I've just started researching getting into the property market and there is so much information around, and many of it conflicting, that I dont know where to start. I've heard many stories of single women acquiring multiple properties and achieving financial independence within short periods of time and I'm not sure what to believe. I'd like to know what would be the best strategy for me and what is realistic. My situation is as follows: I am widowed with 2 kids, I'm not currently working having just completed 16 months of travel around Australia, however I do plan on gaining employment early next year. I would like to enter the market and purchase a small property on the Sunshine Coast to live in, and hope to eventually own multiple properties with the objective of generating enough income to live on. I have approximately 50% to put towards a first property, however I do not have the capacity to fully repay the other 50%. I thought that perhaps I could buy a run down property, interest only, do the minor renovations, then on sell in less than 12 months and then do it all again. It has been recommended that I borrow extra to cover 12 months loan repayments. However when I do the sums (not having a crystal ball in regard to changes in the market!), it appears I'd only end up covering costs, a lot of work without much in the way of capital gain. So it doesn't appear to be a viable option. I'm not interested in any house and land packages in new estates on postage stamp size blocks, and that doesn't solve my capacity to repay problems. I'm sure once I'm working that I could afford a reasonable mortgage. I've looked at fixed cash flow manager loans but the capitalised interest means I'd be owing more principal at the end of the term. I'm open to any suggestions and welcome your opinions and feedback. If you could recommend, websites, forums, publications, seminars (however attending seminars is difficult due to kids responsibilites), brokers, advisors, or anything helpful I would greatly appeciate it. Some materials and seminars are quite costly but I'm sure there's information out there that is accessible and affordable. Thankyou so much for taking the time to read this and I look forward to hearing from anyone.
Hi Jen
Read, read, read, do lots of number crunching and don't rush in. Try the library first then some investing or real estate magazines. Surf the net. I think being a bit conservative until you have some experience is the safest way to go.
Hi there, may I recommend you do a plan, sit down and visualize where do you want to be in say 1,3,5 and 10 years down the track. Put all this down in paper, remember property is just a vehicle to get you where you want to go, so knowing what you want is the main thing. Your plan will tell you if that house on the Sunshine Coast is a good investment or not, your plan will tell you if renos are good for you or not, your plan will tell you if the cash flow mortgage is a good thing or not… I am sure you get the idea. Be bold, put down your dreams in paper, go for it!,,. BE – DO – HAVE… Robert Kiyosaki’s Rich Dad Poor Dad is a great book. Also Steve’s books are great. Lots of investors like Steve are doing Webminars, so you can listen from home while looking after the kids. There are a few in this site that you can download. Not sure how old are your kids, however get them involved in the planning too, kids can teach us a few lessons on how to dream and dream BIG. Happy Investing
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