Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

young people entering the property market for investment

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • McDuck
    replied
    Originally posted by sophialoren2 View Post
    Nobody has any contemplations on property speculation methodology for youngsters beginning?
    The thing is, young people have lots going on.

    And their focus is on social events, reproduction, education, rebellion, adventure and ego and image etc,

    And with all that youth and energy and opportunity, who would have it any other way.

    For them, the future is a long long way off, and they are bulletproof.

    A really good starting point would be to get them to sit down and see what they spent money on that week.
    then later, what they spent money on that month,
    an later, what they spent money on that year.

    They will be surprised to see they spent $3000 on take out coffee.

    Then get them to try and find the balance between enjoying themselves and wasting money.

    Once they have a little stockpile of spare money, get them to put it in a really short term deposit.

    let them see that money cam "make" money. With the coming credit tightening , they are going to be pleased with the returns.

    Once they get on the path of wanting to grow that little project pile, they will eventually take that leap into more riskier activities, with larger returns.

    then you might need to coach them on diversification against loss strategies.

    Essentially, they need the passion and the determination to carry out the projects themselves.









    Leave a comment:


  • Rohb
    replied
    Originally posted by frances56 View Post
    Not speculation for me. Husband due to retire so don't want the stress. Only reason we r fairly comfy is because we bought home own homes young and paid them off which enabled us to buy 3 rentals 10 yrs ago. Would like my kids to start early to enable them to have some financial freedom as they get older. We're not high flyers or property moguls just happy to be able to live comfortably with some spending money ????
    I think, what ever strategy you've done will be hard to replicate now. And that goes for most of us that started this PI journey few decades ago. Back in 2005 nobody wants to buy rundown houses but I always knew then about the value of houses and location.Location is everything to me and locations that are easy to rent out...Simple stategy..BUY rundown homes in good location or location I like buy them really cheap ,renovate and hold. Sold and fund the next project.This strategy got me here, but the numbers don't work now but I still see some potential not as good but this still will work if you intend to live in it and renovate over time but seriously when the last time you seen a rundown house for sale that are cheap?

    Dunno how much your still leverage with your portfolio but if you intend to sell I think the best you can do for your kids is sell one of your properties to them to start them off.Just make it work for them. Give them the property with a good potential that can accommodate multiple units and build in the future. Depending land size and location will be the key.

    Also, giving them a good deposit is good too I have done that.and have sold to my family at a discounted price...Just to get them started. They can get house with multiple rooms use those free rooms and get boarders to help them pay off the mortgage sooner. Once paid off or when they have a good equity buy another's one.The cycle continue, do the same thing get boarders and rent it out by the rooms by that time they will have one property each.

    (Having boarders if your living in that property don't think you pay tax or do you ?)

    Anyway I really hope your kids are financially deciplined.If not they need to educate themselves. In saving and investing. And also knowing how to renovate will help in their journey .

    Good luck!

    .....

    Leave a comment:


  • donna
    replied
    ^^ and would you not recommend the same strategy to them? You’ve done well from it?

    Leave a comment:


  • frances56
    replied
    Not speculation for me. Husband due to retire so don't want the stress. Only reason we r fairly comfy is because we bought home own homes young and paid them off which enabled us to buy 3 rentals 10 yrs ago. Would like my kids to start early to enable them to have some financial freedom as they get older. We're not high flyers or property moguls just happy to be able to live comfortably with some spending money ????

    Leave a comment:


  • donna
    replied
    Geez what a minefield - why does property speculation interest you and have you the financial resources to do it?

    cheers

    Donna

    Leave a comment:


  • sophialoren2
    replied
    Nobody has any contemplations on property speculation methodology for youngsters beginning?

    Leave a comment:


  • frances56
    replied
    Well maybe I'll tell my kids to become money lenders! Although the government is cracking down on them too!

    Leave a comment:


  • McDuck
    replied
    If I can just shift you off politics for a moment and get you to think about making money..

    if a house only cost one weeks pay, that would be good right, no money lost to interest.
    (and no inflation by the way).
    So that's double good.

    If a house cost 1 years pay, not so good, but not terrible.

    If a house cost three years pay, that's bad, you now have to borrow money.
    And then part of your life it tipped down the toilet carrying a money lender on your back.

    Now, if the money lender can lend to two people and get them to bid up the price of the house at auction to say to twenty years pay...
    Really bad for you, as you now have to carry that moneylender on your back for 50 years. your whole life.
    And really bad for the financial system, as it causes inflation and waters down the money.

    Bur really really good for the money lender.

    Leave a comment:


  • Rohb
    replied
    Originally posted by McDuck View Post

    IMHO, it's not the political leaning of any government that is causing the headwinds for young home buyers.
    I don't know why, but it bothers me to see people suffering under that particular lie.

    Think about it.

    I blame this government, we are becoming more and more of a nanny state and this is worse when the Greens are involved with their half baked policies like that CCCF and it is having unintended consequences for FHB that are ready to buy...They want everyone to be poor,I tell ya!! It is not the government job to protect people from their own stupidity.

    Leave a comment:


  • McDuck
    replied
    Originally posted by Rohb View Post

    I think it will be hard to enter in the property as an investment these days. Everything seem against the property investors thanks to our socialist government.

    .
    IMHO, it's not the political leaning of any government that is causing the headwinds for young home buyers.
    I don't know why, but it bothers me to see people suffering under that particular lie.

    Think about it.

    You get two different home buyers, offer to lend both as much money as they are stupid enough to take.
    Then pit them against each other at a heated auction.

    Like some medieval demon goading two peasants into a brawl.
    Now do that for twenty auctions.
    Eventually the bidders will hit a huge price wall, constrained by their income, no matter how reckless they wish to be.

    Now imagine said demon has been playing a trick, he has no gold in his vault, just one gold coin per every 10 coins he has lent out.
    But most of the peasants don't know this.. and are foolishly happy to take these worthless gold receipts as payment.

    And the king allows this lie, why?
    Because with every worthless gold receipt the demon gives out, his past kingly debt shrinks in comparison.

    And the only ones on the pigs back are all the little sub demons, clicking the ticket on every step of the fake gold receipt issuing process.

    Leave a comment:


  • McDuck
    replied
    Originally posted by Rohb View Post

    I..who knows in 40 years of saving they could become a millionaire...
    You're thinking in 2022 values.
    You need to think in 2062 values.
    When your million will be worth about one years wages.
    The system is rigged on both sides (by the Banks) I tell ya.

    Leave a comment:


  • Rohb
    replied
    Originally posted by McDuck View Post

    Compounding interest is a big lie.
    Bankers have rigged the system.
    Do some calculations.
    Put a compounding interstate of 10 %.
    Then try one of 1%.
    then try one of 0.1%.
    then adjust for inflation.
    See how much they have all conspired to rob you.
    I encourage young people to save and invest as they can and this is one way to create their wealth. Money in the bank gives you virtually nothing.If you looking at S&P 500 that proven to have a average returns 11% or similar funds (ETF) young people can get into to help themselves save and build up a portfolio,who knows in 40 years of saving they could become a millionaire.Investing in property these days I think is alot harder for younger people compared to a few decades ago when I started.

    Leave a comment:


  • McDuck
    replied
    Originally posted by Rohb View Post

    I think it will be hard to enter in the property as an investment these days. Everything seem against the property investors thanks to our socialist government.

    IF I am 20 years olds now and earning I would be educating myself in the power of compounding interest (I wish I known this when i was younger ) I just recently took the plunge and done this and so far its good..
    Compounding interest is a big lie.
    Bankers have rigged the system.
    Do some calculations.
    Put a compounding interstate of 10 %.
    Then try one of 1%.
    then try one of 0.1%.
    then adjust for inflation.
    See how much they have all conspired to rob you.

    Leave a comment:


  • Rohb
    replied
    Originally posted by frances56 View Post
    No one has any thoughts on property investment strategy for young people starting out?
    I think it will be hard to enter in the property as an investment these days. Everything seem against the property investors thanks to our socialist government.

    IF I am 20 years olds now and earning I would be educating myself in the power of compounding interest (I wish I known this when i was younger ) I just recently took the plunge and done this and so far its good..

    Leave a comment:


  • frances56
    replied
    Thanks folks. We think we'll wait for things to settle a bit. Not sure new places are the way to go. Far too expensive for a first home buyer, And build prices can't be locked in. I think an older place to add a bedroom might be a starting point.

    Leave a comment:

Working...
X