Im looking to buy my first investment property within the next 6 months. I'm 29 and the truth is, up until the last 2 years I have not been smart with money.
After working hard, I now have access to about $20K to get started, and Ive recently moved to Port Hedland for work. Originally I was going to purchase in Regional Victoria but after moving here and seeing the opportunity, I cant help but think I really need to get started here.
Now my question – obviously $20K is not enough to invest in Pilbara property, but has anyone had experience with developing a "Property Syndicate". Basically 3 to 4 like minded people pooling their funds to invest.
If I was to explore this avenue, what would I need to take into consideration?
Any thoughts would be appreciated…
Hi,
If you are working in Port Healand and you are smart with your money, you will be able to save some serious money in a relatively short amount of time. If I were you I would be saving everything I can and waiting for a year or two, reading lots of books and talking to people who invest in property (people who ACTUALLY invest in property i.e. own 5-10+ properties and do developments/renovations, as pretty much everyone who owns a house will claim to be a property investor). After a year, you will hopefully saved up a LOT more than the $20k you have now and you would be well placed to buy a property to get yourself started.
I am assuming that you work in the mining industry and have your accomodation provided!
Cheers,
LukeHey Luke,
Yeah appreciate what your saying there and I do tend to agree that what you said is the best way. But unfortuantely I dont actually work in mining, I moved to the Pilbara to take on a media job (so pretty crappy pay in comparison to everyone else up here!!!)
So yeah I can invest back home without to much hassle, but noticed the opportunity up here and am hoping there might be a way to get into the market. The idea of striking up a business partnership is the best I can think of so far
cheers
RobbieRobbie,
I think after the move to the Pilbara with the multitude of opportunity surrounding you I would be asking myself how attached am I to my current career? You don’t have to be in mining forever, but 10-20 years work, smart with money, educate yourself on not only what to invest in but how to create momentum in your investing so you don’t need a syndicate. The option is there if you want to pursue it.
In saying that though, money is definitely not everything and certainly won’t buy you happiness, so if you’re career really is all that, all the best! A syndicate may help you get in quicker, but like any partnership situation, if one person has a change of direction things can get complicated.
Hi,
I’m in a small property syndicate with 4 friends and have helped a number of groups set up their own property syndicates.
Like Scratch says, investing in a syndicate will help you get in quicker, but you need to be careful to make sure that the members of your syndicate share the same goals so you manage your social risk. There are definitely techniques you can employ to do this.
I wrote an article on property syndicates for Your Investment Property magazine a while ago, it covers some topics you might be interested in like, the 7 steps to setting up syndicate, the 3 key things to watch out for, the 5 tips for syndicate success and the 5 benefits of having a syndicate.
You can get a copy at http://propertycollectives.com.au/2010/12/your-step-by-step-guide-to-starting-a-property-syndicate/
Hope it helps!
Hi,
I live in Dampier and currently seeing up a syndicate in Karratha. Do you want to give me your email address and when we’re done I’ll email you details and see if your interested?
Cheers
KiraHi,
Property market is flat these days and in some areas it is still going a bit down.
$20k (+$10k government + $7k first buyer) can be burned away and the only party benefiting from this deal would be your bank.In current flat market the benchmark is 6% term deposit interest income. If you can not beat this safely with acceptable risk than keep your money and any savings in term deposit earning 6% till such time where you will find a clear opportunity that is going to beat 6% (with safe level of risk attached to it).
As to the syndicate it does not matter. Even if you join syndicate that has collected $1million the syndicate still needs to beat the 6% performance no matter what. There are many tigers there in the market who want people's cash and when you look their performance is pathetic and very often negative and far below 6%.Because the market is flat at the moment exluding special deals (risk attached) super, sharemarket and property is not recommended unless you find special opportunities like for example you buy house that makes money instantly.
It is however great time to educate yourself not only in property but also in sharemarket so when good times come you are ready. For instance trading options by writing options (recieving money) on stocks you would like to own long term anyway and that way you buy lower and you recieve money even if you do not buy… etc.
You can go to our website (still under construction as are not in hurry either) and download property investment calculator by clicking on left photo. This calculator takes into account deductions on construction, plant, tax deductions and also you can simulate market and rent. Or even see what happens if you install solar panels… It may take you some time to understand the calculator (by following cell formulas) but this exercise will benefit you. More importantly there is GO and NO GO function and you will see that by borrowing money and buying property in current market it is far better to have money in term deposit earning 6%.
I hope the calculator will be of some benefit.
If you paying rent is it possible to earn and live somehwere and not to pay rent (saving money for upcoming investment) or consider a drastic shift on career to increase money in for the same reason.
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