Brainstorming Ideas

Viewing 8 posts - 1 through 8 (of 8 total)

Novo30
Participant
@novo30
Join Date: 2007
Post Count: 8
January 7, 2008 - 1:18 am
Hey everyone,
I need some brainstorming ideas and some suggestion from all of you.
My situation, I currently own 1 house which I purchase for $125k 8 years ago and now owe around $80k. I think my house is around 340k worth in value. It is about time I get off my backside and invest in some property
I just need some ideas hurled at me of what I could do, what others have done. I know it all boils down to me however I think great ideas help
What material I should think about reading (authors and title’s please)
Ideas I have at the moment are, either purchase a house/ unit or maybe going towards taxi plates (not too sure what are the negatives of taxi plates though)
All ideas welcome, the more Ideas the better, if someone has already posted something like this before, tell me and I’ll search for the topic it was.
I have already listened to an audio book on Anita Bell – your investment property
Thanks,
Novo30
AverageJoe
Participant
@averagejoe
Join Date: 2008
Post Count: 1
January 7, 2008 - 1:57 am
Hi Novo, I'm new here and in exactly the same boat, I have sat on my back side to long watching the world go by and this web site is giving me the information and momentum to do something about it.
I'm looking similar advice, the "if I was starting from scratch again I'd do it this way" advice.
I have with $500k (2brm1bth Bardon Qld) in equity in my house (paid off), no debts and $2000 spare a month after expenses ($3k next year 2009). I simply don't know where to start? Although after reading the tour on this site I know I want a passive positive cash flow 'eventually', I think in the start maybe some negative gearing would be ok for 10 years (I'll be 45 then and would love to do more skiing )
What would any of you do in my situation, I guess that's what anyone is after, lots of different advice to make an informed decision.
Geoff.
islandgirl
Member
@islandgirl
Join Date: 2006
Post Count: 55
January 7, 2008 - 3:55 am
I think what you really need to work out is why are you investing. What are your goals and what do you want to achieve. No one will be able to give you any meaningful advise unless you have some expectations/goals you want met. e.g. do you need increased income, do you currently have suffient income for your needs and are investing for long term growth. Where do you want to be in 5 years, 10 years etc.
Go to the local library and check out books such as Steve Mcknights, Michael Yardney, Jan Somers, definately Robert Kiyosaki. Visit investment sites such as this one, somersoft.com and invested.com.au All have very helpful forums.
Novo30
Participant
@novo30
Join Date: 2007
Post Count: 8
January 7, 2008 - 11:33 am
Thanks for the info islandgirl, I wish for this investmet to increase my income over time, so I guess I purchase one house now and then build bigger from there.
Thanks for the info about the books & websites though
duckster
Participant
@duckster
Join Date: 2004
Post Count: 1,674
January 7, 2008 - 8:57 pm
It really depends on what your income is. A high income earner may want to buy a property that costs more to hold than the rental income is. A low wage earner would look or aim to buy a lower priced house so that the rental income is greater than the holding expenses. The higher priced house with negative gearing needs to achieve capital growth to offset the holding costs.
A positively geared property is more a cash flow strategy where you either pay off enough or buy the right property to make the property produce a cash flow income.
books do not cost much to buy – information is power !
http://www.businessmall.com.au/store/index.shop
click on property investing general link
books of interest
$1,000,000 in Property in One Year                     This forum is based on this authors book
From Broke to Millionaire in just 7 Years            This forum is based on this authors book
From Zero to 130 Properties in 3.5 Years          This forum is based on this authors book
Negative Gearing
Ordinary Millionaires
Magazine of interest
http://www.apimagazine.com.au/
Novo30
Participant
@novo30
Join Date: 2007
Post Count: 8
January 9, 2008 - 12:58 am
Hi Duckster
I guess I will go with "A low wage earner would look or aim to buy a lower priced house so that the rental income is greater than the holding expenses" thanks for pointing a few things out though
Is the book "From Zero to 130 Properties in 3.5 Years" a good read? I was thinking of purchasing that one
Novo
L.A Aussie
Member
@l.a-aussie
Join Date: 2006
Post Count: 1,488
January 10, 2008 - 12:30 am
islandgirl wrote:
I think what you really need to work out is why are you investing. What are your goals and what do you want to achieve. No one will be able to give you any meaningful advise unless you have some expectations/goals you want met. e.g. do you need increased income, do you currently have suffient income for your needs and are investing for long term growth. Where do you want to be in 5 years, 10 years etc.
Go to the local library and check out books such as Steve Mcknights, Michael Yardney, Jan Somers, definately Robert Kiyosaki. Visit investment sites such as this one, somersoft.com and invested.com.au All have very helpful forums.
reason to invest; TO MAKE LOTS OF MONEY; PREFERABLY FAST.
Is there another reason?
L.A Aussie
Member
@l.a-aussie
Join Date: 2006
Post Count: 1,488
January 10, 2008 - 2:36 am
Novo30 wrote:
Hi Duckster
I guess I will go with "A low wage earner would look or aim to buy a lower priced house so that the rental income is greater than the holding expenses" thanks for pointing a few things out though
Is the book "From Zero to 130 Properties in 3.5 Years" a good read? I was thinking of purchasing that one
Novo
it's a good read, but keep in mind that the real estate market is totally different now.
You will find it difficult to find sub $100k properties with 10%+ yields in areas of good cap growth.