Forum Replies Created
Hi Snowy, I started investing only 2 yrs ago & now I have two IPs. I can still remember the fear of taking that first leap! You're ready to get started, but you dont want to make a foolish newbie mistake, right?
I agree with imugli and also my suggestions are:
– Begin with a unit instead of a house because the rent will cover a bit more of the expenses so you'll see yourself getting ahead quicker which will give you more confidence
– If you're disciplined with money, get an offset account so that you lower the mortgage faster and increase your equity (but it wont work if you spend your money as soon as you earn it)
– Begin in a nice boring middle class suburb – its tempting to buy something cheap in a bad area, but nice tenants live in nice suburbs and you dont want a bad experience on your first investment.And my last bit of advice, the thing that got me past my fear of taking the plunge – you can read, research and ask questions for eternity, but you'll never get anywhere if you dont eventually take action and buy something!!
Best of Luck
Laura
I'm a conservative investor though
Hi wealthjvd, I asked exactly the same question of my mortgage advisor and he confirmed said that people who own 10 properties have been 'in the game' for awhile and own at least 3 or 4 of them outright. Also, the lady who owns 50 properties probably bought cheap rural properties for $25K a piece, like Steve McKnight did – nobody can do that anymore.
I have two IPs – my first has an offset account attached which helps lower the mortgage faster, therefore increasing equity faster. I bought in June 07 for 180K and I will have it paid off by 2012 based on today's interest rate (although I earn $70K so I can put a bit more toward it than you and your partner can). The second property (bought July 08) is funded with an interest only loan to improve my cashflow so I can put more toward the first property.
Cheers
Laura
