I have been reading this forum alot lately, along with anything else I can get my hands on in relation to property investing.
My problem is that I keep procrastinating.
I need to get my ass in gear and take some positive steps towards purchasing my first IP.
But, I have no idea where to go, or who to ask.
What should my first move be?
Who should I speak to first?The whole process just has me confused. I know if I make the first few steps in the right direction, then I should be set.
Any guidance would be greatly appreciated. If you need any more details please ask.
Thanks!
Find out how much spending you can do. Speak to a broker for a top figure.
Then start investigating potential locations.
That should get the ball rolling.
Hi Compleks,
Just as a basic starter, you have to know things like; your financial situation, your reason for property investing, and what area you are going to target.
When you know that, you have to study that area for things that will make it a possitive to buy there eg, infrastructure, rental renurns and vacancy, job rates, future employment and reasons that your area will increase in value over the long term.
All this takes time and resources. internet, ringing agents, and especially walking the streets, activity in neighbourhood will give good indication as to what the area is like.
Some basic tips that can really help can be found in Steve's first book 0-130 properties. Although times are changing and it is harder to find C+ve properties, the pricipals are the same, you just have to look more and work with the current market.
When looking at a property, don't look at the current state of the property, see through to what it could be… (rough diamond)
These are a few things that I do that are simple and are helpng me add to my portfolio.
The Dilligent find freedom in their work;
the lazy are opressed by their work – proverbsLuke
I had a discussion with a friend of mine a couple of years ago about investing in property. He is financially secure, earns good money, low debt etc. This was when the rent returns were a little better in Melb than they are now.
He was scared to pull the trigger. After a few minutes of explaining all the benefits of property he still wasn't convinced. I showed him how relatively easy it was to buy a property that cost virtually nothing per week to own.
Then I used this scenario;
If you save $50 p/ w in a savings account you wouldn't miss it would you? My friend said no; he wouldn't.
I then said that if he was to buy any decent, existing house in any decent suburb in Melb (obviously he would do a bit of research and pick a good one), with proper insurance, rental demand, prospects for cap growth, etc; the worst thing that would happen to him would be it would cost him the same $50 p/w.
This is how you need to look at this. You are, at worst, starting a savings plan, and if done well you could even buy a property that costs you nothing and will make you more wealthy.
Taking the required steps to protect yourself is mandatory, and one that's done there is basically nothing left that can go wrong.
People say "but what about the tenants from hell, or the toilet explodes" etc. These are risks and can be easily managed.
It's time to act.
First thing; establish your finances and what you can borrow so you can set your purchase price range.
Then, pick an area you want to invest in, then spend about 2 months researching the values so you know which deal is a good one or even just an average one.
Select say, 6 properties as a short list, then revisit them to narrow it down to maybe 3, then put in offers on all 3, based on your research and number crunching.
We can help you with the details along the way as you go on this forum.
Thanks guys, you have been a huge help as usual.
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