Analysis Paralysis, confused, needing some encouragement.

Hi Kerky, it’s a very fine line between not acting due to analysis paralysis or acting just for the sake of it. As I’m sure you’re aware, a good decision needs to be made! But it looks like you’re taking the right steps.

Looking at your figures it seems you want to keep your LVR around the 80% mark? Have you thought about venturing into LMI territory? That may give you some more options.

Sounds like you’ve got a rough plan already but need to firm up the details. Reverse engineering is always good – ie “I want a $5m portfolio in 10 years time at a LVR of 50% that has a 6% rental yield” so in order to achieve that you will need to purchase X amount of properties that have a price point of $X00,000 with avg CG of X%p/a and gross yield of at least X% then you find the areas and properties to suit. I find that can help with the analysis paralysis.

As corny as it sounds, having a good ‘team’ on your side helps too – a decent accountant, solicitor, broker (slightly biased there!) that can help guide you along your way.

Hi Kerky,

Welcome to this site. This is certainly my favourite haunt. So welcome.

I suggest you keep on searching because it gives you more knowledge and confidence of the market. Initially it is confusing, but eventually you get a feel of the market and either your idea of a house in regional areas will firm up or you change idea ie. a flat in a suburb. You’ll know what you likes and dislikes. At the beginning you may even be confused about which suburb / regional areas to look at, but eventually this firms up as well. Just keep on looking and get ideas. IMO it is part and parcel of learning.

Everybody starts out at the same point like you :)

All the best
Catt

• This reply was modified 9 years, 5 months ago by  Cattleya.

I doubt many people would suggest investing rurally at the moment. With the economy as shaky as it is I think most would agree capital cities (as always) are the safest bet.

The question then is are you happy investing in a smaller flat type property with a smaller land component or would you prefer to wait until your deposit is larger and you can then afford a unit (or similar town house etc) with more land component?

Are you chasing capital gains or cash flow? Cash is king but capital gains will give you more leverage to grow your portfolio at a greater rate! Or you can walk a line down the middle with more modest capital gains and a more modest cash return.

Keep researching, asking questions and talking to knowledgeable people and you’ll figure out the strategy that suits you best. You have to pull the trigger at some point though otherwise you’ll be 45 posting on here about wanting to get into the market…