If there is any advantage to going against the flow then I’m well positioned.
I’m surrounded by distress as thousands of miners face termination of employment. The vast majority of my fellow workers have become addicted to a high income either through lifestyle, leases or negatively geared investments.
It has all happened more suddenly than anyone could foresee or prepare for. What seemed like a never-ending boom has suddenly turned to bust. Now, more than ever, I am grateful for Steve’s financial training!
Mining boom to bust
Fri, 31/08/2012 - 4:00pm
#1
rrocket
Mining boom to bust
wow Rocket,
It would seem there is opportunity all around for you :-)
You can help them turn their negative geared properties positive by showing them how to vendor finance, lease option etc and JV with them splitting the profits win win :-)
May I ask where is this happening in, I have some friends with properties in mining areas?
success is where opportunity and preparedness meet!
To Your Prosperity
Michelle
blog: www.michellethemoneycoach.com
eBook: http://financialfreedomonyourcurrentincome.com
Love your quote at the end there :-)
Maree
Hi Rrocket,
Michelle's right, as one door closes another opens. You need to be ready to accept the challenge. Imagine how your fellow miners will feel if you can help them sort their investment problems. It will give you a huge boost too. Good luck, we'll all be thinking of you.
Cheers,
Wendy
Hey all
For sure the construction side has slowed a little but did we ever think that the mining companies would happily keep allowing the government to take their profits without any scare tactic to come back from the mining companies, think we'll all be amazed what happens when this government gets voted out, as there all saying these expansions are on the shelf ready to go, and when they’re ready they will go ahead, as for the stock out of the mine's, there actually stepping up production not slowing down where I am in Newman, the Pilbara is alive and kicking, these area need double the housing they currently have, yes there will be areas that will slow but there still areas that these mining companies still have great interest in, they’ll go ahead at some stage. Miners invest like Steve teaching us, the most amount in the quickest time for the least risk!! They like paying tax as much as we all do.
regards Russell
Since we started on the investment in property path. People have said other than "don't do it the RE market has had it" (music to my ears) or "go to the mining towns it's the only place real estate is still ok". Mining town are the last place I would go. Every dog has its day and I believe mining has had its day, the down side is too great for me. From my experience every time people believe that a boom will go on and on the end is very near. Shares, mining, real estate, farming it's all the same. When no one wants it, that marks the bottom of the market. When everyone wants it you are at the top. When that end comes it is nearly always quick. I like to see myself as one that buys my half price umbrella in the drought.
That is such great advice Jan.
When I was trading options and futures contracts, the one key indicator which was more accurate than anything else was public knowledge from those people that do not know what they talk about.
When I heard mums and dads, or taxi drivers, or work colleagues talk about how good this investment is doing and how they are getting in on it, I knew it was time to move on. I would sell like crazy and off load stuff.
The simple fact is when the uneducate start investing or buying into a certain market, then the gene pool left for more people to come in buy is pretty low. Investors are the people selling to the mums and dads and taxi experts and once all these people have bought in, there is no one left to buy.
Human pyschology is the greatest market force to master. Once you understand people and the cycles the herd goes through, investing against the herd is straight forward and profitable.
With regards to Mining town for investment purposes, I believe you need to be careful in the location. The mining boom is far from over and there is heaps of money to be made in investing in mining areas. The key is not to buy in the Mining areas that are over subsrcibe and already over priced. The key is to follow where new mines are opening and get in on the ground floor. It is very similar to the lesson on the ripple effect. Find where new infrastucture and mines are being planned and start your search around there, or one or two towns away while it is cheaper.
If you mention Mining towns and NSW, people would think there are two topics, but NSW is not well known for mining town booms, but they are happening in the areas. Certainly worth a look and apply all the other great teachings we have received so far and you may find a quite mining town is certainly worth the look.
Happy Investing
Dean
Dean it sounds like we went to the same school for investing.
By the way it's Angus, Jan's better half :-). We are doing the course together.
I have to say that I agree that there will no doubt be more money to be made in the mining sector. I just feel that we don't have the local knowledge needed to alleviate the potential risk.
I also trade shares and futures the lessons that I have learned there have served me well. When markets get to a fever pitch you know that the end is very near. This is very much the case in the real estate market. I am old enough :-( to have seen two downturns in Sydney now it was the same both times. Properties were going for asking price before they even got to the R.E. office windows.
Know this saw me get out of the share market prior to the GFC in to cash then at the low point got back into blue chip share at bargain prices.
I won't know till down the track but I see RE, now as the place to put our money and with the view to retire in 10 - 15 years it will fit in with our longer trem stratergy.
Cheers Angus & Jan
Hi Jane , you put it so well! I completely agree. At the height of the Internet boom, I had two friends who cashed in their only property and put about 50,000 into speculative shares. I estimate they would be valued at absolutely way less than 10,000 now. I said to them at the time, I think you should buy/ stay in property. If they had, they would have made over 300,000 gain on their initial investment.
Tere was so much social pressure to get on the shares bandwagon at the time. Economists are now studying irrational human behaviour, and this one is called "social proof", good old herd mentality. A couple of highly intelligent professionals i know asked me timidly at the height of the Internet boom if I thought it was okay that they had kept their money in blue chip shares, I said yes, keep them there. I bet they didn't 't talk to their colleagues about it!
Not that I am any genius. I think I had had a good long serious think about risk, after losing money in the Sydney property market, due to decisions made by my partner of the time.
Wise advice, Dean, about looking in the quieter areas. The media hype is so skewed. I do know one fellow who bought in WA for cash flow before prices went crazy.
What about SA? Am thinking of moving there, but now the Olympic dam development has been shelved, prices not going to rise any time soon I expect.