Hi All,
I have a small savings amount of around $30K to start my investment portfolio in Perth WA. I would like to grow my capital in order to have enough in a few years to do small subdivisions. The idea is thereafter to buy positive geared properties.
I am also renting a house that needs a bit of cosmetic renovation. I am contemplating to ask the owner to consider Vendor financing with me. I need around $60k to buy this house via the banks which is not possible atm. The property is worth around $580k and with a face lift about $630k to $650k. Should I secure the rental or should I invest somewhere else. I work on the mines and servicing a loan would not be a problem.
At the moment I am lost with so many options and really need some sound advise. What would be my best options? What can I do with only $30k. Advise please?
As Robert Kiyosaki says in his book "Rich Dad, Poor Dad", you should invest in your financial education first. I recommend buying Carly Crutchfield's property development home study courses if you want to do property development, or Rick Otton's Massive Passive pack if you want to do lease options, or the Ultimate Cashflow system or the Wrap Pack if you want to do installment contracts. These occasionally appear on Ebay if you want to get them cheaper – just type in the author's name to search. Or you can buy them brand new, but they cost $3000 or so.
Hi Aus-Vis
$30k will be tricky if you have to pitch in deposit and stamp duty. Richard Taylor (https://www.propertyinvesting.com/user/qlds007) mentioned the other day he has access to 100% loans on selected properties – which would overcome this hurdle for you. Perhaps drop him a line.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Aus
Firstly welcome to the forum and I hope you enjoy your time with us.
Starting out in property investing can be an exciting and daunting time as you are faced with so many different options.
Have to say whilst I strongly believe in property education i cannot see the benefits of spending your limited funds on high priced training packages only then to have less capital to invest in and find yourself not able to do anything until you have saved up again.
Certainly as JacM has mentioned we do have access now to 100% financing for investors or owner occupiers with a new blended rate product which is proving to be very popular and the demand is growing by the day.
Unfortunately the product is not available in WA at the moment but unless you really want to invest in that State is something well worth considering.
Recently settled a deal for another forum client working in the mines in WA who purchased thru JacM in Victoria and wanted to get up and running with his portfolio.
All a matter of starting slowly and building over time.
This is part of the 3 phase programme we teach our clients who are looking to "Turbo charge" their portfolio.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for the comments so far!
Please keep them rolling.
Cheers
Dev
aka Aus-Vis
Hi Dev,
I think trying to find a property in perth will be difficult if you have to come up with a 10% deposit and stamp duty if you only have 30k capital. Perth is over priced. Dont confine yourself to the state you live in when looking for a good IP.
Perth and Darwin are currently leading the way in terms of rising rents and growth which would make them ideal places to invest, but when you have limited capital it can be very hard and sometimes seemingly impossible. This is why you should not limit yourself by looking for IP's in the same town or state you live.
Im sure you could find properties in some of the less desirable places around perth (if you live in perth Im sure you know some of these places) using the cash you have available but but if you broaden your horizon you could make that money work for you much better. Ask around on this forum for other places people may be investing that may be more within your budget. There is a wealth of knowledge available to you right here at your finger tips and most people on here are more than happy to share information.
I would be very reluctant to go out and spend big money on some of the property course available out there. These courses can teach you a lot about their chosen strategy but they often dont teach you how to implement the strategies into real life situations.
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