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.

Hello Stevie

Darn, I only just read your post and Thursday has passed!  I will check it out and keep an eye on it and THANK YOU for the tip.  I am located on the mid north coast of NSW and the average wage is very low.

Dave L – I can understand you missing your little boy – they grow up so quickly and they are so gloriously wonderful when young.  I can't even imagine working 14 hour days for 30 years and having nothing to show for it.  Congrats on the 5 IPS.

My score was negative to which is unpleasant. I also wondered the same thing as L A Aussie re the rental income. Then I did Steve's exercises in chapter 4 of his latest book and scored "Could Do Better" – an eye opener.

Then listened to the book launch mpeg and the book CD and am now in a blue funk even though the info was good. You just scared the pants of me Steve as two months ago we purchased a -ve geared IP for eventual capital gain as espoused by John Fitzgerald (and forced savings). And I just found out that 100 units will be be released for rental in the town in a few months! (it was the only town I could convince my husband to buy in as he was really nervous about purchasing any IP). I'd better use your suggestion about the reward movies tickets Steve.

The above have certainly made me realise that I need to put the thinking cap on and find some solutions to improve things. One option would be to turn our PPOR into an IP. We'd probably have to rent for a similar per week amount as that of the weekly mortgage repayment. The tax break would amount to about $51 per week – not that great but… $50 is $50. IF we could find a house that was cheaper rent the saving would be greater. And if the rent on our PPOR was greater than the mortgage repayment that would also improve the bottom line further. And our income statement would be more impressive. The goal was $750,000 – $1,000,000worth of income producing assets in 10 years. IS it achievable?

Drought definitely reduces the weekly income but if you do other property maintenance as well, it helps. Newcomers cut prices too drastically and then go broke within the first 1 or 2 years because they under estimate the never ending equipment repairs, insurance and overheads. My husband did it for 10 years and did quite well during that time. You're always at the mercy of the weather – it either rains too much or too little.

If you pay out or refinance within a specified period early,  (usually 3 – 5 years) you may be stung by having to pay a hefty fee.

Hello Stevie

What kind of IT skills are required?  I take it that non police force people can be employed?  That's what sworn staff members are? How would one go about finding out further information about this?

Anni – what kind of work in the mining industry can women do?  I did check out some mining sites but couldn't see anything much for women.   I have had a similar experience to Mo1.

Thanks

Hi Nina

It is great to see another person who has decided to focus on investing (me too).  I agree with Nucopia about the rent you are paying.  It is an awful lot of money going into someone else's pocket.  If you really want to get ahead, renting a unit for even just a year or three would benefit you greatly.  Of course there will be grumbles but which choice will benefit you and your family the most in the long run?  Crummy pension and public housing on one hand, own home and improved financial security on the other.  Hmmm… easy choice. 

The $$$ saved can be placed into a managed fund and this can be automated so it is a no brainer process.  Some funds require you to have a specific amount to start with and others do not.  Clearview is a fund that lets you start with no money and details can be viewed at http://www.clearview.com.au/products/managed_investments.html.   There are probably others (and better ones) but this is one that I have used without any problems.  Saving the initial sum of money is the most difficult part.  After that it gets easier.  Make an automated savings plan your number one priority.

My husband an I have always been low income earners but we own 2/3s of our 2nd PPOR  current value and we have just purchased our first IP (major milestone for us).  Our first PPOR was a tiny 99 square metre  3 bedder – the smallest house in the street.  We added onto it and put lots of elbow grease into the property.  The neighbours laughed as we turfed our front mud patch with kikuyu runners after they had paid a couple of thousand $ for their new lawn.  18 months later you couldn't tell the difference between the turfed and runner lawns.  We have three kids and have always done it tough.  There are now 'spenders' who envy our very modest situation and have some misinformed idea that we are lucky and have more money than them.  We have always taught our children about advertising and the branding power so they have never insisted that they can only wear Nike shoes or expensive surf brand clothing.

I don't know what you currently pay now but Optus has a plan that costs $69 per month which includes 2GB broadband and unlimited local, mobile calls to Optus GSM phones and STD calls for that price. Or $89 for 7 GB broadband download.  The plan locks you into a 2 year contract.