New to the forum with a few questions.

[Bryce]

Hi all,

I have been reading alot of threads on this site and i would like to thank everyone who has posted any information as it has helped me alot in understanding property investment.

My girlfriend and i have been saving a deposit for a while now and are looking to purchase a property under $250k in melbourne south east suburbs taking into consideration that im a 2nd year apprentice and shes at uni with 2 part time jobs.

We were recently going to purchase a newly built 1 bedroom unit in Cranbourne although i am having second thoughts as i dont want to limit the market i could rent it to.

I have also read on the forum that 'The richest man in babylon' and 'Think and grow rich' are good books to buy is there any others to get me started?

Many thanks Bryce

 

[james_w]

you can read all you want I have never bought a book just took action...

I hear the ebook on the main somersoft site is a pretty good read though

oh I have watched a few dvds from so called gurus there is tonnes of free ones on the net

 

[RumpledElf]

Hey, some of us have ended up in a position that is actually quite good without planning OR trying OR actually wanting more than one property.

Imagine what you could do if you PLAN

 

[tess85]

I can recommend any of Jan Somers' books - eg More Wealth from Residential Property. They were what got me started. BTW, fantastic work with the saving while you are young and at uni.... that's what my boyfriend (now hubby) and I were doing too. It really set us up for the future..... our mantra was delayed gratification... tough at the time but paid off big time just a couple of years later.

 

[Peter_Tersteeg]

Another vote for Jan Somers. "Building Wealth Story by Story". The other books are more technical, but this one is more for opening your eyes to the possibilities.

 

[tess85]

Hmm I've yet to read Building Wealth Story by Story, but i've heard good things about it!
The technical books (eg. More Wealth from Resi Property) are still good because you need to know exactly what you're getting into and how to allow for the worst case scenarios.

Bryce, you can probably get it from the uni library (ask your gf to borrow it), saves having to buy it

 

[Bryce]

Thanks for the suggestions!

I will have to have a read and then hopefully later this year or early next make a purchase!

We are keen to purchase this 1 bedroom apartment (which means my girlfriend and i can finally have our own space) but after reading some stuff im contemplating whether to limit who can rent it as i have done some research and it is newly built in an estate next to a primary school?

It is alot to take in when u are purchasing your first IP so if anyone can share advice, suggestions or experience it'll be greatly appreaciated. In the mean time im going to be doing some more research.

 

[The Donners]

Good for you Bryce in deciding to invest in property, it is a big step.

You mention that you don't want to limit the rentability, purchasing a 1br unit effectively limits your renters to singles or couples with no children. For example, if you were to look at a 2br unit you open up the market to single parents and non-couple tenants as well. Food for thought.

 

[Jacque]

Hi Bryce and well done for taking the first step into home ownership

You may want to also consider older apartments where you can renovate and add value rather than sticking with new for your PPOR. Also factor in the strata fees and other costs associated with strata living- they can impact quite severely on lifestyle. Best of luck.

 

[garyb]

I have also read on the forum that 'The richest man in babylon' and 'Think and grow rich' are good books to buy is there any others to get me started?

I've been reading books by proponents of various approaches and strategies - Michael Yardney's How to Grow a Multi-Million Dollar Property Portfolio and Jan Somers' Building Wealth Story by Story. I've just started Stuart Wemyss' Property Puzzle that describes various strategies such as capital growth, positive cash flow, development etc, and the various types of circumstances and financial situations that these approaches may suit.

On top of the theory we're also resolved to purchase this year - but it's hoped that all the reading will help us make a wiser decision for our situation.

Regards, Gary

 

[cadence]

while you are at it and if you have time, also try:
Rich Dad Poor Dad - it's a best seller for a reason
Seven Steps to Wealth by John Fitzgerald (it's a small book which you can finish in half a day and gives you the basics in easy to understand terms)

 

[Bryce]

Cheers ive read rich dad poor dad already,
I just orderd Think And Grow Rich And The Richest Man In Babylon both in the one book of borders online I will have to get the others after i read these two first.

while you are at it and if you have time, also try:
Rich Dad Poor Dad - it's a best seller for a reason
Seven Steps to Wealth by John Fitzgerald (it's a small book which you can finish in half a day and gives you the basics in easy to understand terms)

 

[Gools]

Or get them from your local library.

 

[Lamingtons]

.. Or check www.booko.com.au for the cheapest price online

 

[imonmyway]

I read a number of books and the trick is to take them for what they are and not treat any of them as the investing bible.

 

[arriety]

You plan is a little unclear to me. Are you purchasing to live in (to get your own space) or to rent out (IP).

If you're going to live in the apartment, it won't be an IP but your PPOR and although you can't get any tax deductions, you wont' have to pay Capital Gains when you sell. I would be looking at an older apartment that you can do up and sell. Don't buy 1 bedroom as sometimes finance for smaller units is hard to come by and you limit your potential purchasers at selling time. You would only buy brand new if you were going to rent it out immediately that way you can depreciate lots of the building costs.