Hi everyone
My husband and I want to start doing something positive with all the equity we have in our home and have decided to buy an investment property.
It all seemed simple until I did some investigation and am now too scared to take the plunge.
I don’t particularly want to have a negative geared property as I don’t want to loose money every year and have been looking for a positive cash flow property but can find none in Canberra.
Even if we broke even at the end of every year I would be happy but can’t find a thing. The real estate agents just confuse me more and more and keep pushing the negative gearing thing. I don’t really want to eat rice and water for the next few years so am so confused. We have a very comfortable lifestyle now and want to maintain and build on that.
Did anyone else have this fear and how do you get over it?
Yes this condition is called ‘analysis paralysis’ and every investor suffers from it from time to time. However, it’s good that this has happened because at least when you do eventually dive in you’ll have a good idea of what you’re doing by then, instead of none at all.
Dont listen to RE agents either, they’re a necessary evil to RE investing. Stick around on the forums for a while and you’ll soon learn the best way forward for yourselves and which investment direction to take.
Good Luck…G7
Well hiya Mr & Mrs Cupcake,
Love the name – good choice !!!
I believe full understanding and knowledge of your subject matter, along with hands on experience will be the best cure for your initial fears.
If you have a fantastic lifestyle now, and do not in any way wish to compromise that, you might find it a tad hard when first starting out for your – I’m assuming – residential investment portfolio not to impinge on that. Both from a financial and a whinge factor (hassled time).
If you do discover the elixir to investing where they neither impinge on your lifestyle / time and/or cash…can you let me know…I’ll come and join you. [biggrin]
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hi Cupcake
I can fully understand how you feel, I am in the same boat. I have money to spend, done lots of research, read everything about property, looked for positively geared property every day. Its hard work, but you have to keep a business mind about it if you are going to be successful.
I wouldnt listen to real estate agents. I think you must rely on your own judgement, and keep an open mind and take on board good advice.
Perhaps looking outside of Canberra might be the next step you could take.
Keep looking and the opportunity will present itself eventually.
Hi Cupcake,
What I would recommend first of all is to look at why you are buying an investment property. You are right, it is a really big step and you want to make sure that it is the right step to be taking, and that it fits in with your goals.
I am a firm believer that you need to have a ‘why’ for doing things and every major decision that is made should have a purpose and not just done ‘just cos’.
I would first of all check to see what type of property I would need that fits the criteria of my goals, and also if property even fits the criteria of my goals…
Have a good read of the forums and some books to increase your understanding of the different methods of creating wealth (through property and other means). This will help you to be comfortable with any decisions that you make and you wont just be relying on the words of others (eg real estate agents).
In my opinion investing without a well defined strategy is dangerous.
Just my 2cents worth that is working for me thus far.
Good luck with it all
Cheers
RobHi,
Great advice above, I am a LREA but please don’t hold that aginst me as I’m an investor too and know what you are going through, my only advise is to do your research and figure what you need (not want) to acheive your goals.
Roy H.
L.R.E.A., Dip FS (FP)
Guardian Property Specialists (GPS)
http://www.gpsnetwork.com.auAt the risk of contradicting myself I should also point out that the advice of certain people can be priceless, especially those who have been there and done that and have made/learned from mistakes.
And with reference to my post above it is not fair to taint all real estate agents with the same brush [cap]
But to be able to ascertain good advice from bad advice comes with your own education and abilities.
Hi all
Playing the devils advocate.I think you are being a little hard on real estates.
They may some times be bit of a pain but they do give you alot of free information when assessing there market and just like this forum they don’t get paid for that free info.
So even thou i’m not nor will I be one of them I still have a few on my team.
As a old business friend told me anybody can give you advice its what you do with it that matters.
Also add me to the list for finding the real estate with out any whinge factor.
as for the investment have you looked at commercial real estate being in canberra the rental returns would be reasonably high.
Firstoff plan what you want to achieve and work from there.
here to help
Thanks guys!
I don’t feel so bad about being labeled a RE Licenced Agent after all
Roy H.
L.R.E.A., Dip FS (FP)
Guardian Property Specialists (GPS)
http://www.gpsnetwork.com.auThe Cupcakes
We all get a bit shaky at times but you just need to take the plunge. You say that you’ve got a good lifestyle – so go for it.
Are you after property that is positive before or after tax? If after, I might be able to help.
Send me an email if you’re interested.
Megan
Cupcakes,
I am in a similar boat, looking to take the plunge into the Investment Property market. One thing that has been said to me that has stuck in my mind (and supports other postings) is invest to a plan, not for the sake of investing.
If you are looking to increase your cashflow have a plan about what property you will need to find (or create from what you find, you may need to turn a slightly negative cashflow into a positive cashflow through renovating etc.)
If you are looking to increase wealth (Long term view) maybe you can sacrifice a small amount of cash now for greater long term benefit.
I am not trying to sound like I have the answer (I too am looking to take the fist step of buying an IP) but just sharing advice given to me that I found useful.
I will look out for your future posts to see how you go.
All the best
RhysHello cup cake,
Two and a half years ago my husband was pushing me into investing, I had two children I wanted them to have everything, I was also working my but off with my own home business, wanted a bigger home and could only just afford to pay the rates.I started reading to seem like I was getting into it and I caught the bug. I brought my first property complete with a toilet sitting out the front as some kind of ornament, I spent the next two months doing a cosmetic makeover after work every day with the children, then found tenants. I had to do it again.I am now in my big new house can pay all the rates at once, and I’m about to quit my business and invest fulltime. It’s the properties that got me out of the ditch, in my new home and on my way to a new job and financial freedom.Meme Great story,congratulations on your success.
Hi cupcake Information and research are your friends,not just for the properties and the different strategies,but for the success stories that will help you to your success.There are some great profiles in the Aust Property Investor mag.So when you are ready just go for it.Regards BillBuyers agents or “birddogs” not only help with finding deals, but negotiate, answer those tricky questions and calm the nerves.
Find someone that fits your own approach and do not get railroaded by someone a bit too pushy.
Most of all, a cautious decision is less likely to backfire. Have fun, play it as a numbers game, dont get emotional and good luck.
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!
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