Oh no…. a bit embarrassed! I have been getting into the research, but would like to know if anyone has the time to give me a bit extra first hand knowledge??? or a path in which to follow for information.
I am 23 and my husband and I are looking to become active in the property investment game. We live in Hobart Tas and just bought our first house 12 months ago, but dont see any great wealth and security coming from our salaries working for other people! We are both very interested and excitied about investing… but I guess money to start doing so is the number one thing. But if any one has some good ideas for resorces and info on starting out it would be greatly appreciated.
Sincerely HaileyHi Hailey welcome to the property investing world I also live in Hobart and have been investing for a few years now and have been getting good returns and slowly building up a bit of a portfolio. My best suggestion is read read read and then act on the information obtained that you believe will suit your needs. Books from Steve Mc Knight, Margaret Lomas and Micheal Yardney are a great start and each one has invested differently and been successful. You will pick up tons of ideas in this forum and mags such as “property investor” give information on how other people are investing and suggestions on trusts,taxation etc. Do your own reserch and find a good mentor who can perhaps advise you along the way and you will still find good buys out there. Good luck and happy investing
Helo and welcome Hailey
There is no rush to go out and buy straight away. Do your research and study as already suggested, so that you can identify a bargain when one presents itself.
In the meantime focus on paying off your home as quickly as possible or building up your savings in a mortgage offset account.
Best Wishes
Demkel
Hi Hailey,
Welcome to the PI forum and the world of property investing.
Its often very overwhelming when you first start out so my advice would be to follow our 7 step program:Step 1 Set your personal & financial goals
Step 2 Prepare a budget & savings plan
Step 3 Determine your investment strategy
Step 4 Build your team
Step 5 Research areas
Step 6 Prepare a feasibility study
Step 7 Negotiate the deal and repeat!Keep reading as knowledge is power so grab a copy of Steve’s latest book “0 to 260 Properties”.
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
I am also a beginner investor.
As I am a oversea investor, I can only look @ new development.
I hardly could find a development with positive cash flow without having to put in a lot more for downpayment.
[party]I would have to agree with AmandaBS. That’s a very comprehensive list and while I may not take it all in the same order, it covers everything you’ll need and want to know.
Building your team is the most vital piece I see on there. No matter what else you do, a good team will make or break your investing efforts.
Derek Guyer
http://www.landchasers.comAll previous posts have contributed to your decision making process but you also need to think of a couple of other things:
1) It is your intension to buy and hold or buy and sell these properties as the entity you will use to do so is important.
There is no point in setting up a Company structure and then finding that you keep the property for 2 years and are unable to claim the reduction in the GST or that you wished you had purchased using a Trust so you can distrubute the income accordingly and protect your assets.
2) Is your loan structured correctly to enable you to go forward. Are you avoiding cross collaralised securities which if you buy and sell will become expensive in documentation costs and are you set up to enable you to reduce the interest on your home loan.
Many other questions needs answers but thought i would through these in for starters.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Hi ,
I should think the 1st step should be to buy to rent.Couple X:
Combined income = $75000 p.a.
Rent = $260 p.w, $13520 p.a.Buy IP at almost exactly same rental yield
IP Cost $275000
Loan = $290000
Interest @8% = $23200 p.a. Outgoings = $2500 estimated
“loss” = $12000 approximately – tax offset $3000+
Depreciation = $4000 approxKeep the 20% deposit in offset account. Interest offset = $4000+
With some juggling, the IP is instantly neutral gearing.
You can even team up with a mate to buy an IP each to rent to each other. So far, the ATO hasn’t said we can’t do that, have they?
I’d like some opinions on this!! If I were 25 again, God forbid, it’s what I’d do, IMMEDIATELY.
Doesn’t matter what/where the property, only the yield & that it’s new applies. We don’t ever have to sell. The property never needs tp appreciate in value. We can still build our wealth.
It’s what Margaret Lomas means by on paper loss, I think.
Good luck,
Kum YinAny newcomer to the property game should also understand the lingo thrown around without much of the explanation. Eg. negative gearing, positive gearing, positive casflow.
So if are not yet fully familiar with these you will do yourself a huge favour doing some reading and grasping the basic differences. I am not going into lengthy explanations here since you may know it already however if you think you may need some brushing up have a look at my article Basic approaches to investing in property.
Good luck
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