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The Finance/ Business/ Money Thread

How do you invest?

  • Real Estate

    Votes: 6 50.0%

  • Stock Market

    Votes: 5 41.7%

  • Superannuation

    Votes: 6 50.0%

  • ETF

    Votes: 4 33.3%

  • Crypto

    Votes: 0 0.0%

  • Savings Account

    Votes: 7 58.3%

  • Mutual Funds

    Votes: 2 16.7%

  • Precious Metals

    Votes: 1 8.3%

  • I don't invest

    Votes: 0 0.0%
  • Total voters
    12
Monoethnic Social Club said:
Sorry mate I am an absolute nuffy when it comes to stocks and bonds but Im trying to understand the difference between individual's with a real estate portfolio and one of the many REITs I can park my money in on the ASX?
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REIT ETFs shouldn't be allowed to invest in residential real estate either.

You agree it's a 'right' but an unachievable 'right' is no 'right at all if the system is rigged against you.
 
Muz said:
REIT ETFs shouldn't be allowed to invest in residential real estate either.

You agree it's a 'right' but an unachievable 'right' is no 'right at all if the system is rigged against you.
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...... I disagree that it is "unachievable" mate ..... yes it isnt as easy as it was 30 years ago but then again society's expectations have changed whether you agree or not.

My first house had a 38" tv sitting on a milk crate, in front of a milk crate coffee table while we sat on a couch donated/thrown away by a mates grandmother... we ate dinner on a table dad and I knocked up in his garage from plywood sitting on Bunnings chairs.... every single last dollar went on the mortgage and petrol to go to and from work... ....

Im not going on about avocado toast and everyday coffees and all that other boomer shit, but even if I had to start from scratch tomorrow, I could still buy a house....
 
Monoethnic Social Club said:
...... I disagree that it is "unachievable" mate ..... yes it isnt as easy as it was 30 years ago but then again society's expectations have changed whether you agree or not.

My first house had a 38" tv sitting on a milk crate, in front of a milk crate coffee table while we sat on a couch donated/thrown away by a mates grandmother... we ate dinner on a table dad and I knocked up in his garage from plywood sitting on Bunnings chairs.... every single last dollar went on the mortgage and petrol to go to and from work... ....

Im not going on about avocado toast and everyday coffees and all that other boomer shit, but even if I had to start from scratch tomorrow, I could still buy a house....
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Same. It's all about being financially literate. If you don't have a home the best thing id advise anyone to do is speak to a financial advisor instead of crying at the news.

Also if you can sell your car. That shit is a waste of money.
 
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Monoethnic Social Club said:
...... I disagree that it is "unachievable" mate ..... yes it isnt as easy as it was 30 years ago but then again society's expectations have changed whether you agree or not.

My first house had a 38" tv sitting on a milk crate, in front of a milk crate coffee table while we sat on a couch donated/thrown away by a mates grandmother... we ate dinner on a table dad and I knocked up in his garage from plywood sitting on Bunnings chairs.... every single last dollar went on the mortgage and petrol to go to and from work... ....

Im not going on about avocado toast and everyday coffees and all that other boomer shit, but even if I had to start from scratch tomorrow, I could still buy a house....
Click to expand...

My first house was 3 times my wages. I bought it with a low doc loan and no deposit. Now it's 6 to 12+ average wages.

A young person now, that is spending 30% (or more) of their after tax income on rent has to save a 20% deposit on a, say, $600k house. (And find me a house that's $600k that's not in Tennant Creek.)

That's $120k deposit.

How do you think you'd go these days trying to save $120k? At $500 a week (after you pay rent) which is nigh on impossible, that's 240 weeks or just over 4 and a half years. Do you think you could pay rent and save $500 a week?

That's not to mention that if that house goes up by 4% a year (conservatively) then it's now worth $701k when it comes time to plonk your deposit down. Which is now not enough, right, because 20% of $700k is $140k.

It's ridiculous.

It's way harder for young people today. No wonder they're frustrated.
 
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The best thing about the Australia I grew up in and what I often told people about because I was proud of it was any person in Australia earning minimum wages could have a fairly decent standard of living.

That's gone now. It's such a shame.
 
Muz said:
The best thing about the Australia I grew up in and what I often told people about because I was proud of it was any person in Australia earning minimum wages could have a fairly decent standard of living.

That's gone now. It's such a shame.
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Thats a different conversation.
 
Muz said:
My first house was 3 times my wages. I bought it with a low doc loan and no deposit. Now it's 6 to 12+ average wages.

A young person now, that is spending 30% (or more) of their after tax income on rent has to save a 20% deposit on a, say, $600k house. (And find me a house that's $600k that's not in Tennant Creek.)

That's $120k deposit.

How do you think you'd go these days trying to save $120k? At $500 a week (after you pay rent) which is nigh on impossible, that's 240 weeks or just over 4 and a half years. Do you think you could pay rent and save $500 a week?

That's not to mention that if that house goes up by 4% a year (conservatively) then it's now worth $701k when it comes time to plonk your deposit down. Which is now not enough, right, because 20% of $700k is $140k.

It's ridiculous.

It's way harder for young people today. No wonder they're frustrated.
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yes.... and no... You must be older than me mate because my first house was nearly 5-6 times my annual wages at the time (although admittedly only 10% deposit).. Lived on tuna and rice for a few years let me tell you...

I hear what you are saying and can see it with young people every day around me... I know it is tough, just NOT impossible... One of my staff is a young bloke, great kid, 27 years old and on decent wages... Hes been renting a nice townhouse for $700 something a week and I keep pushing him to move to a cheaper smaller place near work and save up for a deposit (even offered to go guarantor so he doesn't have to pay lenders insurance) ..... Comes in to work on Monday morning with a new $15K sleeve tatt and pictures of his new baby (75 inch tellie .. which is a Bravia and magnificent btw :) )

I know I sound like an angry old man .. reading this Im cringing at myself but if I was on 6 figures when I was in my 20s mate Id have another 2-3 houses by now :)
 
Monoethnic Social Club said:
...... I disagree that it is "unachievable" mate ..... yes it isnt as easy as it was 30 years ago but then again society's expectations have changed whether you agree or not.

My first house had a 38" tv sitting on a milk crate, in front of a milk crate coffee table while we sat on a couch donated/thrown away by a mates grandmother... we ate dinner on a table dad and I knocked up in his garage from plywood sitting on Bunnings chairs.... every single last dollar went on the mortgage and petrol to go to and from work... ....

Im not going on about avocado toast and everyday coffees and all that other boomer shit, but even if I had to start from scratch tomorrow, I could still buy a house....
Click to expand...

Oi, smashed avo and hanging at coffee shops ain't no boomer started hang out, we never had that kind of leisure time as such.
Thats the gens later my friend, the ones Muz speaks out for Y Z's and like you both my kids are in this mess also, more so our last 2.
I really don't wish to sing my tunes like yours above for it just gets shut down in detail BUT similar and probably even more humble beginnings coming from migrants landed here with no $ no job start from scratch.
The ol bloke worked his butt off and was never home but weekends and was buggered, he couldn't muck around with us kids like todays world.
I only was able doing more with our kids till after we worked ourselves out of being flat broke week in week out after paying our cost of living bills.
Muz wish's for families not having to have 2 jobs mum at home he quoted some post.
We started having 2 jobs from the get go early 90's for we had no choice to suck it up and first kid into daycare before he started school.
My wife works 3days a week to this day.
We moved homes 7yrs ago to buy a place more suitable to help the kids with a granny flat.
(That was our approach looking ahead to help our kids, even though we like to bitch moan no green or purple coloured teal will help my families challenges ever ! they are a wasted Donkey bloody vote as far as I'm concerned :) )
My eldest with his long time girlfriend to be wife moved in - paid a agreed rental and saved their friggin butts off - a deposit of 180k.
Yes it is achieveable to me unless I'm stoopid screamin to the clouds ignoramous.
Sydney market not sure where muz is.
It will never be as before and won't be any better ahead but get harder, the hope of minority Gov blah blah will NOT solve the dream of living in the past, its done its over - my mother always said less is more, huge % of Y Z's and on cannot live as such, smashed avo brekkys, 2k mobiles, tik tok influence followers life is like Abiza.
World is getting more and more complicated - costly - dog eat dog - red tape red tape and more to come - lives are run by the almighty $ of tech company softwares - large biz is gobbling up forcing out small to medium business once the stablehold of common society.
Your Gov schooling is teaching jack shit ! let alone cannot control mis behaviour in fear of being sued by wised up smug rude fucker kids and their ignoramous parents who in the end are to blame but can't see past their nose's.
I'd luv to carry on for I get what Muz is on about but put aside voting elections and parties.
Will the kids we are thinking about today (my youngest is 20) and ahead give things up/sacrifice to get somewhere on their own merit ?
Relax on cafe brekky, order uber eats, use uber like its a neccessary tool, hit the pubs/clubs, but this and that trendy cool must do clothing, how many nikes and other sports shoes, fake nails, fake eye lash's, botox, inplants, OS hols more than I ever could afford back in the day, cheap flights but you still spend whereever you go, accom etcetcetcetcetc.....its all a front, you can't show that you don't have the $$$'s but you still spend and for some what you don't have/earn in the first place.
I see this plain as day with my own - and we as parents have been called mean, oh such and such have this, who fuckin cares I used to say, we don't buy them everything blah blah......
Oh but hang on capital gains is one piece of the puzzle :)

Muz, I/we couldn't afford to buy near where I grew up, and my ol man said, yep tuff buy out at Tennant Creek type scenario.
Had to suck it up, we bought in an area I never dreamed of and had to save for the deposit originally - htf do you get a loan with no deposit, unless it was obsorbed into your mortgage I guess but unheard of my day.
 
^
Millenials have never been known for their bravery.

Wasted generation of gormless try-hards with big dreams but no work ethic.

Just lazing around awaiting for probate to clear.
 
vo2Max said:
^
Millenials have never been known for their bravery.

Wasted generation of gormless try-hards with big dreams but no work ethic.

Just lazing around awaiting for probate to clear.
Click to expand...

Except for when they leading ideologically-based leftist violence - amirite!
 
vo2Max said:
^
Millenials have never been known for their bravery.

Wasted generation of gormless try-hards with big dreams but no work ethic.

Just lazing around awaiting for probate to clear.
Click to expand...
I have 2 houses and shares in blue chip stocks. Wtf do you mean. Soon you will work for me.
 
Pinched from online. Super profits tax the big missed opportunity here IMO.

"In the lead up to election, we're going to hear a lot from the Coalition and their media proxies about the "cost of living crisis", "struggling families" and the "housing crisis"... and why it's Labor's fault. So lets look at how we got here.

Since 1996, Australia has had 20 years of Coalition Government. In that same time period, Labor has held power for only 9 years, 3 of which were as a minority Government. So the Coalition has had more than twice as long to shape and influence the country we have today.

As Labor took power in 2007, the Global Financial Crisis shook the World, decimating the global economy. Treasurer Wayne Swan was awarded the Best Financial Minister in the World by The Economist for how he navigated the country through that crisis.

What would eventually bring that new Government down was its attempt to introduce a Resource Super Profits Tax on our mining industry, in an attempt to share some of the wealth from the mining boom among the Australian people.

The mining industry spent $28million in attack ads against the Government until Labor were forced to remove Kevin Rudd and replace the tax with a significantly watered down version that the mining industry were happy with.

When Tony Abbott came to power in 2013, he abolished the tax entirely.

It was estimated that Rudd's tax plan would have raised $12billion a year that could have been spent on Government services, hospitals, schools, or invested in local industries.

Instead... Gina Rinehart is now worth more than $30billion, Andrew Forrest more than $20billion, Clive Palmer more than $4billion.

Kie Chi Wong, Sam Chong, Chris Wallin, Angela Bennett, Alexandra Burt, Chris Ellison... names you've probably never heard of, but they're all billionaires who made their money in the mining industry in Australia.

BHP makes an annual profit of just under $20billion, Rio Tinto around $18billion, Fortescue just under $15billion.

That is where our nation's wealth has gone instead.

So what about housing?

John Howards decision to introduce a capital gains tax discount on investment properties in 1999 has caused housing prices to increase by 400%, while the average salary has since only increased by about 120%.

Bill Shorten took a number of significant policies to the 2019 election with the specific aim of improving housing affordability, including peeling back Howard's capital gains tax discount, removing negative gearing, and creating a $10billion affordable housing fund.

He lost the election, and house prices in some cities have almost doubled since then.

The election instead gave us three years of the Morrison Government; perhaps one of the most scandal riddled and corrupt Governments in Australian history. Morrison's most significant policy achievement was introducing tax cuts that overwhelmingly favoured the top 5% of income earners.

When Albanese came to power three years ago, he inherited a global inflation crisis, and thanks to needless megaphone diplomacy, our largest trading partner had imposed tarrifs and complete prohibitions on a multitude of Australian exports.

Albanese readjusted Morrison's tax cuts to provide greater relief to low income earners, inflation is now back within the RBA's preferred range and half of what it was when Morrison was in power, and thanks to careful and considered diplomacy, all the tariffs and trade blocks against Australian products have now been removed by the Chinese Government.

Yes, housing is still an issue they have to fix. But this is not a mess they created, and there is no easy solution.

I'm not going to pretend that Labor are the answer to all of Australia's problems right now, but if you look back over the past 30 years it's pretty clear that most of our problems started with a Coalition Prime Minister.

Whatever problems we are facing, Peter Dutton and Gina Rinehart are only going to make it worse".
 
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