renovator, Firstly just to make it clear, I wasn't trying to patronise you by sarcastically calling you a genius. The point I was trying to make is it would be hard to reach your true potential without learning from other people. I made the mechanic analogy to raise a question about a hypothetical person who had no knowledge in a particularly field. No doubt you learnt a lot from your father, but what's the difference between learning from your father, or someone else's? To me reading a book is no different to asking someone's advice who is more knowledgeable than myself. When you were a teenager you may have been able to 'tinker' with cars or old engines without too much consequence if something went wrong while you were learning. In regards to your personal finance, if you make a mistake because you don't fully understand what you are doing, you can lose money. A mistake that could have been avoided if you took advice from other people. I think we're just going around in circles here. We might just have to agree to disagree with each other. I have read a lot of books on various topics and while they all may not have been helpful, I don't regret reading them as I now have the option whether I want to use or believe what I have learnt. And what you do with cars and bikes sounds very interesting. When I was a teenager I was always into fixing and playing around with my cars. Now I'm more into motorcycles (hence; LeadWrist) but these days just don't have the time to give her the love and affection she deserves.
No worries .I felt i needed you to see why i dont feel the need to read finance books & worship gods .There really is nothing that MM or others have to offer that i havent already learnt from others already about running a business or keeping your finances in check . Iam well aware that there is more than 1 way to skin a cat .I have just been doing things my way successfully for a long time & it works so why would i change plans When the system ive been using works You say what if i make a mistake because i dont fully understand what im doing ...Thats where commonsense comes into it ...I wouldnt attempt something i dont fully understand or get involved with blind faith .So i stick to what i know seems simple to me you cant know everything so its best to leave it to those who do know.What i know can fit on a note pad what there is to know will fill a library .My point is you dont have to know everything about everything to be successful & i feel that is where some go wrong they know to much about a lot and not enough about the things that matter & most of the things that really matter in the real world cannot be learned from a book only experience.So read on & enjoy.... its just not for everyone
I'm guessing he makes at least as much as any other bullion dealer ... they have a healthy spread between buy/sell prices and thats how they make their money. Of course if they believe in what they're selling you they will then take those profits and purchase bullion with it ... to store and leverage their own wealth. Its a very lucrative industry to be in at the moment and i think it will remain so for a long time yet.
"The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." Cicero , 55 BC For those who say that history is no guide...I'd recommend hitting the books. Sooner rather than later. Dan
I think that is the point - they did not follow this advice - and continued down the road of spending money they didnt have ... just like the current western nanny states.
who knows it was almost 2k years ago but the point is that people will always make the same stupid mistakes
I like the Mortgage:Rent ratio explanation, yet I think it needs to be more descriptive. Is that "Interest Only:Rent" or "Principle and Interes:Rent" Those are two very different ratios! For instance, a $320,000 studio in Camperdown Sydney rents for about $400/week. Based on a 90%LVR mortgage at 7.5% interest That would give; a IO:Rent of approx 1.03 a P&i:Rent of approx 1.22 Depending on the definition, it could be said that now is a good time to buy small apartments in Sydney near Universities.
Now is NOT a good time to buy any real estate anywhere in Australia. The bubble is on the cusp of bursting, with sales DOWN and inventory UP.
Yeah, I would have liked the graph better had it come with less predjudice. This "buyer strike" wont work by the way. It actually creates the reverse and makes people think now IS a good time to buy with a perception (wrong or right) of less buyer competition. And Who exactly are you trying to benefit by striking? Someone is gonna get hurt. Who are you to say that current vendors should hurt instead of future buyers? Somewhere along the line you will need to ask the question "Is promoting a buyer strike ethical and in the best interest of individuals of the nation?"
Spot on Renovator! Bullionbull, lets not start with too much self congratulations about being the catalyst of less buyer activity! This pull-back commenced long ago and could be foreseen in the charts of lending volumes each month which have been down. This doesnt mean its a "buyers strike". If it were a buyers "strike" there would be all these people saying "I have the capacity to buy, I have the desire to buy, but dammit I am putting my foot down and NOT buying!" Do you see families visiting homes and having the conversation "Wife: Oh, honey, this is perfect! We can afford it too. Wow, I cant believe we have found this incredible home, lets buy it! Husband: Sorry babe, I know you like it and it ticks all the boxes, but didnt you know? its a buyers strike. We are just gonna have to hold off on this. Its the principle of it. Dont worry, it wont sell because all the buyers are on strike...We can come back when the strike is over and buy it. Lets go home and enjoy some quality family time together" No, this isnt happening. Buyer Capacity is down. Ie ability to get lending and the ability to raise a significant deposit. Some investors desire is down due to uncertainty in the markets, better opportunities elsewhere. Buyers who have capacity and desire are...(drumroll)...BUYING!
I could point you to numerous press articles that say the opposite, but you're clearly a property investor with set opinions, so I'll pass.
Well lets see. We have millions of new teens and adults looking to buy now and in the near future who are priced out, so yes affordable home prices are in the best interest of the nation. Investors and new home buyers who were dumb enough to overpay for their home get less priority IMO even though I dont want them to get hurt, but hey its everyone man for himself in this world so yeah........crash baby crash!
I'm not sure this is really a matter of ethics, more a competition of interests. The current prices are not in the interests of young people who aspire to own a home. It is simply unaffordable for a very large proportion of the young people I know. On the other hand, a crash is not in the interests of those who already own property. I'm counting on age and the passage of time to be the undoing of all those IP owners. They have to sell sometime, they're not in it for the rental yields. They have to sell to a market that is, on average, younger. We'd have a hard time coughing up these prices. Maybe prices won't fall much, and rental yields will rise instead. Don't know. Since I signed on to the buyers' strike I can speak for my motivations. Housing is an illiquid market, and all illiquid markets are prone to overshoot and then overcorrect. I sense an opportunity, and in the same way a hedge fund might start a rumour when they are shorting a stock, I'll do anything I can to provoke the fear that will bring about a crash. Is that immoral? Maybe. But those who want to keep real estate propped up have access to far greater weaponry than I do. I'm pretty sure some of my taxes went into those FHOGs. In whose interests was that? Not mine, I assure you. Yes, I'm aware a housing crash will hurt the economy hard. Banks will cut back on lending, many small businesses will fail, large ones will downsize. Pretty sure I will live through it just fine though. My line of work is as safe as houses
