Hi all
This forum is just what we need. My query is twofold. Firstly we need a mentor or someone who is willing to share a couple of trade secrets to get us started. We’ve spent hours on end (started with “A”) searching suburbs but as you can imagine this is a pointless exercise. Where do successful investors start. I know – reasearch, but there are thousands upon thousands of suburbs!! Infastructure, population growth, household income yeh yeh yeh – but in which suburb in this huge country of ours? C’mon don’t reply with anything else, just a suburb name or two PLEASE!
Secondly, we live in Sydney and are looking for a mentor/financial adviser/accountant/conveyancer/solicitor. If anyone online, that is also investing in property themselves, wants to recommend themselves or someone they know, please pass on the details.Cheers and have a great weekend – I’m spending another one tied to the computer – realestate.com here I come!!
Leanne
As Kay says, ‘Google is your friend’!
Everyone goes to realestate.com.au
As for a mentor, I noticed you left us lowly mortgage adviser / brokers off your list. BOO HOO!!!
I really don’t see the need to look for a single mentor who does things one way (and they may be wrong) when there is such a great tool like this website that has hundreds of experienced individuals freely giving advice so you get a range to choose from. Why settle for one mentor when you can have hundreds???
The Mortgage Adviserhttp://www.themortgageadviser.com.au
Thanks for your reply.
I didn’t think that mortgage advisors could give advice. We are currently obtaining finance and will be ready to go in a matter of weeks but our mortgage advisor kept saying that she couldn’t really give any advice etc. Something about tax????
Further investigation of this site has revealed some very useful information to run with. I’ll post a new topic asking for where people think $200K would be best invested.
We’ve been given a tip on Broken Hill – any thoughts??
Thanks again – appreciate your feedback
Leanne
Regarding the giving of advice, a mortgage adviser provides mortgage advice. A financial planner provides financial advice (excluding mortgages). An accountant provides taxation advice. A solicitor provides legal advice…. and so on. None of these individuals can provide ‘specific’ advice in other areas UNLESS they are qualified in multiple areas.
For example, some Mortgage Advisers are also qualified as Financial Planners or Accountants. Some are even Solicitors.
Instead of a mentor, I think a ‘team’ will serve you much better.
The Mortgage Adviserhttp://www.themortgageadviser.com.au
No one can tell you the *best* postcode to buy in, as we all have our different strategies and comfort/risk levels.
First you need to work out what exactly you are looking for in an investment property. eg.
Cashflow positive?
Capital growth?
Something you can do a quick reno on?
Something you can develop?
Long term, short term, or hold indefinitely?
JV or by yourself?
Using the bank’s money or your own?
Pay off debt quickly, or leverage against equity?There are large costs associated with buying and selling property, so if you are considering a short-term plan then you need to buy somewhere with good capital growth and/or something that you can ‘do up’ – otherwise you will lose any profit simply in taxes/expenses. Generally the higher CG areas have low rental yields, which means that you will have to put money in on a regular basis until you sell.
On the otherhand, you may be more interested in a slow growth area that has good positive cash flow so your day-to-day property expenses are covered. It can keep ticking even if you lose your job etc.
Major cities generally offer blue-chip CG, but have an expensive entry point and low rental yields. Rural areas (such as Broken Hill) often offer low entry price point and CF+, but low CG and greater risk of collapse.
Only you can decide which strategy is right for you.
There is plenty of data available to point you to areas that satisfy different strategies. Australian Property Investor magazine, for example, regularly publishes stats from Residex and Australian Property Monitors that list suburb by suburb capital growth, rental yields, the ‘cheapest’ suburbs’ etc etc. They also spotlight different areas and discuss the pros and cons of that area. I would recommend subscribing, and also buy the last three or four back issues.
Once you have decided upon the strategy most relevant to you, this information is a great (and easy) starting point to highlight areas that are most relevant. Then you need to do your indepth research on the shortlist to work out the most appropriate suburb/town for you, and the best areas within the town, etc etc.
I doubt you will find a mentor outside of family and friends. Successful people, whilst they enjoy teaching in some cases, are often too busy to spend time giving advice to people they don’t know – especially when one considers the responsibility they take for your actions. It may not be a legal responsibility but I know I would take personal responsibility.
As a Broker I cannot give investment advice but am usually happy to chat about what I have found works and what others I know do – purely hypothetically of course!
All the best to you.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thank you everyone for your replies. You’ve provided a lot of things to consider.
I may have seemed a bit flappy in my original post. I was getting bogged down with info and was starting to drown. We are looking for properties that are +ve or nearly +ve (that won’t cost much per week). Our aim is 15 properties in 10 years or less. I have taken the time to read previous posts in this Forum and must say a big thank you to those of you who take the time to reply to us obvious newbies.
We are asking everyone we speak to about investing, most are happy to provide horror stories and sometimes we may hear of a friend of a friend type thing.
I guess the rich get rich by doing what the poor people don’t.
I’ll stop, take a breath and take time to digest all the info and then ask more questions when needed.
Thanks again for your time.
LeanneLeanne
The first thing to be aware of , is that you don’t need to rush. The market has just been through a major boom and in most places has reached the top of the cycle and in many ( certainly in sydney ) prices are coming down.
It’s more important to buy the right property than any property, and I know more people downsizing their portfolios’s at the moment than buying.
Spend time reading the old posts . Also go over to Somersoft.com which is the other worthwhile property investing forum in Oz. It also has a chat room which while quiet for much of the time nowdays, can be a good place to get some more immediate feedback.
There are also meetings at various times in Sydney . Check the ” coffee lounge “
See Change
Hi Calm,
The first thing you would need to do is to ask yourself why and where do you want to be in the future.
You need to make a investment plan and have reasons behind it as we all have different goals and strategy.
No strategy is wrong or right if it is executed properly.
Once you establish the reasons of why you want to be a property investor and once you know the solid reason of what you want to achieve and have your target then look at what you strategy is going to be.
these are not in order but tips.
don’t bet on mortgage advisor to find the wealth for you. You greatest asset is the information in your head and the age of your information.
[biggrin]
Originally posted by Michael4:don’t bet on mortgage advisor to find the wealth for you. You greatest asset is the information in your head and the age of your information.
[biggrin]
HEY!!!
I do very well for my clients thank you very much!!!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
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