I’m very keen to aquire my first +CF investment, however living in Sydney the local market does not present much opportunity.
I have been looking around Australia and even NZ and found some potentials. I’am however a bit edgy investing in areas which i am not familiar with.
Please point me in the right direction
Thanks in advance,
Voytek
Hi Voytek,
Ultimately the best solution is for to identify the causes of the ‘jitters’ – believe me you are not the first person to experience them and you certainly won’t be the last.
My advice is to sit down and write down all the things that are making you nervous. When you have finished see what strategies you can put into place to avoid (or more likely minimise) the risks you have identified.
You are best advised to start slowly, get your head around what you are doing, establish relationships with people you can trust and experts in the finance area and they will be able to provide professional input as you require it.
Ultimately you need to remember no form of investment is risk free but managing the risks is possible.
In my mind no risk = no gain – just learn to minimise them.
By the way – doing nothing is also very risky.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Well said Derek! Learning to minimise the down side is a vital skill, as it can make all the difference between a good or poor investment and a great one!
Rgds.
Lucifer_auPerspective my dear freinds perspective ….. this is what puts us into fits of frustration, worry and the like!
I Contract & JV to companies, partnerships and individuals and buy, construct transactions and sell +ve CF props in SYD .. and will continue to do so as this is a great time to buy at the Moment.
If you are thinking or CF+ rentals… then you may need to keep looking out further and further at this time … there are plenty of alternative methods …but you must know your tools of the trade (Contracts,Lease Options, Vendor finance, flips, JV’s, etc)… well and educate yourself well before taking the plunge (Depending on your goals and strategies) … if you are leaping into the pond with out knowing how to swim…then there may be your reason for the jitters! :o)
Just an interesting thought…. “If there are 6.5%(approx 887,250) of the total 70%(approx 13.65 Million) Austrailan property owners that are investors… and only 0.5% (approx 68,250) own 3 or more Investment properties…. how important do you think the 0.5% value personal education to acheive thier goals?”
Best of luck,
Kiwi [biggrin]Kiwi,
You said:
“If there are 6.5%(approx 887,250) of the total 70%(approx 13.65 Million) Austrailan property owners that are investors… and only 0.5% (approx 68,250) own 3 or more Investment properties…. how important do you think the 0.5% value personal education to acheive thier goals?”
That is a REALLY old statistic. I read the other day that something like 18% of australians own 3 investment properties (not .5%). I’ll try to find where I read that, but I think the overuse of that very old statistic (from the 91 or 96 census) presents a false consciousness of where we as investors are right now. Basically, it’s not as elite as it used to be to own 3 IP’s- every man and his dog does.
kay henry
ok, a quick search found this stuff…
In 1994, the situation of Australian property investors was thus (ABS, 1994):
Most Australian investors own one property only
78% of investors own one property
13% of investors own two properties
9% of investors own three properties or moreDamn that I can’t find an entirely up-to-date stat on how many Aussies own 3 or more IP’s, but to give an indication of a recent detail (3rd April, 2004):
“deductions claimed on investment property now exceed the income generated from it by almost $700 million, according to the tax office, while the number of people who own investment property grew by 60,000 last year alone.”
http://www.theaustralian.news.com.au/common/story_page/0,5744,9170468%255E25658,00.html
So if 60,000 people bought an IP *last year* (2003), then I think we need to relook at our quotes. Those 60,000 were either buying their first IP (possible, but not definitive) or people were adding to their portfolio.
kay henry
Great Point Kay :o)…. This would mean that it is: 122,000 people compared to 68,000… still a big jump from the dablers to the seasoned professionals don’t you think?
However I think my point is across… look a the difference between those that have 1 property and those that have 3 (Investments)…. where do you think a lot of those extra properties came from???? – More to the point …who do you think obtain a lot of the properties that come up in the market place at bargain prices?- well I know that lots come from the dabblers that lose money hand over fist … because they got it wrong… how did they get it wrong you might ask???? well this is a myriad of issues:
1. Paid too much on a falling market.
2. Paid too much in a flat market.
3. did not plan for interest rate rises?
4. Did not plan on the government changing the tax law?
5. Stamp duty and land tax issues?
6. Overextended financially (do you think the bank really cares?)
7. Did not make the money on the way into the deal?
8. Bought in a war zone and can not insure the property?
9. House getting vandalised?
10. High vacancy rate (Vendor has to carry holding costs?)
11. High rent default rate?
**************************************************
Many others of which I will not go into …or perhaps you all may be able to share your experiences here…. the key point I am trying to establish is that all or most of the above could have been avoided or at least minimised on the risk side….. How you might ask? Education!
Intellegent people learn off intellegent people and that means if you need to learn, would it not make sense to do so in the most efficient manner possible? Sure you have to take the plunge … but at least it is not into the unknown… learn mistakes off those who have already done the school of hard knocks … and by doing so shorten the learning curve .. and save time… with more time … we have more time to realise our goals and aspirations.Hope this helps someone!
Cheers
Kiwi[grad]Thanks Kiwi,
Ditto! Often the hardest thing to do in life is often the best thing.
Regards,
Gatsby.
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