I think my brain is about to explode.
After spending the past two years reading everything I could lay my hands on about property investment, I’ve finally come to the conclusion that I have a severe case of analysis paralysis and that it’s time to put my money where my mouth is and actually buy a property.
My immediate problem is limited funds to get started. I’ve saved enough to get me going on a property in the high $100k, so I’m leaning towards a renovation strategy in order to generate some equity as fast as I can, and then renting it out for cashflow. (Decided against a wrap as it will be ages before I could get my next deposit together again).
My problem is, my next step now is identifying an area to target and I’m becoming lost in the analysis again. I’ve been crunching so many numbers and stats on different regions in my state (Victoria) that none of it makes sense anymore! I’m worried that once again I am overanalysing things and that this will once again slow me down from reaching my goal.
I’ve arranged to spend two weeks in January property hunting, and I have vowed that I will not let that month end without me buying a property.
So, my question to everyone is, what process did you go through to identify the areas you have invested in? Did you number-crunch on stats? When you got started did you identify a few areas, or get to know one area really well?
Help! I’m drowning in numbers![crying]
Hi Persistence,
I must be honest with you – I am at the same stage as you – I don’t yet own any property but I’m getting closer every day. May I suggest that you start looking around your own neighbourhood to begin with – stick with what you know best, especially when starting out. There is a neighbourhood in my area that is salt affected – many locals don’t even know about it and many outside investors have been burned buying in this neigbourhood. Don’t get caught in a similar situation.Even if the properties in your area don’t suit your investment needs, it will help you gain a “feel” for the market. Forget numbers for a while – look at properties in the flesh and write up a list of pros (the property has to suit your needs) and cons (you want to be able to negotiate a good price) for each property you view. If you feel you can turn most of the -ives into +ives, you’re on a winner.
This is what I have done for all but one of the properties I have inspected. (The one exemption was completely $#!@house!) The only +ive of this property was that if you bulldozed it, you could nearly get all the rubble to the tip in one load!
Good luck, I hope you are soon cured of your “analysis paralysis”.
Spank
Age doesn’t negate effort – you can never be too young or too old.
High 100s will easily buy you something decent and rentable in a place like Shepparton, Bendigo, Ballarat, Warrnambool etc… regional centres with populations of 30,0000 or more.
cheers
rOriginally posted by persistence:After spending the past two years reading everything I could lay my hands on about property investment, I’ve finally come to the conclusion that I have a severe case of analysis paralysis and that it’s time to put my money where my mouth is and actually buy a property.
My problem is, my next step now is identifying an area to target and I’m becoming lost in the analysis again. I’ve been crunching so many numbers and stats on different regions in my state (Victoria) that none of it makes sense anymore! I’m worried that once again I am overanalysing things and that this will once again slow me down from reaching my goal.
Hi Persistence,
It seems to me that, through your endless number crunching and over-analysis, you are looking for the ‘perfect property’. In many respects they don’t exist but what you do have to do is find an area (or two) that has the ‘major must haves’ and work the numbers from there.
Set your self a time limit and work within the chosen area to buy your first investment property, bed it down and then move on.
As time passes you will realise that there are things you did well and others not so well in chossing this first property and use this practical knowledge to further your journey the next time around.
At the end of the day you are not a property investor until you own an IP. Rest assured though that you are not the first person to be struck down by analysis paralysis – just remember it need not be a permanent condition, unless you let it be so.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I think you’ve nailed it.
I realised that I have been doing just that – looking for the perfect investment rather than just choosing a good one and using it as a starting point. (I have a habit of always thinking there is one right way to do things and I just have to find it, rather than recognising that there are lots of different ways that can each produce good outcomes).
Thanks so much for your help!
I need to second persistence’s point.
I too am the “in search of perfection” type of investor. I am a perfectionist and am always looking to ensure I am in complete possession of all the available information before I act. This can result in analysis paralysis, but at least it ensures I don’t make any rash decisions that I will regret later. But in delaying too long I incur a lot of opportunity cost. To find the investment that returns 20% I forego the one’s that return 10%, and that’s 10% opportunity cost I can never recover. I should maybe lock down the 10% then work to incrementally improve it up to the 20% and more investments next time round.
Thanks for the posts and sound advice.
Regards,
Michael.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
