Investment Strategy

[josko]

If you have information overload then another advisor is not going to help. I could tell you my strategy but it is just another in the big pool out there.

Putting it simply though: Do your research and remember property is a long term investment. Buy in your price range, within your means and hold it. Start now!

 

[cgw]

The Basics.
Hi Happy, I too get a bit confused with all the info. If it is your long term goal, go and buy the first one that you can afford in a nice suburb and trust me you will learn from that experience.
Use Jan's books as the basic recipe for the first one, and then repeat it, read more, learn more and repeat it again.
Once you feel comfortable with the basic recipe, you will then get a feel as to what strategies you want to use after reading and learning more.
Long term 10-15 years, if you buy near water, inner city, long term employment and new infrastructure areas, you won't go wrong, and any spare monies go and buy some cheap blue chip shares that are around at the moment. In the end, who cares about the 1-3% diff in shares or real estate for investment, buy both and you can't go wrong.
Financial Planners don't sell real estate plans, Mortgage Brokers, make sure they know how to structure your loans, use one from the forum, Accountant get one who also is a Property Investor (Kennedy and Co in Adelaide). Use the spreadsheets on the forum to work out the costs of the IPs, Property Manager ask on the forum. Read the books and the monthy Australian Property Investment magazine. Don't go to expensivie seminars, stay on this forum and the gurus will answer most of your questions, do searches on this forum.
I wish I was 20 years younger like you, as if you make a mistake you have time that will correct it.
Happy Property Investing.

 

[keithj]

There are so many 'experts' recommending different strategies, it's hard to know which way to go. My question is, who would be the best professional to talk to and receive advice from about what strategy would be best for us?

This thread had some thoughts on this very question .

 

[Jodie701]

We're in a similar boat

I'm 28, hubby's 30 and we live off his income ($115k) while I take care of our small children. We have a mortgage of $350k on our PPOR so don't have much cash flow but are interested in getting into property investing.

I spoke to a "professional" in the industry 2 weeks ago who recommends Perth property in the form of older houses on large blocks of lands closer to the city.

Last night, hubby went to a seminar where another professional perfers buying off the plan apartments in the eastern states.

Hmmm

 

[redwing]

Bill,

I'm lucky I didn't wait to work out what "it" was before starting off, I still don't know what "it" is.

But I have learned allot getting wherever the hell I am now, and will seriously think about working out what "it" could be at sometime in the future.

Mark

Still Dont what "it" is and when I think I do, it appears that there's to more to "it" than I thought, I've asked others about "it", but I think they are looking at "it" from a different point of view; does "it" change depending on who-what-when-how-where you look at "it" from?

How do you find "it" and when you do find "it", is there a new "it" behind "it" to keep you going and growing or is that all there is to "it"?

its been fun....

 

[jingo]

I'm 28, hubby's 30 and we live off his income ($115k) while I take care of our small children. We have a mortgage of $350k on our PPOR so don't have much cash flow but are interested in getting into property investing.

I spoke to a "professional" in the industry 2 weeks ago who recommends Perth property in the form of older houses on large blocks of lands closer to the city.

Last night, hubby went to a seminar where another professional perfers buying off the plan apartments in the eastern states.

Hmmm

Hi Jodie,

There are so many different possibilities when investing in property. The house on a large block may be a great investment if you are looking for a growth asset. By the same token an apartment may balance your portfolio by providing a higher yield which will help to service the loans.

As others have said, read as much as you can and you will gain ideas which you can put into action. Jan Somer's books are a great start.

Regards Jason.

 

[monster24]

hey, if you can spare $2,000 extra per month without any rental income I would recommend you buy a block of land and build with _ _ _ _ _ _ _ _ H _ _ _ _ !!

We started our first IP by doing that.... Well, we have a great gain of equity in there already ($120K) but we are waiting to get tenants in. If the builder would be a bit faster that would be a great strategy. But the next IP will be defenitely an existing one - with tenants in place. Otherwise, just look around and DO IT. It's fun to see value growing ...

Good luck
Thomas

 

[burty85]

try not to get sucked into all these people out there trying to sell you the latest and greatest crap, make sure what you buy will fit into YOUR life style and goals to get what you want out of investing

 

[suburbangirl]

still wanting to know if there is a profession that will help plan our strategy without trying to sell us something. We've approached banks and found them to be very bias and not too interested in us at all. Is it an accountant the person to see? Or mortgage broker of financial planner?

Hi - compared to some of the others on here, I am still relatively new - but one of the few things I know to be true about property is that there are no 'experts'. You have to become your own expert by reading, talking to people, absorbing knowledge any way you can. Then you will be able to sit down and figure out what it is you want and the best way - for you - to get there.

I understand all the information can be overwhelming at the beginning, so you end up spending more time talking about things than doing anything (I think they call it 'analysis paralysis' on here) - hence all the previous posters saying to you, 'just do it'! But from my humble point of view, spending time to learn about what options you have and how it all works is time well-spent.

I am one of the plodders (could be the Capricorn in me), nevertheless, we are making progress (one PPOR - just bought, one IP) and we now know the route we are taking, and how to get there.

Jan Somers books are a great start as many of the others have said.

Good luck!

 

[PrimeCommercial]

Learn innovative ways to buy well, buy below value, add value and double your investing dollars.

Buy below value and add value I know, but innovative ways to buy well?

What do you mean here? have I been missing out on something.

 

[Mark C]

Buy below value and add value I know, but innovative ways to buy well?

What do you mean here? have I been missing out on something.

Shady,

There are other ways to purchase property other than the typical 20% deposit and 80% loan through a bank.

Understand the motivation of the seller could open up vendor finance, long settlements, purchasing below market value, holding costs being covered and it can even allow you to add value before settlement.

I recently negotiated and purchased a property through a public tender process, I was the lowest tenderer out of 6. How can this happen?

Understand what the vendor wants and give it to them, it may not be the money they are after.

Mark

 

[RumpledElf]

Wouldn't waste my time on cashflow positive stuff, in my opinion it's the slow boat to mediocre.

Why? Personally I wouldn't touch anything unless its neutral to positive and I could actually afford it untenanted. And yes, such houses do exist, are for sale right now (mortgagee sale, HIA order), but I doubt anyone will give me the money to buy.

I think the vendor might be dead, which rules out negotiating vendor finance