Dear Bronte

Wow, you are in a great position to get started.  Hopefully i can help because i was in your position three years ago and still regard myself as a novice.  I have similar advice to Gary.  Before you buy a property you need to sit down with pen and paper and make a plan. Dont let any present limitations hold you back in making your financial goals either.  What are you trying to achieve with property investing? And how much money do you want from it?

Once you know where you want to head towards you need a strategy.  How active do you want to be in the process? Eg. I know a guy who has 4 -ve geared properties.  He buys in the inner city or near the beach (has one in Noosa for example).  They are expensive houses because he believes he will attract a higher quality tenant and is in it for the capital gain.  As for myself, I do not really like -ve gearing and work for neutral or +ve properties.  My strategy is to buy land (that you can subdivide) in towns near big regional areas and build.  I create a fair bit of equity and have a neutral property.  Others like to renovate.  The possibilities are endless.

Once you know what kind of property you want to buy, pick an area.  I started off by choosing the state i wanted to invest in (which was QLD) and then i got a big map of QLD and blu-tacked it to my wall.  I picked out areas i was interested in (as i wanted to buy outside of the city) and started googling them, looking at coucil sites and the real estate websites.  I always have a list of 5 areas going so when i make a purchase i can move onto the next one.  I do check the fundamentals of the new area but i dont have that lengthy research to do again.  I have crossed 2 off my list!

Then when you know the area like a local and have found something you think is worthwhile, take a deep breath and then just jump in and do it.  And this is the hardest step but there is no other way.  I have made lots of mistakes, nothing to expensive thank goodness but its part and parcel of learning.  Be encouraged that you are in such a good position.  My partner and i started off three years ago with combined income of $70,000 and $10,000 savings.  No equity and no possible help from families.

Noone can give you a strategy, it will depend on what you want to achieve and what interests you the most.  Wow this turned out long! Sorry

Dear Peachy

Let me offer the words of Napolean HIll to you,

“Opinions are the cheapest commodities on earth. Everyone has a flock of opinions ready to be wished upon anyone who will accept them. If you are influenced by opinions when you reach decisions you will not succeed in any undertaking…..Keep your own counsel, when you begin to put into practice the principles described here, by reaching your own decisions and following them. Take no one into your confidence, except the membersof your “Master-Mind” group, and be very sure in your selection of this group, that you choose only those who will be in complete sympathy and harmony with your purpose. Close friends and relatives, while not meaning to do so often handicap one through “opinions”

So there you go, surround yourself with people that know what they are talking about and understand your goal and stick with your gut feeling!

Thanks for the tip redwing. I just got a 100 year loan at 5.75% for my dream home. A castle by the beach.