Are we born with the jene to succeed, or, do we get inspired by others, like I did, and think, he can do it, why can't I!

I was not a bright kid at school, that's using the systems idear of bright of cause, however, since I met my now wife of 26 years, I promised her I would work hard and set us up for retirement, which I did.

We have had some bumps along the way, even the odd mountain to climb, however, as life partners we have always headed for a common goal, and that's to make sure our now grown up kids are off toma good start, and provide ourselves with. Modest retirement income.

I just hope we don't have it taken away by some future government, but who knows whats in stall.

So are you an investor, or, do you prefer to go at it steady and retire on. System, or what left of it anyway.

It would be nice if the tall poppies could refrain from having a shot!

BTW, just for. Record, I am not rich by any means, other than the fact that I hav a great family to share my dreams and desires with.

WTF?

Sadly rehab here is a quote from today's new:

Financial experts said however that the Bank's quantitative easing would be a “Titanic” disaster for pensioners, savers and workers approaching retirement.

Read more: http://www.news.com.au/business/gigantic-comeback-as-markets-cheer-bank-boost/story-e6frfm1i-1226161000317#ixzz1a4VhNU36

part of my motivation to invest is I believe Governments have not got peoples interests at heart anymore. The idiotic notion that you spend your way out of recession has even some commomsense people blinded by the 'science is settled' economist. Its hard to accept that grown ups fall for this nonsense. After growing up in a somewhat welfare dependant home I don't want that for my kids. Ultimately my greatest investment will be the amount I give to the poor.

40 years ago I made the decision to invest my life in Australia. Hopefully, one day I'll break even.

Dear Rehctub,

Nope. I don't believe in investing any more.
Not since my mum lost so much of her money
in various supposedly "safe" schemes.
One thing I might consider investing in
one day is - property. That is when (and if)
I get enough money stashed away.

cont'd ...

At present my investments consist of
long term deposits with a credit union
which is guaranteed by a bank and the
government. It's not risky, it guarantees
a reasonable return, and I don't have to
worry about rises and falls in the market.

The main motivation for investors is to make money for doing nothing but wait. It has worked for many but even more paid a huge price.
My friend left Australia & instead of paying rates & worry about tenants he invested the whole lot & lo & behold the outfit went bust. He lost everything. Another friend invested his house in that same investment Company & he lost it all at age 60.
Then there is the other type of investor, the one who profits from others' dilemma of not being able to buy their own home, the landlord.
I lost too much through theft to ever recover to a reasonable life in my own place.
I feel very much as let down as many fire & flood victims. I don't think I could get myself to hand over what money I have to someone who promises to give back more than I gave.
It's easy to say that greed is what entices people to hand over money & yes it is greed but, with the economic mismanagement in the past few decades many people don't really get any other choice other than risk everything.

My father had to guarantee my first home loan, as I was under 21. Since then I have always owned some real estate, even when I was out of the country.

None was bought as an investment, as I always bought somewhere I was going to live or build some day. I never bought just to resell, so I always bought good bits of land. As I kept finding better spots, I sometimes had a few blocks.

As a Yachty, I wanted waterfront, & also as a yachty, I often found some nice obscure spot, only to have it "discovered" not that long after. This was at least profitable. That was just as well, as I never made that much money in my day jobs.

Right now I think a few thousand gold sovereigns buried in the back yard would be a good way to protect what ever wealth you have, & hedge against inflation, in a rather troubled world.

Ar, the terrible landlord always gets a mention, hey!

I just wonder where people would live if there were no landlords.

There are those who suggest house prices would be lower if not for investors, well, maybe so, however, our building industry would also be in pretty bad shape.

Price is not always the reason why many don't buy a house.

I say this because just ten years ago a modest house in the bris suburbs was under $200K, very affordable indeed.

Most people who don't buy a house is due to them not wanting to commit, or, by the time they pay their other sundry loans, there's simply insufficient income to service a home. Wants and needs is a sound part of investing.

Negative gearing is getting a mention from our old mate sual again.

Be carefull what you wish fo Saul.

I tried hard to convince friends to invest in rural towns, Miles, Roma, Wondoan,they said, I don't want to live there!

I told them investing there had nothing to do with living there.

Land in 2003 was $7,500 a lot. Today, $200,000.

A house in Wondoan was $44,000, today, $300 to $400,000 and rents for up to a grand a week.

Some purchased shares instead, even though they can't live in those either.

Then there are the likes of Storm investments.

I was introduced to them and, when I questioned the fact that they were lending money on borrowed money, they didn't lik it an chose not to comment.

Another tip on investing is, if it looks to good to be true, it most likely is.

I also like the Italion philosophy, don't take advice from anyone who has less money than you do.

The next time you get a visit or call from someone wanting you to invest, simply ask them how much they hav invested and how is it going for them.

BTW, 95% of the population (adult) invest in high risk investments every week, it's called, Loto!

I just wonder where people would live if there were no landlords.
rehctub,
in their own houses, houses with would become available at affordable cost if the investors didn't buy so much property, sit on it & sell for double or more. I recall in Port Douglas where the average block was about 6-10 grand before the Skase/Morris development & literally overnight the blocks went to 10 or even 20 times above original purchase price.
Now, the suburbs up the road are getting more expensive literally by the minute. That's not economic at all, that's insanity.

Rehctub what motivates us to invest is disposable income, and the last time the plebs had disposable income the big end of town took it off them via Telstra.

Indi, most people could afford a house, perhaps not the house, but a house in anyncase.

It's just that by the time the pay for everything else they don't have the money left.

There ar many options but they often choose to spend their money elsewhere, and not always on basics.

As for port Douglass, imwould suggest now is the time to buy if you want to live there, as many investors have been badly burned.

Airlie beach is another very affordable area now.

Hats stopping you!

We as a married couple, decided on goals which were achievable, commensurate with our income. It worked out well, in 1996 we both moved to a sea-side town, built a house before we retired, and we were totally debt free. We have never looked back. We taught our kids that the high life just doesn't happen, it is a gradual process if that is what they aimed for, however, all three kids when married settled on buying old State Housing homes, from thereon, they purchased better homes as they had children. They all live within their means and none of them have to stress over mortgages, etc. They are able to pay their way(s) through life. They also know that happiness doesn't come with materialistic dreams, it is being content with what they have in life, no debt, good health and happiness.....trust me, it works.The best 'investment' these days is a house. From what I have observed, the McMansions, 4x4's etcetera are the things which destroy young hopefuls.

NSB

Hay Rehctub, what is land at Airlie worth these days?

When I first sailed in there, Shute Harbour, [the island port], had only 6 moorings in it. I could have bought a house/weekender holiday cottage in the main, drag at Airlie, for A$3500. The people who did, removed the house by truck, & built a 6 room fibro motel.

Mooloolaba was the same. The kids Sabot sailing dinghies were stored on the ground floor of the yacht club, & their races were held where the marina fills the river. The canal estates were cow paddocks. Vic Myers old Solo, & my yacht both went aground on spring low tides, anchored there, for a few days each month.

The prawn trawler men were members, & some would bring a crate of prawns in for snacks most nights. I hope they all bought real estate, as it would have made more than fishing for them.

If we'd just had a decent crystal ball, Bill Gates would look like a pauper compared to us. No wonder people invest.

Hi noisy, I agree you should cut your cloth well, but some luck in timing can help.

My eldest daughter, & her husband bought a quite nice suburban brick veneer house in the Gold Coast middle suburbs, about 18 months after she was married. The market was booming, & they jumped in at $160,000.

Less than 3 years later, needing more room, they sold it for $390,000, & built themselves a really nice, larger but not Mcmansion, house. This has also appreciated about 25/30%. They are smiling.

My son, 3 years younger, paid over $450,000 for a home similar to his sisters first home, & although not struggling, finds the cost of his mortgage rather restricting in his life choices.

The youngest one, 6 years younger again despairs of ever being able to afford her own home.

In the mid 80s I bought a 2.5 acre river front block, near Maryborough, & put a house, shed & jetty on it, all for less than $100,000, doing a lot myself. I noticed recently it was on the market for something over a million. I really think it was easier for us oldies.

Has been, I agree it was easier fo us, but mainl because credit wasn't so readily available to so many who really can't afford it.

Now as for land in airle, well, wher do I start.

I invested ther myself.bought on block, di quite a bi of dough, bought smother an cleaned up, then, I felt the wheels were about to fall off, so I pulled out, all but on unit.

Land went from $90K to $450K in the space of 6 to 7 years, now it's back below $200K.

Timing and reading between the lines ar very important if one wish to do some speculative investing. Knowing what drives the market ar very important.

Imfind that when times are tough, capital cities are generally sound investments.

I think some people approach investing with the wrong perspective. Many think it's all about buying and selling and making a capital gain. While growth is always nice, I approach it from an income point of view. The most important thing is to educate yourself about financial matters. Read books. Get them from the library and study some of the basics. Understand the magical power of compound interest, read biographies of people like Warren Buffett and his mentor Benjamin Graham and see their attitudes and advice. Nothing is simple straight forward and easy and making money in any field takes time unless you want to take risks and gamble. It takes time and as long as you research your investment and don't just rely on hunches or tips from a mate, you should progress comfortably.

Everyone is too keen on making quick profits, because they don't want to put the time and energy into looking after their investments. I have nothing against real estate investment, but from a personal point of view, I avoid it because I find the yield is not high enough, it is not liquid enough, there are too many taxes attached to it, too many ongoing expenses and can be a real hassle looking after it and getting good tenants. That is not to say that the stock market is less time consuming as I probably spend a couple of hours a day reading and studying. I am conservative, only look at large established companies with fully franked dividends that give me imputation credits and a minimum return on equity of 15%. A couple I am looking at at the moment are Westpac and Telstra with grossed up dividends of over 10%.

Continued....

I like to diversify, (that is my problem with real estate as too many eggs are in one basket) so one can't just forget about things you put money into. Mistakes are made, but you learn from them and hopefully, don't lose too much at any one time. I also avoid all derivatives. Warren Buffett famously said they are "Financial weapons of mass destruction" While the financial downturn has affected the value of my portfolio, My income effect is little changed as banks and large companies such as Woolworths, and BHP continue to make profits which they distribute.

Think long term, start early and make sacrifices to build a nest egg and be patient while keeping to the same strategy. It has worked for me.

Hi Hasbeen,
Things were different in 'our days', despite the fact that interest rates were very high proportionate with wages of the day. I feel sorry for the kids today, to invest (as some of them do) in large houses thinking that it is an investment in the future might blow up in their faces, as utility rates might be so high, that they might not be able to sustain those dream houses, I am glad that I was born when I was, we did without a lot, but life was less complicated. People actually spoke to each other, even if they were perfect strangers....Oh Dear! I am sounding like my beautiful Mother, she passed over a few years ago.
Have you been sailing lately?, we do not own a boat at the moment, we just sold our Plymouth Pilot a year or so ago, boohoo, but we lack the agility that we once enjoyed. That's Life I guess.
Cheers Hasbeen,
NSB

Snake, there has long been debate about shares V property.

Shaw, shares are very liquid, however, I find many investors will sell shares when they drop, whereas, they tented to ride the storm out if the value of property drops by the same values.

It's the old saying that you can't sell a bedroom on your house, the one share market advocates often use.

A real modern problem, which I feel is a major concern, is the ease at which home owners can re-draw on their home loan to buy what are essentially nothing items, such as holidays, white goods, plasmas and the like.

IRS not so bad if ones debt to assett ratio is around the 50% mark, but many often max out their equity and, it's when property values fall that that's a worry.