Am i too old…

Hi Rob,

Did some work with a single mum a few years back.

She was keen to get ahead. Spent some time talking through a range of issues, finding out whether she really wanted to invest (or just thought it a good idea at the time), her current financial situation, plans for the future and so on. She was late forties at the time.

Ended up she bought a property.

If she does nothing else she will have at least one asset she can sell and utilise the capital profits in some income providing capacity. 

Bottom line she is better off with one property than none.

Hi Rob,

Derek has given you some sound advise and the thread overall is a good one. To iterate – start small but start with a focus, a strategy from the beginning. Often your financial position, available leverage and risk tolerance will determine your strategy. Then with what you can borrow and strategy in mind will to a degree determine the areas you can invest in.

This process fine tunes things a bit so you're not looking anywhere and everywhere ( common mistake to achieve little).

Get your goal and strategy in order, coincided with what you can borrow and your risk tolerance ie: what you can sleep at night with and then go property hunting.

All the best with your investing

Ian

Blockhead – http://www.theblockblog.com.au

Free Property Investing Info for Investors With A Sense of Humour & more…

Hi Rob,

When you establish a Self-managed super fund, you roll our existing super into it.  There generally needs to be a minimum of 2 members (that's why I suggest using your wife's super too).  You both then become the trustees of the SMSF, and you become responsible for all aspects of the fund, meaning you can choose how you wish to invest the funds.

You must remember it is still a superannuation fund, therefore you can not use the money for everyday living.  There are strict rules that apply to SMSF, just as they do to retail and industry super.

The ATO has some useful booklets for people who are looking at SMSF and if you have some time, download them from the address below and familiarize yourself with the requirements for running a SMSF.  I recommend that you see a SMSF specialist for the best advise for setting up the correct structure of the fund for you.  They will also be able to guide you with some of the investments strategies.

http://www.ato.gov.au/superfunds/pathway.aspx?sid=42&pc=001/149/030&mfp=001&mnu=49150#001_149_030

If property is the area you are wanting to invest in, there are many SMSF specialist that solely specialize in  property investment for SMSF.

Good luck!

Bec  

Wow, isn't age a funny thing. At 33 I've been in and out of property for 13 years but have wanted to go hammer and tongs for the last 12 months. After we get our PPOR and business sorted, after our little girl gets better, after the wife goes back to work after after after… We have around $850,000 of equity and a reasonably healthy wage but think I've still got plenty of time. But 39's not far away… thanks for the wake up call everyone. 

I laughed when you asked if you were too old but only got worried when I started to read the posts where others tended to agree!

Hi FF,

There is a critical piece of information missing in all of your posts.

You have told us you are 39 and then proceeded to ask a question to see if you were 'told old' – you haven't told us what age you want to be independent/retire. What age is in your plans?

This information may put an entirely different slant on things.

Property is generally considered as being a 'long term investment' – according to businessdictionary.com this is defined as being plus 10 years.

Hi FF,

That is exactly what I meant – means people can frame their responses on the basis of you are planning to work for another 16 years. We now have a specific target to work towards.

When I last looked at some REIA stats median property prices in capital cities tended to double (on average) every 10 years. This is not a straight line growth rate so allowance needs to be made for price flat spots and declines in any planning.

For what it is worth I believe a simple buy and hold (of mainstream property) strategy at the moment is not likely to realise terrific results in the short term. We have just come off an incredible growth phase in most capital cities and country areas which has largely been fueled by easy credit, media exposure and a self-fulfilling prophecy. I am not convinced we will see the same circumstances repeated for sometime.

For this reason value adding strategies such as sub-divisions, renovations and small scale developments look like being successful strategies during this time. Not only do these strategies add value it also means your rent return (on funds invested) increases which means the next property is closer.

In regards to using Super/ SMSF to buy property. it is not as straight forward as people would like it to be especially in the residential property side. So Be aware of what your getting into if your going down that path. Commercial property investment in SMSF is more plausible but still have to consider the opportunity cost of alternatives.

Hope that helps!

Hi Rob,

There are lots of valuable and heartening posts above. What you can take away from this is that there is more than one way to achieve your goal and age is not the barrier you first think.

Please also be heartened in the fact that you are not the oldest to be looking to their financial future. My husband has just turned 50 while I am 10 years his junior. We have no property to our name at all and until I pushed the issue he had no plans for his (and our) financial future. We are now on a mad race to financial freedom before he reaches retirement. With the help and support of this fine group of like-minded people and also taking advantage of Steve McKnight's invaluable knowledge and experience we feel that our goal is achievable.

Hope this helps.

Lyn

Thanks god people in this forum are assuring 39 is not too old. I am in the same boat as ford fairline and need to make my first move. 

Thisngs are not that clear but this forum is a great source..