Thanks for the great advise Tas. I think starting with one IP will be a good idea. Not sure whether to save first or use the equity. Don’t know about the risk involved yet. Our initial aim was to have at least 5 ips in 5 years small stuff hey. Now we are thinking the possibilities are greater than that.We also want to give away every 10th house to someone or an organisation in need. That’ll blow the budget hey! Saw another story on Tassie props last night is it as cheap as they say down there? We are thinking of flying in in about 3 weeks to check you guys out. Wannabe would love to get together for a chat and compare notes some time. Lets see how things go hey? Do you source your own lenders or use a broker? We are saving the $1520 in a seperate account already.
My pleasure Kimkath. Yes, start with one IP – just keep asking questions until you know wether to save first or use equity. If you are starting with one, I would not see any problem with using equity provided you don’t just rush out and buy the first thing you come across. One of Rich Dads advisors Dolf De Roos uses the 100:10:3:1 approach, which says that you check out 100 properties in order to make ‘wholesale’ offers (i.e. low to fair price) on 10 of which 3 are accepted and you buy 1. On the other hand, you could just do what I did and buy the very first property you ever look at and then discover later on that it is positive cashflow (and hey this concept really DOES work, and boy was I lucky!) [
]Don’t worry about 5 in 5 years being small stuff. We each have our own circumstances and goals. Anyway, once you buy 1 you may find that its a lot easier than you expected and choose to revise the targets. I love your idea of giving away every 10th home. You’ve got me thinking now.
Some areas in Tas are still very cheap (rural areas), and some are going ballistic (city areas). I have put my buying on hold for the moment and am actually selling a couple. But don’t be confused by this – I live in Sydney and am not ‘on the ground’ to find the good deals in Tassie, I’m not saying that there aren’t any! Be cautious with a flying visit – by all means check it out, but do your homework first. I would personally buy closer to home for my first IP so that I can physically go and look at it whenever I want!
Bye now,
Tas [
]Tasinvestor,
I’ve been reading a few of your posts with great interest. I’m also a Sydneysider, I’ve just signed the contract on my first Tasmanian property (Business/Studio on Bruny island). I’m a ex-tassie myself, and I’ve got some really good connections in the state. Perhaps we should exchange a few emails, see if we can work out where the market is going.
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