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The Forum > General Discussion > What motivates us to invest

What motivates us to invest

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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.
Posted by individual, Friday, 7 October 2011 7:09:09 PM
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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.
Posted by Hasbeen, Friday, 7 October 2011 7:41:50 PM
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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!
Posted by rehctub, Saturday, 8 October 2011 5:31:04 AM
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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.
Posted by individual, Saturday, 8 October 2011 7:20:11 AM
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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.
Posted by sonofgloin, Saturday, 8 October 2011 9:37:07 AM
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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!
Posted by rehctub, Saturday, 8 October 2011 6:17:24 PM
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