It seems too many people believe everything they read…….

Most articles and books are that persons own personal view, and how and what they have done was suitable to their own circumstances….You have to take bits and pieces from each one and make your own truth with the facts you can gleam from these people and real life statistics over a long term, not just the last 10 years or so. Which is why you need trustworthy experts around you, not just some one with an opinion because that opinion worked for them……..

As far as I can tell so far……all negatively geared properties (should) eventually become positive over time if you pay a small amount off the principal as well as the interest, if they dont then you are either not doing your research properly before you buy or we have had a major housing bust………dont quote me on that as I am still a beginner doing my own research and I am also waiting for my appointment with my broker on Monday to throw around ideas.

I do appreciate all of your feedback, but please dont dictate to me that one way is right for all as this is definately not the case.

Kaylah, I hope you dont take this atricle as gospel either, as he is just a professor putting his own personal views across….he mentions the Insurer Terri Scheer, but then if you have read all the comments that follow you would have also seen this comment……

I hope the writer does not have any vested interest with Terri Scheer. I had insurance with Terri Scheer for many years and never could receive anything for the damages done to my property by the tenants. What was distrubing was that the real estate agent who manages my properties told me that they could never get anything from any claims made through Terri Scheer

Read more: http://www.news.com.au/money/property/top-traps-for-first-time-property-investors/story-e6frfmd0-1225935970519#ixzz1AVFCcQ8N

Thanks Ana, the plan works in theory I just have to put it into practice. If I am ever looking at reno's I may give you a call

Maxine, Thank you for your input. I had a look at the Mackay apartments but I am not even considering Mackay as a High Growth area in the near future, if I was to invest in North QLD, I would be looking at Cairns as there sounds like there is a bit going on up there with Infastructure etc. The other area I am keen on is the SE of QLD as this is growing rapidly also….The only other option I am keen to look at is the Peel region in WA.

These 3 areas are some of the biggest growing regions in Oz at the moment…..Although I was reading something the other day that pricked my ears up to NT, but not real sure on that, more investigation is required.

Appreciate everyones input, it is all helpful

Jonesi274

putting money into term deposits requires you to pay even more tax as you then have to pay tax on the earnings of the interest etc.

My thoughts with negative gearing is to pay extra off the principal while we we can afford to as well as accept the tiny cost that they incur to begin with, but it wont take long then to gain capital growth.

I am also looking at the option of buying a cash flow positive property to neutralise the negative…So therefore possibly buy 1 + to each – property…..

I am still unsure of which way I want to go which is why I am throwing questions out there and reading as much material as I possibly can. Steves way seems like a lot of work to me and while I love my job and enjoy earning my wage I may as well look at taking advantage of our tax system…

I am not real keen on buying properties that are older as my feeling is that they would be harder to rent than newer properties, and I dont want the head ache of having to replace the hot water system 2 days after I bought the property or the stove has gone on the blink etc, etc.

Thanks for your thoughts though as I do appreciate all feedback, and like I said I am still throwing around which way I want to go with it so all thoughts are welcome.

Thanks Matt, I will look for his book in the book store on the weekend.

Kaylah, I am still in 2 minds to believe that property doubles in value every 7 – 10 years……Yes it goes up, but I would be very surprised to see them double, Melbourne prices were around $300 – 400K 10 years ago, and they are still around that price so I have yet to have it proven that they double every 7 – 10 years. If that was also the case, where I live now median house prices are $750K for a 3BR basic house, are you telling me they will be $1.4M in 7 – 10 years……I certainly do not think so as the town could not sustain those prices. Can you prove to me in any way that they double in that time frame ???

Hi Stenno,

Its good to know I am not alone in my search for a reputable mentor…..There is so many out there it is hard to know who to trust.

MRD (Investment Mentor) seem to be OK from the contact I have had with them so far, but it will take me travelling to QLD and meeting with them before I will gaurantee any kind of transparency. They only deal with capital growth (negatively geared) properties which may not be suitable to yourself.

I am in the process of trying to find some people who have dealt with them in the past to ask some questions on their business dealings. I have been right over their site and have checked out their ABN etc, but it would be nice to locate others that can answer some of my questions about them. 

I have printed some of their property reports off their website and I am now looking for someone to look them over and tell me if they are ok. I am just not sure now who I can show them to and ask the question.

I will keep you posted on how this goes.

Good Luck with your search as well

Proptyman, thank you….that is a good idea with the granny flats etc…not something I had thought about.

Kaylah, I am not interested in making money right now out of property as my hubby and I are both earning exceptional money and anymore income would mostly all go to the Tax man which is not what I want.

I am interested in property to set us up in 10 – 15 years time in retirement. So I am looking at long term not short term, which is why we will buy new properties to take advantage of all the tax deductions and depreciation but I know eventually they will (or should) become cash flow positive over time. There is also little or no maintenance so less work involved in upkeeping these properties.

Neither of us will lose our jobs where we are, if we did there is still heaps to choose from as they are in desperate need of workers so for the next 10 years this is not really a worry for us. I also have income protection insurance that will help out if that was ever the case for the short term. 

Thanks everyone, I appreciate your feedback. I am in the process of doing Jennie Brown's 9 day Mini course in Property Investment and I am finding this helpful, I still have a lot to learn though.

I understand what you are saying about mentors, but would still like a more proven track record on a business before I start to give them all my personal information as you hear way too many horror stories about people getting caught up with dodgy companies with property, especially in the QLD area.

The company I am looking at is called Investment Mentor in QLD and they seem to be quite good, they have had their ABN listed for around 8 years, they are also known as MRD Realty which is a part of the Investment Mentor business, they halp from start to finish with your investment needs. I would just like to make 100% certain they are legitimate and there does not seem to be anyway of doing this.

I am about to google office of fair trading to see if there is anything relating to them on that site, but otherwise apart from testimonials on their site how do you go about locating legitimate people that have dealt with them before so you can speak to them and feel certain they are genuine.

Any feedback welcome

Thanks ipalad for your info