Hi
I have just starting educating myself on property investment. I am a beginners beginner!! I am looking at buying a home next year. Then proceed from there with my dream of propery investment. Where do I start??!! I have read Steves first book and buy a couple of different magazines each month. Where should i go from this starting point, keeping in mind I have limited funds and I am saying for a deposit for a house at the moment?
Any and all advice would be much appreciated
thanks
Damian ClarkWell how about you start at the start-save liek mad for your deposit-in the meantime keep a close eye on the property market so when it comes time to buy you are well prepared and well educated.
Well you are definitely on the right track as savings is the 1st step. Along with savings keep a close eye on the market and see you if you come across a property that you like. You might have a certain minimum goal say for example 40G's (just made up that figure for the purpose of this example) that you need to save up for a house for 200K, however while you are saving and working towards your goal you might come across a good deal for 150K in thaat case you only need 30G's that you might be able to afford within a shorter period of time then what you initially thought. So keep your eyes open and continue to save.
Damian,
Saving is good you cant go wrong with that
. Since you plan to purchase next year I would perhaps leave the actual market research for some time later and suggest you start learning about the ins and out of making a deal.For example what are the steps (getting finance, researching properties, making offer, talking to solicitor etc) and in which order they come. Then I think you could familiarize yourself how does the timeline for a deal look like ie. what happens after your offer is accepted, how many days to do you inspections, when it becomes uncoditional etc.
Just drawing this on a timeline (remember each state will be slightly different) really helped me to understand when are things happening and how one thing relates to another.Hope that makes sense,
cheers
DanDamian,I think that you should start small. I will forget about starting by buying a house. i will start buying a small unit or flat in a good area if possible. Save the 20% needed for a loc doc loan and start from there. You will have plenty time later to increase your savings and buy greater things. Don´t forget as well that you don´t need to rent out every property you buy. Some times to fix the property up a little and resell it for a profic is fantastic. A combination of both worlds is my moto and I am laughing my way to the bank.
Best of luck,
TeraDamian,
I would strongly suggest reading the book Rich Dad Poor Dad. The book talks about the concept of not buying your own home, but spending your money on 'assets' which are things which put money back in your pocket. You will probably find that you can afford two or even three investment properties of the same value as one property that you live in. This is because the rent and the tax breaks will help cover a signifcant proportion of the loan repayments, allowing you to buy more properties. Naturally you would need to rent a place yourself to live in which needs to be factored in. The more properties you own, the greater exposure you have to the market and therefore the quicker you will accumulate capital growth and equity, and the more equity you have, the sooner you can buy additional investment properties and accelerate your portfolia. It's all about achieving maximum leverage in the market.
Hope this helps, but highly recommend reading that book to change your mindset.
Good Luck!
Start to study the markets as of NOW,
Get educated,
Live off the smell of a dried out oily rag,
Save like Hell,
Be ready next year.
. Since you plan to purchase next year I would perhaps leave the actual market research for some time later and suggest you start learning about the ins and out of making a deal.
Damian,
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