What's the worst advice that you ever got..

Discussion in 'Investor Psychology & Mindset' started by willair, 6th Sep, 2019.

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  1. willair

    willair Well-Known Member Premium Member

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    When you read within this site about success and living off a passive income streams from property--equity investment rather they be direct ASX listed --Lic's --or simple unknown start-up's-- silent partner in a massage outlet ect ,you need to have ''Wins''as losses can hurt you ..

    But one does not read about bad advice ,maybe for legal reasons or it's not very good for the person ego,as a person's ego is important..

    Myself i have made a lot of mistakes from advice given ..
    No 1..
    I bought a large over 75000sqms in the early 1980's of vacant land out the back of the gold coast on the advice of the Accountant i employed ,just because he said it was a winner it was on the side of a hill and was going to overlook a dam that was going to be built,problem was the government extended the dams area and that included that property ..
    No 2..

    Buying into start-ups from advice from other people and going in blind,as one quickly finds directors don't care about unit holders --or the entity just a crash and burn then do it again ..

    ??
     
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  2. Sackie

    Sackie Well-Known Member

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    I think anyone who has the courage to go after their dreams and take lots of action will be given some terrible advice at times along their journey. I know I've lost lots of money here and there due to poor advice.

    The worst advice I ever got ( and thank God I never followed and did the opposite) was back in 2013 from my then accountant to hold off on expanding my portfolio on Sydney due to uncertain times. :rolleyes:
     
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  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Bought a property in a trust in Brisbane. Once it gets beyond a certain land value, the land tax is a killer. The Brisbane City Council also takes an extra pound of flesh for this structure. The asset protection and tax flexibility isn't necessarily a significant benefit in my circumstances.
     
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  4. Tony3008

    Tony3008 Well-Known Member

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    Worst advice I ever got (and followed) was from my dad. Back in UK SW London mid-1970s I left uni and soon wanted my own place. Being single, a building inspector and skilled diy-er I was attracted to a semi-derelict 'two-up, two-down' workers cottage that needed a lot of work. But when my dad saw it his response was "You'd be daft to spend £7,000 on something like that", the more so since the only mortgage I could have got would have been at 17%. Within two or three years my salary and house prices had doubled and interest rates halved. Now houses like this sell for £500K+, Warwick Road, Twickenham, TW2 - Charming two bedroom house

    I guess the same story could be told here of workers cottages in places like Richmond and Collingwood.
     
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  5. Trainee

    Trainee Well-Known Member

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    One thing learned early: step back and assess the person giving the advice. What is there reason for that advice? Does it apply to you?
     
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  6. Marg4000

    Marg4000 Well-Known Member

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    Worst advice that thankfully I did not follow?

    “Don’t put money into superannuation.
    You won’t get it for 20+ years and the rules may change.”

    I’m retired now and living extremely comfortably off super as our main source of income.
     
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  7. The Y-man

    The Y-man Moderator Staff Member

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    "These trees are an excellent, tax effective investment."

    The Y-man
     
  8. Big Daddy

    Big Daddy Well-Known Member

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    Property always goes up
    Never sell
     
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  9. willair

    willair Well-Known Member Premium Member

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    If you stick too that mindset as is not that complicated a answer ,you end up on the ''twelve of of ten list''..
     
  10. Beano

    Beano Well-Known Member

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    Do you still own the world's largest aquarium ? :)
    Ps is it great not having pay land tax on your liquid assets ? :)
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    B is the most common answer in multiple choice exams. :rolleyes:
     
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  12. willair

    willair Well-Known Member Premium Member

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    Beano,no i sold that property in 1989 ,the dam never went ahead as there was a change of government in Qld ..

    Problem was as my surname was near the end of the alphabet ,and for some unknow reason the pay out list started with A ,so for six years i just lived there by myself waiting to be paid out ..
     
  13. TMNT

    TMNT Well-Known Member

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    I've got this tip.on this horse/share.......
     
  14. Travelbug

    Travelbug Well-Known Member

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    A friend of mine had a property in Sydney. It was CF+ as he got it at a bargain price. His accountant told him to sell it because he was paying to much tax.
     
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  15. MWI

    MWI Well-Known Member

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    Be careful don't buy interstate as they prey on people like you (from an accountant)
    And the very first accountant suggested to keep buying more cars when I asked what should we do prior to EOFY with the profit?
    He said "...take it all out" and I said "....and spend it on what?" and he said "...just keep buying more cars (we already had 4 then)?
    I realized then and very quickly I needed to change my accountant and did so very quickly!
     
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  16. piggybackzebra

    piggybackzebra New Member

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    At 20 years of age and at the peak of the local market, my partner purchased a sloping block of land at his father’s encouragement - “you’ll make money” his father said. Despite being single with no dependents, he builds the only 5 bedroom two-storey home in the street.

    Midway through the build, the local market collapses. It is now 12 years later, and the market shows no sign of recovery - $200k capital loss - my partner has had to rent the home out in order to afford the principal and interest repayments.

    To add further salt to the wound, my partner built the home through his father’s building business at full market rate and he continues to give my partner terrible financial advice - fair to say his father and I don’t get along.
     
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  17. bunkai

    bunkai Well-Known Member

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    I recall the tress - never made sense to me fortunately.
     
  18. The Y-man

    The Y-man Moderator Staff Member

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    There are places it does work - but not in Australia :)

    The Y-man
     
  19. Blueshoes99

    Blueshoes99 Well-Known Member

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    2005- don’t invest in property now because it’s too expensive
    2008- don’t invest in property now because prices are crashing downwards
    2012- don’t invest in property now because it’s overpriced
    2019- don’t invest in property now because the economy is falling downwards and it will cause a price down fall

    I’ve brought two properties and will continue to buy. I do my own research and trust my own gut instincts. I don’t care what anybody else says because it’s my own money and I’m going to do what ever the hell I want with it.
     
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