Is arrogance the key to wealth?
No!
Owning enough cheap real estate is.
When you have got enough of that you can own whatever car you like, be it an 84 Fairmont like mine that I CHOOSE to drive.
I dont think arrogance hurts if youre obsessed with making wealth at the expense of others .Sure you can rip off everybody you meet in the belief that there all chumps .But what do you do hide in a cave with every disgruntled person wants youre blood counting the money with no friends, lover ,family because lets face it friends, lovers & family are the first people they rip off its practice for the greater community & after all these people trusted them so you can gouge them for more.
I also work from the big to little end of town & i can asure you i expect to have trouble getting paid off the water front mansion than the pensioner out west. which i think has more to do sometimes with people overextending themselves finanacally .Before the gfc i was doing a heap of work on a new houses out at kellyville ridge when i went back after it hit every second house was for sale .
if my old folks owned their property,well i would soon be very rich.
unfortunate for me they sold up years ago and used the proceeds to live a comfortable life.
which includes for my mum around 80 cigs per day.
i could have better spent the money i'm sure on gear and trips to .....s of the ...ht.
when the crash arrives soon, the middle class are going to realise that life is not fancy cars,big houses,designer labels or expensive champagne.
having a roof over your head,food and water may be harder than you think.
go back to sheep,i mean sleep.
"How to become wealthy by being More Arrogant than you were" subtitled "the meek shall inherit bugger all" sounds like a best seller to me.
Please do the maths before you sell your house.
Rents are at an all time high, interest rates at an all time low.
What you pay in rent you will be saving little over paying a mortgage.
Whatever money you get from the sale, and what you save in rent vs mortgage presumably you put into an interest account. You get not much interest.
Property is a long term investment. The investment goes up and down, over time it has always gone up. For the last 2,000 years the most secure long term investment is property, and in particular the property you live in (well, I suppose the best investment is actually education and the opportunity you give your kids).
I would suggest you get financial advise from a rich person with happy rich children (who will no doubt own property) rather than somebody who is 40 years old and lives with their Mum in a rented house watching Youtube until 3 o'clock in the morning convinced that the only saviour to this planet is David Icke, the son of god sent here by the liazard king of an alien race.
^ next time you get cut off in traffic by an angry Merc driver just ask him for financial advice.
the problem as I sometimes see it is...
everybody seems to want to live like they are trying to impress someone else,
when we were growin up my parents never ever bought me a branded piece of clothing; I can count the amount of times we ever went out for dinner from the time I remember being alive to the time I moved out of home on one hand.
me and my siblings went to private schools but the family drove a beat up old falcon that was beat up before we got it and I'm sure they still had when I left.
I played tennis at an elite national level and never owned anything other than volleys (I still wear 'em now). my mum still chides me about beating 'poosis
we weren't even close to poor, mum's a bank executive and the old man fleets cars to mines.
I guess its all about perspective.....
Is a t-shirt that costs 50 bucks and made in china any more of a t-shirt that is made in china and costs 10...?
the big mistake I think anyone can make is to confuse being rich and being wealthy with an amount of money in an account or plastic crap in the cupboard...
and my biggest pet peeve is when someone tries to tell me how much they or someone else are worth..... the answer should be, the same as everyone else-- (except maybe politicians and kiddy fiddlers and people who worship money they arn't worth the air they breath )
You know something Doc, I am beginning to like you more every time you post lately. I cleaned toilets for a Summer in England with a guy who had more money than anyone I have ever met, I am talking 100's of millions. He stayed in a caravan, had a Labrador and drove a Hilux. We'd clean the cans and then go surf everyday, he loved it!
He always told me being a yuppy was an attitude not a bank balance.
Aaargh. You got a roof over your head, food on your table, a woman you love in your bed and something you love doing in your spare time, how much better than that can it get??
if i was you Mark,i'd take the hit now,will reduce your stress.
every year you are paying the bank interest.if the block does not go up in price, effectively interest payments a donation to bank.
in 5 years buckleys chance of house or land going up.
house prices are falling a bit under 1 percent per month in U.S
friend of friend, a woman, took a 1.7million loan from bank.
bought a block in Mandurah area and built large house,1 year ago or so.
land and house cost 2 million total.
had $300k of her own money,that she bought land or part deposit of land with.
after building,had property valued at $3,000,000.
a 1,000,000 profit? no.
a year later she has had one offer on property, for 1,200,00 million!
she accepted the offer. bank refused to let her sell.
she could not afford the interest repayments and just heard tonight she declared bankrupty.
so she has lost life savings of $300k plus a year plus on interest repayments on loan, maybe another 100k
bank is hoping property will rise in future so they can recoup their 1.7million.
won't happen.
Alot of these arrogant rich people are jealous as hell of people like you.
If you've got a decent missus good family that's worth billions. I meet some of rich people and some are in a bad way. On uppers and downers, medicated with antidepressants. They are not all there.
I've also worked with sociopaths, don't care who they step on. Unfortunatley they are so charming you would never know it. If you go deeper though, you will find they're family have disowned them and they can never really hold relationships.
I know a young multi multi millionaire and he's happy driving in a **** car, wearing thongs. If you saw him in the street you would never know it. Rare I know...
Although I agree with the "spirit" of Petermac33's story, the numbers don't quite add up.
If I look at the CBA loan calculator www.commbank.com.au/digital/home-buying/calculator/home-loan-repayments it tells me a $1.7m loan has repayments of around $12500 per month, so that needs to fit after tax and normal living expenses.
Besides the fact that there is no way a bank would loan $1.7m with only $300k collateral (unless there was other property involved), I also find it difficult to believe someone with a lazy $12k per month income would only have $300k in liquid assets (shares, cash etc).
Granted WA has a lot of jobs paying stupid money, but you would hope someone would have done some homework in to "the way things worked" before dropping themselves in to a $4.5 million dollar hole (see below).
Last I checked there was no need to spend anywhere near that sort of money in Sydney to buy something to live in, let alone in WA.
On the other hand, Peter's ideas on the cost of a loan are spot on:
Home Loan Summary
Loan amount $1,734,754
Total interest charge $2,765,237
Total repayments $4,499,991
Loan term 30 years and 0 month(s)
Lump sum repayment Not applicable
Home loan typeStandard Variable Rate
Repayments$12,500 per Month
Interest rate7.81% p.a.
Repayment typePrincipal and Interest
Yes, property in WA sucks. It is massively over priced. Due to in part I think to low government land releases and the last boom sending property soaring, so everybody now thinks they will get 10% growth each year so they buy on that basis.
Fortuntely I did the opposite of Mark.
Bought a house with seaviews in an outer suburb in 2003 for $170k. Went away to work in the mining boom, paid off the mortgage. 10 years later came back to Perth. House is worth maybe $450k today, probably peaked at over $600k judging by what the surrounding houses were selling for.
Then I tried to sell and buy a big block in Perth. Prices blew me away. I basically refused to be part of it so I looked further afield. Found some OK places, includung a house that backed onto the beach in Geraldton, which was OK price for WA, but alot money. Then looked at east coast. You get 10 times better value for money (maybe not waterside in Sydney, but everywhere else). Yes wages are much less on the east coast compared to regional mining WA, opportunities are less, but lifestyle is 1000 times better.
I guess I was lucky. In at the right time and out at the right time, and happy where I am now not wanting to climb any higher.
I think PM_33's view is a bit distored to apply the boom and ridiculus waterside Manduarah prices 3 years ago across the board. I would agree with him that I doubt those prices will reach those numbers again for a long time. But to me that was an exceptional situation of very limited WA waterfront property being released to a cashed up, low interest market after 5 years of exceptional growth.
Can't see my 5 bedroom brick house with seaviews on 1,000 sqm in Perth northern subburbs dropping below $170k anytime soon, what with the road upgrades, the rail getting there next year and the surrounding bush being developed with schools, shopping centres, industrial estates and 300 sqm residential blocks.
Bought mine at 22 years old when I was at uni in 2001. I lived in poverty for the next few years. Serious poverty.
Now I own a place 200 steps from the beach. Pretty cool pretty cool.
ps I would not buy a house in Perth at the prices they are now. No way.
Carantoc,
I'll give you what you paid for it so you have made no loss, and you can feel all benevolent and stuff
Deal?
pweedas i dont own any silver as i used the 5k i had in silver to buy w/surf gear with a year back when price was about what i paid for it $18 per ounce.
i'm poor as ...., content i have a car and my w/s gear,enough for me.
the price of silver year has gone thru the roof,steady around $18 per ounce to $49 peak.now around $35,still double what it was,although US dollar has dropped so less than double.
will drop maybe to $30 then back go to to $60.
my friend who has 200k in silver roughly, believes price will hit $150 per ounce within 5 years. i agree with this.
a precious metal for so cheap $35 per ounce,makes sense to me.
i begged my older sister 3 years ago at peak to sell her house,she got a offer without even putting house on market for $600k in bullcreek.
i then said put it all in silver,price then $12 per ounce roughly, she could have been a millionaire but as always no-one listens to me.
i don't not know details of woman who lost her $300k,but will say back then getting a loan of $1.7m with $300k collateral may have been possible,although likely with some other guarantor involved.
heard another case of property investor getting $3million loan to buy property in cottesloe at peak.
not sure of current valuation but think to get property actually sold my friend thinks he would be lucky to get $2million now!
have heard you can walk away from mortgage in U.S if debt owing to bank is greater than value of property.
^^ Hey Pweedas, stick with the silver. As I understand it silver has allways been one fourteenth the price of gold. This situation comes about because silver is fourteen times more abundant than gold which is the benchmark for value.
The silver price was manipulated by two of the big global banks shorting it's price. A whistle blower at the bank exposed the scam and silver started to rocket.
The paper money guys hate precious metals because they expose the value of fiat money. I have so much trouble explaining to friends about gold. Gold does not fluctuat in value, ever. An ounce of gold cannot rust, won't lose weight. It just is. Allways been a fascination for it and it is valued by it's scarcity and the effort required to attain it.
Dollars however, they change all the time, and currently they are losing value pretty rapidly, all manner of dollars. The gold folk, they know this. So do the silver folk and it does not take a degree in maths to work out that if silver is to regain its 4000 year value it is going to go quite a lot higher.
I follow this guy with quite a lot of interest:
www.moneymorning.com.au/
But what you are not accounting for in the price of silver is that historically silver and gold had about the same uses - investment and jewellery.
Now gold is used in every electronic item made, silver is to a much lesser degree. That is a lot of gold used thatnever had a use 50 years ago. Also the billion people on the Indian subcontinent love gold, they do not love silver to the same degree. As they become wealthier they can afford gold. Hence gold has more demand today as a percent of silver than it ever had in the past. Why would that not continue ?
I would suggest that as gold as a percent of silver is more useful now than in the past, the 1 : 14 ratio may not continue.
Look at the ratio of say gold to tantalum over the last 50 years. Wodgina6722 would be able to present the figure I am sure. Same reason for increase in value of tantalum. It has more uses than it did, more demand, so higher price.
** disclaimer : do not take my advice on investment in precious metals - seek idenpendant expert advice**
By the way $300k collateral on a $1.7 million mortage is 82% borrowing.
You could get this from any mortage lender.
Back in the days when they were drunk with credit you could easily get 95% lend, some places were even giving above 100% lend.
