Hi all,
I have started reading Steve Mc Knights book on how to invest in property.
My questions are the following….
1) My primary strategy would be to find popsitive cash flow properties. If i couldnt achieve this straight away then my secondary strategy would be to renovate an investment property.
2) I am having trouble coming to grips with the financial side of things. It seems to me that all the strategies that are presented require a decent amount of capital/deposit to obtain a loan. At present I am employed in a job of $45000p.a. and have an managed fund investment of about $30000. From all the calculators there is no way i can purcahse a property and be able to afford the repayments. Maybe i am looking at property that is too expensive.?Can anyone advise if i am in a poistion to start off seeing i have no property behind me yet???
Thanks guys
Where have you been looking to purchase?
I am in the investigation stage at the moment which leads me back to my financial situation. I dont want to get ahead of myself and realise that i cant afford/dont have the equity to buy my first home. My other point is that i am still living at home with the parents and do not have equity in my own home. The upside is i dont have any committments other than a car payment which will be paid off in the next 6-12 months i hope.
If i was to buy i was looking in the area of Newcastle or surrounds. I note there is a F3 freeway extension leading straight to Kurri Kurri and this looks like it may drive prices up in the area. Maybe a reno strategy in this area might be an idea? Depending on purchase price though
My first investment property is costing me less than $18,000 to buy (including all costs) and I don’t have to afford the repayments because the property is positive cash flow.
My strategy (to begin with) is to buy cheap positive cash flow property. Do the property up, increase rents, making it even more positive cash flowed and then move onto the next one. Each time using the cash flow from each property to fund my lifestyle.
I am not a big fan of the “Live frugally, save money”. I think the smarter you are at investing the less money you need, so instead of waiting to have time and money, I have decided to make investing a little more difficult and have as much as both as possible in the beginning and throughout.
For $30,000 you could easily buy a positive cash flow property that could generate you upwards of $20-$30/week. Then if you love renovating you could renovate it and get $50+/week. Each year your income will go up (because rents go up) making your richer and richer.
I can’t tell you specifically where to buy. But I wish you luck. If you get desperate check out my site
I can easily find properties for you if you can’t find them yourself.Ryan McLean | On Property
http://onproperty.com.au
Email MeHi there,
To be honest i don’t know much about the market up there but i have had a lot of experience renovating properties to add equity.
It took me a while and a lot of research to realize that i didn’t have to rely on the area i bought in. Sometimes adding small things like turning a garage into an extra bed room or giving the kitchen a cosmetic facelift can do this.
You are in a really great position if you can stay at home with your parents for a bit longer.
If you get time have a look at our website we teach people how to add equity by renovating there are some great tips and market updates as well.
i dare say once you start you wont look back.
good luck with it all!hi guys,
I am in a very similar situation to Sw2772, i 've just finished Steve's book and prior to this been to a few seminars run by different people (Roy McDonald if anyone has heard of him?) and am very excited, keen and wanting to get the ball rolling as soon as possible but dont know if my dreams are too big just yet. My financial situation is the same as the first post, but I only have a deposit of $20K but no loans that need paying off etc.
I live on the gold coast, and 'bargain' property is either non exisitant up here or im a small fish in a big pond! Im wondering if shares might be a better road to take to start off with, or if I need to look outside the GC or maybe wait til I have a bit more of a deposit first?
I like what Ryan has said above, i would like to still have a life too and earn a positive net cashflow – where on earth did you manage to find an investment for $18,000? any info from some of you that have done this successfully in the past would be of great assistance.
Thanks!
I can easily find properties for you if you can’t find them yourself.
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