Hi Forumers! Seeking some advice/hints/tips to reach our investing goals. My partner and I wanting to buy 1st IP beginning of next year, 2006. By then we will have saved approx $40,000 for a deposit. Both working, earning approx 55-60k per annum after tax. Both still living at home, no debts, minimal expenses etc.
Our goals are more for long term and not short term. Would like to buy multiple properties (not too many, maximum of 5) in next few years to hold on to for about 7-10 years. Aiming for 1 million once all IP’s have been sold in that amount of time.
It doesn’t bother us if IP is negative geared by maximum of $50 a week (reason being, because we would still like to have spare cash to keep saving strongly for the deposit on next IP.)
Can you more experienced folk who have been in the game for a while please help me with advice as to how to reach our goals. What sort of properties should we be looking at, price range, how many IP’s to reach the financial goal mentioned? Any other advice you can think of would be much appreciated. Thanks!Hi Loungeact
I reckon you should change your name – you are doing much more than most people sitting on their lounges! Good on you!
Best advice I can give is to buy a ticket to Steve’s next seminar – the sooner the better. There is more than enough info and networking opportunities there to get you started.
Take plenty of time to educate yourself before putting your money anywhere. Once you’re ready, pick a strategy that you think will work for you and go for it.
Good luck!
scotty3Hi Scotty
I commonly hear the term “strategy” – are we talking Wraps, subdivison etc or more to do with the cash flow
thanksIt’s great that you have a plan loungeact! This is the first step – which is what most people don’t have. You NEED a plan. And once you make a plan, make a backup plan!
Scotty raised some perfect points with his response. Book yourself into one of Steve’s courses. Seriously! Now that you have a plan you need the education on strategies (these being wraps, demo’s, lease options, etc).
I’ve done courses with other wealth trainers that have cost me $5000 but Steve’s Master Class is without doubt one of the best courses you can attend for the price you pay!
– Set your plan and stick to it.
– Acquire the education on strategies (this is continual and never ending).
– Get stuck into it!And if you get stuck/unsure what to do next or where to go, then come back and ask someone – we’re in the same boat as you are.
Learn, Love, Strive. Make a difference!
Congradulations on setting your goals and making plans your off to a great start.Steve’s materclass is the best investment you’ll ever make.There is one in Melbourne and Sydney later this year if your interested.If you feel you’ve educated yourself enough may I ask why your waiting till next year and why stop at 5.
LisaIt is important to point at at this stage that Steve didn’t do his thing by attending his own master class.
Heck for a couple grand I’ll readily tell you everything you need to know about any aspect of property investing. Anything I don’t know I’ll happily look it up and tell you.
Alternatively you could invest the money in a couple books (that’s $100 spent) and some time reading. While you are doing that you could stick the money you would have spent on seminars in an account. If you put $11,500 in at 5.25% for 2 months you’d have earned interest to pay for the books you bought! [biggrin]
There’s nothing someone else can tell you that you can’t figure out for yourself (after all, they had to do it sometime).
Just run the numbers and if it adds up then buy it. How do you run the numbers? I think given a few minutes anyone can figure that out (eg: income – expense = profit)
Surrey.
PS: Alternatively go on a course and then take action.
Wanted to come on here and thakn everyone for their replies. The seminar idea definately seems like the way to go. So far I have brought Rich kid Smart Kid and $10 million in 10 years. Enjoyed both reads. Will def. purchase a couple more books in the coming months.
Turboz – I have to wait until next year to purchase 1st property because I dont have a big enough deposit so far – want 20% deposit for first house. I’m not strictly against having more than 5 properies, I guess its just cos I like being in control of things, so I would prefer to manage the IP’s myself, rather than having a property manager do it for me, and I wish to continue working while renting these properties out so if tenants move out i can afford to pay a few weeks worth of the mortgage, so if I had alot of properties this might get stressful and very time consuming. We’ll wait and see how things go, at a later date might purely love investing and not be able to stop!
Could I also point out the reason why for my 1st house I am saving for 20% deposit is because I would like the 1st house to be the house I live in later on, so will get the FHOG and move in for 6 months then move back home for a few years to get back to saving for the IP’s while I rent out my PPOR. Can I ask if this sounds like a good idea, and what would the tax implications of doing this be? Meaning, in terms of tax would this go in my favour or not? Cheers!
[biggrin]Just another reason as to why I am initially against purchasing too many IP’s is I was thinking for example if I had 5 IP’s (my maximum in my plan as of now) and if at any one time say 2 of those didn’t have tenants in them (maybe a bit unlucky but sitll very possible) with the possiblity of myself having moved back into my own home i am to buy and paying off the mortgage off that, I would be in financial troubles trying to pay the other 2 mortgages at the same time. I have already planned on having approx $5-10k saved in the bank for any unexpected expenses, this may be enough to make having 5+IP’s a safe bet but I guess for now don’t know until I’ve tried it and actually entered the real estate market.
Hi loungeact
Great advice from everyone re attending seminars & reading books etc. While you can figure it out yourself, it doesn’t hurt to shortcut mistakes by learning from other people’s!
Wondering why you would bother managing properties yourself? I think an agent is money well spent, and leaves your time free to go track down the next deal? If you DIY you may have to change your name to “onthephonetomytenantallthetimeact”!!
Good luck!Thanks Unicorn!
How would I find about approx how much it would cost to have an agent working for me?Ask ’em!
Ring a couple of managing agents and ask their rates are (including letting fees and advertising), what they do for the money and also ask for client references. (Good if you can find landlords who recommend their services).
Rates for the agents I use vary between 7 and 9% of rent collected.
Apart from time leverage, there’s also the bonus that the agent handles any legalities that might crop up on the way. You don’t want to be spending time and energy fighting tenants in court. Pay someone else to.
Cheers,
scotty3I agree with scotty3, ring around and ask their rates, don’t be afraid to haggle. I recently used a new agent to manage an IP, during the negotiations I asked for reduced fees and a lower % of the rent (ended up with 8% but much lower inspection / report fees).
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