One in 10 Australian adults are millionaires

Discussion in 'Property Market Economics' started by standtall, 23rd Jun, 2021.

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  1. euro73

    euro73 Well-Known Member Business Member

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    I admire your enthusiasm. Truly . Imagine a nation where most people had 250k net income … we could do away with dividend imputation , negative gearing and CGT concessions . age pension costs would plummet …. Aged care would be self funded by most . Imagine the tax cuts for all !!!
    I suspect there’s a little delusion mixed with the optimism …. But it’s admirable nonetheless
     
    Last edited: 29th Jun, 2021
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  2. Chabs

    Chabs Well-Known Member

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    Being in reach for most people is different to most people actually reaching it :p

    we are born into a lucky country where the opportunity is there, as long as you have a level of grit and willingness to find a way to achieve your goal, it’s within reach.

    success doesn’t care if you were born in poverty, where you’re from, who your family is, etc. even tho some of these might give you a head start or a slow start, what ultimately matters is learning and applying methods to gain wealth. And removing emotion from the decision making process as much as possible.

    it doesn’t mean Mr. and Mrs. Jones are gonna make it big with their weekend getaway place and their city pad side investments netting 2% p.a.

    obviously it’s more in reach for some people than others.. but even a doctor averaging 250k p.a. Over working life could make silly investing decisions and spend 2/3 of their income on lifestyle and struggle to hit 250k net from assets by retirement.

    I’m still along way away from 250k net income personally... tho working towards it, and genuinely believe it can be done! :)

    so far its tracking more or less on schedule.

    ps I’m kinda like you, and am biased towards cashflow, not growth, of assets, as I believe it gets you peace of mind faster. Growth is less predictable, which means it’s easier on the mind when it feels like a bonus, not something that is “expected”.


    ——

    edit:
    what special circumstances do we currently have, that can be taken advantage of? What’s the new generous conditions, that are different to those of the past?

    understandably deposits requires are fatter than ever, and how much room is left for capital appreciation.. unless it’s lockstep in line with inflation
     
    Last edited: 29th Jun, 2021
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  3. standtall

    standtall Well-Known Member

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    Sydney elite schools top out at $40k including building fund and extra curricular activities. Kings and Sydney Grammar are $38k just for tuition fees.
     
  4. wylie

    wylie Moderator Staff Member

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    Thanks for those figures @standtall - lets assume $66k per student x 3...

    My next comment was that if we doubled the 100k estimated for Brisbane to 200k for Sydney, it still leaves 300k for spending.

    I just don't know anyone spending like that.
     
  5. Angel

    Angel Well-Known Member

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    "I guess $10m net assets generating cashflow is a decent target and achievable with a regular job"

    "even a doctor averaging 250k p.a. "

    "I think it’s within reach for most people! Just requires attitudes which are hardest to have at the most critical time, which is in the first 5-10 years before the compounding magic really pulls its weight!"

    If a doctor makes $250k a year, and the rest of us make a lot less, how can we possibly ALL make that same kind of income to generate investments? Doctors and other high-income professions are always going to earn more than truck drivers, cafe employees, ubereats and menulog delivery kids, teachers and nurses and so on. Dont get me started on your absurd belief that everyone who sets their minds to it can develop the wealth to net themselves high incomes from passive investment. A pretty high proportion of Australians are doing all they can to either cope with or to lift themselves out of the relative poverty that you seem to have failed to encounter in your bubble, social circle or caste system.

    Definitely delusional thinking @Chabs
     
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  6. Chabs

    Chabs Well-Known Member

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    didn’t say easy.. just achievable.

    I used the example of a doctor earning a lot who can’t keep that amount because of an expensive lifestyle and not enough attention to preservation/building of wealth.

    Obviously most people are on less... that doesn’t make it impossible to achieve more! Even tho life’s overheads keep going up, opportunities get easier to take as well.

    example: during covid last year when I was bored at home with nothing to do, I started buying and selling used items. Started with $750 and made approx $38k in profit over 4.5 months. This continued as work progressively started up again, until it became too time consuming due to work commitments. It was fun, but not very scalable.

    Whilst people were at home, the value of certain goods shot up, and at the same time, others were clearing out their junk and would take less money (than had they sold items one by one) for the convenience of one person taking the whole bundle of stuff.


    apps like Facebook marketplace and gumtree, got so much attention during the stay at home phase that it became easier than ever to both buy and sell.

    There is always something out there.

    disclaimer: I was fortunate enough to also have the privilege of:

    - Starting capital of $750
    - a car worth about $8k to get me places to pick up
    - Enough money in savings to continue to pay rent, and I had jobkeeper on top of that, so even without a rainy day fund, it would have still been possible to pull off.
    - life experience, communication skills and knowledge that allowed me to interact with all kinds of people, thanks to my “bubble” I guess

    for people not lucky enough to have requisites for something (such as those above), it’s a process of recognising it, and working towards that. Reduce any consumption debt, build your savings, invest in your self and your own learnings, learn to recognise opportunities, etc etc.

    Don’t mean to offend anyone.
     
    Last edited: 30th Jun, 2021
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  7. inertia

    inertia Well-Known Member

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    Wow, that is awesome, would love to hear more.

    Not offended, surprised and doubtful. As @euro73 said - you have awesome optimism, but the reality does not reflect the supposition, for many and varied reasons. Can everyone do better? Yes Can everyone (or even a majority) end up with a passive income of $250k pa? No.
     
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  8. Chabs

    Chabs Well-Known Member

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    A bit more about it:

    • I focused on a niche that I could see people spending more time on at home: video games

    • I then niched down further, focusing on Nintendo products only

    • Simultaneously a lot of people were clearing out their old Nintendo systems, whilst others were looking to relive nostalgia. I would buy big bundles of items under market value and then piece them out in custom bundles for people. The rising demand meant that I could take advantage of improved values of individual collector or rare games, some selling $150+ each

    • Initially it was the n64 and switch, later I diversified into wii, GameCube, ds, etc. wii became the most profitable due to the sheer number of people using the Wii at home and the high value of mario games. Mario games went between $35-$80 on average, and people often bundled 3+ games due to my “free shipping for 3+ games offer”

    • on some days I was shipping out 10+ parcels, so it became a little overwhelming after a while

    • at first it was to kill boredom, then after a few weeks as work got a little busier, it became a side hobby, eventually, I couldn’t physically keep up and decided it’s not worth the constant time spent trying to source deals and organise people to ship to you, or for you to drive and pick up. The benchmark drive was for about a $200 pickup and approx $200 profit, about 15-45 minutes drive and I budgeted my time at $60p/h to make it worth it, with stock sitting on average about 2-3 weeks (some items were sold by the time I got back home from the pickup! other items took longer to sell). When I ordered from people to ship to me, my benchmark was approx $200 spend to return $100 profit. Obviously a lot of the time the target was outperformed. Due to some old games carrrying significant value, sometimes I’d buy a bundle about $300-$400 and re-sell at $1000+, more common than you think!

    • one listing could be reused multiple times over as I re-stocked various items.

    • I would always price products slightly above market value, as people would pay for the convenience of picking an exact bundle they wanted. I would always pay people exactly what they asked when I saw a deal, sometimes I would over-bid to secure it. speed was important for those.

    • sometimes id luck across specific batches of product which were collectible, carrying very high re-sale value. For example earlier editions of the switch could be sold as “tablet only” for $550! The rest of the switch was priced out to add about $200 on average. Typical switch purchase price was $350-$450 total, switches always re-sold within a few days max! Some sold before I got home from picking it up, and the buyer would pick up from me within 30-60minutes!!!

    • The volumes were incredible, some weekends I would shift through 10+ switches or 5+ n64 consoles or 50+ Wii games. Mix of pickups and shipped orders.

    • you can still see some of my listings on Sydney’s marketplace to this day :)

    I did this for fun, then got overwhelmed by the response, so it continued for longer than initially anticipated.

    rhat niche was games, there were other niches at the time that did well, like clothing, kitchenware, gym equipment, etc.
     
    Last edited: 30th Jun, 2021
  9. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    Brilliant. Very "Garry V" of you.
     
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  10. Codie

    Codie Well-Known Member

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    I really Admire your hustle. Having that attitude and keeping it even as you get higher on the wealth ladder is key.

    I also love the optimism and agree there’s always something that can be done, everyone has the tools & resources to do more. It’s just 99% of the population don’t want it more than they want to hustle or work 80-90hrs a week, or upskill, or take risks.

    All comes down to how much you want it IMO and it appears you want it more than most which Likely means you will get there faster than most.
     
  11. Chabs

    Chabs Well-Known Member

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    o_O
    thanks, it’s not really anything special, it’s just always keeping an eye out for opportunity..

    in this fast changing world, one door closes, 2 others open. That’s why I asked euro73 what are the new things we can benefit from? If you only look back you’ll only see the things you missed out on.

    Of course a defeatist attitude of “it’s not within reach” will hold you back. If someone else can reach it, you can. It might take you longer than someone born with more privilege, tho it’s possible.
     
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  12. skater

    skater Well-Known Member

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    Very true. If there's something you want, and it's not currently something you can afford, instead of saying 'I can't have it', ask yourself 'How can I have it?'
     
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  13. Piston_Broke

    Piston_Broke Well-Known Member

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    Looking back 30 years I don't think it's delusional at all.
    Besides seeing many people I know do that and more, and me choosing not to work in the highest paying jobs but those that I liked and enjoyed.
    It's not just about fross income.
    20/21 Is the only the second year my income was above average.

    I ain't here to tell you it's easy, it sure isn't and a good deal of luck helps a lot.
    I've had plenty bad luck and things go wrong, but the occasional strike of luck happened to. You can't get lucky if you're not in the game.
    As Chabs said, definetly achievable. And if you fall short and end up with 5m...poor diddums
     
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  14. MWI

    MWI Well-Known Member

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    Great to see some like @Chabs practices what Warren Buffets quoted instead of just reading them...
    The power of the mind, personal philosophy is sometimes more important, as the idea starts in our minds first!
    We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
    Price is what you pay. Value is what you get.
    I always knew I was going to be rich. I don't think I ever doubted it for a minute.
     
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  15. MTR

    MTR Well-Known Member

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    2020 - many poor people became poorer, the number of millionaires increased by 5.2 million to 56.1 million globally, according to Credit Suisse Research

    In 2020, more than 1% of adults became millionaires for the first time
     
  16. Angel

    Angel Well-Known Member

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    Last night Team Angel became millionaires. I updated my spreadsheet and added $20k to the value of our ppor. That was pretty easy.
     
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