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There are a LOT of books. Don't get too bogged down though, otherwise you end up with analysis paralysis.
Saving is always a good start. There are other ways but you need to get educated in those areas to put them to good use.
Seminars are a good way to hear different strategies just don't get caught up in the hype.
I think the Think and Grow Rich in Property (or Think and Grow Rich Entrepreneurs) weekends are good for beginners.
They are free and have different guest speakers. It give you a taste of different strategies. Plus you get free books DVD's etc. Just google for ones in your hometown.
There are also meetup groups in lots of cities which are a great way of meeting people. Networking is (I believe) the Catalyst in starting your journey.
If you put your hometown someone may be able to point you to one.Property investing is very broad. There are MANY ways to procede and it's different for everyone.
I'd suggest getting a few books
Here's some discussions on good books.http://www.somersoft.com/forums/showthread.php?t=9652
Also borrow some property magazines from the library and read some stories about how people got started etc.
While doing this browse http://www.realestate.com (start with your local area). Go to a few open homes etc. Get a "feel" for property and what interests you.
Come back here and ask questions as they arrise. Good luck. Be careful though- it's addictive (in a good way!!).homersyd wrote:Catalyst wrote:You mean Zaki in this months API?I don't know about the debt but he used a buyers agent to buy under valued properties and reno them. He did a LOT of the work himself so saved lots of money there.
He revalled properties and withdrew the equity to buy the next one. Because they were neutrally geared (or just over or under) he could continue to borrow as serviceability was not a problem.
He's bought 13 properties now.
Hey @catalyst, You seem to know Zaki from API this month, but as @moxi10 pointed out above, Zaki actually said he never done any renos…mmm…doesnt quite add up (no offense). I'm just trying to find out how he achieved such a remarkable portfolio in 24 months…not trying to ditch anybody.
Yeah I have met him a few times but don't really "know" him. I must have been mistaken on the doing the reno's himself. There are 2 young guys and I must have confused him with the other.
He goes to meetings I attend. The group have assisted him in acquiring properties through their buyers agency. They typically find under valued bread and butter (read low entry) properties that (sometimes) require a reno. They recommend tradespeople if you wish to use them. By following this strategy you have instant equity and with a quick cosmetic reno the property is CF+.
THAT'S how he does it.Yes Ten-Burner there are many new immagrants who do well as they see this as the land of opporunity and take advantage of that opportunity (I mean that in a good way). Most Australians (that were born here) take it for granted.
One young guy I met there 3 years ago had a dream of buying a property a year and maybe addiong a granny flat.
THEN he met Nathan Birch http://www.nathanbirch.com.au/ who is just amazing. Well with Nathan's guidance he bought 4 properties in a month and now has a portfolio of over 20 properties. If you don't know of Nathan take the time to look at his stuff. Look him up on Utube. He bought his first property at 18 (with no help from family etc) and made his first million by the time he was 21. He's 26 now and no longer works for anyone else. Amazing young guy and the nicest, honest guy you'd hope to meet.
I know it often sounds like some pie in the sky story but this happens. You just need to network with the right people. If someone 3 years ago told mne where I'd be today I never would have believed them. AND I feel like the beginner in my group.
888Genie wrote:Hi,I am pretty sure this guy did some JV's, which makes a difference.
And it is true, I have been a subscriber to API for over 5 years and some of the stories are a bit stretched, especially when it comes to the approx vals of the properties, bit of overstating there I thinkHis first was vendor finance which was how he could do it with debt.
Regarding the stories I actually feel a lot of them are pretty ordinary. There are a couples that bought 4 properties over 5 years. Big deal. Some are also VERY ordinary with sales figures. They buy properties AT market value. Why would you do that? Then do you wait for CG? Unless there is development opportunities or something I can't see.
They really scrape the bottom of the barrel sometimes.
I have a few friends that have been in it. And others who have been asked but are not interested.If you negotiate straight after the auction it's still auction terms.
You mean Zaki in this months API?
I don't know about the debt but he used a buyers agent to buy under valued properties and reno them. He did a LOT of the work himself so saved lots of money there.
He revalled properties and withdrew the equity to buy the next one. Because they were neutrally geared (or just over or under) he could continue to borrow as serviceability was not a problem.
He's bought 13 properties now.
JacM wrote:i use AAMI building + contents insurance plus landlord insurance with tenant protectionWhy do you get contents insurance? Is it furnished?
I know a few people that used them. They bought properties at a decent price but they felt they were overcharged for the renovations.
From the numbers they gave me, I agree.
I gave up after the second post.
What dribble!!!
Personally I don't have enough family to fill all my properties. Oh that's right I shouldn't be allowed to own that many. So I'll just tell my tenants who are not fortunate enough to have a cousin with enough money to buy a house for all heir relatives to live in, to live on the street.
Move on to the relationship forum. This is a "property" forum.
How are you going to do renovations while it's rented?
As mentioned above repairs while it's rented can be claimed. Improvements cannot. But f you do the renovations you can claim depreciation while it's a rental. It doesn't matter when you do them. You can do them just before you move out then get the depreciation schedule done.
You cannot do either if they are on a fixed lease until June 2012.
Fixed means fixed. That's why tenants take out leases so they have security for the term of the lease.
You have to accept the lease.
Offer a lower price to compensate. The vendor will have lots of people not willing to wait 6 months so should be negotiable. When offering a price state the reason for the lower offer (lost income). Give the tenants notice to increase (or move out) at the end of the lease. Not sure of the length of notice that needs to be given in WA. Ask the real estate agent.Jins13 wrote:Welcome to the forum.One of my advice which I would like to offer to you, is keep it secret in the workplace or family members as sometimes they will drag you down and possibly could affect your judgment. Also, my boss one day saw me reading the "Property Investing" Magazine and she told me me that perhaps I was getting paid too much!!!
haha. I met a lady the other day. She told family they were thinking of buying an investment property and got put down. So they decided not to tell the family. Years later the family thought she and hubby weren't getting ahead. It was then that they decided enough was enough and disclosed their 20 properties. LOL Good on them. Only listen to those who have what you want.
Steven you have hijacked Damien's thread. I have asked for it to be removed.
If you have a question start your own thread.Now Damien- Be VERY careful with these companies. Often they have properties to sell you. The problem therin lies do they sell you the best possible property because it is in YOUR best interest or their own. I personally am dubious believing those who have something to gain by me buying something from them. Often their so called "cash flow" properties are only so because of depreciation. So after a few years when the depreciation diminishes is the property still a good investement?
Try to find some meetup groups in Perth and do some research before paying out big dollars. What is your long term goal? That and your current postion will dictate what you need to buy first.
Lots to learn. Don't be too quick to part with your cash.
INTERNATIONAL EMPIRE wrote:I30 years ago most families had 4 to 5 children per family, nowadays that is more like 1 to 2, if that. A number of families are choosing lifestyle over family.
What country are YOU in? Not Australia obviously. At no time in Australia's history did most families have 4 to 5 children.
The thing that has changesd is that people want bigger houses. I grew up in a very small 3 bedroom house with 3 kids. That was pretty typical. Now people have 1-2 kids and want 4 bedrooms and a study.
There is no answer to your question because everyone wants different things. If we all wanted the same there would be no-one living in the west in houses (or in the city in apartments) depending what "everyone" wanted.
Plus you desires/needs change as your life changes. I have the huge house but now it's mostly empty so I'm going through the process of where I need to go next. As you said apartment (probably not) closer to the city or a smaller house. I want the advantage of a yard without the work. Duplex? Plus we need a garage.
Decisions/decisions!!NO!! Tenants are NOT your family. They are the people who pay your expenses so your business can run. I have enough family and friends without trying to have relationships with strangers. Sure I have to have a relationship with the agent but it's a business relationship. They don't ring me with their personal problems (which tenants can sometimes do if you deal direct). eg My car broke down, I haven't got the rent etc). The agent weeds all this out.
Plus you don't "have to" employ an agent.Not to say it doesn't happen, but have you seen any of those stories on ACA about tenant problems that involve an agent? I haven't. There are people out there that have NEVER paid rent in their life. They go for the privately rented houses where they can go undetected. I'm not saying don't do it. There are advantages and disadvantages.
I privately rent 2 of mine. Agent was hopeless, tenants were good so I suggested direct debit to me. It's working out fine but I feel guilty putting the rent up. One is a single lady, the other a couple saving for their first home. I would not privately rent all of them (maybe if I was retired).
Plus when I recently went to refinance these 2 caused a little problem with the bank. They like agents to run them. And insurance. It's harder to get insurance if you self lease.Are you speaking hypothetically or do you actually self rent properties? I think the former. Correct me if I'm wrong.
Hi Daniel, welcome.
Jamie makes a good point for your first purchase being you home (PPOR) as there are certainly advantages. If you can improve and add value that's a great one as there is no capital gains tax (CGT).
Financially wise it can also be better to buy an investment and rent.
Depending where you want to live, the rents may be low compared to purchase price. If you buy in a different area (with a high yield) this can reduce your weekly outlay. Every case is of course different and you need to look at your personal situation and preferences.What do you mean by "seeking professional advice"? Be careful as there are LOADS of people out to make money on newby investors such as yourself. Keep reading and asking questions here. There is a wealth of knowledge here and people are giving of their time and experience. If you are not sure of something or a company etc just ask.
Best of luck.I just had this problem with CBA. I bought a property that was fire damage (not structural). I bought it for $15K more than the land value.
So I said just lend to me on the land value if that's easier.We need to replace the hall gyprock and ceilings. Lots of scrubbing of smoke.
The stuffed around. Sent the valuer out. Asked for builders quote. When we said we were doing it ourselves they said they don't lend to owner builders. It's only a $25K reno. So I got a quote and sent it to them. Still stuffed around a week before settlement so I told them to stick it.
I will get it valued after the reno and finance then.Hi, welcome to the forum.
Excited is a great place to start.
As "they" say- better late than never.
I only started seriously 3 years ago (at 50) and I've been madly buying since then. It IS very exciting. People at work think I'm crazy. hahaBecause you are starting with no equity you need to find a strategy that will allow you to build equity.
My suggestion would be buy under market, do a renovation to increase equity, revalue then withdraw the equity to buy the. Repeat, repeat.Of course there are other strategies. Read as much as you can and find what suits you. Read magazines too. Get some from the library. Some of the personal stories are good.Where are you located? Find some local meetups. Networking with likeminded people was the most instrumental thing that propelled me to make the move. I kept meeting young people with little equity buying properties. Once you start it's VERY addictive. I had the goal of one property a year. But that only lasted 6 months. I'm addicted.
Keep asking questions. And great work getting started.
Agree with above. Watch for management charges also.
In 2008 I was looking for a an apartment in inner Sydney. I looked at this type of property and yes they "seem" impressive.
In the end we bought a very small 1 bedroom unit in Potts Point. 2008 was a good time to buy and we got it under market value.
In 3 years it has gone up 50% in price. The self serviced apartments have hardly gone up in price in the last 3 years.I think he means an estimated value so he knows where the money would be best spent.
Do some research by looking at similar houses in the area. I would think a second bathroom would add good value. But then again so does a kitchen.
I wouldn't spend $20K on a kitchen,, or a bathroom.For $20K I reno a whole house- new bathroom, kitchen, carpet, paint (well for $15K actually). But doing most work ourselves. We pay a tiler $2K to waterproof and tile the bathroom.
