New to Investing

Welcome to our world!
answers to questions:
1. That is the idea, but not that easy to do. Some people are happy to have a ‘negatively geared’ property. They treat is a forced saving towards an investment that will go up in value over time. I have a friend who has this mind-set. It’s a bit like putting $50 a week into your superannuation. If you have a neg-geared property you need good capital growth from it offset the cashflow drain. Other investors won’t buy an investment unless they make money from day 1.

2. In the beginning, the amount of debt you accumulate is overwhelming. But keep in mind that it is tax-deductible debt, and it is being applied to an investment that (hopefully) will go up in value over time. It is not like ‘consumer debt’ that is applied against useless ‘stuff’ that everyone buys and is worth nothing after a few years. You will become very comfortable and actually quite proud of how much investment debt you have! It all relative. I am sure there are posters here with at least 2 mill in debt, but the rent income and tax benefits will cover it.

3. A well priced, well positioned house/unit will always go up in value. If it breaks even with the expenses/rent that is also very good – as I said; some people lose $50 per week and don’t mind. This is ok, but how many properties can you afford if they all lose $50 per week? I want properties that make money every week. Then I can buy lots of them.
And on the subject of selling for more than you paid; if it is making money every week, why sell it? That is investing for long term and ‘passive income’. That’s what I do – I don’t want to work, so I buy investments that provide me with an income.
I think what you may be thinking of doing is ‘trading’ or ‘flipping’ in the short-term for a profit. This is a totally different mind-set and different strategies. You also need a booming market for it to work well.

Cheers,
Marc.
[email protected]

Go and buy some books
There are two approaches – positive gearing
and
negative gearing
buy API magazine and start buying the books advertised in the back of the magazine.
Books are a cheap way to learn

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Hi Bez,

In order to be successful in property investing you need to have a good system in place. Here’s a simple 7 step program for you:

Step 1, sit down and work out your ultimate long and short term goals.

Step 2, do a household budget to work out how much (if any) cash you have available to fund a property.

Step 3, work out what type of investment strategy will work for your personal circumstances. READ, READ, READ Take into consideration your resources, level of risk and market conditions.

Step 4, build a strong team of professional’s around you (ie. Accountants, Solicitors, Finance brokers etc.)

Step 5, Research your target market.

Step 6, Prepare a Feasibility Study

Step 7, Finally negotiate the deal and Repeat !!

For more details visit http://www.propertydivas.com.au

Best wishes,

Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”

G’day Bez
Look, all the info passed on by others so far is all good. I got into real estate 2 years ago, and am now on an amazing journey. The best piece of advice, apart from reading and attending seminars, is FIND YOURSELF A MENTOR! Find someone who has been there, done it, and stick to them like glue. They are amazing people, and like Steve, most of them love sharing their knowledge.
I have just come back from 6 amazing months in the USA, and am heading back there in Jan, with my mentor.
Visit my website at http://www.pdpic.com and follow some of the links to other people who love property. You never know what might happen.

Happy investing

Phil D

Forsaken – That’s a bit rough.
Reading Steve’s first book gave me the incentive to take action. I believer that I already knew most of what he was saying but hadn’t taken action. I am now a full time investor and have made more money through property in the last few years than I could have dreamed of working for an employer or even owning my own small business. I don’t think that there is anything to be scared of in Steve’s books or anything all that extreme. He obviously pushed the Mappers in the second book however they did it of there own will and were very successful.
I am now in Steve’s results program homestudy program and although I don’t think I have learnt anything startling it has been good all the same. For a beginer I think the results program would be fantastic.