help for someone wanting to get into property

Hey Stephen,

You must be a nice block with a name like that .

Many people comment that starting out is the hardest part – not only is knowledge an issue, but so too is confidence.

I could go on an on about this topic (in fact… I will be at the upcoming seminars I have just announced), but for a quick answer that I hope points you in the right direction:

1. Many investors buy a property and then make a profit. That is, they buy then strategize. This is a flawed approach.

2. Instead, the first step is to work out your wealth creation goal. That is, what you are trying to achieve from your investing.

3. Once you know your goal, you can then look for a model or investing approach that will get you there. For instance, you may need to buy multiple properties, and 'trade them' as you build your capital. Or else you may have a long term approach and can buy (say) a property every couple of years and achieve your goal if you achieve your growth targets.

4. Once you know what profit you want, and when you want it, you can select the most appropriate investment strategy.

5. Armed with knowledge about the goal you have, the profit outcome you want, and the best strategy to achieve it, your next step is to identify an area you want to invest in, and then ultimately the 'right' property for your needs.

6. Of course, once you have found the property, it's up to you to do your due diligence and then negotiate a price you're happy with.

7. Then, once you've bought it, you should look to apply skill to get above-average growth and income returns.

Phew! That's quite a bit to take in, but it's a quick step-by-step approach which I strongly believe will lead to the most successful investing outcome possible.

If you'd like to know more on this topic, then I suggest you take a look at the seminar series I'll be running soon. The link is provided in the signature tag below.

Cheers,

– Steve

You also need to look at your own individual risk profile when it comes to purchasing property. Do you need the comfort of owning a generous portion of a property (ie. using a big deposit to purchase) or are you happy using only a small amount of your own money and borrowing the rest from the bank? Personally, I prefer the latter but I had no problem sleeping at night when my portfolios LVR was high.

You also need to look at your financial situation – this will help determine what you can reasonable achieve. You might have grand plans to grow a portfolio but find that your current circumstances might not allow you to get off the starting block.

Cheers

Jamie

Will write more tomorrow, but here is a link to a thread that asks the very question of "What is due diligence" that will help you.

https://www.propertyinvesting.com/forums/property-investing/help-needed/4335346?highlight=what%2Cis%2Cdue%2Cdiligence

See you in about 20 years then.

It can be confusing with all the different strategies. You have the right idea with reading lots and getting your head around it before you start. Keep reading and asking questions and when you are ready you'll know where you are heading and what to buy to get you there. That's a lot more than your average property investor. Most buy an IP to save tax. Most people buy and sell their first IP within 5 years and never buy again because they don't do what you are doing. Well done.