Hi everyone,
Well i have been here a week or so just going through all the info on here trying to make sense of it all. What a great site this is. Its good to see people helping each other out. Need advise on getting into property investing.
I'm 25 and my partner is 24 we already PPOR.
Currently we take home around 1200 after tax.
We have around 15 000 saved and are saving 400 about a week.We brought our house just over a year ago for 312 000 and is now worth about 380 000 judging by other houses selling in street/area.
So what do you guys think. How should i start this adventure. What should my first steps be. Any help would be greatly appreciated.
Thanks Dave
Visit the be all and end all of all investment websites…. click below. Nah just kidding, there is some information you could look at on my site which will help you start….
Good luck and do not be afraid….jump right in, its worth it!
First steps;
education about property investing, finance and loan structuring. On-going.
Your own finances seem to be in good shape, so keep it up.
Decide on a strategy; buy and hold, flips, wraps, renos, subdivs etc.
Then start looking at markets to find one that suits your chosen strategy or strategies.
Find a good mortgage broker who knows property investment.
Same for finding an accountant.
Ask us more questions.Hi Dave,
I agree with LA Aussie – read, read, then read some more. Hang out on this site, and on the Jan Somers forum site as well. Read some more. Sign up for the e-newsletters from here – ie Steve McKnight – and Michael Yardney (metropole.com.au), and Margaret Lomas (destiny.com.au).
Decide on a "strategy" – easier option is certainly "buy and hold", but often this can come with negative gearing, thus affecting your affordability….. not to say this is "bad" or "good" – it just "is".
Read some more – borrow books from the library, or buy them – Steve McKnight, Jan somers, Margaret Lomas and Michael Yardney. Anita Bell has some good ones too.
Go to auctions, talk to agents, keep track of "advertised price" and the "final sale price" in a specific area for a month or two. Talk to the bank or a mortgage broker and find out what you can afford.Above all – BUY SOMETHING !!! Actions will help you learn much faster, and avoid any potential "analysis paralysis".
I hope this helps,
Thanks,
BDMOk thank you all for the help.
I have started educating myself with Rich Dad Poor Dad which i brought and finish in one day. It was a great book, really made me think about things. Looking forward to reading other authers views to. Starting cashflow Quadrant tonight and after that i am going to start on Steve's two books which i have here to.
From the following which books can you guys recomend Jan somers, Margaret Lomas, Michael Yardney and Anita BellHandy Andy i have seen your and think i will get some good info from it.
I am how ever a bit concerned, I know i have to change the way i think but i'm abit worried about intrest rates atm. What do you guys think about the situation? Or should i not worry?
Thanks alot guys
DaveInterst rates will always rise and fall. If you factor rate rises into your number crunching, and the deal still stands up, then there is no need to worry too much.
The problem with rate rises comes when you are in a property or properties that are quite neg cashflowed. Try to avoid that and still buy for cap growth as well and you will cover a lot of the dangers.
You can always lock in rates as well, but there are trade-offs with this in flexibility, so the benefit may not always be that great.
Don't forget that the interest is tax deductible, so the effect of each rate rise is quite often small on your bottom line.
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