Please help a keen newbie

Personally, I subscribe to positive cashflow strategies, especially if you are looking at leaving work within say 5 years. Positive cashflow property investments are the most difficult to find and in my experience can only be found in the commercial arena right now (unless you can put say 50% down which it seems you cannot). (your state maybe different). I would not recomend the commercial arena untill you have some reseidential experience under your belt however.

Onother option worth researching is a buy, improve, sell strategy. If you can generate some ‘cash’ through this strategy you have so much more leverage in long term investments (which is what property should mainly be) .

The only other advice I could offer is to make sure your debt on ‘luxuries’ is minimised. You really ned to ensure that all of your debt is ‘good’ debt, that is debt that will ultimately put money in your pocket, not remove it. Make sure that you budget an amount to go into saving (that will be used to acquire real estate) evary week. Grow your investment pool as quickly as you can. Do plenty of research, find a stratregy and stick to it.

Hope this helps a bit.

JES

if the home is spanking new then id suggest to throw it on the morgage as putting in a lanscaped backyard would add little to the value of your home, besides your not ready to refinance. Maybe do the yard in your own time slowly, this would save some money. You need to remember that time can also help in this sort of stratagy. For now just do your best trying to decrease the amount of intrest you pay. Might i suggest to talk to a broker? just so you can make sure you have the right loan structure in place for your home, and any future investment you might make in the future.

“It’s not how much money you make, It’s how you spend it that matters.”

Aspiring property developer

Giulio Taranto

If you are looking to pay your house off quickly then I would suggest browsing over a couple of books by – Anita Bell.
– Your Mortgage and how to pay it off in5 years (buy someone that did it in 3)
– Your money (Starting out and starting over)

Every $10 extra paid off your mortgage, saves $1,000 over the life of the loan.
cheers
Kiwi

Lee,

Best of luck with your journey! I look forward to sharing in your progress!

To answer your Qs on the names of Steve’s books, they are:

– 0 to 130 Properties in 3.5 years
– 1,000,000 in Property in One Year

Both excellent books.

I’d also recommend “The Wealthy Barber” by David Chilton – a really good, simply written book that reads like a novel and gives you steps you can take to guarantee wealth years down the track. Though you want to go the fast track option, this book gives you some very good, solid principles to use as a start point.

I also recommend all of Kiyosaki’s Rich Dad series. Especially “Retire Young Retire Rich”.

Once again, all the best!

Adam

Don’t let life get in the way of living.

Hi everyone,

I am new to this site and have just been reading all the posts and I would like to say thanks to everyone for their ideas as they sort of suit my situation.

LW sorry I dont have any input but I hope I might be in a position to help you one day.

Thanks again and look forward to chatting to you all soon

Kindest regards

Warren Priest[biggrin]

Hi LW, as far as the use of your equity goes, when the time comes, i would consider a Line Of Credit (LOC) up to the maximum LVR you (and the lender) feel comfortable with.

This way you can use the LOC for a deposit without having to cross-collateralise (i.e. each property being secured with the next etc.). I personally beleive it’s the best structure. It also is much more flexible in how you pay it back but you do need to be disciplined.

Cheers!

Guy

LW,
There are some really good brokers that contribute to this forum. If you make the move to contact them I’m sure one or all will be able to give you as good advise as you will receive anywhere. Just ask or email them personally.
Go for it and good luck
Pud