Hi all,
I've been roaming around the forums a lot as there are some very interesting reads here. I've recently been thinking of starting to invest on property myself (I'm an investment virgin)
What would be the best way to start off? I've been working in Real Estate for 4 months now but I'm only earning an assistants' salary of 29k p/a (I only just turned 20 after all). Next year when the Property Manager leaves I will take a jump from 29k to 43k.
I've had a fair look at the market and got an idea what prices are good and whatnot, but seeing as I do not come from a wealthy background and have no investment properties / enough money to buy one, I'm looking for ways to start investing.
What are good books, websites, articles to help me get started?
I've also kept an eye on http://www.realinvestmentproperty.com.au but have my doubts whether the "returns" are really legit/guaranteed or not.
Lastly, what sort of loan should I be looking at if I'm to borrow some money?
Thanks in advance,
P
Hey P,
Good luck on your venture. Getting educated first is the best step.
This website is a wealth of info that will no doubt help.
We have newsletters and workshops that you might find useful at our website.For your first IP, I'd suggest a low rate Interest only loan or perhaps a professional package that'll allow multiple properties (all uncrossed of course) under a single annual fee. From there you could get quite intricate but for a first step keep it simple.
Welcome to the forum and let me be the first to congratulate you on looking at investments this early on.
This is a very open ended question as there are hundreds of different ways you could invest. Do you want to go positive cash flow or focus on capital gains?
Do you want to buy locally or in rural areas? Do you want to renovate a property for increased profits?
Your wage should be enough to get a smallish bank loan once you move to 43k but how much deposit do you have?
Ryan McLean | On Property
http://onproperty.com.au
Email MeHi P,
This article below should be helpful for you.
http://www.propertyportfoliospecialist.com/2010/08/negative-gearing/
Happy investing!
By the way, P, with your current financial situation…have you considered buying a property off-the-plan at all?
Here is blog post on this…wisely invested, an off-the-plan investment can help you get into the market but without too much financial commitment/burden for now.http://www.propertyportfoliospecialist.com/2010/08/why-invest-in-off-the-plan-properties/
Congratulations on wanting to get going on property investing so early!
You should read up, ask questions etc to learn, but the best education is getting your hands dirty with your first property. Nothing beats having $200-400K on the line to focus your learning. As they say, “Experience is the best teacher, but it unfortunately sometimes kills the student” so the trick is to start with something that won’t sink you financially if it goes bad. The best way to avoid being sunk is not to borrow beyond your capacity – there are plenty of mortgage brokers on the forums who can help you with that. The main thing is to start – the biggest impediment, in my opinion, to any form of success is over-planning and not enough action. (You should still plan though
). Find someone who has done it before and buy them a coffee every now and then and run through what you are thinking of doing – that can save some pain too. Again, there are plenty of people on the forums who are happy to chew over ideas and help people be successful.We started 10 years ago and our first IP was pretty uninteresting – slightly negative geared until around year 5 when it hit breakeven – but safe and we’ve made $200K on it. $200K we wouldn’t have made if we didn’t start. We like to think we’re a little more sophisticated now and will be starting some developments in the next couple of months but we wouldn’t be able to do that if we hadn’t made the boring, safe start 10 years back and started understanding the process in a way that you can’t from reading a book or talking to people.
You don't have to come from a wealthy background to do well.
Read, read, read is my advice. Knowledge is key – so is a positive attitude.
I'd also get into the habit of saving each pay.
In a years time, you can use your knowledge, savings and the new $40k salary to buy your first property.
Cheers,
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
). Find someone who has done it before and buy them a coffee every now and then and run through what you are thinking of doing – that can save some pain too. Again, there are plenty of people on the forums who are happy to chew over ideas and help people be successful.
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