Does any one have any tips for a beginner. I have studied lots of material but am yet to starrt actively looking for deals. Am I best to go to one of Steve McKnights seminars before starting?
Thanks
BW
bwalkerau Posted – 06/12/2005 : 21:24:54
Does any one have any tips for a beginner. I have studied lots of material but am yet to starrt actively looking for deals. Am I best to go to one of Steve McKnights seminars before starting?Thanks
BW
Ahh….. where to start?
You need to discover where you are at (I say this because I thought I knew until I found out I had no Idea). Do you want to have your own home first or an investment first?
There are pros and cons to either. Pro to own first home: you can get the FHOG – great for starting off. Another benefit is that you pay not CGT should you sell. Cons: not tax deductible and, depending on where you buy it is unlikely that you’ll get hughe growth of equity in the current market (same for IP).
Pro for IP: Tax deductible debt, so if your working you can off-set some of your income tax NOW. Con: higher intrerest rates and no FHOG.So, to start:
1. educate yourself,WHILE;
2. saving/pursuing a deposit for the house/unit/what-ever;
3. do research on your local area or where you’d like to invest. Look for things like placement of the property (location) what the surrounding area is doing (is it rising, falling or steady, are there any factors that would influence this in the near/far future). What are the prices around that area like – how does you property compare? Any recent sales evidence, talk to REAs, etc;
4. do that for a number of properties, go to auctions and get a feel for the area – see what places are sold for; and then
5. Make an offer or two, but only on places that you are really interested in as you might just get what you want.Find out who’s services others are using and get to know them (IE: Lawyers, settlement agents, building inspectors, etc). Once it goes to the stage where you need to say yes or no, you’d want to know as much about the property as you humanly can to make the right decision. Sort out finance and sign on the dotted line.
You may have to re-order the list above to suit your situation, and there may be things you need to add or take off. Feel free to keep on asking about anything that you come up against and seek advice or do a search in the forums for your topic. We’s a friendly bunch and generally help!
Good luck
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas Edison
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