Hi Folks,
I am a new starter to the property game but im wanting to jump knee deep & into the deep end with the lot.
Just quicklly, i work offshore and have an annual sallary of 118K. I only have 15K saved for a deposit but shall have nearly 30K by the end of the year. I am tossing up between the other 100 types of education programs such as Carly C from CCORP & her options buying. I like this one alot however there are a few others such as 21st Century Academy & Steve Mc Night. I also have met with a Buyers Agent from Momentum Wealth and they seem quite promising. Another mob are WorldWideGroup and they dont actually charge a fee. They are a licensed real estate agent as well as financial planners, investment property specialists and mortgage brokers. Could you all be so kind and steer me in the best possible direction.
Do i get a house through the buyers agent with high capital growth benefits?? Am i still ellegible for the first home buyers grant??Can you just tell me, a person in my boat starting out for the first time what the best stratagy would be. I have no debt and a healthy finnancial record. I deffinately dont want to be a passive property investor and wait around for 10 years. What would be the first type of house/unit u'd buy and how would you approach this?? I live in Perth by the way….
Would anyone reccomend doing options straight off the bat or should i buy a property first??
Should i go through a buyers agent or should i pay an arm and a leg for a course??
I know it's hard not to be biased but your honest opinions would be greatly appreciated.I want to build a large cash flow, positive property portfolio.
I am in the process of some thorough research into all fields related and i believe that with the right mentor beside me, i could learn a whole lot more. If anyone could reccomend someone that would fit these boots and they preferably live in PERH, then pls send me there details. I work 3 weeks on and 3 weeks off all year round so in my 3 weeks off i'll have ample time to do the ground work/research/study or hunting etc etc. Do you suggest buying and doing renno's then selling again or holding with the increased value??Too many questions, i know i know……
I look forward to hearing from you:)
RustyHi Rusty you certainly are keen which is great.
I'd suggest taking a step back before jumping in head first without knowing what you are jumping into.
You haven't yet made up your mind which strategy to use. Sure you can use many strategies but you can't become an expert in all in a short time.
Options are great HOWEVER it's not always as easy as stated. I would think you'd need a background knowledge of how buying and selling works and be familiar with at least a few areas.
Carly's course is also good (I hear) but are you ready to go straight into developing? It costs a lot more than $30K equity.
Using a buyers agent can be good for those that are time poor or those not interested in looking up areas, prices etc. But with your work schedule I'd do the searching myself first.Personally I would-
NOT jump in and spend thousands of dollars paying for courses when the vehicle may not suit you in the end.
NOT pay wealth creating mobs to tell you what you can find yourself for free by reading.
Go to a few free courses. They have a variety of speakers (of course pushing THEIR course). Just don't bring your credit card. You seem to keen to hand over money to someone else. This will erode your deposit. These courses start at $5K and go up. That leaves very little to actually get into the property market. No use having all thse courses under your belt then no money to do anything about it.
Read LOTS of books.
Scour the net, reading articles, forums, real estate sites.THEN decide which path is for you. Stick to that for a few years. Moving into other areas IF you need/want to.
You can buy a property without doing a course and without paying a buyers agent
If your bank needs you to pitch in a 20% deposit plus stamp duty, then you're going to be needing $75k to get started on a property worth $300k. Less if prepared to pay a lower deposit and pay LMI (lenders mortgage insurance). Have you had a read of Australian Property Investor magazine? The tables at the back of the mag will help you choose a suburb that has solid capital growth (aim for minimum 7% per year on average over 10 years), good rental return (aim for 5%+), and low vacancy rates (stay below 3%).
Once you've chosen a suburb, monitor the buy and rent sections of http://www.realestate.com.au for a month or two, and go to all the open for inspections. That will help you understand what costs what in the area, and what is overpriced. It'll also help you see how long rentals take to "fly off the books".
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
JacM wrote:You can buy a property without doing a course and without paying a buyers agent Agree with Jac on this one.
I would spend those three weeks off reading, learning and eventually searching.
In the mean time, continue to save towards your deposit. By the time you're all clued up….you'll also be cashed up and ready to purchase.
If CF+ is the aim of the game, read some of Steve McKnight's books. Margaret Lomas also has some great books worth reading.
All the best.
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]
You know there is more than one way to skin a cat.
CF+ve is one way.I looked at it years ago and decided to go for capital growth (is that a dirty word here?) It’s worked well for me, maybe because i bought at the right time and in the right place.
I now have 2 properties growing well.
What turned me around was reading Michael Yardney’s book – How to grow a multi million dollar property portfolio.
I know lots of people mention it on this forum as a must read, so Rusty do yourself a favour and get it.
Also worth getting Yardney’s newsletter at http://www.propertyupdate.com.au – some good stuff there – I don’t agree with everything, but some really good stuff that you don’t hear form others. Definitely not CF+ve – but worth educating yourself
Good luck with your investment journey
Hi Charles
Absolutely agree. I don't advocate any particular strategy for propert investing. Nothing wrong with investing for growth – nothing wrong with investing for cashflow. I think the most important thing is to actually "do" something.
Yarndey's books are also a good read.
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]
Wow, thanks all very much on the quick responses. They have all been taken board and think that i'll do a whole lot of reading before buying. I do have a fair bit of time on my hands and so there fore think that it would be cost effective for me to do the ground work/hunting myself. Think i want to be an active investor, buy property that will increase in capital growth either by doing little rennovations and landscape jobs etc etc… Also i'd like to buy properties that i can get DA's on them which ive also heard can add alot of value so long as it is a developable site and in the right area of course.
Are there any fellow comrades that are in the same boat?? I mean buying properties and doing little renovations. Any advice would be willingly accepted and i'd love to hear any other methods people are using to add value to there properties.
I have looked at one property on the local council website just for my own practice and was hoping you could help me with a section.
I checked out the zoning section and found this;
TPS6 Zoning Residential Residential Density R17.5 Additional Uses No Environmental Conditions No Guided Development No Guided Development Scheme Applies Local Housing Strategy Precinct Thornlie East Proposed LHS Density No LHS Proposed Density Applies Could someone pls explain the lines ive highlited in red.If it mentions that there are no guided deevelopment scheme applies, could i develop on this property if i was to obtain a DA??
Cheers all for you help:)
Rusty
If your bank needs you to pitch in a 20% deposit plus stamp duty, then you're going to be needing $75k to get started on a property worth $300k. Less if prepared to pay a lower deposit and pay LMI (lenders mortgage insurance). 
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