Hi Everyone, what a great forum. I have recently separated and have a cash settlement. I would like some advice on who I should speak to. I need advice on developing an investment plan. I have one investment property and would like to use my settlement to purchase another. I am doing lots of reading but there is so much information out there it is overwhelming. Any advice?
Need an investment plan
- Thread starter Renae
- Start date
Keep reading until you have a better understanding of the principles, and don't rush into investments.
Yes, keep reading as much as you can.
Then see a broker.
But before acting get tax advice about structuring your loans on the tax side and then with the broker on the credit side.
A financial planner that does property plans could assist, but it will cost you and you could probably get started without one and use one later.
Then see a broker.
But before acting get tax advice about structuring your loans on the tax side and then with the broker on the credit side.
A financial planner that does property plans could assist, but it will cost you and you could probably get started without one and use one later.
I don't think you need a financial planner if you want to buy another property. First see a broker to see how much you can borrow. Then release any equity you have from your existing IP as a LOC to use for deposit, stamp duty, buying costs etc. Try and keep your settlement money in an offset against the loan.. best not to use this money if you can avoid it.
Renae,
As you say, info overload can be overwhelming. I suggest you come along to meet some of the people in real life
Get yourself along to
http://somersoft.com/forums/showthread.php?t=106590
The Y-man
As you say, info overload can be overwhelming. I suggest you come along to meet some of the people in real life
Get yourself along to
http://somersoft.com/forums/showthread.php?t=106590
The Y-man
Hi Renae,
Before thinking to much about an investment plan, you need to have a really good idea about what you hope to achieve by investing. Are you after cash flow? Capital growth? Do you want to retire on 'x'? Are you keen to buy and hold/renovate/subdivide? What's your income and expenses like?
What's your risk tolerance? How hands on do you want to be? How much time do you have to commit to your investing?
Answering all these questions will give you a good starting point, and the finer details can be determined from there.
Before thinking to much about an investment plan, you need to have a really good idea about what you hope to achieve by investing. Are you after cash flow? Capital growth? Do you want to retire on 'x'? Are you keen to buy and hold/renovate/subdivide? What's your income and expenses like?
What's your risk tolerance? How hands on do you want to be? How much time do you have to commit to your investing?
Answering all these questions will give you a good starting point, and the finer details can be determined from there.
Great post Jess.
Definitely a good idea to form some clarity around what your trying to do. Going to a planner/broker/professional without some sense of what your trying to achieve can lead to adverse outcomes pretty easily.
Then its of to a broker/bank, and its time to shop for investments that get you to your goal.
Good luck!
Cheers,
Redom
Thanks for the replies everyone. I will be going to the next catch up and you have all mentioned starting with a broker. I have one so will speak to him tomorrow. Clearly, I need to start by work on identifying my goals. Thanks again I'm sure I will have lots of other questions and appreciate that I can seek help here.
Regarding your broker, just a quick heads- up - ask him/her a LOT of questions before automatically assuming they know what they're good for the job.
Not all brokers are good at investment, and many won't be able to make an investment plan with you so make sure they know what they're talking about when it comes to the tax implications of the structure they're recommending, the importance of lender order etc. This is all imperative when it comes to getting the most out of your situation.
Good luck!
Not all brokers are good at investment, and many won't be able to make an investment plan with you so make sure they know what they're talking about when it comes to the tax implications of the structure they're recommending, the importance of lender order etc. This is all imperative when it comes to getting the most out of your situation.
Good luck!
Great advice, talk to plenty of people, read lots and work backwards - where do you want to get to and by when? (ie what passive income do you want and by when will determine how much you need in passive equity and then you can think about your options to get there).
Also some great info in the thread at http://somersoft.com/forums/showthread.php?t=106722 about working with brokers (thanks Redom and others!)
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My suggestion:
- Start with your goal. What are you trying to achieve? Answer the question of why you are doing this.
- Form a team. You need a good mortgage broker, solicitor and accountant to start the process. Spend alot of time in this area. When I started I interviewed quite a few in each area until I settled on my team. As Jess mentioned make sure they are savvy in the property investing space.
- Once you have the above two sorted, then start to look for properties to match your goals.
Lastly speak to like minded investors and continuing reading SS - it's an amazing resource
Good luck,
Michael
- Start with your goal. What are you trying to achieve? Answer the question of why you are doing this.
- Form a team. You need a good mortgage broker, solicitor and accountant to start the process. Spend alot of time in this area. When I started I interviewed quite a few in each area until I settled on my team. As Jess mentioned make sure they are savvy in the property investing space.
- Once you have the above two sorted, then start to look for properties to match your goals.
Lastly speak to like minded investors and continuing reading SS - it's an amazing resource
Good luck,
Michael
