norseman
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Post by norseman on May 30, 2022 6:44:59 GMT 10
It’s true that you can’t bug out to a bank account but to act like there isn’t a lot of opportunity cost associated with buying the block- not to say the block is a bad option just that it’s interesting how willing people are to tie up a large portion of their net worth into what can be a money pit. Unless you have bees apparently… I need bees. The land was 82k the house I built on it was 120k I've knocked back offers of over a million plus recently and as far back as ten years ago.
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d
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Post by d on May 30, 2022 7:27:37 GMT 10
It’s true that you can’t bug out to a bank account but to act like there isn’t a lot of opportunity cost associated with buying the block- not to say the block is a bad option just that it’s interesting how willing people are to tie up a large portion of their net worth into what can be a money pit. Unless you have bees apparently… I need bees. The land was 82k the house I built on it was 120k I've knocked back offers of over a million plus recently and as far back as ten years ago. That’s great but that’s not able to be replicated reliably. That’s great that you got a good result but your example isn’t the standard, tons of blocks you can’t build the house on, many blocks don’t appreciate at a rate that is an effective use of the funds.
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norseman
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Post by norseman on May 30, 2022 8:06:46 GMT 10
The land was 82k the house I built on it was 120k I've knocked back offers of over a million plus recently and as far back as ten years ago. That’s great but that’s not able to be replicated reliably. That’s great that you got a good result but your example isn’t the standard, tons of blocks you can’t build the house on, many blocks don’t appreciate at a rate that is an effective use of the funds. Mate I'm not interested in it being replicated and my "result" is the standard! Back in the day where I live you could buy houses for $40,000 they now sell for $700,000 it took years to sell them once listed, now anything and everything sells in a matter of days! Every piece of shit land I ever bought still had building permission. Anyone can do it mate it is your choice but sometimes you either invest in land or keep going with some form of Ponzi Scheme which I regard most Share Trading etc to be. I still work a job and saved money starting at 16 there is no magic wand just hard work, focus and a goal.
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tactile
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Post by tactile on May 30, 2022 8:16:52 GMT 10
That right there tells me that housing/land has joined the realm of Ponzi...along with the rest of course...
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norseman
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Post by norseman on May 30, 2022 8:25:20 GMT 10
That right there tells me that housing/land has joined the realm of Ponzi...along with the rest of course... Mate it depends on who you are. I've never bought a piece of land to make money ever! Losing or making money on it is purely incidental for me. Many people have got it arse up they think in terms of monetary / investment value first then as a place to live and survive second, most of them will never get there if they keep speculating and not doing! It'll always be a dream that they'll never bring to fruition!
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tactile
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Post by tactile on May 30, 2022 8:29:40 GMT 10
Agreed. Good points.
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d
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Post by d on May 30, 2022 8:31:05 GMT 10
That’s great but that’s not able to be replicated reliably. That’s great that you got a good result but your example isn’t the standard, tons of blocks you can’t build the house on, many blocks don’t appreciate at a rate that is an effective use of the funds. Mate I'm not interested in it being replicated and my "result" is the standard! Back in the day where I live you could buy houses for $40,000 they now sell for $700,000 it took years to sell them once listed, now anything and everything sells in a matter of days! Every piece of shit land I ever bought still had building permission. Anyone can do it mate it is your choice but sometimes you either invest in land or keep going with some form of Ponzi Scheme which I regard most Share Trading etc to be. I still work a job and saved money starting at 16 there is no magic wand just hard work, focus and a goal. I’m not saying blocks of land are unaffordable or somehow difficult to acquire I’m asking why people choose them over the other alternatives such as using the funds to buy an investment property thereby having more than one income source or using the funds to educate themselves to achieve a higher earning potential or invest in an more easily liquidated asset. Also good job starting work at 16 I guess? We aren’t talking about buying a block of land to build a house to live in, that’s just living rurally.. what we are discussing is a second location
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norseman
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Post by norseman on May 30, 2022 8:50:32 GMT 10
Mate I'm not interested in it being replicated and my "result" is the standard! Back in the day where I live you could buy houses for $40,000 they now sell for $700,000 it took years to sell them once listed, now anything and everything sells in a matter of days! Every piece of shit land I ever bought still had building permission. Anyone can do it mate it is your choice but sometimes you either invest in land or keep going with some form of Ponzi Scheme which I regard most Share Trading etc to be. I still work a job and saved money starting at 16 there is no magic wand just hard work, focus and a goal. I’m not saying blocks of land are unaffordable or somehow difficult to acquire I’m asking why people choose them over the other alternatives such as using the funds to buy an investment property thereby having more than one income source or using the funds to educate themselves to achieve a higher earning potential or invest in an more easily liquidated asset. Also good job starting work at 16 I guess? We aren’t talking about buying a block of land to build a house to live in, that’s just living rurally.. what we are discussing is a second location d For 6 years the land I live on now was a second location, we drew down against our existing mortgage, paid it back in 5 years, sold our house and moved, living in our shed while we built the new house.
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d
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Post by d on May 30, 2022 9:03:26 GMT 10
Okay so you bought it as you wanted to live rurally and wanted to build your own place, fair enough.
My mother in law and her partner did the same about 10 years ago, unfortunately their health isn’t great so long term they are going to have trouble as they are now priced out of property market closer to suitable medical care. Not ideal. I tried pointing this out about 5 years back but “it’s their dream” so what can you do I guess.
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bug
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Post by bug on May 30, 2022 9:11:49 GMT 10
Norseman is correct. Country areas used to be treated as the very poor cousins of the city. This has changed. There are now hordes of cashed up baby boomers who rode the decades long urban property boom and are now looking for their tree change. It's not all roses though. The issues with rural living have not changed one little bit. If someone couldn't handle living in a remote area before, they won't be able to handle it now either.
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d
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Post by d on May 30, 2022 9:19:15 GMT 10
Norseman is correct. Country areas used to be treated as the very poor cousins of the city. This has changed. There are now hordes of cashed up baby boomers who rode the decades long urban property boom and are now looking for their tree change. It's not all roses though. The issues with rural living have not changed one little bit. If someone couldn't handle living in a remote area before, they won't be able to handle it now either. As above the issue is that now there are a lot of older people moving out there away from suitable medical care and being priced out of the market when they have no option but to come back to the cities. But this is all rather besides the point- I can see value in having the rural lifestyle block if you are an avid hunter or just want to have a shed on the place as a holiday spot but when it’s a large percentage of your net worth it doesn’t seem financially prudent but I guess the same is true when people take out loans to buy cars and people do that all the time.. .
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bug
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Post by bug on May 30, 2022 9:59:36 GMT 10
Yeah, a car is the worst investment you can make. It's purely utilitarian. Having an expensive car would just make you a target WROL anyway.
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d
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Post by d on May 30, 2022 10:02:42 GMT 10
Yeah, a car is the worst investment you can make. It's purely utilitarian. Having an expensive car would just make you a target WROL anyway. Honestly even basic runarounds now people take loans for.. it’s crazy.
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bug
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Post by bug on May 30, 2022 10:06:39 GMT 10
As a landlord, I completely approve of people making poor financial choices that never enable them to buy a home, and keeps them in rentals.
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d
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Post by d on May 30, 2022 10:10:14 GMT 10
As a landlord, I completely approve of people making poor financial choices that never enable them to buy a home, and keeps them in rentals. Lol yep- I’m all for renting if that’s what people want to do but god I hate the narrative of the “greedy landlord buying up all the houses” narrative that’s going around.
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