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From: Mike .
Starter's Advice
From: Shakes
Date: 6/9/00
Time: 12:04:52 AM
Dear Investors,
This one's aimed at Wonderful Will, Les, Pierre, Simon R, Andrew G, and all the other regulars and irregulars on this fantastic site that I've been reading with joy over the last month or so. Your comments and breadth of experience is invaluable to someone like me.
You see, you're looking at a novice investor who's standing on the brink of getting into the IP world. Long-term, and the more the merrier!
I commend all your successes and experience and the availability of a site like this to share facts, fiction, dos and don'ts. It is an invaluable resource!
I've been good so far I think. I've done some reading (all of Jan's books, Fitzgerald, Donnelly, Renton, Australian Property Investor magazine, etc), received information from Defence Housing Australia (DHA), attended some investment seminars, and even done a short course in Financial Planning. I've also started getting into Australian Bureau of Statistics (ABS) stuff.
My approach has been studied, careful, and patient, with an emphasis on learning, researching, and 'getting things right'. But at the same time I'm excited, impatient, and can't wait to get the first IP under me belt so I can buy me second, then third, etc.
So on to the purpose of this communication....
I've carefully learned all the principles of IPs and wealth creation and am fully convinced that this is the financial path for me. So living in Melbourne (20km out) I s'pose I formed the idea of buying the first IP locally (within the same/nearby suburb) along the lines of familiarity, closeness, and more land for your dollar - the latter based on Fitzgerald's opinions.
Then I got talking to the tutor of the short course I attended who said only within a 7-10km radius of the city was any good, and he was talking from experience (3 IPs in Inner Melbourne).
The DHA stuff I wasn't overly impressed with and particularly in light of some of the comments made on this site.
Continuing my research, I then came across the Investors Club in the Australian Property Investor (API) magazine. I attended a local meeting and was initially surprised and suspicious of their focus on Brisbane and Perth. First of all I s'pose my main attention was on Melbourne. I had thought outside of Victoria, but only as far as Sydney, and that only a pipe dream due to the high cost of property. But I liked the basic principles the club were telling me and by the end of the meeting it all made sense - in line with my research. Based on my reading (Jan's books) it didn't matter if you bought a house or a unit, the most important thing was to get the location sort of right (employment, shops, transport, universities, growth, lifestyle, etc) and definitely get the financials sorted.
I did some research (ABS) on Brisbane and Perth and found things to be true ie. substantial projected future population growth. I also worked out that South Australia and Tassy were no good, Victoria (Melbourne) had oversupply and relatively small growth, and Sydney was Sydney - cost!
So, following my research and training to date I'm pretty much convinced that the Investors Club and Brisbane are the way to go for our first IP. Don't know the place at all and would like our hands held, at least for the first one.
The interstate location doesn't even bother me. In fact I'd like to think our future strategy also covers IPs in Perth, Melbourne, and Sydney ie. not all our eggs in one basket?
So everybody, here's your turn. I would appreciate immensely anybody's thoughts, opinions, and advice to a fledgling IPer.
We're probably talking about a first IP of $200,000.
Obviously we're looking for capital growth but please bear in mind we're in it for the long haul - 20 years plus.
So, how right have I got things?
How's my IP logic stacking up?
Am I being a bit too naive?
What's your opinions of the Investors Club?
If you had your time(s) again, anything you'd do differently?
Any tips or essential advice?
House or unit?
I know that at the end of the day it's a personal decision/opinion, and there's no right or wrong answer, just different degrees of best and worst for the individual in question. But sometimes for the novice investor it's hard to know what to do especially when you're faced with conflicting and contrasting reading, research, and opinions and also as I want to start off on the right foot.
So I'd like to thank everyone for their time in reading or responding to this. Just the opportunity to be able to get this out of my system has provided some reward.
All comments are welcome, so don't be shy Will!
Regards, Shakes
Starter's Advice
From: Shakes
Date: 6/9/00
Time: 12:04:52 AM
Dear Investors,
This one's aimed at Wonderful Will, Les, Pierre, Simon R, Andrew G, and all the other regulars and irregulars on this fantastic site that I've been reading with joy over the last month or so. Your comments and breadth of experience is invaluable to someone like me.
You see, you're looking at a novice investor who's standing on the brink of getting into the IP world. Long-term, and the more the merrier!
I commend all your successes and experience and the availability of a site like this to share facts, fiction, dos and don'ts. It is an invaluable resource!
I've been good so far I think. I've done some reading (all of Jan's books, Fitzgerald, Donnelly, Renton, Australian Property Investor magazine, etc), received information from Defence Housing Australia (DHA), attended some investment seminars, and even done a short course in Financial Planning. I've also started getting into Australian Bureau of Statistics (ABS) stuff.
My approach has been studied, careful, and patient, with an emphasis on learning, researching, and 'getting things right'. But at the same time I'm excited, impatient, and can't wait to get the first IP under me belt so I can buy me second, then third, etc.
So on to the purpose of this communication....
I've carefully learned all the principles of IPs and wealth creation and am fully convinced that this is the financial path for me. So living in Melbourne (20km out) I s'pose I formed the idea of buying the first IP locally (within the same/nearby suburb) along the lines of familiarity, closeness, and more land for your dollar - the latter based on Fitzgerald's opinions.
Then I got talking to the tutor of the short course I attended who said only within a 7-10km radius of the city was any good, and he was talking from experience (3 IPs in Inner Melbourne).
The DHA stuff I wasn't overly impressed with and particularly in light of some of the comments made on this site.
Continuing my research, I then came across the Investors Club in the Australian Property Investor (API) magazine. I attended a local meeting and was initially surprised and suspicious of their focus on Brisbane and Perth. First of all I s'pose my main attention was on Melbourne. I had thought outside of Victoria, but only as far as Sydney, and that only a pipe dream due to the high cost of property. But I liked the basic principles the club were telling me and by the end of the meeting it all made sense - in line with my research. Based on my reading (Jan's books) it didn't matter if you bought a house or a unit, the most important thing was to get the location sort of right (employment, shops, transport, universities, growth, lifestyle, etc) and definitely get the financials sorted.
I did some research (ABS) on Brisbane and Perth and found things to be true ie. substantial projected future population growth. I also worked out that South Australia and Tassy were no good, Victoria (Melbourne) had oversupply and relatively small growth, and Sydney was Sydney - cost!
So, following my research and training to date I'm pretty much convinced that the Investors Club and Brisbane are the way to go for our first IP. Don't know the place at all and would like our hands held, at least for the first one.
The interstate location doesn't even bother me. In fact I'd like to think our future strategy also covers IPs in Perth, Melbourne, and Sydney ie. not all our eggs in one basket?
So everybody, here's your turn. I would appreciate immensely anybody's thoughts, opinions, and advice to a fledgling IPer.
We're probably talking about a first IP of $200,000.
Obviously we're looking for capital growth but please bear in mind we're in it for the long haul - 20 years plus.
So, how right have I got things?
How's my IP logic stacking up?
Am I being a bit too naive?
What's your opinions of the Investors Club?
If you had your time(s) again, anything you'd do differently?
Any tips or essential advice?
House or unit?
I know that at the end of the day it's a personal decision/opinion, and there's no right or wrong answer, just different degrees of best and worst for the individual in question. But sometimes for the novice investor it's hard to know what to do especially when you're faced with conflicting and contrasting reading, research, and opinions and also as I want to start off on the right foot.
So I'd like to thank everyone for their time in reading or responding to this. Just the opportunity to be able to get this out of my system has provided some reward.
All comments are welcome, so don't be shy Will!
Regards, Shakes
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