Too old and poor to start investing?

KayTea

KayTea

I've been interested in trying to 'get ahead' for a long time, but have never been sure where to start. So, like many, I've been plodding away at paying off my PPoR, feeling very disgruntled at making such small inroads and knowing it would be decades before I actually owned my own place.

Then a recently-made friend mentioned her use of an 'all-in-one' property investment service, and how quickly she's getting herself financially sorted, and I haven't been able to think of anything else since.

I've been doing a lot of reading (as a teacher, I believe that education is paramount when making any decisions, as knowledge is power). However, as inspired as I am, I am wondering if, at the age of 41, as a single parent, I've left it too late, or won't have enough $$$ behind me, to seriously consider entering the property investing market.

Does anyone have any words of wisdom, great places to start my possible investment journey, or stories worth sharing? Can anyone recommend any 'independent' financial services that specialise in property investment? (I'm going to see my friend's service, but would like to see at least 2 before I commit to anything - I'd hate to think I'd had the wool pulled over my eyes by a great sales person who didn't paint a true picture, risks included, when looking at my situation and possible options).

TIA, KayTea
 
You can do it KayTea :). Look up 'travelbug' whose also a teacher and started well after you and done very well for herself :) All the best!
 
Its not too late..... If I were you I would see how much money you can borrow and service (comfortably) taking into account your salary, expenses and potential equity. Find out from someone not trying to sell you a property. No good getting caught in the hype of some property spruiker before you know firmly where you stand. Read through this forum as well and read books recommended on the forum. Cheers and good luck, nat :)
 
Aaron_C said:
Not too late
Are you aiming for income in retirement or to accumulate assets over time?
Click to expand...

Is it okay if I say both?

In the short(er) term, I'd like to accumulate wealth - I would love to 'upgrade' my PPoR in a few years, if that's possible, but I know I'll need to have a lot more $$$ to my name before that's an option. Plus, it would be nice to have some form of passive income in the not-too-distant future - while I know I won't be able to give up teaching any time soon, I really can't see myself having the stamina to keep this up for another 28 years (that's how long I have left on my own mortgage). Being able to combine a passive investment income with part time work (or something less demanding and stressful than teaching) would be ideal.
 
Hi KT,

Just start reading right here :D

Invest in your knowledge by reading what others are actually Doing, not selling :(

Nothing quite liking looking over someone's shoulder by reading the threads as people do renos, upgrade, search the net for deals, it is all right here waiting for you.

It will take time, a few months, but you have an asset in the equity of your home, a good job, interest rates are low and by reading here you will soon work out the good the bad and the ugly.

Concentrate on just a few areas so that you get to know the values, then wait for a good deal and contact a mortgage broker on here to sort the finance, this place really is a free University :)
 
Macca said:
Hi KT,

Just start reading right here :D

Invest in your knowledge by reading what others are actually Doing, not selling :( ...
Concentrate on just a few areas so that you get to know the values, then wait for a good deal and contact a mortgage broker on here to sort the finance, this place really is a free University :)
Click to expand...

I know you're right Macca, but with all the research and reading in the world, I'd still like someone to 'hold my hand' through this. The knowledge that there will be hundreds of thousands of dollars at risk is very daunting, and I'd really like to minimise my chances of making costly mistakes or oversights.

I'm thinking that some form of mentor or club is the way to go, but without a great deal of disposable cash, it's hard to know where to start 'paying for advice'. Reading forums is great, but I'd love a one-to-one relationship with an experienced investor - to learn from them, and get second opinions before I do anything stupid/costly would really help put my mind at rest and give me the confidence to get the ball rolling.
 
KayTea said:
I'm thinking that some form of mentor or club is the way to go, but without a great deal of disposable cash, it's hard to know where to start 'paying for advice'. Reading forums is great, but I'd love a one-to-one relationship with an experienced investor - to learn from them, and get second opinions before I do anything stupid/costly would really help put my mind at rest and give me the confidence to get the ball rolling.
Click to expand...

One-to-one could be as good or bad as many-to-one.

Of course in the situation of many-to-one, you can get confused to heck because every pundit has a seemingly different opinion. But on the flip side, for a one-to-one, how do you tell if the one you select will give the "right" advice? (might be right for them, totally wrong for you!!) How will you verify they have "been there, done that"?

As for "all in one" places - tell me, do you buy your groceries, petrol, pharmaceuticals, electrical appliances and a car service in the one shop?

The Y-man
 
KayTea said:
Does anyone have any words of wisdom, great places to start my possible investment journey, or stories worth sharing? Can anyone recommend any 'independent' financial services that specialise in property investment? (I'm going to see my friend's service, but would like to see at least 2 before I commit to anything - I'd hate to think I'd had the wool pulled over my eyes by a great sales person who didn't paint a true picture, risks included, when looking at my situation and possible options).

TIA, KayTea
Click to expand...

At the risk of sounding like I am blowing my own trumpet, go to

http://somersoft.com/forums/forumdisplay.php?f=4

and read all the stories BEFORE going to talk to the service.

The Y-man
 
You can also consider other options for increasing your income, without actually getting another job.

What pops into my mind is
1. Use a bedroom as Bed and Breakfast, even if it is only during non-school days.(weekends/ holidays)
2. Offer a bedroom to short term travellers..you can charge more.
3. Offer doggie daycare (and other animals) in your home for when people go on vacation.

Put all this extra income on your mortgage.
 
Being a single parent makes it a bit harder in terms of the type and cost of properties you can buy.

You may have to start with a more regional area, or apartments, villa units etc.

But, your age is ok (I started at 40) so that is not a barrier.

You do not need to sign up for any expensive seminars etc - all the info you will need is right here and for free.

In terms of fear; everyone here had it on IP no.1, but you can mitigate much of the risk by making sure your selection criteria for the property ticks as many boxes as possible first.

Here are a few things to put on the selection criteria list;

1. Location - obvious; but the place in the suburb you pick - walking distance (or short drive) to amenities such as shops, public transport, schools, parks/beaches - things that you would like to be near if you were living there; and not on a main road if possible.

2. Future Cap Growth prospects - check out the area; are they building new infrastructure; schools, Hospital, widening roads, a new Bunnings and Maccas, etc. Also look for possible subdivion possibility if you buy a house on land.

3. Type of property - the demographic of the area - is it changing? No good buying a 4x3 house on 1000sq/m if everyone wants apartments.

4. Floorplan - it needs to work well, or can it easily be improved. For eg; I bought a 2x1 villa once, which had a separate kitchen to lounge. I knocked out the wall in between (make sure it's not load bearing) and made it a much larger looking open plan unit.

5. Cashflow - select something built after 1987 - for depreciation on your tax return. Also; any renovations you do can be claimable as a capital improvement (need a good accountant for all this stuff).

6. Rent return - don't let anyone tell you that a rent return below the current interest rate of the day is a good return - that is total BS. It MUST be higher (as a single Mum on average income)

7. Body Corp - try to avoid, but check out how much it is if you can't (apartments and villas, etc)

8. Loan structures and equity - you need to get this right from day 1. 100% Offsets, IO, non cross-collateral loans, etc. Sounds daunting but isn't. There are several very good MB's here on this site who will guide you.

First step is to start researching an area you think will be a good one for the next 10-20 years; or will become a good one in the short term. Lean that suburb's market really. really well.

Good luck.
 
kathryn d said:
You can also consider other options for increasing your income, without actually getting another job.

What pops into my mind is
1. Use a bedroom as Bed and Breakfast, even if it is only during non-school days.(weekends/ holidays)
2. Offer a bedroom to short term travellers..you can charge more.
3. Offer doggie daycare (and other animals) in your home for when people go on vacation.

Put all this extra income on your mortgage.
Click to expand...

Love the above Katheryn.

KayTea, Not sure what you teach, may be you could also do after school hrs private tutor for extra income.
Some Bris investors met every so often, have you thought of joining them ?
 
41 is smack bang in the middle of most peops acquistion phase.

There are likely many opportunities for you to start, and thence build from that start.

before spending too much time on how to invest you need to find YOUR why.

Your real why, not someone else's.

Often, when I sit with peops I get the "financial options" or "financial freedom" answer, yet the same people havent quantified what that means, nor felt what it may mean to not achieve same.

If you look at your life, you'd likely find that nothing really worthwhile was ever achieved within your existing comfort zone, or at your convenience, so the chance that a "one stop shop" can achieve what you can by yourself, is quite limited.

In my clients' experiences, the motivations for taking personal control and responseability are quite different, and mostly more rewarding.

You can build your own one stop shop.

ta
rlf
 
From a personal experience, I've attended a Henry K seminar few years ago (ok, long time ago :D) and that got my interest/exposure into property, which was a great thing. I didn't sign up with their 15K course though :eek:. What I'm trying to say is, you can always learn something from these things. At least what not to do.
 
Rolf Latham said:
41 is smack bang in the middle of most peops acquistion phase.
...rlf
Click to expand...

Hi Kay Tea, you got in before me - I bought my first place at 41 and lived in it for a while before I rented it out.

I finally made the move because of the rental shortage and haven't looked back since. I was afraid - yes - but the main reason I never bought anything before that is that I just didn't think I could. But I could!

I would suggest keep exploring and asking questions and also start looking and start getting disappointed. The more you do this, the more you will realise that you don't need as much guidance and help as you currently say you do. There's no secret, it's common sense.

Also, I doubt there's a better place to start than Teachers Mutual Bank.

Start small. Stay humble. ;)
 
is that you sally??? your situation is almost the same as my friend

single mom, 40 ish, nurse, works one day per week,
lives with ex psrtner parents in whoop whoop and catches a vline train for 1.5 hour for her shift

she has given up on home ownership.

i honestly dont see her being able to buy anything for 300k in qld with her income and lack of servicesbility (i also assume she has virtuslly no depsoit)


seems like a impossible situation for her
 
KayTea said:
Then a recently-made friend mentioned her use of an 'all-in-one' property investment service
Click to expand...

Hello KayTea,

How much is this going to cost?

Btw i bought my ppor @ 40,your never too old to teach an old dog new tricks :)

Personally i'd read up on the forum and ask lot's of questions.

I wouldn't be forking out Eg:10k for a seminar.

Good luck :)

Ps.I haven't read all posts,so sorry if this has been mentioned.How is your loan setup on your ppor?Interest only?Do you have an offset account?Any equity in the ppor to acquire an IP?
 
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