Why do/did you invest?

Discussion in 'Investor Psychology & Mindset' started by THX, 12th Oct, 2015.

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What is your primary motivation for investing in property?

Poll closed 19th Oct, 2015.

  1. Tax benefits (Negative gearing)

    3 vote(s)
    4.2%

  2. Tax benefits (Capital Gains Tax discount)

    0 vote(s)
    0.0%

  3. Short term capital growth

    1 vote(s)
    1.4%

  4. Long term capital growth

    27 vote(s)
    37.5%

  5. Ability to leverage

    4 vote(s)
    5.6%

  6. Passive income

    36 vote(s)
    50.0%

  7. Other

    1 vote(s)
    1.4%
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  1. juzzy

    juzzy Well-Known Member

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    Melbourne
    Phase 1: Capital Growth
    Phase 2: ???
    Phase 3: Passive Income
     
    juzzy, 13th Oct, 2015
    #41
  2. MTR

    MTR Well-Known Member

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    I think its the gurus that have spun the "acquisition phase" - for capital growth, but really when you think about it what has it got to do with investing??

    If you are buying for CG then timing is probably best way to go, got nothing to do with age or early stages of investing.

    We just experienced 3 property boom cycles, that was the time to buy, whether you have 3 or 13 properties.

    MTR:)
     
    Last edited: 13th Oct, 2015
    MTR, 13th Oct, 2015
    #42
  3. ej89

    ej89 Well-Known Member

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    I really don't think any of the poll options are an answer to "why" someone would invest or their primary motivation. I think you can ask the why after they have answered with an option. Why do you want to save on tax? Why do you want a passive income? Why do you want to leverage debt? Why do you want capital growth?

    I think the answer for everyone would be to make money to be able to enjoy life and be stress free about finances in 20 years time and not have to work. I want to give a big gift to my parents one day. I want my future wife to not have to work 5 days a week while raising the kids. I want work to be an option. That's my answer.

    I think a lot of people don't know their answer. I do think there's a line between greed and success though. Many cross the line and ruin their lives as they never feel like they have enough, which is sad.

    The next question is how and when after you've figured out the why..
     
    ej89, 13th Oct, 2015
    #43
    cdchi1 and Redom like this.
  4. Bran

    Bran Well-Known Member

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    At work
    Lots of family in the real estate game. My uncle was particularly successful and was my idol. Plus he had a Ferrari. I set my goal of a Ferrari by 40 a long-time back. I could buy one tomorrow on bank money, but that would be foolish.

    I'm a simple man, and property makes sense.

    I want short-term capital growth because I'm impatient and highly leveraged. Once this happens I can re-leverage again ;)

    Thanks for the interest.
     
    Bran, 13th Oct, 2015
    #44
  5. AusMover

    AusMover Well-Known Member

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    Melbourne
    Avatars could be so misleading! :confused: :D
     
    AusMover, 20th Oct, 2015
    #45
  6. Big Will

    Big Will Well-Known Member

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    Melbourne, Australia
    Poll is closed but Financial freedom is the reason why I invest.

    Delayed gratification, I would rather go without now for a comfortable lifestyle in the future.
     
    Big Will, 20th Oct, 2015
    #46
    wylie likes this.
  7. skater

    skater Well-Known Member

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    Sydney? Gold Coast?
    What? It looks just like me!:p:D
     
    skater, 20th Oct, 2015
    #47
    ej89 likes this.
  8. Omnidragon

    Omnidragon Well-Known Member

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    I hope it isn't for entertainment.
     
    Omnidragon, 20th Oct, 2015
    #48
  9. THX

    THX Well-Known Member

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    Sydney
    The property chat sample of 72 showed a majority 50% invest for passive income, with long term capital growth coming in second at 37%.

    A stark contrast to how the media portrays investors.
     
    THX, 21st Oct, 2015
    #49
  10. sash

    sash Well-Known Member

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    To fund my future lifestyle....
     
    sash, 21st Oct, 2015
    #50
    Eric Wu likes this.
  11. skater

    skater Well-Known Member

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    Sydney? Gold Coast?
    To fund my current lifestyle :D
     
    skater, 21st Oct, 2015
    #51
  12. HUGH72

    HUGH72 Well-Known Member

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    Show off...:p I think I will have to wait until the kids are finished school/uni, our expenses would exhaust our passive income.:(
     
    HUGH72, 21st Oct, 2015
    #52
  13. skater

    skater Well-Known Member

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    Hehe.....yeah.....kids are self sufficient these days. PPOR paid out. No personal debt.......but that takes time. Keep working it & you'll get there.
     
    skater, 21st Oct, 2015
    #53
  14. Perthguy

    Perthguy Well-Known Member

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    Perth
    My primary reason for investing isn't financial. Myself and my investment partner are motivated to buy houses that are generally run down and improve them to make something better than what was there. Of course in doing so, they become more valuable. We try to pick well located properties because they will be easier to rent out and these properties tend to increase well in terms of capital growth. It works out well really.

    We like renovating, which is why we chose property over another asset class, such as shares.
     
    Perthguy, 21st Oct, 2015
    #54
    THX likes this.
  15. Eric Wu

    Eric Wu Well-Known Member

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    Australia
    seriously? you can retire now with your current wealth mate.
     
    Eric Wu, 21st Oct, 2015
    #55
  16. Perthguy

    Perthguy Well-Known Member

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    An unrenovated dump on a big block is hard income: low rent, hard to find tenants, tenants can be a lot of work, maintenance.
    A renoveated dump on a big block is easier income: higher rent, easier to find tenants, tenants are less trouble, less maintenance. (at least in my experience)

    Easy inceome: newish build in a good area? higher rent, higher tenant demand, tenants easier to deal with? less maintenance?

    I am guessing with the last one because I haven't owned one yet.
     
    Perthguy, 21st Oct, 2015
    #56
  17. sash

    sash Well-Known Member

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    Yes...I forgot...you have joined the queue of retirees....;)


    Nah...Sydney is going to take backabout 300-400k of my wealth....as it corrects...
     
    sash, 21st Oct, 2015
    #57
    Eric Wu likes this.
  18. Perthguy

    Perthguy Well-Known Member

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    Perth
    If you bought houses with future development potential you could build them out. I am moving into Phase 2 now.
     
    Perthguy, 21st Oct, 2015
    #58
  19. sash

    sash Well-Known Member

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    sash, 21st Oct, 2015
    #59
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