Hey everybody!
I am just looking to get started investing but need advice from anyone willing to give me their much appreciated input. I have the option of starting out investing in the share market and feel pretty confident, however I LOVE the idea of an investment prop but am a bit nervous either way. Do you all remember what it felt like, the nerves from the start?… Well I have that big time.[eh]
Obviously there is less start up for the ASX then investment props, but this is why I am coming to all of you, do you think I should can the idea of the ASX and go head down towards the prop? Or should I get my feet first in the share market?
Any other tid bits of advice for a newbie would be SO great!Ta… Kylie
Hi Kylie,
Shares and property are both valid investment vehicles and it appears as if you are more comfortable with shares at the moment.
The issue you need to consider is why are you more comfortable with shares over property? If you can resolve these questions you may well be in a position to purchase an investment property.
Each investment has its advantages and disadvantages. For me property is my primary investment vehicle because the capacity to lever my $$ further is important to me. I am also of the opinion that I can exert more control over my property than I can with shares.
The major advantage with shares as I see it is that entry costs are generally lower than property.
Having said all of that I am currently setting my self up so I can leverage some of my available equity into the share market.
You gotta do what you gotta do. If shares are your thing then go for it.
Ultimately only you can address the ‘nerves’ issue and in answer to your question – your nerves are not unique. I find that a great many people all have the same issues, and these are more evident for their first property than for later properties.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Kylie,
I agree with what Derek says but have some other points as well.I think nerves are natural, letting them stop you from what you want/need to do is not natural. I found that the more I learnt about property investment the more my nerves dissipated until I had reduced my nerves/fears down to a natural level.
I suppose in some ways I have been fortunate because I did not have the money to jump in when I wanted so I had time to get educated. I still read everything I can on property and I feel/know that I have heaps and heaps more to learn.
Your probably more comfortable with stocks because you understand them better.
The other key area is what’s you plan? You sound to me like you need one. I have found that the plan sort of directs you to some extent. Is it passive income streams that you want? if so how much? by when. Do you want to build capital for some other reason etc etc.
I think the term “investment vehicle ” is a great term, because that’s what it is, a vehicle to get you somewhere. You need to determine where you want to go, and to some extent that will help you determine what vehicle you need. (You can’t go to the moon on a pushbike). However, If you don’t have a plan you might die trying.
MarkyMark
Kylie,
Why is it you feel pretty confident with the share market.Is it because you think you can find a broker to manage your funds and therefore distance yourself from the whole event and not have to worry about making the wrong decisions?
Or do you like the idea of being able to start your investing with a small amount of money and therefore if you lose out you havent lost too much?
IMHO I think that the share market is for seasoned investors.I would stick with RE until you have a few more dollars that you can actually afford to lose.
Russ.Howdy partners!
Thanks so much to Derek, MarkyMark and Russ. You have all put good points towards me.
I have a plan so far but no time line. My plan is to supplement my current job until I can stop working for a “boss”, ASAP would be nice.
I am only more confident in the ASX because of the small layout of money to get started and because I have had it explained to me how it all works. However I do know that it is a little more risky then props.
Short of reading books of people who have done what I wish to achieve, I dont know how else to gain info on IP’s. Noone in my circle of influence is involved with IP’s at all. They are all happy to work in a job and rely on their “super”, this is not acceptable for me or I imagine many of you.
Once again I thankyou all so far for you great advice, it all goes into an open mind! Please keep it all coming!Kylie.
Whatever you can do, or dream you can, begin it…
The way I have learnt so far is,
Read heaps of books, read everything on this forum and the others that are around, like reno kings, Jan Sommers etc. Ask tones of questions. Get a broker and communicate with them, they are a wealth of knowledge (i can recommend one if you want) or ask others on the forum.Forums I think are the best there is a tremendous amount of information on this forum and Jan Sommers forum in particular.
MarkyMark
Hi Kylie
i like both shares and property, but i’ve never lost money on property, wish i could say the same with shares.
anyway they are both fun
try reading
dolf de roof’s “Real estste riches”then tell me which you will invest in, it is an excellent why you should invest in property book.
bye westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Kylie,
Justto provide an alternative perspective here, you said:
“Noone in my circle of influence is involved with IP’s at all. They are all happy to work in a job and rely on their “super”, this is not acceptable for me or I imagine many of you.”
I do know many on this forum board wish to resign from their jobs and retire early. But you can also work in paid employment AND invest. Generally, we have to get income from somewhere to invest. Whether that’s a steady income stream from shares, small business, or employment, I have yet to see any evidence of people not working (in some capacity) and being able to invest- that is, if they start NOW.
Also, think about how much income from IP’s you might need to *replace* your current income from work. Say you currently earn 50k, or about 1000 bucks per week. Say you buy into CF+ houses and earn a net profit of 50 bucks per week from each. That’s 20 CF+ houses you’ll need.
If you negative gear, then you’ll be not receiving any extra money oer IP, but may be paying OUT 50 bucks a week.
I am just not sure how this retirement thing works. Wouldn’t it be a strategy to invest in IP’s and ALSO have a job? You can have 300k superannuation to live off PLUS your profits from IP’s. Plus, work also provides mny other things- use of skills, social benefits, long service leave (3 months paid leave PLUS your usual wage during it).
Kylie, why I’ve written this post is because I think working can “work” too- it doesn’t inhibit one’s investment strategies- I believe it enhances one’s opportunities.
kay henry
You must be logged in to reply to this topic. If you don't have an account, you can register here.
