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Why don't normal people think like us?

Discussion in 'Investor Psychology' started by Tim86, 18th Jul, 2015.

  1. Tim86

    Tim86 Well-Known Member

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    None of my friends invest... absolutely zero. The very idea of investing just seems ridiculous to them.

    I suggest properties for them to buy, or investment strategies, and they take on board none of it.

    At best these people might look to buy a PPOR, way out of any potential growth area, not interested at all in buying something with good chances of capital growth or potential future rental yield.

    The conversations soon turn to their ideas, of going on that next holiday overseas.

    Even the more driven friends are only focussed on getting more income from their job, by getting promotions, etc...

    Nobody I know seems to "get it".

    Nobody I know seems to understand passive income, or capital growth, or potential positive investment yields. And the really annoying thing is, none of them want to listen to it. It's just not a priority for them.

    Now that's something I just don't "get".

    I guess it's just different ways of thinking... We are all in our twenties still I guess (although in ten days I'll be 29...)

    Think I'm just going to have to hold myself back and give up trying to convert my friends to my way of thinking. But would be great if I could share my success with them so they could also be successful to the same extent. Otherwise I end up having to hold my tongue about just how well I'm doing. Can't really say to a couple on a combined income of $135 000 who are working a combined 100hours per week, that me and my wife have investments that with rent and minor capital growth factored in, will easily bring in that amount (as profit) passively this year...

    This forum is good. Because I'm surrounded by like minded people. But would be nice if some of my friends thought the same way. I almost feel a sense of ostracism and like I'm the odd one out because I don't work and then blow all my money on holidays, but rather practice delayed gratification and invest everything I get now so that later I'll be in an "above average" position.

    I really don't get it. Trying to make sense of it. I probably need to grow up in a way and just accept that those around me just don't think the same way and aren't interested.... "but" even when I write that my mind just keeps saying "but this" and "but that" and "but but but but"....

    Arrrrggh live and let live right?
     
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  2. Fielding

    Fielding Well-Known Member

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    Haha I know how you feel, but I don't push my way of thinking on people I only explain it if im asked. I tried to get a few close friends and family involved but they just weren't interested. Its funny because they all complain about work.
     
  3. Chilliblue

    Chilliblue Well-Known Member

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    What Tim... are we not friends
     
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  4. Tim86

    Tim86 Well-Known Member

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    Awwww the best of friends :)
     
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  5. Tim86

    Tim86 Well-Known Member

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    See this is what I've got to work on. Not being pushy when I think I know better.
     
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  6. Bran

    Bran Well-Known Member

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    You clearly have an eye for property investment, that I don't think is even widely shared on this forum, thus you ARE the odd one out. But that's a good thing. Just keep doing your thing. It's up to them, if and when they are ready.

    If you get sick of it, Ill happily be friends with you and take on board some of your advice regarding yields and passive income :)

    I've tried the same with my brother. Hopeless, and he keeps going down his own expensive and pointless career paths (like becoming a commercial pilot without finishing school) without ever listening to a mentor.
     
  7. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Some will get it, most wont. There's nothing we can do to convert people, unless they first come to us disillusioned, fed up and want drastic change and are willing to make the effort, then we have a chance to set them on a different path. Otherwise, there is nothing we can do for the vast majority.
     
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  8. Fielding

    Fielding Well-Known Member

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    You can lead a horse to water but you can't make it drink lol.
     
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  9. jaybean

    jaybean Well-Known Member

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    Just wait and see how frustrated you'll be when there's a boom and they all complain about how unfair it is. And to add insult to injury, you're made out to look like the bad guy for accumulating so many.
     
    Last edited: 18th Jul, 2015
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  10. Fargo

    Fargo Well-Known Member

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    Every-one cant do it, or it wouldn't work, and not enough taxes would be collected. It is because not many people do it, that make it work.
     
  11. Tim86

    Tim86 Well-Known Member

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    True they have to have the motivation first.

    I was very lucky to have my dad as a mentor. We clash a lot, but I recognised he knew what he was doing. I was at least switched on enough to recognise you should listen to the guy with the million dollar house that he doesn't have a mortgage on, with the IPs bringing in 90k per year profit.
     
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  12. Casteller

    Casteller Well-Known Member

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    Some people like to take risks, others don't. Highly leveraging into property is risky are can turn very sour, wiping people out, I've seen it, my last property purchase is down 25%, hopefully bottoming out now, I can absorb it, but owning a few of those would be trouble. Might buy another (average down), but most of my money goes into shares these days. Everything has been hunky dory in Australia so far but some people just don't want to take that risk (& stress) on.
     
  13. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    I just try to be an example.

    If people ask, I'm very open.

    Some get inspired.

    Others deflated.

    And some just don't care either way.

    And that's ok.
     
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  14. Leo2413

    Leo2413 Well-Known Member Premium Member

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    HI Casteller,

    Without detracting from the OP too much, the sentiments you have mentioned I have heard from quite a few what I call 'dabble buyers'. With the right property education and approach (many approaches can be right) coupled with risk mitigation strategies, property is an amazing vehicle to create wealth. Problem is a lot of the ppl who get burnt simply didn't have a good enough understanding/approach to it. Just my opinion.
     
  15. Casteller

    Casteller Well-Known Member

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    In a general property market downturn, when everything is going down, every year, for years, not many approaches work, except for being out of the market. All the properties I owned in Australia went up a lot, no problem there, but buying a bargain in Spain 3 years ago didnt work out so well.. sometimes bargains just keep getting cheaper. Looks now like it might have finally stopped, so I may get another.
     
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  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    But is what you sit on

    Choose and move, and let others do the same..........................

    ta
    rolf
     
  17. Tim86

    Tim86 Well-Known Member

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    I don't think I'm the odd one out here. Lots of successful switched on people here. Or at least people willing to throw themselves into investment.

    Nothing too complicated with how I got passive income. Buy property that I can reno, rent out as a share house, collect above average rent.
     
  18. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Tim, if you can get your friends to read Rich Dad, Poor Dad, they may get the lights switched on
     
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  19. D.T.

    D.T. Adelaide Property Manager Business Member

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    No. This isnt a religion to preach and isn't necessary the 'right' way. Just let people live their own way and enjoy their own lives, just as they do to you.
     
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  20. Tim86

    Tim86 Well-Known Member

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    See I can't get my head around the share market. It feels way more out of my hands than property. At least with property I can reno and add equity, etc...

    But then there are some brilliant people that do share trading and have their heads wrapped around it, and they are awesome at it and make it work for them.

    As for property prices going down. When I was purchasing my properties people were telling me the market was horrible and everything was going to go down. I was lucky enough to buy smack bang at the bottom of the market. But even if I didn't, the properties I was buying I was factoring 20% drops in prices into my offers (and somehow they were getting accepted...). Even now property prices could halve and I could ride it out because I'm not relying on capital growth. Just renting my properties out brings me in $900pw profit.
     
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