I get really annoyed when people talk about unaffordable housing - you got to make your own luck; We made sacrifices, worked hard, made some smart decisions, and now we have a portfolio
Tweet Topic Started: 4 Sep 2013, 08:24 AM (7,113 Views)
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
Exactly. In fact, with a few exceptions, you would be financially better off NOT getting a tertiary education, at least, not full time anyway. The sooner you leave school, the sooner you can begin saving for a deposit. Unskilled labour is so well paid, you have the advantage of starting earlier and compounding your savings. In the 1980s there was a famous/notorious family who lived in public housing in The Rocks in Sydney. They had, collectively, more than 20 family members on unemployment benefits. Eventually they pooled enough money to buy a house in the Rocks, but they all continued to live in public housing and collect unemployment benefits. Rinse. Repeat. By the 90s they were asset millionaires.
And you don't even need business skill. The government of Australia does everything in it's power to make housing a risk free, high return investment. Income tax is so high that you are just better off starting work as early as possible. If you insist on tertiary qualifications, start as a trainee, anything to get those high wages coming in as early as possible, save them and buy houses.
Getting tertiary qualifications in Australia is generally financially ruinous unless you get some useless degree that takes as little time as possible, or possibly a law degree so you can skirt taxation the maximum possible without having to pay for that advice. And it's not like Australia wants or needs people with tertiary qualifications. I'm not sure why we have a skilled migration program, we don't even take advantage of citizens who are silly enough to become tertiary educated, why do we need to bring in people from overseas with qualifications?
Nail on head, our Yoonis have an abundance of feckless muppets.
Exactly. In fact, with a few exceptions, you would be financially better off NOT getting a tertiary education, at least, not full time anyway. The sooner you leave school, the sooner you can begin saving for a deposit. Unskilled labour is so well paid, you have the advantage of starting earlier and compounding your savings. In the 1980s there was a famous/notorious family who lived in public housing in The Rocks in Sydney. They had, collectively, more than 20 family members on unemployment benefits. Eventually they pooled enough money to buy a house in the Rocks, but they all continued to live in public housing and collect unemployment benefits. Rinse. Repeat. By the 90s they were asset millionaires.
And you don't even need business skill. The government of Australia does everything in it's power to make housing a risk free, high return investment. Income tax is so high that you are just better off starting work as early as possible. If you insist on tertiary qualifications, start as a trainee, anything to get those high wages coming in as early as possible, save them and buy houses.
Getting tertiary qualifications in Australia is generally financially ruinous unless you get some useless degree that takes as little time as possible, or possibly a law degree so you can skirt taxation the maximum possible without having to pay for that advice. And it's not like Australia wants or needs people with tertiary qualifications. I'm not sure why we have a skilled migration program, we don't even take advantage of citizens who are silly enough to become tertiary educated, why do we need to bring in people from overseas with qualifications?
Pretty much all of my friends in Austrlia have 1 or more uni degrees. Except for a fireman and a teacher all those with degrees are paid considerable salaries (Mostly more than $250k). These degrees are vocational or finance related, not wishy washy stuff.
A couple of tradie mates are comfortable and had a head start but have seen the rest of us whoosh past them in earnings and wealth accumulation. Are you late 20s or early 30s? If so just wait a few years and you won't regret that education.
“You Keep Using That Word, I Do Not Think It Means What You Think It Means” - Inigo Montoya
So many whingers on this forum. Stop complaining, and make your own luck people.
I never had much interest in traveling or eating out or anything, so after six years of working my partner and I had plenty saved and decided it was time to put the money into a house of our own. Just hated the thought of all of that dead rent money. Bought ourselves a modest little cottage on the inner city fringe, fixed her up a bit, and by the time my wife was pregnant we decided to upgrade to something a bit bigger in the suburbs, something with a yard for our kids.
We did pretty well out of the cottage – something like a 40% gain tax free in less than five years, so you’ve got to be happy about that. Well, the next house was a bit more expensive, but we just fell in love with it, we had to have it, you know. The bank was more than happy to give us everything we needed. We were daunted by the idea of carrying a $200,000 mortgage, but interest rates had been coming down, and things were going really well. We never imagined we’d both be living in such a beautiful big house, but over time we came to feel that this was our reward for being more careful with our money, for making sacrifices.
After a while, with the wife back at work, and another promotion for me – we thought it was time to start thinking about building up a property portfolio for our retirement, to give us some more flexibility down the track. Well, the bank was more than happy to give us everything we needed. We bought a fixer upper a few streets down from our current house, rented it out to a local teacher – he helped out a bit fixing it up. Rates were starting to go up a bit, but we’d fixed the bulk of it at 7.5% and were comfortable with the repayments.
Prices in our area were starting to really pick up. Our neighbors had sold their house – which was no bigger than ours, and probably needed more work done – for $550,000 ! It was incredible – they’d only paid $280,000 seven years earlier.
Well, we’d got some extra days at day care for the kids, so my wife was able to go back to work full time now. We thought we’d diversify the portfolio a bit, so got ourselves a unit off the plan in a neighboring suburb. The bank was more than happy to give us everything we needed. The rent wasn’t quite covering repayments at that point – but the tax effect was pretty sweet – we just needed 4% capital growth a year to be raking it in ten years down the track. Some of the spec buyers ended up selling after a month and pocketing a 40% gain. We were absolutely spewing we didn’t buy more!
A mate knew the developer, so we got in early on his next release and ended up buying two off the plan. The bank was more than happy to give us everything we needed. We turned over the units after a year and decided to pay off our debt. We own our house and the property up the road outright now. We’ll probably give the kids the other property once they’re old enough – let ‘em move into it when they’re ready for university.
I get really annoyed now when people talk about unaffordable housing. It wasn’t like we were gifted our own house. It was hard. It was bloody scary carrying so much debt. But we made sacrifices, worked hard, made some smart decisions, and now we have a portfolio.
You’ve got to make your own luck. We're not special - if we can do it so can anyone. Just stop wasting your time whining on this forum and go do it people.
Yes that is how you done it. Well done. There is just as much opportunity now. Good luck and keep up the good work. I know a 70 year old man just starting his new build down at Margaret River. He is as happy as Larry. Margaret River is turning up now, so he could do well. Peter
1) Faster, easier development approvals i.e. ease supply side constraints 2) Denser inner city development 3) Fewer urban boundary constraints 4) Better roads to facility an expanded urban footprint 5) Abolition of the FHB grant 6) Abolition of Negative Gearing (all asset classes) 7) Abolition of the CGT discount 8) Abolition of Stamp Duty and replacement with Land Tax
1) Faster, easier development approvals i.e. ease supply side constraints 2) Denser inner city development 3) Fewer urban boundary constraints 4) Better roads to facility an expanded urban footprint 5) Abolition of the FHB grant 6) Abolition of Negative Gearing (all asset classes) 7) Abolition of the CGT discount 8) Abolition of Stamp Duty and replacement with Land Tax
Why bother even talking about it.
It will NEVER happen. Or at least not enough to put enough downward pressure on prices.
Are you bears fucking retarded? (not all bears, just these idiots talking about opening up land and shit)
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
Pretty much all of my friends in Austrlia have 1 or more uni degrees. Except for a fireman and a teacher all those with degrees are paid considerable salaries (Mostly more than $250k). These degrees are vocational or finance related, not wishy washy stuff.
Boy are they in for a surprise soon.
Quote:
A couple of tradie mates are comfortable and had a head start but have seen the rest of us whoosh past them in earnings and wealth accumulation. Are you late 20s or early 30s? If so just wait a few years and you won't regret that education.
Wait a few years and your friends will see their well paid jobs go to Singapore or the Philippines and your tradie mates will still be charging you $250 to put the electric eel down your sewage line.
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