getting started

I have just watched the Channel 7 programme tonight about property investment and as a result went and found your website and joined.

Welcome aboard Peter and I am sure that you will find there are many people here who can offer you some sound advice and comment.

My wife and i have been thinking for some time about investing in property as a means to increase our personal wealth and rely less on super and pensions in the future.

You are already ahead of a great number of other who are yet to realise how much they will require when they finish work and how little they will have unless they do take considered action.

We have never been down this road before and are wary of so many get rich quick schemes. We don’t want to be millionaires – although if that was an added bonus it would be nice – just comfortable with an income and a way of paying off the mortgage on our residence.

Seasoned property investors will remind you that property should, in general terms, not be considered as a get rich quick process.

With considered research and a healthy ‘can do’ attitude you can achieve what you desire.

Initially my advice would be to read some of the text references listed at

https://www.propertyinvesting.com/forum/topic/6845.html

as these will give you some indication of other useful resources that are around. Ultimately as good/bad as these resources may be for you and your situation they will provide you with ‘food for thought’ – but just remember that you do need to own a property to become an investor and in some respects this is when the real learning takes place.

In some respects it is a little like starting a new job – all the induction and training is rounded off when you start on the job.

It is also important for you to work out what sort of goals you want to achieve as this will determine a lot of your subsequent actions.

We have about $200,000 in equity but hear so many stories of investments gone sour because of low rental incomes or just simply buying in the wrong area or at the wrong time.

We have discussed going to see a financial investor but after reading some of the comments on this site, who can you trust? Or, who is up to date with the latest trends.

With $200K in equity you are well placed to start an investment journey. However be aware that not all of the $200K may be accessible for investments as you banks will only lend to 80% of the value of the property less any existing mortgage. You can go higher, under certain circumstances, but you will incur mortgage insurance.

It is advisable to gather a team of people (accountants, broker, mentors etc) you trust around you so they can help point you in the right direction.

In choosing these people ensure they are also property investors as they will be able to speak from experience as distinct from someone who speaks from reading.

In the main the great majority of financial planners are salespeople who are more interested in selling a fund than your long term future. There are some out there who will offer a property focussed approach to financial planning – but they are few and far between.

Is NSW still good or because of exit taxes is it better in other states – or indeed, does it really matter which state so long as the investment is sound?

Many people initially prefer to invest in their local area on the belief that they need to be able to drive past their property on a regular basis. There are many people here who have extended their investment boundaries to include areas well and truly outside their own area. With good research and through the use of quality locals it is possible for you to also extend your investment horizon to beyond NSW.

From a distance it would seem that NSW is feeling the effects of the vendor (exit) tax as numbers of poorly informed ‘investors’ try to save some tax and give up the long term benefits of time in the market in Sydney.

I would really like some advice of starting 2005 off with a new personal business plan.

Can anyone offer a getting started advice plan.

Initially you need to sit down and analyse where you are currently at and what you are attempting to achieve.

Investigate the assets you have & constraints you face – time to retire, income levels, debt levels, mindset, knowledge, fear factors and then identify how to utilise and address these in a way that makes sense to you.