I am very new to property investing however arming myself with several good books and starting to attend investmnt seminars I can see the tremendous possibilities available for passive income. I am currently sourcing a good accountant and met with one yesterday who tells me that positive cash flow properties are not possible and that if you take out a loan for 70 – 80% of the cost you will have to negative gear it until it rises in value or you have paid for a large part of the mortgage. That, combined with my partner who is keen for me to do this but just doesn’t understand that property investing isn’t just about negative gearing, it is starting to take a toll on my confidence. Can someone please tell me, someone who has been in the position – starting out, that it can be done, I can find positive cash flow properties and that I should just keep looking for a good accountant who is willing to work with me and not tell me the oppositie to everything I have read. I really do believe I can do this and that I’m smart enough (well like to think so) to do this but I’m afraid my confidence is wavering. I would love to hear of anyone who has been in my shoes, succeeded and showed the world that they could do it!
Thanks, NLW
Hi Nads,
Be convinced you can do this – of course you can! [biggrin]
Be totally passionate about property and what it can do for you and your family.
There are plenty of people here who will tell you that +CF properties are still available (but you are more likely to have to ‘make’ them rather than ‘find’ them. That is to say renovate/subdivide/add a bedroom etc.
Learn all you can, read more books, go to the seminars, subscribe to property investing mags, visit this forum regularly – its a great way to learn.
In my opinion, you don’t need to be in a rush at the moment. The property cycle has just been through a boom, and things will probably be flat for awhile (maybe 3-4 yrs) You may pick up some good bargains during this time as people needing an urgent sale can’t find buyers. Always put in a low offer – up to 20% below asking price. You make your money when you buy, so they say.[biggrin]
Some accountants prefer different types of investing, I think that’s what you have come across. My advice would be to keep looking, or ask the forum members to recommend an accountant in your area.
I bought my first IP 3 yrs ago, just before the boom[biggrin] and haven’t been in a position to buy another since then, so I have used this time to learn all I can. Now we are over the boom, prices are coming down from what I can see, so both you and I are becoming well positioned to take avantage of the next flat period in the cycle.(The property cycle usually runs 7-9 yrs)
Hope this has helped, all the best! [cheesy]Sharon
Find the property, then look for an accountant
Repeat after me….I know I can….I know I can….I know I can!
You CAN do it. Just use that positive attitude that you have and believe in yourself!!
Any one of us can do anything we want as long as we believe we can….so….no more doubt…..I know I can….I know I can!Go Girl Go!!!!
Nads73,
welcome to the forum!
Know what you’re going thru! All my friends are ‘Not into that sort of thing!’ and ‘why spend so much money? You can’t take it with you you know!’, rarara…..Find positive, investment minded people! They don’t all have to be loaded, but share the same passion as you. Bounce ideas of them and see what happens. Every-one has their own ideas on how to do it best, what to look for and how to measure success. Listen, learn then make up your own ideas! What works for you is what is important.
First of learn all the maths (so you know what you can borrow and how you can repay it without dying of starvation), and keep an eye out for property. Once the maths is under controll, you’ll know your limits and then can work towards finding that deal. I love the chase, then get a bit frigtened (what if I was wrong????????) – but I get over that now. Doing it for the first time (putting in an offer) is another whole different story, but just as exciting. I hope this excitement never goes away – but I can tell you you’ll get smarter and smarter every time you have a go!
Keep your chin up, even if your neck is dirty! Later, when you can stay at home because your houses are paying you enough, your friends and other neigh-sayers will tell you how lucky you have had it! Ask some of our more succesfull investors here – it is common practice amongst friends and family.
Hope that gave you a lift. Keep going.
Cheers
C@34
Hi NLW,
Just think, one day you are going to die.
Best you get out there and do the best for yourself as quickly as possible. Fear of failure is the biggest cause of lack of success.
I remember talking to a guy who wanted to become a lawyer. He said I want to study law but it’s 5 years and by the time I finish I’ll be 36 years old. I said to him, how old will you be in 5 years if you don’t study law.
He’s got quite a good practice now.
The benefits outweigh the risk so get going as soon as you can.
Cheers
JeffThats a great story Jeff, my wife started medicine at 36 yrs old too – much the same feelings.
Cheers,
Simon Macks
Interest Free Home Loan Agent
[email protected]
0425 228 985Commercial Refinance to 95% LVR
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Nads,
Believe me….I understand where your coming from. I was getting older and became almost desperate to get into the property investing scene and had to make it happen, so for me cash flow pos was the only way!!! Reason being – I work part-time and my husband has his own business (3 years in and not very favourable with the banks when it comes to borrowing money to invest). So using the equity in our home, a lot of determination, a positive attitude and a great mortgage broker I have never looked back since buying my first investment property just 2 years ago. I am now up to number 3 which is slightly negative geared but its worth it as it is subdividable.
You will always get the knockers but if you have a belief in what your doing, go and do it before anyone knocks the stuffing out of you with their negativity. You may however have to look outside the square for your cash flow pos properties, but they can still be found or CREATED.
Go For it – Best of Luck
sq[biggrin]
Just remember… BELIEVE in YOURSELF…
I think i said this once before..
if you think you cant, you cant
but if you
know you can, you can!just remember…people who say you cant dont want you to because they are scared you will be better than them
you can have dreams, but just keep them as dreams
or you can have dreams and turn them into goals. those goals can then turn into reality…think small and you will have small goals
think big and you will have big goals-aumeow
I wouldn’t bother taking advice on your investment strategy from an accountant. You can set your goals yourself and learn as much as you can so that you are confident and capable of finding and purchasing cashflow positive properties (or any other investments you like).
Never invest in anything just for the tax breaks. you will never get rich off tax deductions. Always make sure you are buying a good investment. I just go to accountants to make sure I am investing in the most tax effective way….just for “fine tuning” and to check the specifics of various taxation laws that are difficult to keep track of, eg, GST, family trusts, etc.
Go for it….you can do it!!!
Nads73 – Hi there..my wife and I have faced similar stiff lip opposition from our own family memebers, simply because “negative gearing” is the only solution they know.
My wife and I have read easy to follow books from Margaret Lomas (Destiny Financial Solutions) which ealoboartes on negative gearing (good and bad) as well as positive cashflow properties (good and bad).
Might be worthwhile to have a look at these and go from there. On the accountant front we also faced a similar situation. We have stuck with him and made hime aware of “other” methods of investing ie: positive cashflow.Good luck.
“Always have a plan B”
BBHi there,……
All I acan add is …. it is 80% attitude and 20% knowledge….. if you make mistakes it is like being a kid again ….. what didyou do when you craped you knee while running flat out though the house when you were young???? Even when the mum or dad gave you a lecture and revved you up???? thats right ….. you forget about it and keep trying to run as fast as you can …. but try not to trip next time.Best of luck
Kiwi!Looking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
http://www.kiwilogic.bizhello all, hello nads
this is my first post so bare withme. let me tell you about the time i bought my second property ( to live in). After an anxious 3 weeks of trying to get finance through my financial adviser/broker we finally got it.yipee all was well and we went to dinner to back slap each other.During conversation with my adviser he turned to me and said quote”now dont ever let me hear you talk about investment prop. for at least 3-4 years’ Well he lost me then and there and within 24 hours he was no longer a part of my team.
who was he to tell me what i could and could not do if i chose to.at the end of the day you are responsible for your actions and the team you build around you.get out of the rat race,seperate yourself from negative people(yes it can be hard) and surround y’self with positive like minded people who love to talk investment and who dont make you feel guilty for wanting to get ahead. misery thrives on misery ,true friends will want to see you succeed, many will want you to fail so they can say ‘ see we told you you cant( i despise that word) do it, now get back into the rat race with us ,get a good job get married, have kids, retire & live off ya super happily ever after!!!!!!!!!!!! news flash ‘ super takes it!’
sorry i am getting carried away.
it’s funny how some comments stick in your mind from so called experts. let me share some of the comments that have been directed at me 90% of which come from family.
”sometimes its just easier to stay on wages’ from my dad when i told him i was leaving my 9-5 day job and starting my own bussiness.
” you will lose the lot , house family, everything!’ from my x boss.
” you will never be a millionaire” from a property developer i have kknown for 30 years.
there has been plenty more. all these comments and more have heppened in the last 5-6 years as i tried to get out of the rat race.i am proud to show you how far i have come since starting out in oct. 1998.
in ’98 we lived in a house worth 140k and i was earning 28-30k a year married with 4 rugrats.by the end of ’99 we had turned over 170000k ,my wage approx-80000k after tax. to date we have turned over 1.3 mil. people call me money hungry etc. i just plan on retiring early.
we now live in a house worth about 400k +
own 2 other properties, one cf neg but with plans and permits for four units,the other cf pos.
well…………… on paper we have assets just under 1 mil. yes we owe but we are a mile better off than we would have been if i had listened to so many who knew so little. nads r u still awake?
set your goals and dont lose site of them. every obstacle you meet is a challenge not a problem, treat them as such and you will prosper.
for the record; my dad retired with a super fund of 70k 3 years ago,tis all gone!
my x boss went out of bussiness 2 years ago.
and my property developer friend who suggested i would not be a mil-aire …..well he is my mentor.
i still have a long way to go yet but i am on my way. its sad to leave some of my friends behind(we still catch up)but they choose to conform to society and wait for me to join them again.not…..
everyone has a story to tell, i hope i have given you some insperation to go out and do it. my phone message reads” nike” just do it!
good luck .g. granland
blueboys – Do you have any idea how exceptional the last 6 years have been in terms of property capital gains? Do you expect to continue to see CG of 20 to 30 percent this year? Next year? In 2007, 2008?
I sure don’t, but what would I know?[cap]
Cheers g. granland,
I am where you once were! This is going into my inspirational folder – yes foundation, it is unreasonable to expect the same CG, but it sure beats sitting there waiting for some-one to drop a million bucks into your lap!
Get up, search hard and do it! If you get knocked down – damn it, just get back up!
Cheers
C@34
thanks for the positive feed back calvin.just trying to give nads a helping hand.
foundation, not sure what your getting at. are u saying that anyone and everyone should have cashed in over the last 6 years?
go get em nads!!!!!!!g. granland
Originally posted by blueboys:foundation, not sure what your getting at. are u saying that anyone and everyone should have cashed in over the last 6 years?
No but most people could have maximised their capital gains by selling mid to lat 2003. I was also inferring that somebody who had only ever ‘invested’ during Australia’s biggest ever housing bubble is not really in a position to give sound financial advice, particularly at this point in time…
It has hardly taken a genius to make a fast (paper) dollar recently. However, it would take a pretty savvy investor to make good money during the biggest downturn in Australian history.
Remember, if you’re in negative equity, the bank aint gonna let you buy in at the bottom![cap]
foundation, hello again. can you explain to me the sound financial advice that i gave to nads. cheers.
g. granland
Hi Nads,
This is my first post. Just to let you know that you are not alone, I can relate. I’ve read the
+CF book and it makes sense. I’ve even put together a spreadsheet that can be used to test if a property is +ve. I’ve left the confines of the bush capital (canberra) in search of properties in the ‘more rural’ areas. Whilst I have discovered slightly positive properties – we are talking 2-3% – they still don’t beat cash in the bank. I would take a chance on them if I was expecting much by way of capital gains but I am not sure. I guess we need to keep looking…Cheers
Originally posted by blueboys:foundation, hello again. can you explain to me the sound financial advice that i gave to nads.
My point was that you didn’t![wink]
However, I can only take this:
Originally posted by blueboys:you are responsible for your actions and the team you build around you.get out of the rat race,seperate yourself from negative people(yes it can be hard) and surround y’self with positive like minded people who love to talk investment and who dont make you feel guilty for wanting to get ahead.
and this:
set your goals and dont lose site of them. every obstacle you meet is a challenge not a problem, treat them as such and you will prosper.and this:
i hope i have given you some insperation to go out and do it.as advice. Not very sound advice if you ask me!
Please don’t be offended, my ‘sound advice’ comment was directed at the other bad posts as much as yours.I don’t think anybody who has a clear understanding of investment fundamentals and the current economic risks would be answering this post with comments such as:
it is 80% attitude and 20% knowledgeIn an asset boom, this is true, but booms end…
just remember…people who say you cant dont want you to because they are scared you will be better than themOr perhaps they know better than you.
Fear of failure is the biggest casue of lack of success.Possibly, but recklessness, ignorance and bad advice are some of the primary causes of critical failure in investment
The benefits outweigh the risk so get going as soon as you can.Without a comprehensive personal risk assesment, this was in contention for one of the stupidest pieces of advice I had read on this forum…
Any one of us can do anything we want as long as we believe we can…until I read that![whistle]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
