Why Do Most Investors Stop Purchasing After Two Properties?

Discussion in 'Investor Psychology & Mindset' started by Rixter, 20th Jun, 2015.

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  1. Sackie

    Sackie Well-Known Member

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    yes it does..at the expense of bashing your parents. Is it worth it..? Our parents are so important... just seems wrong.
     
  2. wategos

    wategos Well-Known Member

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    They cant cross reference anything if the property has never been declared as a rental.. that's how thousands of people get away with it tax free for years... real estate agencies and banks dont have to report anything to the government.
     
  3. bobbyj

    bobbyj Well-Known Member

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  4. S.T

    S.T Well-Known Member

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    Not hard to write software for it...hmm business idea to sell to the ATO!
     
  5. Michael_X

    Michael_X Mortgage Broker Business Member

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    I stopped at 2 until I found Somersoft/PropertyChat.

    For me it was simply not knowing. Growing up, we were taught to study hard, get good grades so you can go to uni and then find a good job. Buy a PPOR and pay that damn then as fast as you can and if you are doing well, then perhaps an IP or two.

    Finding this forum turned that theory on it's head :)

    Cheers,
    Michael
     
  6. bob shovel

    bob shovel Well-Known Member

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    rich dad poor dad talks about that social norm a lot!
     
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  7. Gockie

    Gockie Life is good ☺️ Premium Member

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    Yeah, my parents are like poor dad. Get an education (when I was thinking of uni, my dad said to me, study the human body as it doesn't change... don't do IT as you have to keep up with all the technology changes.... yes, he did seriously say that to me.) Anyway, I started with Biomedical science at uni, finished a science degree but jobs in that field... for anything ok you'd have to get a Phd. I did work experience at the Blood bank and these intelligent people (I know one went to High School at James Ruse) were making sure the barcodes on the tubes of blood could be read by the machines.... a trained monkey could do those jobs. Another week and I was at the Pathology collection section of Concord hospital.... does handling and processing sick people faeces, urine and other body fluids sound like fun? Cause that's what you'd be handling. For a research job you would always have to search for grants plus do higher degrees... Anyway I changed over to IT and its been a really enjoyable career for me.
    My dad had a steady job at Telecom/Telstra his whole life and couldn't wait for the day to retire. He planned it. He pretty much lives off the government super he got from Telstra. Definitely job for life due to retirement benefits but not one he particularly enjoyed.
    My mum did odd jobs... Delivering food to patients in hospital and later, working in the office for my aunt who owned a large company (aunty still owns that large company).
    That aunty is successful. There's no way I can see that my parents would have been the ones to run a company...
     
  8. Rixter

    Rixter Well-Known Member

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    That's it. Most people are unconsciously incompetent or consciously incompetent when it comes to wealth creation.
     
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  9. willair

    willair Well-Known Member Premium Member

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    There is a street just before the bridge that faces the water as you drive into Noosa,maybe 20-30 houses and some of those multi mil properties only get used for 14 days every year,the rest of the time they just sit there with garden maintenance in place vacant,and they change titles every 3 years or so sometimes depending on the 4 level zone they go up over 700k during that small investment period,nothing wrong with selling within a small timeframe,at least that way your not the last one standing holding the can..
     
  10. citystar

    citystar Well-Known Member

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    Why do most investors stop purchasing after two properties? Because they obviously haven't discovered this forum yet.
     
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  11. Bayview

    Bayview Well-Known Member

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    All the r/e PM's I've had do a direct transfer into our Bank account.

    It's impossible to hide the income under that system. I'm sure most - if not all - do it that way now?

    But if the property was neg geared, why would anyone not declare it, and miss out on thousands (potentially) in refunded tax?
     
  12. Michael_X

    Michael_X Mortgage Broker Business Member

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    Haha, I went to James Ruse.

    Looking to my classmates, books smarts isn't linked to wealth creation smarts. Most have decent jobs but won't be financially free.

    As Robert Kiyosaki said, A students work for C students and B students work for the government.

    Cheers,
    Michael
     
  13. wategos

    wategos Well-Known Member

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    The properties are paid off, positive cash flow. ATO cant see (or doesn't look for) cash from estate agencies into banks. Black market rentals in Australia just aren't detected, income cant be cross referenced, the real estate agencies don't have to report anything. As well as permanent rentals a lot of short term lets would never be declared either.
     
  14. Kael

    Kael Well-Known Member

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    Last year my tax accountant told me how much rent I had received from one of my investment properties before I could tell him... He said it's all part of the ATO's new system.
     
  15. larrylarry

    larrylarry Well-Known Member

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    This is interesting. I am a business owner and have thought about buying a commercial property for ourselves in Sydney CBD but the entry prices are too much for us. I just thought a commercial property is not easy to rent/sell if we fold or need a larger space.
     
  16. Traveller99

    Traveller99 Well-Known Member

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    Did we share the same parents? Haha!

    I'm now currently training my folks :)
     
  17. Perthguy

    Perthguy Well-Known Member

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    Myself and my investment partner "only" have two properties currently. However, they are both potential development sites and it is a good time to develop. So it was either buy another IP or develop. There isn't the servicing to do both. Still, we are both relatively early in the game compared to others. First IP was only bought in '07, so plenty of time to accumulate more!

    That said, development potential properties appeal to me. If we developed both to sensible max, we would be holding 6 townhouses. Not a bad income stream. ~$150k per annum in rent.
     
  18. htopg

    htopg Well-Known Member

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    My dad told me not to invest in properties, because the risk (he equates debt to risk) is too high.
    He also does not like to have PPOR as security for investment loans, because he is afraid of losing the PPOR and then he will need to live on the street.
    For that reason, in his eyes, I am still his good son, going to job 9-5.
    I feel upset that I am not able to share my property investment journey with him, as that will cause him heart attack if his knows my debt level :)
     
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  19. sash

    sash Well-Known Member

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    Thats me.

     
  20. sash

    sash Well-Known Member

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    I went to an international school...and 95% went to uni...I was in the bottom 10% of my class..and proud of it...I was the borderline C student. :)

     
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