apart from some good old common sense the majority of my clients over the years have been 'high net worth' people.... these are people who expected to not only work hard, but to educate themselves, in order to make the substantial wealth
not one of them expected everything to run smoothly forever, they expect dips and troughs and turns in the road and adapt accordingly
everyone of them not only held property as the PPOR, but the majority had property in their investment portfolio's
there is no way with a conservative mindset, they would ever consider selling an asset in order to buy it back cheaper at a later date... some admitted to trying that game over in their early days, and had been burnt....and a huge lesson learnt
the majority were either running their own business, or executives, earning huge incomes... they do not aspire to quick sales, pennies from heaven, or magical windfalls they do understand their markets and investment options
a capital gain on a modest investment in property can return half a million bucks in one swoop... they have the experience, after years of good returns and nurturing, looking after their asset, to see their plans come to fruition.
they would never dream of selling property to cash in on a small sum of $50,000 or even $100k... the capital costs of buying and selling would outweigh any decent gains it is these same people that will rearrange their affairs to avoid the adverse tax, when a new tax is planned most of them took their money out of the stockmarket, and will never return while it remains a gambling den
the same people will rearrange their affairs to avoid the new super tax and changes like me, they prefer the freedom outside of super
as I said previously, they will opt to put their money into a luxury home, or real estate for their children, to avoid the govt fiddling with their life savings, in cash and super accounts they believe they can not only make money from the PPOR but they conserve their capital, in the future when the tide changes they can opt back in if one really wants to become wealthy, you have to learn how to, from a rich person not a poor person.... and you dont spend like a wealthy person until you become one many people today, spend all their money to appear as if they are wealthy, but live from pay day to pay day... thats the best way to become poor
it is mainly the cowboys, taking shortcuts with get rich quick schemes, that come undone.... or making a bad decision when buying an asset, and praying it turns out good in the end hmmm, everything is supposed to be different today, the old rules are obsolete, but are they ?
