Keeping your eyes on the prize

Discussion in 'Property Investment - Other' started by Ryan Cortez, 16th Feb, 2014.

  1. Ryan Cortez

    Ryan Cortez Member

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    Hey SSers,

    Saving for the next IP is going to take awhile and I've got no equity to play with.

    I'm getting a little frustrated just reading and talking about property but I can't buy anything. All I can do is research areas I'd invest in if I had the money now.

    Unable to do much more than this, sometimes I feel like saying "f#%* this!" and booking a holiday, however I know I'd regret it.

    How did you guys keep your eyes on the prize until you were ready to buy?

    Cheers
     
  2. Richard Feynman

    Richard Feynman Mortgage Broker

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    Shift your perspective, embrace the situation.

    Having your hands tied is a great opportunity to enhance your knowledge and improve your chances of (when the time comes) purchasing the best possible asset you can, for the best price possible; by allowing continued research, monitoring and strategising throughout your "waiting" period.

    Read more books, too.
     
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  3. Ace in the Hole

    Ace in the Hole Don't compete, Dominate !

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    I was in your position about 7 years ago.
    I only thought about property all the time, but did not have the buy in to get into the game.
    What I did was put property aside and concentrated on actively earning more.
    Added 8 figures of property since getting back into it after my earnings was on track.

    It's like stopping to sharpen the axe.
    If you lose a few years that's alright, you can finish 10 times stronger by the 10th year than if you were to keep hacking away with a blunt axe.
    Don't give up now.
    Focus your energy on earnings instead of property for a while, what else can you do?
    Property will always be there later and when you have built your earnings/cashflow up, you will be a lot more eager and capable to invest in property.

    Property is the leveraged wealth building vehicle we choose, it's one simple mass of cash.
    There are thousands of ways to earn cashflow to support this machine, don't limit yourself to a wage or salary for cashflow.

    Good luck.
     
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  4. DoAndroidsDream

    DoAndroidsDream Member

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    I should probably disclose that Im a newbie that hasn't yet bought their first property (hopefully soon); however, my advice to you (and myself in the future) would be to make sure all areas of you life are balanced.

    Yes, do your research on property, read books and magazines. But what about your personal development goals? What else can can help you move within your company or enhance your skill set?

    What other quals would benefit you down the track? Eg. A trade certificate or diploma in something practical (eg. electrician) might assist you enormously.

    I've recently joined a public speaking program and have found it fantastic personally and professionally.
     
  5. Richard Feynman

    Richard Feynman Mortgage Broker

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    Great points from Ace and DAD, too. I almost contradict myself now.

    If you're pinned for a period of time longer than which you'll gain further value by continually focusing on property, work on other areas of life, including those which will feed back into your longterm investment goals--both personal and professional.
     
  6. Deltaberry

    Deltaberry Member

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    Unless you're a bit of a guru with lots of money and know your market inside-out and can spot an undervalued property, chances are sometimes you just have to bit the bullet, maybe even buy something that's not the best value in 2014 or maybe towards the higher end, and just get into the market.
     
  7. bez23

    bez23 Member

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    Totally understand the OPs dilemma because of how the market is moving right now. Not being able to buy more sucks! 3 things you can do here.

    1) Set goals and project how long before you can buy again. Can be quite demoralizing if it's far away but every penny that you save brings you to your goals faster
    2) Increase your ability to earn (as others have pointed out)
    3) Consider helping out other people look for property, either in this forum or friends and family who are looking to invest. If you are just starting out, it is good to the other gurus in somersoft evaluate what would be a good investment so when the time comes, you are a lot more informed!

    There's actually 1 more option, partnership with friends/family, although I wouldn't recommend it.
     
  8. pinkboy

    pinkboy SS Lookerafterer

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    This is the very reason why your first few investments are the most crucial. They provide the stepping stones to your overall goal. If your first investments don't provide growth and/or cash flow, you will be merely saving after tax dollars for each deposit, which is not ideal.

    Ask yourself:

    How does this investment get me closer to my end goal?
    How does this investment get more skin in the game sooner?
    What is my fall back, exit strategy for this investment if things go pear shape?

    Learn, read, research and get your ear and feet to the floor. Educate yourself to spot the opportunities, so you can pounce when able to do so!

    Make everything count.

    pinkboy
     
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  9. Deltaberry

    Deltaberry Member

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    Yes but if you over-analyse too much and want your cake and eat it (ie growth and cashflow), you may end up never buying anything. Before you know it, 5 years pass and the market runs again, while you hold out for this Harry Dent correction.
     
  10. Ryan Cortez

    Ryan Cortez Member

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    Thanks for sharing guys! It's comforting to read others experiences.

    With my focus and frustration, other parts of my life have been overlooked. I should really just chill out and enjoy the journey. My goals have been set and I look at it daily to remain focused.

    I've cut spending and saving every dollar. I also keep reading everything wealth related. Scout for cash jobs and look at how else I can make a little extra. Work on my sales skills (career) and spend time with family and friends and stay fit to give my property brain a break.

    Guess that's all I can really do.
     
  11. wategos

    wategos Member

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    I wouldn't be in too much of a rush to buy more property at current prices.
    Had some friends that had trouble finding something in their price range, in the end they gave up and continued renting. They are very glad they did, it was USA 2006.
     
  12. Deltaberry

    Deltaberry Member

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    A couple of years ago, I had a couple of friends who used to tell me about how they're glad they didn't do what everyone else did, ie buy a property and take on a mortgage and become a slave to the bank.

    The irony is these same people are all going to auctions in the next couple of weeks to (hopefully or unfortunately, depending on how you see it) buy a home. Of course, at prices a lot higher than what they were a few years ago.
     
  13. Aaron_C

    Aaron_C Finance Broker

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    Well I'm sure they will get it for a discounted price cause they're really smarter than everyone else.
     
  14. Alex P Keaton

    Alex P Keaton Member

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    For me I swapped my obsession for another one for a while. I was severely NG for a couple of years & wasn't in the position to buy for another 5 years. First IP was bought in 2009. My obsession in 2010 was weight loss & spent the next few years losing 33 kg. I spent more time researching & on myfitnesspal & other online fitness/weight loss sites than I did on somersoft. At one stage I went periods of time not even lurking on SS. I guess I was extremely focused on losing the weight & put all of my energy & time into that. I knew it would be a long time before I could invest again so I put it on the back burner. Turned out the time flew past!

    I think concentrate on other interests & goals but in the same token it can't hurt to research in preparation for when you are ready to invest.

    Have you thought of joining forces with someone in the same boat!? A joint venture? Or invest in something more affordable, car space perhaps hmmmm Im trying to think of something else.
     
  15. impala67

    impala67 Member

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    :eek: GOOD JOB. well done.
     
  16. Alex P Keaton

    Alex P Keaton Member

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    Thanks, it was hard work, even harder to maintain :)
     
  17. Ryan Cortez

    Ryan Cortez Member

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    Good effort on the weight loss!!

    I've heard too many bad things about joint partnerships. I wouldn't do it in case it gets messy, which eventually happens when money is involved.
    I've decided to focus on increasing my income but also learning about shares. I have other non wealth related goals but they're easy enough to get started on without having to wait.