A Fresh Start – Advice Needed

Hi

Sounds like you have some solid 'assets' behind you.

Before going into property investing, work out a simple plan on a page your goals – eg passive income of $xxx per year, choices to work or not, etc.  This should be measurable and outcomes focussed rather than describing a state like "I want to be rich".  Why do you think property investing is going to provide these goals?

When do you want it? and how motivated are you to achieve it?  Can you achieve it in 5 years or what will be your position in 5 years.

The authors you have described have different strategies – but which one suits your circumstances and your risk profile? Do you understand the 'strategy' that is being promoted?  A strategy you can't understand puts you at great risk?

These are just a few ideas to kickstart your thinking.  They should also help in determining what you should buy, maybe where, how much and can you go the distance if a few 'curveballs' get thrown at you.

Dear Bronte

Wow, you are in a great position to get started.  Hopefully i can help because i was in your position three years ago and still regard myself as a novice.  I have similar advice to Gary.  Before you buy a property you need to sit down with pen and paper and make a plan. Dont let any present limitations hold you back in making your financial goals either.  What are you trying to achieve with property investing? And how much money do you want from it?

Once you know where you want to head towards you need a strategy.  How active do you want to be in the process? Eg. I know a guy who has 4 -ve geared properties.  He buys in the inner city or near the beach (has one in Noosa for example).  They are expensive houses because he believes he will attract a higher quality tenant and is in it for the capital gain.  As for myself, I do not really like -ve gearing and work for neutral or +ve properties.  My strategy is to buy land (that you can subdivide) in towns near big regional areas and build.  I create a fair bit of equity and have a neutral property.  Others like to renovate.  The possibilities are endless.

Once you know what kind of property you want to buy, pick an area.  I started off by choosing the state i wanted to invest in (which was QLD) and then i got a big map of QLD and blu-tacked it to my wall.  I picked out areas i was interested in (as i wanted to buy outside of the city) and started googling them, looking at coucil sites and the real estate websites.  I always have a list of 5 areas going so when i make a purchase i can move onto the next one.  I do check the fundamentals of the new area but i dont have that lengthy research to do again.  I have crossed 2 off my list!

Then when you know the area like a local and have found something you think is worthwhile, take a deep breath and then just jump in and do it.  And this is the hardest step but there is no other way.  I have made lots of mistakes, nothing to expensive thank goodness but its part and parcel of learning.  Be encouraged that you are in such a good position.  My partner and i started off three years ago with combined income of $70,000 and $10,000 savings.  No equity and no possible help from families.

Noone can give you a strategy, it will depend on what you want to achieve and what interests you the most.  Wow this turned out long! Sorry