Tell Me How You Got Started :)

Great thread Scotty. 

getting back to the original post. This is our story…

We did what you should do-ie buy a house and pay it off as quick as you can.  We aimed low so that it would never be a stress, which it wasn't.  Now fully own PPOR.  Meanwhile bought local business premises against our will, (because we could,) mainly to prevent erratic business partner from having too much control over things (great person, very entrepreneurial, good friend, this helped it stay that way). This was never planned to be an investment.  Gave property no thought other than that it served a function and owning it meant not being kicked out unexpectedly when whoever owned it wanted it back. However this premises is insanely positively geared. (which I did not realise till later-read on)

Then in January this year while pulling out the BBQ on the concrete verandah, the gas bottle fell off and pulverised my big toe.  Suddenly all the watersports and biking/hiking/motorbiking etc we had planned for a family holiday was out for me for a month.  Couldn't even swim or walk properly. Our family holiday was at some friends' house who happened to have some investment magazines lying around (they were getting into shares), including Your Investment Property magazine and money magazine.  So while all the kids/other adults did active things, I bummed around with coffees, timtams and investment magazines and in the process suddenly understood what "equity" meant .

Then how we could go and buy more property without actually intentionally saving any deposit money at all. 

I have since devoured every book I can get my hands on, subscribed to YIP and API and Money magazines and the steep learning curve has resulted in us using some of said equity as deposits for IPs in different states this year.  Now we want to get another IP in a capital city-just not sure which city as we want something for capital growth.

Books that have been excellent:
"Rich Dad Poor Dad" by Robert Kiyosaki- very inspirational and motivational. (and quoted by many other authors in their books, I might add!)
"From 0 to 130 properties in 3.5 years" Steve McKnight (essentially about positive gearing and going ahead by volume)
"20 must ask questions for property investors"-Margaret Lomas
"How to grow a multi-million property portfolio"-Michael Yardney.  (He makes a lot of sense about how capital gain is so powerful)

In summary we are still learning and our goal is not really properly formulated, except for the common thread in all these books , which is "get started", which we did quite quickly.

Other common thread is "Time".  so we are learning patience and waiting to see what Time does to what we have bought.

A bit nervous about having over $1M in loans all of a sudden, esp with interest rates on the rise, too, but the numbers are all ok so have to trust my maths a bit.

Anyway, that's our story.

Like it Ben.

And in regards to luck, i remember when  Jack Newton was once asked how lucky he was to get the 40 yard put that won him his 4th American PGA tour championship… he replied to the reporter " I practise my luck 10 hours a day" !!! Very true

Similar to your ideas about procrastination, this quote sounded like it was written for me once upon a time: 

 "Knowing, without doing is like plowing without sowing"

My parents handed me "rich dad poor dad" and Cashflow quadrant when i was 20. I read steves books also but did nothing with the knowledge till almost 10 years later.  I was the property expert to my friends, but the expert who had never taken the risk himself until now.  I firmly believe that investing is State of mind that effects your actions. It took me awhile, i could have retired by now. But i am excited about what the future holds for me and my family.

Regards,

Dave

[That's bad advice. You shouldn't invest in property for tax concessions.

The choice you make comes down to many factors, one of which is your individual risk profile. What do you feel comfortable with?There's no real right or wrong answer – it comes down to what you feel comfortable with. All three options above, in my book, are better than doing nothing….the one you choose is utlimately your decision.

Jamie[/quote]

Really? I beg to differ. The tax concessions by investing in property are the icing on the cake. You make your profit when you buy well, ….manage the tax deductions properly…. expense the depreciation in the accounts….. reduce your overheads by managing the property so your outgoings are minimal and……if some idiot wants to pay you well above what its worth because of the attractive yield you take your profit……

Instead of paying capital gains you purchase an even better property, prepay the interest in advance to offset your capital gain in the same financial year and start the process all over again.

Nzuv Sorry i believe it is the August not July edition.

Shoot me an email if you want a PDF version and i can send it to you.

Cheers

Yours in Finance

Hey Scotty,

I got into property investing so I didnt have to through the stress of a "personal mortgage" and rest of the costs that accompany them. My basic plan is to gain enough property to pay for own home by either selling a couple and paying cash or having the rents I collect pay for it for me. I am 28 in December working as a surveyor in the construction world so I move around alot, but when I do find the right spot to call home I want to be able to be happy were I work with minimal hours and not just follow dollar signs.

If you do your homework and be patient it will all work out in the end.

Good luck mate
J

Ouch!

C-R-E-A-T-I-V-E investing people….

If someone is happy to lend based on that then go with it. Good on you Jamie for having a crack, people need to make their own decisions and take responsibility for their own investing.

Sigh, I'm too boring to be published LOL!

D

Hi and Welcome Jacintak!

Find someone who will partner up with you..

Find your passion and run with that, whether it is some sort of add value or mining towns or USA, be an expert in what you love, it will show.

It might take you sometime to get into the swing of it, don't rush as there are plenty of deals for everyone, I think most people here have taken at least a couple of years to really get going and to understand what they want to achieve.

Good luck!

D

Hey Scotty,

First of all, great post idea – it's awesome and so encouraging to read everybody's stories!

I got started about 10 years ago and I knew nothing! I made so many mistakes, but the one thing I did right was that I knew I wanted to invest and I got active. Unfortunately I didn't buy the perfect property and I put myself under a bit of pressure. Had I had the right education (which I didn't) I could have done far better out of property because I was ready to buy at the start of the boom. I ultimately missed some of the boom years through ignorance when I could have educated myself and done better.

But the good news is that, despite all of my mistakes, the property still performed pretty well and I haven't lost out! Now I'm building a portfolio by buying about one property each year – over time this will build a great retirement fund!

So where would I start if I were to do it all over? I'd look at forums like this. I'd download podcasts (there are free ones, such as the one I make with a friend of mine – we talk about the sort of info we wish we could find when we were starting out). I'd look at websites like realestate.com.au and also grab magazines about property to read through them. I'd set better goals than I did, and I'd make sure I understand that there are a few different types of property investing and not just one.

Anyway, that's my two bobs worth!

Good luck, and feel free to ask any questions you may have.

Cheers,
Den

Cant see any issue with Jamie's suggestion and is what i started with and what i still recommend to investor clients today.

Cheers

Yours in Finance

It's called leverage – it's how investors operate.