I lurk here - I spend some time away.....then get frustrated at my lack of action come back and read my little heart out then repeat.....been doing so for 10 years.
Done all the reading Rich Dad series, Jan Somers stuff and heaps more. I consider myself fairly well versed in the theory of IP investing.
I understand some of the key topics, equity, cross security, tax and using tax variations for cash flow etc. etc.
I have email alerts coming to me daily with regular good deals IMO.....
I have a good stable job about $80 to $90k, a wife and two kids. Wife doesn't work and has no plans to (which is our preference -family choice)
PPOR approx $320k value with $237 owing. Have a few K in the bank. No consumer debt at all. Live and want to invest in the outer north of Adelaide.
I hesitate on affordability, I don't want to put the family into a tight spot with private school fees coming and living expenses climbing.
But I also can't stand the idea that I know all this stuff but can't or won't act. I want the financial security IP can offer and would choose to leave work as soon as I could if the portfolio allowed.
I have the somersoft investing software and various other spreadsheets to show me the numbers. I think deep down I don't trust the numbers and am concerned about over committment.
Thanks for reading.
Hi Firefrog, an earlier post that may assist?
We’ve been there as well
An interesting acronym for
FEAR That I’m sure many have come across is
False
Expectations
Appearing
Real
We’ve found that building the portfolio has been a massive emotional change as well as financial. Personal development and self study has been a large part of the process over the years. Maybe this is due to the fact that we didn’t receive any
edumication about financial intelligence in our schooling years (though I didn’t make it to uni….do things change once there?).
FEAR over the years has been overcome with education and mixing with like minded individuals and is soon replaced with excitement.
I well recall the sleepless nights of investing and still like to think about a big decision overnight in many cases, clarity can sometimes be found in rest (and good wine?).
We’ve found the following....warning long post
Your Property will rent out
-Sometimes you have to adjust your perception of the market
-You may have to drop the rent to meet the market
Interest Rates will go up
-And down (it’s the Circle of Life, Simba)
Everyone has an opinion on the Market
-but no one has a crystal ball
-Remember Economics is the only field in which two people can get a Nobel Prize for saying exactly the opposite thing.
You Must Manage the Property Managers
-A good Property Manager is worth their weight, they are evasive beasties though and best captured on moonlit nights at midnight in the fields behind the dark forest
-As well as being evasive beasties a good Property Managers may spoil you -Keep in regular contact with your Property Managers and monitor your portfolio
Prices will Flatline and can even Head South
-Can you hold until a recovery is underway
-There are Markets within Markets
-And cycles within cycles
You will find better cheaper Property a day/week/month after your purchase
-Just as you buy a Holden Captiva and then they release the Holden 60 year addition with free extras (nope? Just me then)
Take Action
-You need to be “in the market”
-Take time to pause-reflect-readjust
Be a Contrarian
-Like the rest of us ;o)
Everyone is a salesperson
-The developer, the banker, the broker, the property manager, the insurance guy, the lawyer, the cleaners, the gardener, the guy who installed your garage door and the government all love it when you buy
-I love this quote “a good financial planner knows the benefit of a trailing commission”
-Pause-check-readjust, do your due diligence, nobody has a better interest in your money than you
-don’t invest on sales talk alone
The Rich Get Richer
-And the Poor get the picture?
-Life rewards performance and action
-There “is” a secret to wealth (hint…use the search function)-The rich adapt to overcome
KERRY PACKER: Of course I am minimising my tax. And if anybody in this country doesn't minimise their tax, they want their heads read, because as a government, I can tell you you're not spending it that well that we should be donating extra!
Life and Investing moves in cycles
-Listen to your elders ;o)
-Ten years is a long time
-Last year was a short time
There is no Perfect Deal
-But I’ve read some pretty awesome ones on the forum
-Hindsight is a great thing
-Slight imperfections are a part of life
-Now is the perfect time
-There are many ways to skin a cat
-Procrastination can be a persistent and debilitating disorder
Cashflow is King
-It’s the lifeblood and Capital Growth the muscle
-Have a buffer
-Capital Growth exercised well can leverage heavy objects
What is The Why?
-Why are you building the portfolio?
-For us its Lifestyle choices and Financial Freedom
What is your Strategy?
-We are amazed at Rixters (and others) pre determined and well thought out paths and plans
Lastly
Talk is cheap. Supply exceeds Demand.