I’ve never posted here before and have been a member for about a week. I found this great website and the book “From 0 to 130 properties in 3.5 years” about 10 days ago and I’m loving what I’m reading.
I always promised myself that I’d have a home or investment property/mortgage under my belt before I turned 40, and yes I can hear the collective groan ‘ooh he’s a late bloomer’! Unfortunately due to spending money on all manner of things which did NOT produce income over the years, I have yet to fulfill that promise and 40 is just around the corner. Frustratingly, I am absolutely busting out of my skin to get onto the investing ladder so that my partner and I can stop working earlier than 65!
So with a measly $1k in the bank, a good well paying job which I’ve had for over 11 years, a joint income, and very little personal debt, I am reading and saving like mad to get to the point where we can take the first leap of faith.
You may read this and ask why the hell is he posting this? I don’t know why, but I think it’s perhaps that I’m so excited by the prospects of finding an investment strategy which I really like and seems to make great sense, uncovering resources like these forums and this site, and Steve’s fantastic book.
Congratulations Purpleairplane and welcome to the forum!
Never to late to start, in 10 years time you will be 10 years older regardless of whether you choose to become wealthy or not, so why not do both? Plenty of stories of people who become wealthy starting from nothing, or below nothing in their 40's or older, I think there would be plenty more except for the fact that most don't even try to change the path they are on.
Thanks Andrew! I think sticking to my aggressive savings plan will be the toughest job, but I’m determined.
Cheers,
JasonI personally find the best way to save aggressively is to pay yourself first. The day you get paid the highest amount you can possibly save should be set up to transfer automatically into a high interest savings account,or into an offset account on your PPOR loan if you have one. Works for me,the best thing about it being put away as soon as it comes in is that you won't miss it. Stick to your guns and watch the money pile up…..
Hi, welcome to the forum.
Excited is a great place to start.
As "they" say- better late than never.
I only started seriously 3 years ago (at 50) and I've been madly buying since then. It IS very exciting. People at work think I'm crazy. hahaBecause you are starting with no equity you need to find a strategy that will allow you to build equity.
My suggestion would be buy under market, do a renovation to increase equity, revalue then withdraw the equity to buy the. Repeat, repeat.Of course there are other strategies. Read as much as you can and find what suits you. Read magazines too. Get some from the library. Some of the personal stories are good.Where are you located? Find some local meetups. Networking with likeminded people was the most instrumental thing that propelled me to make the move. I kept meeting young people with little equity buying properties. Once you start it's VERY addictive. I had the goal of one property a year. But that only lasted 6 months. I'm addicted.
Keep asking questions. And great work getting started.
purpleairplane wrote:I've never posted here before and have been a member for about a week. I found this great website and the book "From 0 to 130 properties in 3.5 years" about 10 days ago and I'm loving what I'm reading. I always promised myself that I'd have a home or investment property/mortgage under my belt before I turned 40, and yes I can hear the collective groan 'ooh he's a late bloomer'! Unfortunately due to spending money on all manner of things which did NOT produce income over the years, I have yet to fulfill that promise and 40 is just around the corner. Frustratingly, I am absolutely busting out of my skin to get onto the investing ladder so that my partner and I can stop working earlier than 65! So with a measly $1k in the bank, a good well paying job which I've had for over 11 years, a joint income, and very little personal debt, I am reading and saving like mad to get to the point where we can take the first leap of faith. You may read this and ask why the hell is he posting this? I don't know why, but I think it's perhaps that I'm so excited by the prospects of finding an investment strategy which I really like and seems to make great sense, uncovering resources like these forums and this site, and Steve's fantastic book.Hi and welcome to the forum.
I know the feeling – it's the same feeling I had when starting out. I couldn't learn quickly enough – I read every book I could get my hands on and frequented forums like this.
A well paying job and little debt is a good starting platform. Save like crazy and purchase your first. If possible, aim for something that you can add value to via basic renovations. From there, you may be able to tap into equity and move onto your second purchase.
Best of luck
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You start from where you start.
There will always be opportunities ripe for the taking in any market. And you dont end up making assumptions that just because a certain area of the market is hot (or not) that its a given to remain this way.
The opportunities that Steve took dont exist anymore. FIrstly .. they were taken by Steve, and second .. the markets have moved on from there. Not that there arent similar opportunities out there .. there just arent the SAME ones to be taken.
If you have read those books properly you'd be knowing what to be doing at this point in time and how to do it properly. Glean the wisdom from the books and then sow the seeds of your own wealth.
Jamie M & Catalyst: I found your posts very inspirational! It’s always great to hear from folks with a similar story or advice. Xdrew & Solomon I agree paying myself first and gaining as much as I can from the books and folks like your good selves is invaluable.
Welcome to the forum.
One of my advice which I would like to offer to you, is keep it secret in the workplace or family members as sometimes they will drag you down and possibly could affect your judgment. Also, my boss one day saw me reading the "Property Investing" Magazine and she told me me that perhaps I was getting paid too much!!!
BTW that was in the lunchroom not during work hours in case anyone said I was a slacker!!!
Jins13 wrote:Welcome to the forum.One of my advice which I would like to offer to you, is keep it secret in the workplace or family members as sometimes they will drag you down and possibly could affect your judgment. Also, my boss one day saw me reading the "Property Investing" Magazine and she told me me that perhaps I was getting paid too much!!!
Wait until the day when she sees you reading an API magazine that has a feature article on you
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Jins13 wrote:Welcome to the forum.One of my advice which I would like to offer to you, is keep it secret in the workplace or family members as sometimes they will drag you down and possibly could affect your judgment. Also, my boss one day saw me reading the "Property Investing" Magazine and she told me me that perhaps I was getting paid too much!!!
haha. I met a lady the other day. She told family they were thinking of buying an investment property and got put down. So they decided not to tell the family. Years later the family thought she and hubby weren't getting ahead. It was then that they decided enough was enough and disclosed their 20 properties. LOL Good on them. Only listen to those who have what you want.
Welcome to the forum.
I am 26 years of age and feel like i started too late! I picked up steve's book 18 months ago and i am also now addicted. But what a great addiction it is.
After what felt like a horrid start to investing due to being told i couldnt or shouldnt do it by various people including the 'loan lady' at St george, i now own 4 investment properties. 1 being my PPOR that is just about to become an investment as i have moved to Perth for work.
My 1st investment was a $91k house which hadnt been lived in for 5 years in a Regional town in NSW. We were scared and figured if it all went pear shaped then we could definately afford the mortgage repayments on such a small debt! We didnt listen to people who told us we wouldnt make money out of it.
Spent $10k on the reno, got it revalued at $140k 6 weeks later, rents for $220 a week, took equity out and bought again, and again. Now looking at number 5. All in 12 months!Moral of the story – just have a crack! Dont listen to all the negativity, do your own calculations and have a go based on your own risk factor.
And enjoy yourself!
Excellent story Goldies, just taking calculated action has a lot to be said for it with an emphasis on the action part!
Thanks Andrew. Its hard to believe how far we have come in 12 months. Sat and reflected on it last night. Then got a call today that our house in another Regional town of NSW is about to be rented for $300 a week. Bought it for $130000…
So, off to the broker we go again and may be looking to buy again before Christmas!
ADDICTIVE!
Goldies, thanks for the story about how you started out! It’s really interesting to see how people take that first leap and dive in.
Very interesting story goldies – thanks for sharing. It inspired me too.
I think one of the biggest hurdles is to actually start!Hmm. thinking of getting and re-reading Steve's books
by the way – from your experiences, how much savings for a deposit and other expenses do you think purpleairplane and other newbies should have before they can get into investing Steve's style?
Hey Guys,
Instead of starting a new thread I thought I’ll post here
I’m in my late 20s and have saved 30k of hard earned cash, with a current personal loan debt of 30k, which will be cleared by the end of 2012.
My goal is to have zero personal debt (bikes, store cards, overdraft) and 50k in savings ready to invest.
I have a stable income at an office job and will be running various online ventures to have multiple streams of income returning 25+ net % cash on cash.
I love property and I love the idea of property investing. I want to make high returns in the market and squirrel the money into positive cash flow property or property for cap gains.
My biggest issue is where do I start? What suburbs should I be looking at ? I would prefer to invest in VIC first as I live in Melbourne.
Any help would be greatly appreciated!
Hey Dark Star
I think you've got the right idea to clear your personal debt ASAP, there's not much point saving money when you're also paying off personal loans.
I think most of the experienced investors in the forum would say to pay down the personal (non-deductible!) loans first, then focus on continuing to build up your savings for a deposit. While doing this hit the real estate section in the paper, look at a wide variety of properties hard, scour the internet, talk to local agents/property managers and read all the magazine articles you can about how to get started. Speak to a few investment-oriented mortgage brokers, there's a few regular posters here!
I don't know much about the Melbourne market but I'm guessng there's quite a few guys on here that do so hopefully they can chip in their two cents as well
Good luck
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