Wealth paradox

**DirtyDawg** · 22nd October 2007, 05:53 AM

I have a friend who needs some brick paving done
He and his lovely wife have 3x homes and 2x blocks of land , 1 x HSV club sport R8 about 3 weeks old and a new ford Territory.

Quote for the brick paving $4000 , he said they can affored it

mates rates I said I would do it for $2000
When asking him about his cash flow he said his whole earnings and his wifes go's on the mortgages and they live off of the $800 rent the receive each week.
Weird up front looks as if he is rolling in it but really just making ends meet...God help him if interest rates go up...
Oh in answer to the obvious question..was 3 blocks of land but they sold it and bought the cars with the profit

Anyone else know of anybody doing it this way?

**amtravic1** · 22nd October 2007, 06:07 AM

That is just greed. No sympathy for them if the interest rates do go up and they lose the lot I am afraid.

Ian

**Vern** · 22nd October 2007, 06:20 AM

Originally Posted by amtravic1

That is just greed. No sympathy for them if the interest rates do go up and they lose the lot I am afraid.

Ian

I call it trying to make something of your life, building up your assets for the future and family. Good on them! (though the cars are a bit much, obviously for apperences)

**Bushie** · 22nd October 2007, 06:46 AM

I'd say it's a bit of both, obviously they are planning for the future - to set themselves up etc. Maybe though they are just stretching things a bit thin, they want it now, not in a few years. Should things go wrong well maybe they would have to shed (say) half of what they have.

Martyn

**Slunnie** · 22nd October 2007, 06:52 AM

Yep, I reckon good on them also. Assuming the gamble falls their way then they will set themselves up nicely for some financial independance. It'd be nice to have an income generate itself without having to go to work in the future.

**stevo68** · 22nd October 2007, 07:06 AM

"He who risks nothing has nothing"

Regards

Stevo

**JDNSW** · 22nd October 2007, 07:37 AM

Originally Posted by Slunnie

Yep, I reckon good on them also. Assuming the gamble falls their way then they will set themselves up nicely for some financial independance. It'd be nice to have an income generate itself without having to go to work in the future.

Yes, although the choice of cars does suggest the danger that comes with financial independence - getting hooked on a lifestyle that always seems to need more money than you have!

John

**Utemad** · 22nd October 2007, 07:45 AM

I also think that stretching yourself for property is a good idea. If interest rates do go up (and they can't afford to continue) they can always sell one of the blocks.

Selling property to buy cars though is a dumb idea.

Keeping up appearances or keeping up with the neighbours etc is also a dumb idea.

**Greylandy** · 22nd October 2007, 08:07 AM

I reckon good on them .. the biggest problem I have is people putting their current life and dreams on hold to have it "all" in the future. You only get one "young body" ... use it!!

**BigJon** · 22nd October 2007, 08:49 AM

Wealth is measured in time, not in money.

If you stopped working for money, how long could you maintain your current lifestyle without making any changes?

One week, one month, one year, indefinately?

Passive income greater than your expenses is the only path to true financial freedom.

Thread: Wealth paradox

Thread Tools

Wealth paradox

Bookmarks

Bookmarks

Posting Permissions