Jumping in!

[chris1]

Dear All,
Have been viewing for a while (quite addicted!) but this is my first post.
We have been toying with the idea of prop. invest. for a couple of years but never thought we could afford it...until jan's book. We have arranged finance and are technically ready to go.
But, as we still have a sizable mortgage on ppor, we are really concerned with the out of pcoket expenses with neg. gearing. Yes...we live in Sydney and every thing around us seems to have such a low yield. Buying out of the area just seems to difficult/risky. We feel like babes in the woods, just waiting to be swindled! Yes I realise that this is just that "fear" thing, but just how can we over come it??
We have been doing alot of reading, and reserch on the net on areas and stratergies and the more info we take on board, the more confused we get.
Eeeekkkkk!!!!
Any comments/suggestions/advice would be greatly appreciated, thanks.

 

[Aceyducey]

Chris,

Ask yourself - is it riskier to NOT invest?

Calculate how much superannuation you expect to have when you retire. Calculate what the future value of your home is expected to be.

Work out how much you can afford to live on per year if you both live past retirement for 25 years.

Then calculate what your expenses for medical care, accomodation, food, etc are likely to be during this time.

Where's your surplus cash for enjoying life?

This should REALLY frighten you!!!

Cheers,

Aceyducey

 

[WillG]

Hi Chris,

It is healthy to be scared but you have to identify what you are scared of and help reduce those factors that worry you. Fear is often caused through lack of knowledge/ignorance. Continue to read investment books (read them more than once) and you will workout ways to minimise the risks.

Some ideas ways to minimse risks 'in brackets'

Are you scared of interest rate rises ? (fix them)

Are you scared of tennants not wanting to rent your IP ? (only buy in locations where there is a demand)

Are you scared of losing your job and your IP being reposessed from you ? (do some home based education at home so you can find another job, make contacts ....)

Are you scared of tennants recking your IP ? (Landlords Insurance)

Are you scared of losing your PPOR ? (fix the interest rates. You would probably loose it weather you had an IP or not)

Good luck

 

[Philby]

Chris1, we were like you this time last year and read Jans book and we just soaked up the information that is on this forum and researched the areas we could afford to invest in within our price range/comfort zone. We settled last week on our first IP in Caboolture and it feels great.
Sunstone has a phrase-paralysis by analysis, we got bogged down but we just sucked in a few deep breaths and went for it.
We are latecomers to homeownership and now we have our first IP and its forward HO.
Always with Due Diligence as our trusty companion.
Aceyducy is right, it was my last super statement that pushed us onto the IP path and the wonderful people in cyberspace that contribute to this forum have helped us maintain our focus.
Go For It

 

[sbe]

This is a snippet from another thread...(my post)

Advice for newbies - If I listened to what everyone said, I wouldn't own any. The what if's, how can you afford it, look how much you'd owe etc etc. would drive you nuts.

In the end, we figured the loan was 95% of the value. We kick in and reno a bit (worst house, nice court). At the time, the numbers looked pretty good, and really, it was going to cost us around $20pm to buy a house.

The reno was done by my wife (very hard worker), myself, and a little help from family. We set up TV/Video so that kids could be with us with the electronic baby sitter. I think at the time they were 3,2 and 0.5 years old. Ah the wiggles....

A lot of hard work, and a bit of sacrifice (I don't mind the kids seeing us work - they get to appreciate what's involved in all this), the house was worth $30,000 more than we paid for it (less $10,000 we spent). Strange how it still didn't click yet - DOH!

In summary - very nervous time for us, and a big leap of faith. We were doubling our debt etc, but looking back, best thing I ever did (wish I'd bought more then!!!)

Hope that helps a little.

Due your due dilligence, brace and go forward.

The next is easier..... The first step is the hardest.

 

[chris1]

Thanks everybody for the words of wisdom/encoragement, much appreciated.

Philby, congrats on taking the leap!
My partner has been looking at Carboolture and is fairly keen on the area. What do you like about the area?? What did you end up buying, house or unit??
Thanks again

 

[Philby]

Thanks Chris1, we bought a house - 10 years old, owner occupied but had it tenanted days after settlement.
Liked the area because of its proximity to Brisbane, 30 minutes to town/airport, close to Sunshine Coast and although we didnt check it out but the hills west of caboolture seem okay (for a bit of R & R?).
And of course the growth factor, with the Qld Gov establishing a regional office and the new Uni/Tafe being built soon.
Heck we might even move there one day it sounds so good!(Woodford looks okay for property too.)

 

[chris1]

Philby,

You have won us. Have had a quick look at Caboolture & Morayfield last week after someone elses posting suggested the area.

Could you point us in the right direction? Which real esate agents did you speak with? Can you recommend one? Any other properties you were considering?

Sorry a bit excited!!!

Cheers,
Chris1

 

[Philby]

Chris!, it is exciting but remember the motto - Due Diligence.
I have sent a PM
Good Luck