G-day all,
This is my first time on this forum, and has heaps of helpful things. I do apologise if this question has been asked a trillion times, so If anyone can link me to a scenario/site please do so.
well this is my story.
I am 20, live at home, have completed business education and have worked in realestate just to get an idea of the market and how things work. I did not enjoy realestate work but have a strong passion for Property investing. I work in sales/media/marketing this is with a very reputable company with a base of 45k and comms which being on target should get me 70-100k per yr (this is very realistic).
I love the work I do and am very committed to rocket in this industry. I have just under 20k worth of personal debt (car + college course). I am currently paying this off, making regular savings but want to get into property ASAP! I also have NO credit card debt.
I will firslty say I am not a big risk taker i.e if a deal looks to good or offers rediculous returns, I am not interested as I have personal family friends who have lost thousands rushing out on quick rich schemes promising the world, but in return smash families, lives and work apart not good!!
How do I get going, I am meeting up with a Property Investment firm in Sydney, who are very reputable these guys are like proeprty coaches, who themselves are invetsors/ coaches( I prefer to be taught by people who personally invest and take minimal risk but have done very well)…are there things I need to be aware off. I just really want to start soon, start young as so many people are saying.
I know I want to firstly invest in Sydney, good growth areas and then spread my wings further. My aim is to finacially be retired by 30, I will continue to work, but would be great to enjoy everyday and not worry about future bills etc.
I appreciate any constructive comments that will help me to reach my goals.
Thanks a mill guys!
Hi Eddie
Maybe you should start by looking at yuor finances and make sure you have a good fundamentals i.e. spending less than you earn and so on.
But you brobably already are on the right trackSteves Mcknight's books are a good read to start.
Cheers
Peter"30 propertys in 8 years"
Hey there Eddie,
2 questions (1) how much deposit do you have to start with right now & (2) why are you picking Sydney…..do you not consider it an expensive market to invest in. My point is, I feel you will tie up alot of funds to secure your first property and see little capital gains for some time therefore possibly not allowing you to invest again as soon as you'd like. The wrong start could greatly hinder your ambition to retire at 30. What do you think?
911 Turbo good point you raised.
I wanted to pick sydney so I could get the first home buyers grant to pay for a few things, that is what I have been advised with. Also Sydney is not booming, so I thought I would get in, hold on and wait for things to rise, then look at other more affordable states like South Australia??
I guess i will find out more after I meet with the proeprty firm. But I like to hear peoples ideas, cause i want to prevent making any silly mistakes that could cost way to much.
Cheers!
What is the name of the investment firm in Sydney Eddie? Might be good to mention and get some feedback from forumites who may have had some experience with them.
Good Luck, Ian
Hi, I went to a school reunion & my friend's son just bought a 1 BR apt in Kensington for $430K. My niece bought a 2BR apt also somewhere near the uni 2 years ago & then rented it out & scooted off to UK to see the world.
These stories for comparison. They're in your age group.
Good luck,
KYForget the "Investment Firms".
They are expensive, and won't necessarily help you achieve your goals; despite what they promise.
You will learn more than enough info FOR FREE both here on Steve's forum, and over at Jan Somer's Somersoft Forum.
As well as that, read lots of books; Jan Somers, Steve's, Margaret Lomas, Noel Whittaker to name a few.
I can't stress the importance of educating yourself as much as you can. I took some peoples word for it when I baught my first IP in 04, didn't do too bad but could have done alot better if I had the education (still very limited) I have know.
You need a definate plan. What are you trying to achieve out of your property investment? Growth, cashflow or both. Even if you concentrated on your finances for a year or two, educated yourself and utilsed the time to research the market, you will be miles ahead. I read somewhere that investing isn't risky, being uneducated is.Another idea, if you're passionate about real-estate investing, utilise you're current position and formal education to build your own business. Something that will enable to employ people like yourself to do all the 'work' for you while you utilise your 40 hour working week to learn how to create wealth. Have a look at Rich Dad Poor Dad, then Cashflow Quadrant by Robert Kiyosaki. It will ultimately change the way you approach your most valuable asset, time.
All the best.
Gav H
Thanks all for your comments.
Since my meeting I have planned to wipe out my debt first then look at future investment.
The proeprty firm is called Property Secrets, has anyone dealt with them, I would love to hear your views. So far I am pleased with there approach. Any comments will be great.
eddie01 wrote:Thanks all for your comments.Since my meeting I have planned to wipe out my debt first then look at future investment.
The proeprty firm is called Property Secrets, has anyone dealt with them, I would love to hear your views. So far I am pleased with there approach. Any comments will be great.
Hi Eddie,
I have had material sent to me by Property Secrets. It is a company run by Paul Giezekamp in Leichhardt. They concentrate on buying tired properties in the western suburbs of Sydney at well below market value – usually at auction. Then they do a reno and revalue to access the increased equity to get the deposit for the next property. They also look for property with future subdivision potential. Of course they charge for finding you the property and doing the reno.
I didn't really feel comfortable with their strategy however that doesn't mean that you couldn't benefit from their services. I actually contacted them for Mortgage Broking services but decided on a different company. I spoke with Paul in a phone interview and could tell that he was well experienced. However he is definitely a very good salesperson and throughout the conversation was talking up his companies' attributes and "secrets". This turned me off a bit. The fact that he was marketing to the masses.
I guess Paul has a strategy which either suits you or doesn't suit you. The choice is yours. If you are not in a position to do your own purchasing and need to rely on a firm such as his then it may pay to contact a few others to compare their strategies.
Go through Australian Property Investor magazine and you will find plenty to choose from. Go to their websites and research them.
Good Luck, Ian
Hey Guys, I am deciding on a few things, there was another investment firm called Iron Fish, I have met the owner and he has a ‘systemized’ approach which is definitely how I like to work at things. The biggest reason for me going in with a firm is purely for these reasonsa) they have experience, reputation and get results and b) they are networked with many people to bring the best results. I have been told, go to people who have experience and proven results. I do understand that they charge a fee, but I see this fee as an investment into people who have the knowledge and proven results! I will admit that I don’t have all the answers, so that is why I want to be guided by those who know. What are people thoughts?? I guess the biggest factor is to get advice from successful investors themselves rather than from anyone who don’t have creditability behind them
Never heard of Iron Fish Eddie but it is good to shop around and find what suits you. I agree it is difficult taking the leap and there are so many options it can get really confusing. What strategy? Who to trust? etc etc….
Give yourself some research time to decide and then make a choice based on who you feel most comfortable with.
Good luck
Hi Eddie, I've been to a meeting run by Iron Fish. They were marketing a couple of quite big projects in Adelaide. The Newport Quays & some houses at Andrews Farm. I have property near Newport Quays & while I'm glad they lift the area & add value to the peninsula as a whole, I don't think they make very good investment options at the moment.
I don't want to run them down as I hardly know anything about them but they gave me the impression that they're a marketing group.
You can't do very much until you're in a position to buy.
Good luck,
KYHi Eddie
You are doing everything right so far, asking great questions and taking the answers on board your half way there.
Have you thought of going along to meetings in Sydney that are run by like minded people out there doing the reno's, developments etc. I'm not from Sydney but know of a meeting that is held once a month, they have various people from the industry come in and give a presentation eg Accountants, Real Estate Agents, Property Manangers etc. Sometimes it is followed by a 'Real Deal' were someone presents a project they have bought/working on/finished etc, followed by networking. It is a great way to meet like minded people and can be a great source of information.
The web site is http://www.propertyinvestingnetworkinggroup.com.
Ros
Interested if there is any feedback from the original posted Eddie01, would be pretty interesting to read I imagine
Hi Eddie,
Just to add my two cents worth….
I think there has been some excellent answers to your questions. ‘Self Education’ is the key don’t rely on someone else to tell you where to put your money. Your first investment has the ability to set you up and leverage you into the next so take your time, the property market isn’t going anywhere and there will always be somewhere in Australia to invest in so why not take the time to learn a bit….it will pay off in spades later.
We purchased our first property 4.5 years ago in Western Sydney and it’s just slid sideways since. It’ll do okay in the long run but I haven’t been able to leverage off it yet. With a lot of dedication, self learning, and self motivation we’re managed to purchase further IP’s in promising markets around Australia since then.
You want to be able to recognise what type of property you are looking for to compliment your portfolio. As already mentioned, do you need capital growth or cashflow or both. There are markets in Australia that will provide you these options depending on your risk strategy.
Educating myself, which is a continuing journey, has enabled me to understand my investments and become the master of my finances. I use professionals like a mortgage broker, accountant etc but at the end of the day the buck stops with me when deciding where to put my money.
Hope this helps. Stay on the forum, read books, magazines, newspapers and go to free seminars.
Jack
If you want to lose money and a lot ot worry and sleepless night then go to property secret Paul Giezekamp will over charge you every thing he can !!
there are so many unhappy clients from property secrets !
They charge excessive fee and find some rubbish property for you to make you over capitalised !
plus once you go ahead with them, you will have a lot of worry and un-answered emails and questions…. you can never be more frustrated than deal with them !
My suggestion is if you want to have a successful property investing journey, don't go to property secret Paul Giezekamp will make you pay for his BMW !
I would have to say a property Investment firm/ mentor program would be the way to go but only if you are time poor, if you believe u have at least an hour a day over the next 6 -12 months for self education ( books,research and the acquisition of your first property by yourself) then I’d go at it alone, go to the investment networking groups also this will help greatly.
I have been studying and researching for the past year, only to go to paid seminars to find out “a magical secret to wealth” that I had already learnt from books,research etc.I believe acquiring the first property alone with plenty of education and research will excel you forward faster and cost u less.
But if you believe you need help or guidance along the way I’d just research the companies and get opinions from off this forum on them.I recently attended an info session on positive real estate and they seem genuine with there approach to investing, it was also recommended to me by a couple of other investors that between them hold about 40 properties but not sure if they were affiliated with the company – just another one for u to consider.
Ultimately you need to weigh up your time, goals and money available for investment .
Just be open to anything at first and filter out the crap with plenty of research.Bought a place with Property Secrets, although I'm pleased with purchase, I do feel I came out having paid to much without much support in bargaining.
Was told I could just place a granny flat, I felt theirs was quite excessively priced, and undertook my own. Now that i'm in the process of building one, am having problems with council, tho it WILL go ahead, it is costing me $20k more than expected (and suggested by PS), fortunately I am purchasing a granny flat for a ridiculously one off bargain price which will still make it all worth while.
I do vouche for the company if you are time poor, they won't send you broke and I did get a decent property out of it, however after learning from my experiences, eg. networking and researching, I have bought a second property that comes with a granny flat, 2 streets away for less than my original property. I will be even more agressive for the purchase of my third IP.
Highly recommend the use of a mentor, tho this doesn't mean you need to pay for it. A lot of my 'mentors' have shared their knowledge with me for the price of a coffee.
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