Why Property Investing Sucks for Becoming Rich??

Discussion in 'Investor Psychology & Mindset' started by MTR, 5th Aug, 2017.

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  1. MTR

    MTR Well-Known Member

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    I dont need to realise, I think I know

    Its a forum, plenty of people have opinions every day of the week, and we make our own choices.


    All to their own:p
     
    Last edited: 20th Aug, 2017
  2. wylie

    wylie Moderator Staff Member

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    Ok... the wording you used made it sound like there was only one way and anybody not taking control was taking the wrong path.

    We do each make our own choices, and each to his or her own...

    We never chased cycles. We bought when we could, worked hard when we needed to make a silk purse from a sow's ear and have done very well. Probably better than chasing cycles.

    I think I'm too lazy to do the research required.
     
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  3. MTR

    MTR Well-Known Member

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    I agree with you
    Dont mean to preach at all
     
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  4. Bayview

    Bayview Well-Known Member

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    It is more of a concept - investing $5k per year as opposed to putting it into the Bank.

    Of course; it will take longer for the person starting from scratch to accumulate enough $5k amounts for a deposit towards a property, but if you consider the possibility of it compared to $5k into a Bank account; property wins.

    Even shares; $5k per year into shares can also be very good compared to a Bank, and the entry level is way smaller to buy a parcel of shares to kick it off.

    I think the difference is that once you get an IP or two, and the equity starts to increase; the leverage from that into other investments is probably a lot better than the leverage to borrow against shares.

    Not saying shares aren't a good idea; for most people it is better than doing nothing at all; but if we are talking about a person on $50k trying to get rich; the leverage from property, and then the compound leverage from it into more property, or more shares, or businesses - is quite attractive.
     
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  5. Sackie

    Sackie Well-Known Member

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    Yep even 2 ips if bought early on will make a big difference to many folks retirement eggs .
     
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  6. Sackie

    Sackie Well-Known Member

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    Dats mwahs job :p :oops:
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Shares are a good start and better alternative to the bank. They're readily traded to cash out for a deposit or can be leveraged. Leverage is the big accelerator.
     
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  8. MTR

    MTR Well-Known Member

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    Lol
     
  9. hash_investor

    hash_investor Well-Known Member

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    Reminds me of a story about California gold rush

    "The output of gold rose from $5 million in 1848 to $40 million in 1849 and $55 million in 1851. However, only a minority of miners made much money from the Californian Gold Rush. It was much more common for people to become wealthy by providing the miners with over-priced food, supplies and services. Sam Brannan was the great beneficiary of this new found wealth. Prices increased rapidly and during this period his store had a turnover of $150,000 a month (almost $4 million in today's money). Josiah Belden was another man who made his fortune from the gold rush. He owned a store in San Jose. Trade increased dramatically during the years that followed the discovery of gold. It is claimed that he made so much money that he never needed to work again."
     
  10. Ed Barton

    Ed Barton Well-Known Member

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    Same happened with all gold rushes around the world. Pubs and hookers were also good businesses.

    In RE the bankers, REAs, spruikers et al can make more than investors.
     
  11. MTR

    MTR Well-Known Member

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    Absolutely, running a business and they have volume suckers jumping in making them rich. There are some real survivors out there still banging on and making a killing, while their mentees are making peanuts or losing money.
     
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  12. hash_investor

    hash_investor Well-Known Member

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    mortgage brokers too :p
     
  13. MTR

    MTR Well-Known Member

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    Not going there.

    BTW has anyone heard of RAMS lo doc product:p
     
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  14. jins13

    jins13 Well-Known Member

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    Sometimes, I wonder if there was an analysis conducted on the sweet spot on how many properties an investor had that was to equate to the maximum happiness, but think it's dependent on so many variables that it's hard to project that on a graph. Ie If a person had 200 properties, will it make them happy to deal with the constant phones calls for repairs, issues that may arise, home openings, maintenance work, paying the bills and dealing with relevant parties. It's almost like a job in itself but a great satisfaction as it's for your financial freedom.
     
  15. MTR

    MTR Well-Known Member

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    I think the sweet spot is more about CASH FLOW, not number of properties.

    More to the point......What income it will take to reach financial freedom and provide you with a good lifestyle.

    just my opinion

    MTR:)
     
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  16. Sackie

    Sackie Well-Known Member

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    The sweet spot to me is find out what floats your boat and keeps your family happy and keep doing that, whatever it is.
     
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  17. MTR

    MTR Well-Known Member

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    Its becoming very clear on PC that investors are moving away from property and looking at alternative investments that provide higher yields.

    We cant live on bricks and mortar....especially if yields are around 3-4% ??? how is this going to work with APRA changes etc.

    MTR:)
     
  18. Perthguy

    Perthguy Well-Known Member

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    I am not moving away from property yet. I am having way too much fun. Ask me again in 5 years time. :D
     
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  19. MTR

    MTR Well-Known Member

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    Me too.......I am never giving up on property as long as I can make money from property will continue to do so. I suck at shares.
     
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  20. Sackie

    Sackie Well-Known Member

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    Property is such a dynamic vehicle for creating wealth - historically and in present time. I will never stop wheeling and dealing real estate. It works. Its tried and tested. People need a place to live. Home ownership in Australia and many other parts of the world is so emotionally connected to so many people, it makes RE such a special asset if you get it right.
     
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