hi everyone~
this is my first post and i have been reading the forums and finding them very interesting and helpful~thanks everyone~I have a few questions. I am quite new to property investing…planning to buy my first one soon this year.
however, i am unsure what would the best step for me at the moment.
i have been actively researching properties and have a list of potential ones. i have sorted out my team- my solicitor, accountant, and also a quantity surveyor (if needed). I also have set aside some deposit money as well.there are a few different opinions as to setting up a trust to purchase the property or not. I am planning to build a property portfolio in the long term, but some people have suggested to start with the first property in my own name first.
is that a good idea?also, should I research properties and narrow down to 2 or 3 properties first, or should i approach the bank about mortgage first?
please advise what my next step should be.
thanks
M[biggrin]Hi kerumai
A couple of quick poitns to consider:
1) Dont spend unnecessary money on a Trust Structure until you have decided what path of investing you are going to follow. Whether it be purchasing Positive geared properties where a Disc Trust maybe appropriate or negatively geared prpoerties with capital growth whereby an HDT may be the way to go.
2) You Bank will probably have little or no idea about structuring your loan for investing. They will suggest cross collaratlsing the loans by offering to lend you 110% of the new IP purchase price and taking your PPOR or similar as security for both.
Dont tread this path.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
I’d start by aligning your financing. You’ll want to know what you’re capable of doing before you try to do it. It gives you a sense of confidence to know your limitations and possibilities.
Then, look at as many deals as you can. I don’t think it’s wise to jump right in on a deal unless you have a great mentor who is helping you through each and every step. Take some time to just look at deals and run numbers. The more you look and think through numbers, the more sense it will make and the better grasp you will have when making decisions on your own investments.
Robert Kiyosaki suggests looking at 100 properties before picking 2 or 3 of them. I would have to say that I probably look at a lot more than that for my investors before choosing 1. It’s not necessarily that good deals are hard to find, but it’s that you won’t know how to find them until you get out there and really begin looking and searching.
Derek Guyer
http://www.landchasers.comWithout any set goals or clear investment strategy it will be difficult for you to move forward. Once you have set, clear-cut goals, they become embedded in your sub-conscience and you will automatically be guided towards your goals through your future thoughts and actions.
Decisions followed up by action to get to your goals can result in great personal happiness, wealth and achievements. Be committed and passionate, but keep an open mind and embrace change as your life continues.
Here’s a link to our “Big Picture Goal Setter” to get you started:http://www.propertydivas.com.au/Downloads/big_picture_goal_setter.pdf
I think you need to sit down and work out what you want to achieve first, because as Richard has stated, this will impact on what tax structure you use.
Best wishes,
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
Good points, Amanda and Richard. I’m not familiar with the tax situation there and so my adivce is based off of my understanding of US real estate. I don’t want to guide you away from important structures you’ll need to have in place out there.
Derek Guyer
http://www.landchasers.comHi kerumai I see you have an accountant selected already he/she should well be able to advise you how and if to use the trust system
Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
First home buyers, investors, refinace, loan consolidation, equity loans, free service we come to you!
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