Hi there,
My name is Jamie and I’d like to introduce myself since I’m new to this site. I stumbled upon it today and I’m truly impressed by the amount of knowledgeable people that are willing to help and give advice; it seems so hard today to find a relevant starting point when looking for accurate info on investing.
As for my background…..
Pros
- I can read and absorb material and concepts very rapidly.
- I can understand and apply advanced Math.
- I love to learn, can write well, and have an eye for detail.
Cons
- Very little deposit.
- Time poor for 3-6 Months of the year. (Still at Uni)
- Have little to no investment/financial background.
- Have never witnessed successful investment with my own eyes, so I'm probably a bit of a cynic.
I am also paid a very average Government salary at the moment, however I do have very moderate expenses and no debts.
I've decided to buy Steve McKnight's latest book, but in saying that, I do have a few questions I hope someone can provide some help to me with.
•What do you guys/girls think is a wise mechanism to boost capital to begin investing in property?
•Is there any investing simulations or games out there that can provide good education for reality?
Thanks, any replies appreciated!
Jamie.
Save, avoid the car (even sell it) and use public transport, sell any unwanted goods, get a second job (nights or weekends) and expand your property search criteria as there are lots of good stock in the lower price bracket.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
To answer your 2nd question, there is a great game called Cashflow, from Robert Kiyosaki. It is a physical boardgame, but there is also a free online version you can play here. http://www.richdad.com/Rich-Dad-Games/CASHFLOW.aspx
Hi Jamie B
Jamie M here
The first step is educating yourself – read widely, forums like this are a great free resource full of up to date information. There's also a lot of good books out there. Check out this sticky thread https://www.propertyinvesting.com/forums/community/heads-up/6845
For property data websites, we've compiled a list on our website http://passgo.com.au/property-data-websites.html
With banks, they basically want to see that you've got a deposit and can service the debt.
Unless using equity from existing property, you'll need to come up with a cash deposit. The smallest deposit you can use is 5% – I'd then factor in another 5% to cover purchase costc such as stamp duty, legal fees, ect. So for instance, if you're looking to purchase an IP worth $200k then you'll need to come up with about $20k to cover the deposit/costs (it's a rough formula but you get the idea).
To show that you can service the debt you need to be able to demonstrate that you're in stable employment and your income/liability position enables you to afford the debt- which might not be possible until you've finished up with Uni.
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]
Is this a coincidence? Two Jamies in a threat with one posting about passing go and the other running a company incorporating 'pass go".
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Both are related to a Property Game called Monopoly?
Quite sure you might have heard about it. Its been around for a little while now.
Terryw wrote:Is this a coincidence? Two Jamies in a threat with one posting about passing go and the other running a company incorporating 'pass go".lol – my first thought as well. Very weird coincidence – had to look twice to make sure I didn't start the thread.
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]
Jamie M wrote:Terryw wrote:Is this a coincidence? Two Jamies in a threat with one posting about passing go and the other running a company incorporating 'pass go".lol – my first thought as well. Very weird coincidence – had to look twice to make sure I didn't start the thread.
Cheers
Jamie
Could be a long lost brother or twin you never knew you had!
Hmm, seems I've raised a few eyebrows with coincidental wording! haha.
Thanks for your replies, and Jamie thanks for those links, will check them out.
Jamie.
No worries – best of luck with passing go….sorry, had to be said.
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]
On the subject of games….I had a look at Cashflow 101 and 202 on Rich Dad Poor Dad website. Although ordinarily quite expensive, they had a half price sale advertised. When I clicked on the link I was repeatedly directed to the full price items. As a result I did an internet search and found a combined set of 101 and 202 on ebay for $79.00. The seller has "more than ten". I placed an order, and the mint condition plastic wrapped games arrived Tuesday. I had to work away from home, consequently haven't played yet, but a quick look at the games leads me to believe that they will live up to their high reputation ("monopoly on steroids"). Looking forward to playing!
Tony
Mindset, jacM. Think you pretty much have it spot on and knowledge as well. Having knowledge reduces risk, but " isn't property investing risky?" Jumping off a 10 m platform into a pool of water seems risky to me. Ohh and then add 3.5 somersaults to it. Creating only a tiny splash. Yet divers do this again and again, the crowd just clap in amazement, " I wish I could do that". Wonder if that's what it is like for most people, they look and read about these people making money retired at 30 and "I wish I could do that" yet they never start.
So maybe the most important thing is action. And if the reaction to that action is negative then you get what's called experience and if its positive then just repeat again.
Hi Jamie B
I too immediately noticed the "Pass Go" thing hehehe.
To be fair, you cannot expect a bank to loan you a bunch of money if you have little or no deposit, and insufficient income.
That said, one of the biggest hurdles people face in property investing is the ideals their own brain has been taught to believe. You know the drill. Grow up, get uni degree, get good job, get married, get mortgage, have kids, pay off mortgage, in that order. High five yourself when you have paid off mortgage because you've made it my friend. Hmmm not true any more. Unfortunately the generation our teachers (parents) belonged to lived in a time when superannuation was indeed something that would look after you in your old age. Not any more! So even if you cannot strike now and make a purchase, understand that by reading loads in books, magazines and on this forum, you are re-moulding your mind, your beliefs, and the path you feel you need to be on. So the second you have the cash to play, your mindset will not hold you back. Believe it or not, it can take people years to get their minds to agree with the cold hard facts their research shows on paper.
The fact that you've found your way here and frankly stated your position and your intent shows that you have decided this is the path for you. So lean on the knowledge of everyone here. After not too long, you will have so much knowledge you will wonder why the newcomers stumbling in here don't know the things you do
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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