Millionaires and multimillionaires in the making

Discussion in 'Investor Stories & Showcase' started by Sackie, 18th Mar, 2021.

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  1. Sackie

    Sackie Well-Known Member

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    This current boom is catapulting many to a new level of wealth. Most OFIs and auctions I go to, the results are hundreds of thousands above the reserve or price range. ACR at record levels for some cities. Historically. IR at historical lows. RBA stating multiple times it won't increase any time soon . Regulatory bodies not moving a finger (yet). Property after property selling before first opens.

    Every single consultant related to property I talk to ( probably a few every day) has multiple stories of clients, friends and family securing absolutely ridiculous results. As good as the numbers are, they are lagging.

    Australian real estate is on fire.

    I don't know if this is at the beginning, middle or wherever it may be on this particular cycle, but this transfer of wealth and the rate it's happening at is almost astounding.

    You ever wondered how X person managed to get into a cushy life position, or the F.U position?

    Just get out of your house and attend an OFI/auction.

    The hard work, sacrificing and risk taking of the last 5-10 years is being paid back as I type. And in many cases, in droves.

    How far will this go? No idea.

    But I'm certain we are witnessing possibly one of the biggest transfers of wealth in a long time.
     
    Last edited: 18th Mar, 2021
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  2. jaybean

    jaybean Well-Known Member

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    I see it as a redemption system.

    I was talking to someone about how much money QE has injected into the system, and they asked "where's my cut? I haven't seen a cent of it?".

    If you're Jobless, it's delivered to you in a sliver platter (until March 31).

    If you're not, it's a redemption system whereby you purchase an asset and your cut is redeemed through CG. You don't need to work your butt off, but you do need to mail in that little redemption coupon (cause let's face it, once you learn the game, it's pretty damn easy...).

    Sitting on your ass gets you nothing. Go redeem those coupons! It's there for the taking. It's like boom times in Dubai or WA...you just had to turn up on the day.
     
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  3. skater

    skater Well-Known Member

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    Haha, a few of us were discussing this at the meetup. Not exactly the same scenario, because the person in question had already been through a boom or two.

    Anyway.......single mum, bought not long ago into a very large expensive home in her, not so cheap suburb. To the outside world, she doesn't do much, but in reality is a MB and works from home, so is there for the kids.

    She's been fielding all sorts of questions from neighbours and parents of her kids friends about how she can afford her home, and the obviously (to them) large mortgage that goes with it.

    Well, the seeds were sewn many years ago, & this is the result.
     
  4. boganfromlogan

    boganfromlogan Well-Known Member

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    Counting chickens?

    Having bought during pandemic (when auctions cancelled etc) our last thoughts were to be able to sustain a loss on purchase price, and still be fine over longer term. We thought it was hard to pick the bottom.

    Quite tricky to go from that mindset to tallying up paper profits.

    @Sackie mention 'transfer' ..... isn't it more of the same?
     
  5. Sackie

    Sackie Well-Known Member

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    The saying you can only reap what opportunities you have sown is 100% accurate.

    There has to be sowing and there is no ideal time. Most often, it will be during great uncertainty too.

    Unfortunately, most folks want to invest with the certainty that they will do well and their efforts/sacrifices wouldn't have been in vain.

    You know why it feels SO DAM GOOD when you do well?

    Because there was never certainty that you ever would.
     
    Last edited: 18th Mar, 2021
  6. jaybean

    jaybean Well-Known Member

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    I'm completely butchering Buffet's quote here but the one about "certainty has a price" always resonated with me.
     
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  7. Sackie

    Sackie Well-Known Member

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    You may have bought during the pandemic but many others bought before.

    And their net worth has escalated. Many are selling too to realise those gains.
     
  8. boganfromlogan

    boganfromlogan Well-Known Member

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    My point was really that things can change very fast.

    Buying before the pandemic is something that nearly all know (including me) ..... that was 'business as usual'. During pandemic no buyers, no competition, no auctions, few new listings, some distressed sales. Things have changed so quickly.

    Maybe the dust should settle first before tallying up. The balance of probabilities is that the bigger the boom the more likely a correction? So how does wealth transfer work if that happens?
     
  9. Codie

    Codie Well-Known Member

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    I have to share this lol

    As of Wednesday this week, our net worth hit the $1m mark! An incredible milestone for us at age 30 (I wrote this goal down at age 12, millionaire by age 30)

    I had less than $5k in the bank at the start of 2016 to now having over $500k equity and $500k in shares. its an unreal feeling and its all escalated in the last 12 months or so.

    Its building rapidly and i can see it being 1.5+ by June, aiming for $2m on paper by the end of this year and pretty confident we will get there. Isn't it funny you have to just go against the grain a lot of the time and all of a sudden when you don't expect it, the wealth sneaks up on you.
     
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  10. Gen-Y

    Gen-Y Well-Known Member

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    I am not in a position where I need to sell. Buy and hold is my long term plan.
    If some opportunities does come up. I will probably see my bank manager to see if I can withdrawal some equity.
    Credit is cheap, why hand it over to the tax man?
    That is my 5 cents worth. :p
     
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  11. Sackie

    Sackie Well-Known Member

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    My point is, many people are already realising those gains. On multiple transactions. From 1mil sales to 20m sales.

    I'm certain they'll be corrections. That's normal. What I don't see is any significant crash, nationwide.
     
  12. Sackie

    Sackie Well-Known Member

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    That's really phenomenal mate. Very happy for you.
     
  13. boganfromlogan

    boganfromlogan Well-Known Member

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    Isn't that the precondition for caution?
     
  14. Sackie

    Sackie Well-Known Member

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    Not currently. This isn't an investor led boom with loose servicing.

    Also I'm not suggesting every single person will do well at the end. There are always winners and losers.
     
  15. jaybean

    jaybean Well-Known Member

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    Incredible.

    You'll now see the power of leverage at play. Going from $0 to $1m is a slog. The next million comes a lot easier.
     
  16. VDK

    VDK Active Member

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    Please do share your journey!
     
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  17. VDK

    VDK Active Member

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    You too Sackie, the stories you tell are very inspiring but I’d love to understand the steps to get there.
     
  18. Rooky

    Rooky Well-Known Member

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    I second that.
     
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  19. Property007

    Property007 Well-Known Member

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    Yes please!
     
  20. Beano

    Beano Well-Known Member

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    And the great thing this time the net profit is also growing at the same rate as the net wealth !
     
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