I am 62 yrs old and have a residential property for which I am paying about $1,000 a month in mortgage repayments. I am semi retired now and finding it hard to repay my mortgage . The equity in my house is roughly $180,000 or so. I would like to start following your investment ideas – my plan being to ultimately repay my mortgage and generate a weekly income – however, I am a little worried about the risks associated with it as I would find it extremely hard to recover if I were to lose money – could you tell me whether you consider me at a high risk because of my age and incapacity to earn money by working?
For my two cents, and I am only half your age but, your risk of being involved in property is no greater because of your age. If you follow the guidelines that Steve has set out (you will learn about them whilst visiting this web site and forum) then you are on a good track. If a property is returning money to your pocket it is a very positive thing.
As for your age though, my only though about that is the difficulty you “might have” borrowing money. However I will leave that up to the brokers on the forum to give their thoughts.
I wish my folks would have the brass balls to use their equity for a better future.
Hi Delyse, I am 53years old and know just how you feel. Risk is a frightening thing but without it growth is limited. I have 5 properties know but sadly only one is a positive cash flow. I am taking steps to rectify the others now. It has taken me since the year 2000 to research, understand, set up financial structures etc so it definitely does not happen over night and you will make mistakes along the way…. but if you learn how to risk manage in the first place the mistakes should have minimal impact on you or your financial situation.
The advantages you have now (year 2003) is that you are entering a period in Australian history where you have support from people who have taken the plunge with + pos geared properties and the banking industry (generally through mortgage brokers), solicitors etc are knowledgeable on wealth creation rather than wealth restriction which was the banking mentality you and I grew up with. Of course it is the change in the banking industry policy and deregulation that has bought about the vast amount of opportunity open to people for investing today that was not around/available for previous generations.
I suggest you begin your journey of learning by buying “Rich Dad Poor Dad” by author Robert Kiyosaki. I think it available in most libraries if you have limited funds. This book is invaluable for people of our age as it begins exploring the paradigm shift required to change thinking.
From a financial perspective, you need advise from a contemporary accountant. One who not only specialises in tax but also in wealth creation. It may even take two seperate accoutants to give you wholistic advice. Users of this forum may be bale to assist you in finding such a resource. Where do you live?
Caddy [8D]… where there is muck there is money.
– however, I am a little worried about the risks associated with it as I would find it extremely hard to recover if I were to lose money – could you tell me whether you consider me at a high risk because of my age and incapacity to earn money by working?
Hi delyse,
The people here are mostly very positive thinking and gung ho about property investment and tend to play down the risks.
But in my opinion the risks are there for new players such as you (and me[])
I make my living from the stockmarket where there are many risk minimizing strategies that one can use, but with property it is harder.
All I can say is do your research, dig deep, there is a lot more to this than meets the eye.
Anyone can make money in a boom market. When it flattens out things will be different!!!
That being said, some of the strategies here have merit even in a flat/down market.
Hi Caddy here, I am watching the replies on this topic raised by Delyse with interest. To be older with the thought of no money is a scary thing. . While I appreciate that the risks are there and sometimes real so is the risk of spending the later years of your life with no money. Delyse what you need is mentor somebody who can guide you. I can offer what info I know which I think is limited but I will gladly share. Ring me on 0419173396 if I can assist or if you need someone to put you onto resources that may be able to assist you.
Cheers
Caddy [8D]………..where there is muck there is money.
Thanks for having the courage to make your first post! Welcome to our community and I hope that we are all able to learn from your (life and investing) experience in the future.
I think you raise an excellent point about fear, and it’s this issue that I’d like to pass a comment on.
To me, investing success is about finding a system that you feel works and then having the faith to follow it.
This ‘faith’ can be seriously eroded by fear. In order to overcome fear you need to look at what you are really afraid of. What is it about the loss of money that causes you to worry? It’s probably a self preservation issue (ie. not having enough money to see you out in retirement)… but is there anything more?
This is the first step to trying to work through a plan that sees you risking only what you feel you can afford to lose.
On another matter… there will always be a reason why things will go wrong. But what’s important is to focus on reasons why things will work, not fail!
In summary:
quote:
I am a little worried about the risks associated with it…
Be specific about the risks and then work out plans to mitigate the impact. Risk cannot be eliminated, only reduced.
quote:
could you tell me whether you consider me at a high risk because of my age and incapacity to earn money by working
Your age will make things tougher, but on the other side of things your experience should more than make up for that.
At the other end of the scale I have met plenty of young people who want to get started but see their youth counting against them.
Do you see it? These are reasons not to get started and barriers to our success.
Delyse… I can’t guarantee that it will be easy. In fact, I’m certain that it won’t be. But if you want it bad enough and you are sensible in your approach (ie. mitigate risks), then it really is possible!
Best wishes,
Steve McKnight
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Remember that success comes from doing things differently.
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Hy Delyse Steve proved how easy with is formula to be successfull in realestate.If steve the legend with a simple idea proved it can be done any body like you and me will have success.Remember to buy + cashflow propertys and you will do it.
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