I can afford a house

[tech/a]

Winner.
Balance-Passion-Opportunist-Entrepeneur-Optimist-Leader-Role Model-Philanthropist.

Money just comes along.
its a bi product of Balance.

Rather than wondering analysing and argueing why,Simply teach those who need it most to cope and even take advantage of what they have.
All the concern in the world wont alter the situation,its here to stay.

Ostrich or optimist?
Pessimist or opportunist?

98% of the world talk the other 2% DO!
We are fortunate enough to be in the position to take advantage of this wonderful world,in a wonderful country yet we continue with pettry rubbish about how hard it is.

Hop on a plane to the Sudan or Ethiopia and get a whole new perspective of how damned rich we already are.Living on the dole paying rent and talking the talk.
Every single one of us are Winners---yep plenty of losers in this country.

 

[Julia]

Thinking of future generations is being a loser?

Suppose it depends on your definition of a winner.... He who dies with the most toys wins? I have a name for this sort of person, and it ain't "winner".

If we examine why and how the $100,000 inflation happened, concern for the next generation is valid.

Wayne, I'm a bit puzzled about why Tech's apparently successful investing philosophy is depriving future generations. Could you expand on this?
I've had the impression that Tech is more than prepared to share his experiences and help others who demonstrate some preparedness to show initiative, and surely that's a good thing?

Isn't he setting a better example to the following generation (particularly his own children) than someone who has spent most of their adult life on the dole because they can't be bothered to do anything else?

Nothing wrong with having a positive attitude and believing in yourself instead of constantly telling anyone who will listen about how tough things are.

 

[wayneL]

Wayne, I'm a bit puzzled about why Tech's apparently successful investing philosophy is depriving future generations. Could you expand on this?
I've had the impression that Tech is more than prepared to share his experiences and help others who demonstrate some preparedness to show initiative, and surely that's a good thing?

Isn't he setting a better example to the following generation (particularly his own children) than someone who has spent most of their adult life on the dole because they can't be bothered to do anything else?

Nothing wrong with having a positive attitude and believing in yourself instead of constantly telling anyone who will listen about how tough things are.

Julia,

If you look at Techs post that I responded to to:

Oh God!
Another head in the sand Stuck in the shoe box un imaginative woe is me and my kids Ostrich.

Think/act like a loser and you'll remain a loser.

It was not sharing experiences and helping others who demonstrate some preparedness to show initiative. (Which I agree is a great thing) It was designed to insult the previous poster. I strongly suggest that life is not as black and white as indicated in the subsequent sermon.

There is nothing wrong with money, building business, investing and attaining wealth; in fact I recommend it. But I am also a believer in social responsibility. The current house price boom is at a great sociological cost to the younger generations... and current generations who are non-entrepreneurial.

Not everyone has the educational and familial background, aptitude, skills or desire to be a hotshot businessperson

This is what bean (albeit clumsily and simplistically) was alluding to I believe. It didn't warrant the slur that Tech dished out to him. Concern for our youth is not "loser" thinking, it is commendable.

By all means support tech when he does good, but for heavens sake, don't reward bad behaviour.

 

[tech/a]

The "Other" poster,Baen is one of the most negative I've seen post here.

I dont pussy foot around in life,people know exactly where they and I stand on any issue.

Bean and a few others here need a wake up call.
If you wish to support whinging/whinning and negativity go right ahead.

I make no apologie to the Beans of the world.

You've one shot at life.
Understand that only YOU can stuff it up or make it the best it can be.

People forget how well they're off,they have no idea there place in life on the planet.I dont care how badly off they "THINK" they are there is ALWAYS someone worse off.

This sort of post

FOR EVERY $100,000 YOUR HOUSE HAS APPRECIATED YOUR SON OR DAUGHTER IS NOW ANOTHER $100,000 IN DEBT

Has no direction. Post it sure but give/suggest SOLUTIONS.
Like some of my employees,eager and ready to point out issues and problems and promptly leave them to someone else to solve.

There are those who add to society and those that subtract.

 

[theasxgorilla]

Money just comes along.
its a bi product of Balance.

On this point, in an expanding economy money comes along because of imbalances. Whether it be debt imbalances and asset price inflation like Bean is referring to or the supply/demand imbalance on the ASX pushing stocks to continuous new highs or the Aussie dollar being nearly double what it was just 6 years ago.

Collectively, as a nation, Australia's economy is exposed to the massive imbalance that is a natural resource hungry China. We should remember this a little more before we go pronouncing how clever we are because we're rich now.

Wondering or analysing or arguing about whether ideas are good can't be reduced down to a lowest common denomination by just asking how much money they made. This is called "outcome bias"..

 

[bean]

A little bit more of the article

You did not work for that money or the gain, it was not produced through real effort or production and please remember that for every $100,000 your house has appreciated over the last few years, is another $100,000 that your son or daughter is further in debt to be able to afford the same house. Most of my generation the boomers act like a bunch of freeloaders, we want quick and easy, risk free profits WITHOUT WORK.

 

[krisbarry]

Oh no, this thread just got active overnight...the haves and have nots are at it again!

I am with Tech/a on this one, stop whinging and do something about it. I am and its working well. There is more than enough proof that even on a low income you can save and can afford a house!

 

[tech/a]

ASX.
I'm aluding to Personal life balance not economic or social balance or as you correctly state in balance.
If people are Balanced in their own lives they are more likely to take advantage of in balances in specific sectors.

Bean
I'm one of them.But realise to be in the position to take advantage of these opportunities that RARLEY present themselves you'll need to be one of the minority often for many years.Battling away making ends meet,doing it hard but with "Intent" of grabbing a hold of opportunity when it presents itself and bleeding it for all its worth.
Take a look at Kris (Stop) Same guy altered attitude.He's taken control.

Stop
Did you see the last Property investor mag.Check out the YOUNG entrepeneurs written up in there and their stories.
Frankly I think youve taken a giant leap psychologically,youve obviously made the decision to take control of your destiny.
The greatest investment you'll ever make! When your Kids come along you'll have much to offer and I dont mean $$.

Kris just one observation.
While what your doing is excellent it is very restrictive as you cant release your equity in the fund to access other peoples money (leverage and or inclusion in other assets). This could well change. Let me give you an analogy.

If you own 1 house capital appreciation at BEST keeps you in line with property values and is not readily accessable money.
Own 2 properties and you have much more freedom to take advantage of opportunity.
Own Multiple and your away.

Now take away the term Housing and replace it with Profitable Stock Portfolios and the very same applies.

 

[krisbarry]

Kris just one observation.
While what your doing is excellent it is very restrictive as you cant release your equity in the fund to access other peoples money (leverage and or inclusion in other assets). This could well change. Let me give you an analogy.

Not true at all, sure restrictive in the sense that certain rules apply to the access of the money, but I am sure as hell using other peoples money. Its a geared fund, hence the term using other peoples money applies in this case.

Gearing is growing my wealth immensely

Current gearing ratio on my fund is 56%

 

[tech/a]

Kris.

True as a geared fund you are then taking advantage of OP money.

But if you think about it a little deeper WHEN YOU ARE in the position to Better take advantage of your capital you can better utilise this powerful Tool (OP Money).

Have a read of that mag.

 

[Julia]

Julia,

If you look at Techs post that I responded to to:

It was not sharing experiences and helping others who demonstrate some preparedness to show initiative. (Which I agree is a great thing) It was designed to insult the previous poster. I strongly suggest that life is not as black and white as indicated in the subsequent sermon.

That's a fair comment. I agree that the language used was unnecessarily perjorative. What I was referring to was not that particular post of Tech's but rather the many posts on many subjects he has made over the years which have been a genuine attempt to share his knowledge and experience.

Not everyone has the educational and familial background, aptitude, skills or desire to be a hotshot businessperson

Perhaps your own language (e.g. "hotshot") could have been more tactful if that's what we're on about. And you are right, not everyone does have the background to be successful. But still, a lot of people with no good role modelling at all do manage to do very well indeed. Why? My answer would be purely and simply their attitude. I think this is what Tech was attempting to point out.

And yes, as he has pointed out, Kris is a great example of this. For years he moaned and whined about how it was all too hard, but now - although in actual dollar amounts there are people on this forum who have poked fun at him - that's just not the point. He has changed his attitude, has a goal, and is intent on reaching it.

This is what bean (albeit clumsily and simplistically) was alluding to I believe. It didn't warrant the slur that Tech dished out to him. Concern for our youth is not "loser" thinking, it is commendable.

I'm not making any comment about what bean has or hasn't said, but I do think it's simplistic and less than accurate to say that because the baby boomer generation are all wealthy and socially irresponsible (both these propositions imo are silly generalisations and not correct for most of the people I know) they are to blame for young people having difficulty getting their first houses. What most people are also failing to mention is the inherited wealth that will be passed on to the next generations when the baby boomers (those of them who actually are wealthy) are dead.

By all means support tech when he does good, but for heavens sake, don't reward bad behaviour.

I have explained above what I was supporting.
I am exasperated with being labelled wealthy, socially irresponsible, and uncaring because I am a baby boomer.
I can understand Tech becoming exasperated with similar comments and the whining which does go on from people who don't take advantage of what opportunities there are. (Not meaning bean or anyone else in particular here.)
So sometimes - possibly as you have jumped on me here, Wayne, because you have a sore back and in the middle of other stressful stuff at present -
we do just jump back and in the process use language which we could have modified.

Here endeth any defence of Tech-A.
Here also endeth my rant about baby boomer generalisations.

Julia

 

[wayneL]

Perhaps your own language (e.g. "hotshot") could have been more tactful if that's what we're on about.

Perhaps it's because of my hybridized cultural beginnings and vernacular thereof, but "hotshot" is a complimentary colloquialism where I come from. If that word is deemed to be pejorative in this country, then it is simply a misunderstanding. I consider myself a hotshot, so how's that?

I'm not making any comment about what bean has or hasn't said, but I do think it's simplistic and less than accurate to say that because the baby boomer generation are all wealthy and socially irresponsible (both these propositions imo are silly generalisations and not correct for most of the people I know) they are to blame for young people having difficulty getting their first houses. What most people are also failing to mention is the inherited wealth that will be passed on to the next generations when the baby boomers (those of them who actually are wealthy) are dead.

I have explained above what I was supporting.
I am exasperated with being labelled wealthy, socially irresponsible, and uncaring because I am a baby boomer.
I can understand Tech becoming exasperated with similar comments and the whining which does go on from people who don't take advantage of what opportunities there are. (Not meaning bean or anyone else in particular here.)
So sometimes - possibly as you have jumped on me here, Wayne, because you have a sore back and in the middle of other stressful stuff at present -
we do just jump back and in the process use language which we could have modified.

Here endeth any defence of Tech-A.
Here also endeth my rant about baby boomer generalisations.

Julia[/QUOTE]

OK, maybe there is something else I have missed here. (there is, just re-read) the thread) I did not pick up that the thrust of the criticisms were directed at Boomers.

I also reject this notion. Though the Boomers have been the main beneficiaries of the recent economic conditions, it is not their fault in the slightest. ANY generation will capitalize on the opportunities put before them, Boomers, Xers, Yers, Zers or whoever.

My great gripe is with the primary institution, and those individuals within, who are responsible for the rolling bubble conditions culminating in an unsustainable and sociologically deleterious house price bubble built on massive debt, and that is the US Federal Reserve (with the complicity of other western CBs).

In this sense, current generations will be handing on debt to the next. (but I repeat it is not their fault, group-think and social proof overpowers the logic of individuals) It is not just the boomers, but also the greatest generation, who came before them, and the Xers after them. We're all in it together.

So the choice now, is what we say to all our children and grandchildren:

1/ **** you, we're rich, or;
2/ We really need to address the current imbalances... urgently!

It's the individuals choice, because The Fed/Governments will attempt to keep blowing bubbles until Armageddon.

Most people choose option 1/, not necessarily because they are greedy, but because of a lack of understanding of macro-economic vectors over long terms.

That leaves future generations to contend with either a landscape of overinflated asset prices, or the consequences of a severe correction of the same, perhaps both. Either way, the result will be surplus debt (in real terms), over and above what was expected of previous generations.

In conclusion, it's the CB's, not the Boomers.

Now regarding inheritances. It is true that many will benefit from the demise of their parents. Two points on that.

* Do we want a society where the fortunes of an individual will depend on inherited wealth, as was the case in agrarian Europe, or do we want to continue on with the principles of a meritocracy? By playing the inheritance card, we will be defaulting to a previous, harsher era. I certainly do not want to see that, a society where people will be so happy when the olds kick the bucket, dreadful thought.

* With todays longer lifespans, folks are waiting a long time for it. Most would be well into their 50s at that point. Not a realistic opportunity IMO.

So I will always choose 2/, even if at present, I am a minority.

 

[tech/a]

And how then would you address the problem what practical and feasable solutions do you suggest be considered Wayne?

I think if you consider it enough you'll find that any solution will create another problem.
But happy to see what you suggest.

 

[wayneL]

And how then would you address the problem what practical and feasable solutions do you suggest be considered Wayne?

I think if you consider it enough you'll find that any solution will create another problem.
But happy to see what you suggest.

There is no "easy" way out of it from here. Will discuss a bit later.

 

[robots]

hello,

nothing to get out of, seriously

plenty of houses everywhere at affordable prices, and those who save hard and work hard just like our parents and grandparents before will enjoy the fruits

the hand out crew will still be around claiming things arent right, this doesnt follow my economic readings

thankyou

robots

 

[wayneL]

hello,

nothing to get out of, seriously

plenty of houses everywhere at affordable prices, and those who save hard and work hard just like our parents and grandparents before will enjoy the fruits

the hand out crew will still be around claiming things arent right, this doesnt follow my economic readings

thankyou

robots

As we now know you are an industry VI, we can safely ignore you as being biased.

 

[BentRod]

Hello,

I agree Wayne.

Thankyou.

Bentrodz.

 

[It's Snake Pliskin]

As I would never buy property for appreciation alone, I would like to see prices drop considerably to make it affordable for younger potential buyers.

 

[It's Snake Pliskin]

It's not just the cost of credit (interest rates), it is more the availability of credit (lending criteria)... also the desirability of credit.

For e.g. Look at Japan, negligible rates, yet still a deflationary bust.

Wayne,

According to that cool economic guy in Hungary, Japan has been in and is still in and may still be in for the future, a prolonged bust - 17 years now. The effects need to be fully felt yet haven't.

Money in the bank here is dead.

 

[tech/a]

Well no solutions yet.

No different to when I bought my first house earning $26/week.
Same scenario different yet similar numbers.
Same warnings,same waiting for a drop in prices,more concern about interest rates and affordability (Thats yet to come).

If you want to own a property or 2 then do something about it.
If you dont----stop whinging about why everything in the world makes it impossible for you to do so.