Hi,
Here’s a scenrio for all the property investors with some experience in the game:
Imagine Your 22, single, still live at home paying little rent, your expenses are very low, you earn around $40k per year and you have a good deposit saved up, and are able to afford $150k to $200k worth of investment property. This is your first foray into the investment market and you want to be a millionaire by age 30 (a little ambitious maybe). Your a bit nervous about making a bad decision first up.
Because you have all been there and made good or bad decisions in your initial investments, could you please tell me what you would do today if you were to start all over again, and if you were in the same situation as the person I described above.
At the moment I am looking at townhouses and smaller homes in areas like Beenleigh (QLD), which Is roughly half way between the Gold Coast and Brisbane. Anyone know much about this suburb? I hear it is a good place to invest.
I can’t wait to hear you replies…thanks in advance.
Peter
My best advice is find a mentor. Someone that you can bounce ideas off. Someone that is already a millionaire (anything less is not good enough). Pick someone out and get in contact with him or her. You will be surprised how willing some people are to help new starters.
I have done the same with my business. Called up a high profile and successful business owner. Was happy to meet with me and answer my questions. This is invaluable.
But don’t take advantage of the relationship. It is not a substitute for your own research and thinking.
Having a mentor is probably the single biggest thing you can do to reduce your overall risk.
Don’t be too afraid of making mistakes. He who learns makes mistakes… he who doesn’t learn doesn’t make mistakes.
Good luck.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auHi Stuart,
Thanks for the reply.
Have you got any ideas where I could find a mentor? There isn’t an abundance of millionaires in my town!
Could you please give me some tips on what in particular I should be researching and how. I understand all the principles of investing but don’t know where and when to invest. My town has experienced a 40% price rise in the past year, so I don’t want to invest here (it is at a real high). Do you have any sites or publications that you would reccommend me looking at that would tell me when and where to buy?
Thanks again,
Peter
P.S. I have ordered the FastTrack tape.
Hi Peter
Millionaires… this forum, read the papers and get names from there, ask around. If you look hard enough you’ll find one. It might take a couple of goes. The first one you contact might not be the right one.
Where to look. If you know the principal then you should know how to spot an undervalued area. Search the Internet (www.realestate.com.au, http://www.domain.com.au, etc). Talk to agents. Go to seminars. Use the forum.
Do a search on the forum for recommended books – there has been a couple of threads on this.
Subscribe to API (www.apimagazine.com.au).
I hope that helps.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auHi,
Your description of yourself sounds almost identical to my son except he has taken the plunge already.At 20 his first job was packing boxes but instead of buying a car he used his savings of $12,000 to buy the cheapest unit in Ringwood.(He only looked at one and was the first to make an offer) At 21 (feb this year) he used the increased equity to buy the cheapest house in Doveton with almost no cash as Homepath lent 100% plus costs. So, for a $12000 initial outlay he has $100,000 equity in less than 2yrs.
So far he has excellent tenants, an excellent agent and excellent rent. His theory was that when you buy at the very bottom it can only go up and so far this is true. And no the properties are not at demolition stage and have been greatly improved with less than $5000.They are also both +vely geared!
He has since changed jobs, has paid cash $16,000 for a car but is earning less than you.
Hope this gives you something to think about but be aware of the pitfalls of realestate investing and look, read and learn.
ReggieHi PJ. Sounds like you are pretty switched on. Already excellent advice offered. As far as Beenleigh goes, I have a little unit there which gives good returns (paid just under $60,000 18 months ago and getting $125 rent a week, and it is probably worth approx $75,000 now).I think Beenleigh is in a great spot to see good future capital growth due to it’s proximity to Gold Coast and Brisbane with good transport available and it also has a village type atmosphere to it. Just keep doing your research and you will be fine.
Stuart; hope you re-read this thread, you mentioned getting a mentor. I was wondering how you approached such people and did they charge you for their advice?
Regards
Martyhi
I’m also 22 and started learning about property investments 1 year ago 3 months ago I bought my first unit which was postive cashflow and have just bought my first house i’m going to wrap. I to buy at the bottom of the market mainly cause I”m a cabinetmaker and do a few repairs I to have been lookin for a mentor in my home town but no one here knows about wraps which I would like to get into.My plans are to be financial
independent my the time I turn 30
Thanks RobThanks for your suggestions Stuart. I have just subscribed to API, and will regularly check those sites…
If there is anyone on this forum that is a self made millionare through property investment and would be willing to act as my mentor, or at least answer some of my questions, I would love to hear from you and would be forever greatful. If anyone is interested, please email me at: [email protected]. Otherwise I will look further.
Mickey,
Was the first unit that your son bought a 1 or 2 bedroom unit that is part of a multi story complex or was it a standalone unit in a secure complex or simply a unit on a normal block? Just curious…(Ringwood is Melbourne right?)
Also, what is Homepath?
Maximus,
I have never seen Beenleigh, but I have been told by a relative that it would be a good place to look at investing in. Do you think it is a suburb that is expanding in terms of size/industry/new business etc.
Thanks everyone for your responses.
Peter
Question for Peter an Robert. Where are you guys situated ?
This may help with people offering there time. Remember to always ask what can you offer them at the same time ?
Two way streets work better than one way
Enjoy
AD [:0)]
(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
G’Day mate
i guess i’m simular to you, i’m only 20 and got my first +ve cash flow house a few months ago.
i’d like to say go get em tige’s!
i feel extreamly proud of myself and the things i have achivied, while my mates are still out pissing away there wages i save mine and instead of laying in bed hung over[xx(] all day, i now spend my weekend looking at other houses in the area or like this weekend painting and re-doing the spouting (while its still tenated [
] )but like everyone i’ve still wasted a few cheap house deposits on cars and other boys toys [
]the most important advise i’d give u is, do things yourself, just because it looks hard, or it might take to long, just get in there and give it a ago!! i did and i’ve learnt sooo much!
this doesnt mean i just go staight at it, i research it, ask someone who knows about and so on.. then i get in and do it.
dont just ask a millionaire about property investing, talk to the bloke at work who lost out with the house he sold, and learn from it.
thats about it coz im get’n busy, ps this prolly dont make much scense it’s taken a hour to type this, coz i’m at work and keep get’n inturupted
pps. Homepath is a lender from as much as i can gather
NEO
NICE ONE BRUVA!! Nice One Bruv! nice one
I took a trip to Beenleigh QLD last month (June 2003) and bought 1 unit 2br with LUG for $73,500. Currently rented at $115pw. Leased expire Sept and will increase rent to $125pw. It does not meet 11 secs soln but if I inject some cash into it then it will. I believe the area still have capital growth. Population is increasing every year. People can’t afford to invest in Brisbane as well as Gold Coast now they are moving into this area ie. Logan city which is just 10 minutes drive to beenleigh. I have a couple units in Logan as well.
Try the surrounding area and you will hit the gold mine in the future.
Chandara
Marty – no money offered on my part. It doesn’t appeal to everyone. For example, one high profile business person very happy and another not so obliging.
If you respect and admire the person then why not go and speak to them (and learn from them)? Some people on my list are Steve Vizard (but not responsive), Eddie Maguire, etc.
They were all starting out once…
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auHi Stuart…
We at channel 9 would get shot if we spelt Eddie’s name Maguire… when it’s McGuire… just so you know in case you were to ever send him a letter… he doesn’t reply if it’s misspelt…
When I was studying journalism at RMIT years ago and Ed was a journo at Channel 10 I used him as a mentor, helping out with advice on assignments etc… have checked with him and Tony Jones (sports presenter) whenever I’ve wanted advice, and they’ve given it to me, and while my goals and career aims have changed over the years, the advice from those in the know has helped immeasurably…
Ed’s a good bloke… I was in Ireland with him for the international rules series matches last year… good fella to talk to, and very interesting, especially when he lets you pick his brain!
R
g’day richmond
maybe u cld get stuart onto ‘who wants to be a millionaire’ and kill two birds with one stone.
rich and enlightened
i dont think he’d be able to do that, remember the contestents are selected via a computer.. just like the 50/50 life line.. YEAH RIGHT!!!
funny how the two they are considering are always the two left over..
NEO
NICE ONE BRUVA!! Nice One Bruv! nice one
how about a new show called ‘who wants to be mentored’
4 couples all living in the same block of flats go to eddy to ask his advise once a week.
at the end of 3 months those who like collingwood, bad jokes, and have a net worth off 10 million win the prize.
Thanks Richmond. I hate my name misspelt as well.
By the way, an introduction would be more than appreciated.
Cheers
Stu
Property & Finance News
at http://www.prosolution.com.auPeter
The unit is single story strata, in a block of 4 in Ringwood, Vic.
He tried mortgage brokers to start with but the interest rate was too high. So because time was running out to get finance approved he logged on the Homepath internet site and did all the loan applications and approval etc over the internet.( Homepath is part of the Commonwealth Bank I think)
All correspondence was done via the phone and express post. The interest rate is 5.65%, no establishment fees and excellent conditions.I don’t know why everyone doesn’t use them.They did send out the wrong loan contract on a few occasions so you have to read all correspondence carefully.
Mickey.[/quote]
Hello Peter,
Good to see you starting out early.
I suggest you READ every book about positive cashflow/gearing you can get your hands on.
Has anyone read Steve’s stuff? I have not yet.
But there are at least 3 authors for Australia that I have read and they have very good details about the Australian Tax laws, stamp duty for each state etc.
This will give you a good start. I would like to be able to start again. What every you do try to keep away from negative geared property. With a low income it can set you back years as I have found out.
Knowledge is your tool so get as mutch as you can.
Hi Guys,
I am an addicted and devoted new forum member, totally unable to log off b4 2am!!! – the knowledge base is huge. UNTOLD thanks to Stuart – for sharing the knowledge & advising this forum exsisted – WOW!!!!.
And if I had to start over, I would have had the BIGGEST headstart knowing that there were like minds & I wasn’t being a crazy dreamer/determined indivial.
Cheers,
Sparkle[
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