Hi,
I've been passionate about property investment since I can remember, I've always had the goal of working harder to earn more to gain bigger/more property. I lived in the UK for most of my life and 2.5 years ago moved to WA at the end of the boom and now find myself with a mortgage of $440K in a house worth about $510K based on a recent bank evaluation. We built and so it has no flooring except wet areas, and no curtains and the back yard isn't finished, I earn around 80K + super as an IT engineer.
I've recently read Steve's 0 to 130 (Revised) and 0 to 270 books and feel there must still be hope for me. However I'm being told left right and centre by work colleagus and other friends that I should give up looking at PI as income for a number of reasons (use it as a tax benefit, use my equity and buy 1 property, buy mutual funds etc), but like Steve has suggested I'm trying to follow my dream no matter what others are telling me.
I'll tell you why I'm on this forum. I'm at a crossing point…..the dream of getting into PI I feel is slipping away unless I do something asap. Yet with my minor amount of equity (which I can't get anyway as I'm already about 86% LVR) I feel like I can't afford to do anything. In Steve's books 95% of investors use large amounts of saved cash to start their PI, I don't have that. In his recently revised book 0 to 130 Dean and Elise's deal was funded by "Private Financiers" + Loan. Is this a way forward for me? I'm not sure, I don't know where to start even looking for this.
The subject line states "chicken before the egg", like I feel I need money to start in PI yet to get money I need to be in PI. Is anyone else in the same boat? Am I the only one?
Can anyone advise a place to start? I have thought about selling our house but know I won't get maximum price for it as it isn't finished so I'm very hesitant. Again maybe Private Finance is the way to go.
I suppose after all this ranting and raving and complaining I'm looking for valuable resources in order to start my IP dream and am not looking for quick get rich schemes but am willing to put in time and effort and hard work to allow my dreams to come true.
Dave
Dave!! Do not listen to others! I am 20yrs old, and recently purchased my first IP, despite many who told me not to buy. Or who were critical of my age and said there is no way for me to buy. If others advise against, it is probably them in other words saying they wish they had the same passion!
Keep your passion going, as there is money to be made in property! Property is my opinion one of the safest avenues for investing…. shares are always fluctuating, and super is a waste of time. Property is the way to go, dont let others tell you otherwise.
I have been watching the DVD seminars of Henry Kaye, an avid melbourne property investor. The knowledge to be found is overwhelming, its great! So much to learn. Dont feel pressure, by having to earn a certain amount to go into investing…. finance? Income via "employment" will not earn or create the wealth you desire. Regardless of your current debt, there will be ways for you to obtain more finance. There are ways around loopholes!
You should purchase enough, that in 10-20 yrs time, sell off a couple and eliminate the debt, have unencumbered properties sitting there growing in value each year! Live off this equity, living off a passive income….and maybe work a full time job for 1 month in a whole year.
Dave, keep your spirits up, listen to yourself, gain as much knowledge as you can! My roommate and I have the same passion when it comes to property investing, and looking to buy another in a month or two. We both also work in finance, so if you do have questions in regards to your earning capacity and so forth, you are more then welcome to let me know.
Wishing you the best of luck.
Natalie
Its easy to get really excited and motivated that you make the mistake of telling your colleagues/ friends or family.
Wealth creation takes a certain mind set that these other people do not have. It is a bit like perception they see things differently to you because they have a different perception to you.
It can take time to pull off your dreams but keep in mind the difference between someone who doesn't plan and dream and after 20 years has one house when you could have twenty houses.It is like the space shuttle it takes two big booster rockets to launch it into space but once it is in space it only needs gentle nudges from its tiny rockets to move through space. Property investing is like this as you are at the launch stage and it is difficult .
I am at the almost paid off house number one stage and preparing to blast off to the moon once I earn income again from either private business or a just over broke J.O.B.
Dave,
totally agree with the others, the easiest way to NOT do something is tell others how excited you are! $80kpa and your first property under your belt, well IMHO you've already jumped the first and hardest hurdle – you've got an income and a place to live. Your 2nd property will be a lot easier to get than your first and all going well your 3rd will be quicker still.
I won't go into details as to what I think you should or shouldn't do but let me just say that I'm 28yo and have taken the last 6 months off work and the only way I could afford to do that is from the income I make off my properties. Stick with it as most likely you're just on the cusp of making it and as they say, it's always darkest before the dawn.
Good luck,
Andy
Thanks for all your encouring comments, I really do appreciette them.
When still living in the UK and telling people that I was moving to OZ friends and family would say that was wonderfull and what an amazing opertunity and why it was such a great idea, but we were crazy as we had no house or jobs setup before we got there. When I asked why they weren't doing it they came up with many reasons, none that I deamed to stop anyone from moving to OZ, grew up in small town and don't want to leave, I have good friends, I'm too old (this was from someone who is 36). Since then I have realised if you want to do something you do it, no matter what others are saying or regretting, I didn't want to be 40 and say I had a chance but never took it. Now I'm (32) living in OZ with my wife (30) and son (who's 2 on the 21st of December) and love every day of being here, the people the life it's just everything I would say life is meant to be.
So how do I move on from here, how do I start in investing? Do I look at private finance? Do I line up a deal first then private finance? Or as Steve would suggest do we setup a trust first and structure with a decent accountant? Once all the pieces are into place then make a move?
many thanks
DaveDave, very inspirational….good on you for making the move here to Aus! Glad to hear you are loving life as it should be.
I'd say, get a pre-approval in, to at least know a lender would consider lending you the money, then look for another property to purchase as investment.
Worry about setting up a trust when you have a few more properties under your belt, then you can look into; trusts, asset protection… etc…? I wouldnt worry about that just yet, at least buy another 1 or 2 more first.
I suppose I was kinda ranting
but meant to really say I'm not going to listen to the lads at work. I will achieve my goals.I suppose I was kinda ranting
but meant to really say I'm not going to listen to the lads at work. I will achieve my goals, somehow Hi Dave
Firstly welcome to the forum and i hope you will enjoy your time with us.
Like you i am a fellow Pom (Just returned yesterday from 5 weeks back there).
Dont listen to your work mates as the average Aussie never purchases more than his own PPOR and even those who take the IP step normally only ever buy the 1. I arrived in 1993 and currently have a portfolio of 40 properties in SE Qld.
When i started my own finance business some 16 years ago the average Bank wouldnt look at me despite arriving with a decent deposit after getting 2 pound 40 to the dollar. thankfully being in the industry that didnt stop me and it should stop you either,
Admitedly since Steve''s book finding Private Finance especially at a high lvr has become almost impossible however dont give up and keep the dream alive.
Hope you enjoy the WA weather. The Uk was minus 2 in the South when we left on Wednesday and it is 28 degrees and sunny back here in Brissie today. Wonder why we made the move all those years ago.
Richard Taylor | Australia's leading private lender
Hi Richard,
weathers beautiful mate, 34 degrees yesterday and day before, rubbed it into some friends from the UK on a telephone call the other day, no wonder they stopped sending me Christmas cards
Getting started and finance is the hard part. After writing the first post I've done some homework and think I'm going to focus on investigating the following…
100LVR (dependant upon return of PI)
Private Finance (Have friend who is mortgage broker, I've just found out he knows a couple, but has stated it's a risky business and the return on the PI must work out)
Structure (I'm going to find out how much it costs to setup company and trust and seek advice from an Accountant)If I get the above pieces into place and setup then I'm ready to go when the opertunity arises (well that's my gut feel).
I could wait and save to increase our equity or for a deposit, but the market will get ahead of me (I cannot save faster than house prices are increasing), I've even thought about asking my parents for a loan but they're about to retire and I don't want to risk their money.
Dave
welcome to oz!
good to have passion and dreams. need i think expert independent financial advice first and a plan.
this will include taxation issues and any issues re centrelink etc.plus you may want to revisit the uk too so allow money for living and emergencies.
you are 32 and 30, so young and plenty of time. does your wife work? it may help to get ahead start.
there are lots of opportunities but also lots of traps, so do get good advice, preferably not from those with a vested interest to sell you overpriced property!!! many of those.
good luck.
Yeah wife works 2 days a week, but may cut that to nothing for at least 6 months as were thinking of having another bub next year.
Good Luck Dave,
I can relate to the place you're in right now – I'm only now just starting to realise the potential in Property Investing (after reading Steve's Book) and feel that I can't move quick enough to capitalise on the opportunities that are out there !!
I know I'm going to struggle getting finance, especially in the early days. But the best thing i've found to work is have a detailed plan, describing your estimated figures, so that when you walk into the bank requesting some assistance, they're comfortable in knowing that your serious about investing and not just after some quick and easy cash.
I can't see anyone handing me a wad of cash without experience in successful investing. So i'm planning on starting small, working on what i'm calling 'learning projects' with the overall ambition to go big once i've got some deals under my belt.
I've been on this site for less than a month and have already learnt heaps – but remember there comes a point in time when your knowledge can only fully be realised when put it into action.
All the best.
Cheers,
Darren
but meant to really say I'm not going to listen to the lads at work. I will achieve my goals.
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