Hi everyone,
I have just found this site and have been madly reading your posts – it’s all so interesting and helpful!
I was hoping I could get some more specific advice if I tell you my situation:
I’m 22, my husband and I just got married and bought our 1st home in the last year. We are living in it and it has been recently valued at $320,000 and our loan is $283,000.
We are desperate to make something with our lives and both understand that there will be risks and stress, but also SUCCESS!
We got our loan through a mortgage broker who, promised to help us to get started in property investment, but after the loan app was signed, I’ve not seen nor heard from him again. I’m reluctant to contact him again as I feel that he was just out to sell us a loan (which didn’t even turn out to be suited to our needs..)
Our problem is that we don’t know who we can ‘trust’ to get some advise on property investment from. I’ve read a range of property investment books and am currently researching suburbs on the Internet. I couldn’t believe it when I saw properties for sale for around $60,000-70,000 with a rental income of $100-120/wk. To me it sounds too easy??? Does anyone recommend seeing some sort of financial advisor? Unfortunately neither of our parents have bought a property for over twenty-five years and they can’t offer us any advise.
Our plan is to by an investment property (have been looking in VIC & NSW – but don’t really care where) for around $70,000-100,000. We already have savings and can pretty easily save a deposit of 5-7% in the next couple of months. Do you think we should be paying more off our current home loan before we dabble in investment properties? Or should we try an jump in asap? Would really appreciate your experienced views.
Also, saw mentioned in another post someone suggested visiting ‘investor groups’ – can anyone explain what these are and if there are any in NSW?
Originally posted by jesse010:I’m 22, my husband just got married…….
Did your husband marry you?[blink]
Watch out for those cheap properties returning a high yield. Just because the yield is good doesn’t mean they are a good investment.
Just keep reading as much as you can, especially posts on forums like this.
Terryw
Discover Home Loans
Parramatta
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hi jesse010
not sure about the husband and whohe married but yes there is a sydney meeting on then 29th at petersham rsl if you want see you there.
have a read there is a post on sydney discussion grouphere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]Originally posted by Terryw:Did your husband marry you?[blink]
Thanks Terry, fixed ha ha, but you can safely assume he married me
Watch out for those cheap properties returning a high yield. Just because the yield is good doesn’t mean they are a good investment.
Would you mind elaborating on this? What are some of the problems you’ve found with these type of IP’s?
Just keep reading as much as you can, especially posts on forums like this.
Will do, thanks very much for your reply [thumbsupanim]
Much of regional Australia is overpriced. There is little point buying property that will not go up in value, that will not help you especially if it goes down in value. If you can not afford to buy yet start researching. Look at an area that you think may go up and get to know it like the back of your hand.
Nigel Kibel
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Originally posted by jesse010:I’m 22, my husband and I just got married and bought our 1st home in the last year. We are living in it and it has been recently valued at $320,000 and our loan is $283,000.
For me these are the crucial details in this whole passage.
You are only young and have a hefty sized debt (88% LVR) on your hands as it currently stands. I wonder what sort of stress your existing repayments could handle if interest rates were to rise or you started a family or……………..
For me the important bit is to make sure you have some time available to you should one of the aforementioned events occur.
I would also get another broker to look at your existing structure. You indicate that you felt you got ‘sold’ something that really wasn’t suitable. You may find one of our friendly brokers will look at what you have on a ‘no strings’ basis to confirm you fears or reassure you that what you have is OK.
Initially I would look at either a redraw or offset structure so that you can access any additional payments made. This way you can maintain the discipline of paying off the loan either directly or indirectly while still having access to these funds.
I would also agree that any investment decisions you make should be wise ones and time spent learning and researching at this stage of your journey will be very worthwhile at this point in time.
I would also spend some time working out what it is you want to achieve through property investing as there are many ways to make money from property.
Read a few books (Peter Spann, Jan Somers, Steve McKnight etc). While the approaches may be different there is scope for you to adopt or modify some of the aforementioned people’s style to suit your needs.
This process may be lengthy but like building a brick wall – get the foundation right now and you have an increased chance of building a solid wall and not a pack of cards.
At the end of the day it is your decision but for me – treat 2006 as a year of learning about PI, enjoy your early years of married life and get to know your hubby too as you need to sepnd some time getting this part of your life right too.
Derek
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http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Derek:You are only young and have a hefty sized debt (88% LVR) on your hands as it currently stands. I wonder what sort of stress your existing repayments could handle if interest rates were to rise or you started a family or……………..
We have taken these into consideration: Our rate is fixed for 1yr with the option to renegotiate at no extra charge, also we won’t be starting a family for quite a while yet.
I would also get another broker to look at your existing structure. You indicate that you felt you got ‘sold’ something that really wasn’t suitable. You may find one of our friendly brokers will look at what you have on a ‘no strings’ basis to confirm you fears or reassure you that what you have is OK.I did actually contact the finance company direct when I realised how unsuited our loan was to us and I was able to negotiate a better loan with a competitive rate and offset account. So I am happy with what we currently have
I would also spend some time working out what it is you want to achieve through property investing as there are many ways to make money from property.This is something I don’t exactly know yet and forgive me for sounding very uneducated but, I only know of two ways of making money from property: ‘buying a property to rent to someone’ or ‘buying a property to sell for more in a year or twos time’.
anyway, thanks for taking the time to offer me your opinions, I will look for the books you suggested.
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