Latest news with #ScottPape
Daily Mail
3 days ago
- Business
- Daily Mail
Barefoot Investor Scott Pape says his life has become 'bloody tough' after making a bad investment
Barefoot Investor Scott Pape has opened up on the worst investment he's made - livestock. On Sunday, Pape shared a story from his farm in regional Victoria, describing the financial struggles he faced during a drought. 'Life on the farm is bloody tough right now. We're in drought, so there's bugger-all grass, and I'm spending $250 a day on feed. Every. Single. Day,' he said in his weekly column. In particular, the sheep are draining the investor's pockets. 'As old farmers love reminding me, once you get to this stage, you're not making money. But, with heavily pregnant ewes, I've got no choice - I need them in good nick for lambing,' Pape wrote. However, Pape believed what he's lost in finances to the farm, his kids have gained in development. 'It's a blinding flash of the obvious, really. If you give kids the chance to roll up their sleeves and take responsibility, they grow,' he said. 'If you do everything for them, they don't.' A widespread drought is currently affecting Tasmania, Victoria, much of the east of South Australia and south-eastern New South Wales, and parts of the interior and the west of Western Australia. In May, Weatherzone meteorologist Ben Domensino explained the dry-spell in some regions was beyond anything farmers had seen before. 'Parts of South Australia, Victoria and Tasmania just endured their driest start to a year on record as a lack of early autumn rain worsened drought conditions in parts of all three states,' he said. 'Some areas in southern Australia saw their lowest rainfall on record during the first four months of this year. This included parts of South Australia, southwest Victoria and northwest Tasmania.' In response to the massive drought, the Victorian Government announced an extension of its Drought Package to farmers statewide on Friday. The package will be delivered in coming weeks and informed by a dedicated new Drought Response Taskforce. 'The increasingly devastating effects of drought aren't confined by postcode or region - its impacting farmers across Victoria. It's why we're expanding support statewide,' Premier Jacinta Allan said. 'The new Taskforce will bring together Victorians from different communities, different backgrounds and different political parties. 'Most importantly, it'll be focused on delivering real relief for farming communities.' For agriculture workers in need of financial help, Pape recommended the government-backed Rural Financial Counselling Service. RFCS provides free and independent financial counselling to eligible farmers, fishers, foresters and small related businesses experiencing, or at risk of, financial hardship. 'Rural Financial Counsellors get what you're facing. They can help you apply for drought assistance, talk to your bank, and be a steady financial sounding board when things get tough,' Pape said.
Daily Mail
28-05-2025
- Business
- Daily Mail
Barefoot Investor Scott Pape's warning to Australians about sharemarket
The Barefoot Investor has suggested the worst could still be yet to come in the stock market following US President Donald Trump 's Liberation Day tariffs. Scott Pape has been inundated with emails from concerned investors after Australia was hit with a 10 per cent tariff on all imports to the US as part of a global tariff regime. 'Less than fifty days ago, my inbox was chock-a-block with emails like this one: "HELP, My share portfolio is getting smashed,"' he said. '"On the news last night Alan Kohler said that Trump's Liberation Day tariffs are much higher than the Smoot-Hawley tariffs that caused the GREAT DEPRESSION! Is it time to sell?"' Mr Pape explained the 'share market was 16 per cent off its highs' and suffered its biggest one-day drop in five years. Mr Pape correctly predicted Trump would concede in some way, pausing the tariffs for 90 days for most countries including Australia. 'This caused the market to roar back as if nothing had happened. And all those worried emails? They stopped coming,' he said. In a worrying comparison, Mr Pape said the situation reminded him of the Great Depression's Black Monday in October 1929. 'You've probably seen that iconic photo of the poor bloke trying to flog his luxury car for $100 on the streets of New York. The sign on the bonnet read: 'Lost all on the stock market,'' he said. 'Yet here's what most people don't know: By April 1930, the stock market had bounced back … it was up 48 percent from the October lows. 'US President Herbert Hoover boldly declared to the world that 'the worst is over'. Phew! Yet, as soon as those words left his lips, the market began puking. Violently. And it kept chundering for the next two long years. 'When it finally lifted its head from the toilet bowl, the share market had dropped a staggering 89 percent from its 1929 peak.' Despite the gloomy prediction, Mr Pape reassured investors the world is not 'on the verge of the greatest crash in history'. 'What I am saying is that humans have short memories. (Okay, and that US presidents cannot be trusted.) Arguably the world's shrewdest banker, JP Morgan chief Jamie Dimon, agrees,' he continued. Mr Dimon suggested the US hadn't felt the effects of the Trump tariffs yet. 'The market came down 10 per cent, it's back up 10 per cent. I think that's an extraordinary amount of complacency,' Mr Dimon said. Mr Pape warned Aussie investors to be prepared for the stock markets to be even more unpredictable while Trump remains in power. 'The fact is that Trump has three more years in the Oval Office, and what about this guy says, 'I'm just going to go about things quietly, diligently and make no waves'?' he said. 'My guess is that he'll get even crazier as the days tick down.' 'Now, if you're like me and you got through the Trump tariff tantrum without checking your portfolio, you're probably good to go with whatever comes next,' Mr Pape said. 'However, if you were one of those people sending me anxious emails fifty days ago – consider this your 'do over'. 'As Warren Buffett warned investors last week, while the long-term trend is up, 'you will see a period in the next 20 years that will be a hair curler compared to anything you've seen before'. Plan accordingly. Tread Your Own Path!'
West Australian
21-05-2025
- Business
- West Australian
Barefoot Investor: Scott Pape said young people should be ‘p**sed off' with RBA's call to cut interest rates
On Tuesday, the Reserve Bank of Australia cut 0.25 per cent off the cash rate. The new rate of 3.85 per cent is the lowest Australians have experienced since 2023. But, finance guru Scott Pape — better known as The Barefoot Investor — said young people should be 'p**sed off' with RBA's latest move. He explained that while the cut would ease mortgage repayments for millions of Australian homeowners, it would likely make it harder for young people to join the property ladder because house prices will rise in coming months. 'If I was a young person right now I would be pretty p**sed off,' Mr Pape told 'Every time a young person gets close, it just keeps getting more expensive.' He also blasted Labor's First Home Buyers Guarantee — it enables eligible home buyers to buy a home with as little as five per cent, instead of the normally required 20 per cent and it is expected to come into effect on January 1, 2026. 'It's stupid, totally stupid,' he added. 'People shouldn't be buying a home in one of the most expensive cities in the world if they can't afford it. 'I don't understand how a responsible government can stand by and say this is a good thing.' On the other hand, Michael Yardney from Metropole Property Strategists urged eager first home buyers to get in quick before the incentive kicks in and the price of entry level homes skyrockets. 'Property prices will skyrocket in early 2026 when Labor's five per cent deposit scheme comes into effect — get in before the crowd,' he said. 'Sure, prices seem expensive but that's what your parents said. Who wouldn't like to buy their parents' home for the price they paid.'
Perth Now
21-05-2025
- Business
- Perth Now
Why young people should be p**sed off with RBA rate cuts
On Tuesday, the Reserve Bank of Australia cut 0.25 per cent off the cash rate. The new rate of 3.85 per cent is the lowest Australians have experienced since 2023. But, finance guru Scott Pape — better known as The Barefoot Investor — said young people should be 'p**sed off' with RBA's latest move. He explained that while the cut would ease mortgage repayments for millions of Australian homeowners, it would likely make it harder for young people to join the property ladder because house prices will rise in coming months. 'If I was a young person right now I would be pretty p**sed off,' Mr Pape told 'Every time a young person gets close, it just keeps getting more expensive.' He also blasted Labor's First Home Buyers Guarantee — it enables eligible home buyers to buy a home with as little as five per cent, instead of the normally required 20 per cent and it is expected to come into effect on January 1, 2026. 'It's stupid, totally stupid,' he added. 'People shouldn't be buying a home in one of the most expensive cities in the world if they can't afford it. 'I don't understand how a responsible government can stand by and say this is a good thing.' On the other hand, Michael Yardney from Metropole Property Strategists urged eager first home buyers to get in quick before the incentive kicks in and the price of entry level homes skyrockets. 'Property prices will skyrocket in early 2026 when Labor's five per cent deposit scheme comes into effect — get in before the crowd,' he said. 'Sure, prices seem expensive but that's what your parents said. Who wouldn't like to buy their parents' home for the price they paid.'
Sky News AU
21-05-2025
- Business
- Sky News AU
Barefoot Investor Scott Pape slams RBA's interest rate cut as hindering young people entering housing market
The latest interest rate cut delivered by the Reserve Bank of Australia has provoked a scathing reaction from the Barefoot Investor, who says potential homebuyers should be 'pissed off' by the move. The RBA slashed the cash rate on Tuesday from 4.1 per cent to 3.85 per cent in its second interest rate cut for mortgage holders this year. The move is expected to provide financial relief to cash-strapped Australian homeowners around the country, and the Big Four banks have confirmed they will pass along the rate cut to their customers Barefoot Investor Scott Pape has slammed the central bank's decision however, claiming although the interest rate cut will help people with their mortgage repayments, it will not be as beneficial for young people trying to get on the property ladder. Mr Pape has long been known as a finance guru since rising to fame after his best-selling and eponymous finance book 'The Barefoot Investor'. 'If I was a young person right now I would be pretty pissed off,' he told 'Every time a young person gets close, it just keeps getting more expensive.' The Barefoot Investor also warned Labor's five per cent home deposit plan announced last month will do 'a lot of damage'. The policy, set to come into force from January next year, will allow young Australians to put down a five per cent deposit to try and get a foot on the property ladder. '(The policy's) stupid, totally stupid,' Mr Pape told 'People shouldn't be buying a home in one of the most expensive cities in the world if they can't afford it.' Other industry experts also sounded the alarm over the plan shortly after it was announced, including Helia chief executive Pauline Blight-Johnston, who previously said the Labor government policy created a 'risk for lenders'. 'It is still important that the LMI industry is around to support investors and upgraders who all need access to LMI,' Ms Blight-Johnston said. RBA Governor Michele Bullock called Tuesday's announcement a "confident cut", but also said she would be looking out for economic uncertainty from the ongoing US trade war. "I think it's a confident cut in the sense that we think this is the right decision at this point in time," Ms Bullock told reporters. "Where this leads us in the future is a little more uncertain. I'd have to say probably a lot more uncertain, given everything that's going on."
