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People listen to this bloke?

Discussion in 'General Property Chat' started by Greyghost, 27th Jul, 2016.

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  1. Greyghost

    Greyghost Well-Known Member

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    Stumbled across Scott Pap's page "barefoot investor". There is a blog page where people ask for advice and he may reply.

    The $500,000 Headache - Barefoot Investor

    This is another mining town disaster client, but I totally disagree with him saying "time doesn't heal a dud property"... People in Mt Druitt, Fitzroy, Collingwood, Preston etc etc may not agree either..

    As far as a mining town in general goes, I believe they were/are a niche for the advanced investor, not the novice, which made up probably 90% of the investors in mining towns...

    In another post he talks about putting an extra 5.5% into super (on top of the 9.5%) for a 25 year old who inherited $400k, $300k to pay off the house and $100 savings.. Surely $100k plus whatever equity is in his house (that he used to pay off with the $300k) could be better leveraged for greater returns, ie via property at this time in his blokes life rather than putting an extra 5.5% of 55k into super each year..

    Scott is extremely conservative, may as well put my money under the bed with his investment philosophies... I read his book when I was at uni about 7 years ago. Don't know how this bloke made a name for himself.
     
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  2. Biz

    Biz Well-Known Member

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    Doesn't wear shoes. Will not listen.
     
  3. larrylarry

    larrylarry Well-Known Member

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    Yes there are people who listen to him especially those with low risk profile and conservative.
     
  4. Barny

    Barny Well-Known Member

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    I follow him on stalkbook and read his book. He does not like property as an investment, prefers anything but.
    He purchased his first ppor bout a year ago.
     
  5. MTR

    MTR Well-Known Member Premium Member

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    ....but people also listen to D Boholt, Real Wealth etc and their advice has been a disaster for investors

    moral of the story, listen to no one, lots of duds regardless.....in this wealth creation industry, that goes for forums too, am I being cynical, yes, but for good reason
     
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  6. mrdobalina

    mrdobalina Well-Known Member

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    I don't see anything wrong with the advice for this particular scenario. The purchaser bought 2 apartments in the Pilbara for $1m, which is worth half now. So how much time will it take for the market to rise for those investments to regain their initial value? If I go with the mining cycles in the Pilbara, I would say 15-20 years.
     
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  7. barnes

    barnes Well-Known Member

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    This guy is an optimist. I don't think that in the future property will gain, so there will be nothing to offset the capital loss from.
     
  8. Perthguy

    Perthguy Well-Known Member

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    I don't mind him. People who are very stupid with money ask him for advice and I feel the advice he gives them is appropriate for their circumstances.

    I would not ask for his advice because I am not stupid with money. I don't think we are his target audience. They seem to be rather financially inept.
     
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  9. petewargent

    petewargent Well-Known Member

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    This is a bit harsh - Scott follows the principles of compounding wealth through saving and investing in low-cost LICs.

    In most countries, this would be considered wise advice.

    Maybe Australia too, one day...
     
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  10. Ambit

    Ambit Well-Known Member

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    His background is in stockbroking. I went off him early on when he was bagging property as an investment and citing some district in Tokyo which was massively overpriced and fell about 40% or something and likening that to property here. Can't remember the details, it was a long time ago.
    I agree his advice is useful to a large chunk of the population who need very basic financial advice.
     
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  11. Ted Varrick

    Ted Varrick Well-Known Member

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    Perthguy is right. And Scott Pape basically said "cut your losses" and live to fight another day, not "do a short course in foreign exchange trading and retire in 6 months time".

    Sounds fair enough.
     
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  12. Brendon

    Brendon Well-Known Member

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    I find him to be quite good, I totally agree that he gives quite simplistic safe options for people who probably are great with their money.
    Most of what I read or hear from him I think that's just common sense, cut up credit cards etc etc, but often common sense isn't all that common
     
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  13. Perthguy

    Perthguy Well-Known Member

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    Oh, I hate that advice... cut up all your credit cards. I put all expenses on the credit card and pay it off in full each month. It's brilliant for reconciling at tax time.

    But then I don't have $35k on my credit card like my mate, who increased the loan on his house to pay down the credit card! :eek: People like that probably should cut up their card!
     
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  14. Ted Varrick

    Ted Varrick Well-Known Member

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    What did he buy for $35k?

    1000 cases of Coronas?
     
  15. barnes

    barnes Well-Known Member

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    to MTR. You have started doing flipping?
     
  16. wobbycarly

    wobbycarly Well-Known Member

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    I read him regularly in the Herald Sun. But keep in mind that he is pitching at the lowest common denominator. Most of the people who write in to him have NFI about anything financial; have massive credit card debt, massive home loan, multiple car loans and are looking for a magic bullet. He gives it to them straight.

    His broad principles are sound, IMO.
    * keep a buffer (he calls it Mojo, suggests a high interest online saving account. The more sophisticated/educated/disciplined amongst us keep that in an offset)
    * spend less than you earn; when he says cut up credit card, he means "don't take on consumer debt"
    * invest in a compounding asset; he recommends super (tax-advantaged - for now! :eek:) and LICs, mainly ARGO and AFIC.
    * for those wanting to buy a PPOR, live off one wage (assuming it's a couple) and save a $100k deposit in 18-24 months, depending on salary.

    Agree that he is generally anti-investment property, and I think that's because too many punters will go looking for the easy way, probably OTP, and get stung. He advocates PPOR - I think because for many it's a form of forced saving.
     
    Last edited: 28th Jul, 2016
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  17. abbyfresh

    abbyfresh Well-Known Member

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    His book is worth reading when you are young and need some direction and financial discipline. He use to reply to my emails personally before he hit the big time and gave me good non property advice off the record. No hidden agenda there.
     
  18. Perthguy

    Perthguy Well-Known Member

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    Yeah, I'd agree with that. I have never got into the "buy now, pay layer" consumer culture. I only buy things I need and have the cash in the bank to pay for now. I only use a card to keep track of my purchases and it's more convenient than cash.
     
  19. albanga

    albanga Well-Known Member

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    The problem with investing in super....you can only retire when you get your super. NO THANKS!!! I need to be retired, on a tropical island sipping a pina colada when I'm 45. Got 11 years to do it.

    Now back to thinking about how I can make millions developing an app. Maybe people will like catching imaginary creatures using their phones. Think there would be a market for that?
     
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  20. Username86

    Username86 Well-Known Member

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    Wish I read his book when I was 18. Way too conservative for me but I think his advice is solid for young people, could have stopped me from making a few mistakes earlier on. I totally agree with him that financial knowledge should be taught in high school.
     
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