I’m 23 and interested in starting to invest in realestate. In a year my income will be 50G and I have some savings. WHERE can I get more ADVICE, KNOWLEDGE, (good)BOOKS etc. about buying properties and renting them for a positive cash flow, how ever small the overall income is (or perhaps other investment methods that may suit). How do I start ? buy big or small? please help.Im floundering in a pool of confusion and grasping at very thin straws everywhere. I await your experiencd advice.I am really serious about this. I enjoy investing and I find it a wonderfull challenge.Thanks for your time.[?]
Hi lawrence
welcome to the forum
firstly all the best with your new quest in the world ofinvesting in real estate. you are in a great positiona healthy income and young make the most of these years you will be rewarded in the years ahead.
there is a lot of different opinions on this forum and i suppose we all favout the type of investing that has worked for us. i would encourage you to read this forum as much as posible the information here is more valuable than you could imagine.
i’d also recommend a number of books to you
Real estate riches by dolf de roos
Rich dad poor dad by robert Kyosaki
0-130 houses by our steve mcknightthese will do for starters
also i like the idea of starting small, (actually i’m still doing heaps of small deals today after 7 years and 50 buys later (sold about 20 of those).
regards westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
g’day lawrence good luck with everything,westan said it all,just learn as much as you can,if i did it then i’m sure anyone can
]Another thing to ponder.
Save, save, save. When you are ready to purchase an IP, if you don’t have 20% plus costs, you will need mortage insurance. Mortgage insurers will need to see 6 months worth of savings. Savings account like ING are pretty good, decent interest rate and can be set up on the net, with periodical payments from your bank account.
Get a copy of your credit history from Baycorp. http://www.mycreditfile.com.au – Make sure there isn’t anything that might impede you from borrowing. ie old unpaid bill of some description.
James
thankyou westan, wannabe and georgus for your advice. Much appreciated.[^]
I think anytime is the best time to start, but like westan said learn as much as possible from this forum and read as many books as you can. May be consider saving useful tips to where you can get your hand on later.
Investing in property is not an easy journey, but it’s worth it at the end.
Warm Regards
ChanDollars
[Keep going, you’re on your way to financial freedom]thanks chan. appreciated. I will do my best to add to this forum with my thoughts and experiences as time moves on. Be my decisions prosperous or not, I will have learnt from my actions, reading and advice from others for if the means to an end is satisfying, then the end is never reached. [^]
Originally posted by lawrence:thanks chan. appreciated. I will do my best to add to this forum with my thoughts and experiences as time moves on. Be my decisions prosperous or not, I will have learnt from my actions, reading and advice from others for if the means to an end is satisfying, then the end is never reached. [^]
There’re things here that you can learn everyday. For example I just realise that I am eligible for FHOG that I don’t know about. Now I will try to back claim my entitlement and hopefully get it.
Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]Lawrence, for books to read, check out
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=6845
Cheers
MelI would get …
John Burley’s – Money Secrets of the Rich and put your structures into place…. set yourself up for the future so your can handle the finances and pressures of all the cash floating about you …. so you don’t get so giddy…..
As they all say “the rich dudes” —- money is easy to get …. but the real clever ones know how to hold onto most of it and build more trees of wealth!
Best of luck!
Kiwi
[:o)]If you are interested i am looking for partners in a great deal in Queensland. There is great potential for isntant equity, fantastic growth and good returns. There would need to be 4 people (myself one and a friend another) with around 25k in cash or equity.
E mail me if you are serious to move to the next level!
Originally posted by krazystyler:If you are interested i am looking for partners in a great deal in Queensland. There is great potential for isntant equity, fantastic growth and good returns. There would need to be 4 people (myself one and a friend another) with around 25k in cash or equity.
It might be a great deal, but if I were you I wouldn’t rush in so quickly.
That $50k income will be a great starting point, and far better than many.
Try to save at least $20k (preferably $30k) in the next 12-18 months.
In the meantime read as many books as possible (see http://www.alphalink.com.au/~parkerp/invest.htm for a list) and think about various property investment strategies.
Go to auctions and home opens in your suburb. Grab rental and for sale lists. Ask agents to find out what holding costs are for the places they have for sale (rates, body corp, etc)
Use software or bank websites to calculate monthly payments from loan amounts. Repeat for various interest rates.
Study various regional towns. Look at population trends, industries, new projects, etc. Any holidays you get should be spent there.
Go to a few, talk to agents, talk to locals, look at rental lists and just have a look around.
Don’t incur any consumer debt (though having a credit card with a balance of zero might be helpful to show you can manage credit).
Assuming you’re still on $50k after 12-18 mths, are still on the same job and have $20-30k saved up, your prospects for getting a loan are excellent.
You should have a rough idea of rents and prices for your chosen areas. Look at places on the web and ring up agents to ask a bit more about them.
Get pre-approval from your bank and use what you’ve learned to buy a place (not too expensive but highly tenantable and well-located). A nice 2 or 3 bedroom brick duplex or villa priced around $100k and getting around $150pw rent would be alright (unless you want to do it quicker with $50k places in smaller towns)!
Then buy No 2 6 to 12 mths later!
Peter
Nice advice Peter [^]
I’d highly recommend the book Building Wealth by Russ Whitney – i’m currently reading it atm and it’s got some really cool ideas in it. I just hope they work here in Aus as they did for him in the US.
I wouldn’t get disheartened by the downpayments on properties or how you need morgage insurance if your loan is too big – there’s no harm in making offers on properties now and asking for vendor’s fianance. You’ve got nothing to lose and only experience and maybe some sweet deals to gain [
]And when agents tell you “We Don’t do that here!” or “There is no way the Vendor will take that!…..
Don’t lose heart….. stick with it and watch things change….. try taking down notes on how many offer to how many maybe’s to how many offers accepted ….. !!!
This will give you your stats and then you can look as ways to improve them and get better at what you do!
Just a thought,
KIWI
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