two or three wheb theyre younger,
Some choose to spend a huge chunk of it on travel while paying rent
Some buy expensice cars that depreciate
Some booze and dine 4 times a week, have the latest gadgets, upgrade their phones every year

Its all about choices.
I give no sympathy for those that have chosen to live it up whilst they are younger, and then complain when they are older (not saying this lady is complaining)

 

I like this extract from MR blog. It communicates well, gather a room of people and ask them how hard or even extremely hard they work to earn an income from a job, nearly all hands go up, then ask them to hold their hands up if they are multi-millionaires, I assume most hands would drop down.
So the key I take out from this it is very hard to become financially wealthy from cash flow or income alone!
Here is the link of the blog I enjoyed reading:
The One Surprising Investment that Separates the Rich and the Poor

 

This is true, my main regret was starting a business later in life, however, my career was very rewarding- there is more to life than just focusing on money. My PAYE employment allowed great borrowing capacity, more than the first years of my business- so it isn't that simple, it depends on your level of income and then how you invest. I believe that it is a multifaceted approach, and lenders looooooove payslips.

 

I have no regrets @Cate as I really don't know what the past could have been or would have been like. I too had a career first, but from each field I learned a lot.
We have had many opportunities some which we didn't take and could have made lots of money, some we took and lost, all experiences we learned from. I suppose what I take out from this is perhaps the lessons we had to learn so it made us stronger and hopefully wiser the older we become.
As JR said:
- "Don't wish it was easier wish you were better. Don't wish for less problems wish for more skills. Don't wish for less challenge wish for more wisdom."
- "The major value in life is not what you get. The major value in life is what you become. That is why I wish to pay fair price for every value. If I have to pay for it or earn it, that makes something of me. If I get it for free, that makes nothing of me."
- " Whatever good things we build end up building us."
- "For what it will make of you to achieve it."
And yes I agree not all is financial this is just one aspect of wealth building.
Hence I agree it is tough sometimes to distinguish that some of us are not the norm, some are professionals, some are self-employed, some are real business owners some are entrepreneurs, yet the credit industry tries to lump us all under one umbrella.