Too old and poor to start investing?

[travelbug]

Thanks MsAli.

I wish I had started at 41!

I got serious about property investing in 2008 (at 50). I'm retiring in 1-2 years. I could retire now (hubby just retired) if I didn't spend over $20,000 a year on travel.

I did have an almost paid off PPOR which helped.

Kaytea you don't say whether you have any equity in your home. It doesn't sound like it, so you need to rectify that. While you are madly saving a deposit, read and research so you are ready.

I'm weary of all in one organistations. I did attend a group when I started and they did have a buyers agent but it wasn't all in one and there was no push to buy. They didn't sell properties. You need to be careful with these as their main objective would be to sell their properties.

The seminars taught me a lot and I also made some wonderful friends. Networking is the key. That was the thing that got me moving (finally!) I kept seeing people much younger than myself with limited resources making great gains. I finally thought "That's so easy, I'm doing it". Once I got over that hurdle it was plain sailing. I kick myself for not starting earlier. But having said that EVERYONE (except Nathan ) says that.

You can name the one your friend is using for some friendly (or maybe not so) advice. Or google it.

Good luck on your journey. I love teaching but I love travelling more!

 

[KayTea]

I'm single btw ha ha

You're naughty ...........

And to all the other people who have contributed - thanks for all the great advice and things to consider. I think my first few steps will need to be:

1. Listening to the representative from the property investment service (I've already got a meeting organised with him for tomorrow night). I'm hoping I'll be able to learn a few things, and I definitely wont be signing up for anything on the spot ('due diligence', right? - see, I'm learning already )

2. Try and find a finance broker or bank person to speak to, in an effort to find out what my financial position is - no point getting all excited about trying to do this if there's no way it can happen (yet). However, I think I've already got around 50% equity in my own PPoR, so I think I should be okay.

3. Keep on reading - try and get my questions answered, and build up a 'go to' list of people. It sounds like a lot of people need to be involved in this whole process - solicitors, accountants, property managers, insurance brokers...... - and I wouldn't even know where to start finding a list of reputable, experienced, and honest people to help me start this journey. BTW - I'm on the inner southside of Brisbane, if anyone can recommend any good people to start approaching

Thanks for your support guys - with knowledge comes power. And knowing that so many people are willing to freely share their stories and advice, and genuinely try to help others out, kinda restores my faith in humanity

 

[Shovelhead]

You're naughty ...........

You sound like school teacher ha ha

1. Listening to the representative from the property investment service (I've already got a meeting organised with him for tomorrow night). I'm hoping I'll be able to learn a few things, and I definitely wont be signing up for anything on the spot ('due diligence', right? - see, I'm learning already )

How much are they charging IF you sign up?

2. Try and find a finance broker or bank person to speak to, in an effort to find out what my financial position is - no point getting all excited about trying to do this if there's no way it can happen (yet). However, I think I've already got around 50% equity in my own PPoR, so I think I should be okay.

50% equity,see your not poor then.Use a broker as well not a banker

3. Keep on reading - try and get my questions answered, and build up a 'go to' list of people. It sounds like a lot of people need to be involved in this whole process - solicitors, accountants, property managers, insurance brokers...... - and I wouldn't even know where to start finding a list of reputable, experienced, and honest people to help me start this journey. BTW - I'm on the inner southside of Brisbane, if anyone can recommend any good people to start approaching

Thanks for your support guys - with knowledge comes power. And knowing that so many people are willing to freely share their stories and advice, and genuinely try to help others out, kinda restores my faith in humanity

Yes,keep reading up on the forum,read books and you can meet up with members on the forum when the next meet is in brisbane.

Good luck.

 

[DoAndroidsDream]

Hi KayTea,

I'm so interested to see how you go from here, so please keep us all updated.

There's some really good advice here already. In particular, be very wary of one-stop-shops in general and also going through 'friends' or 'friends of friends'. There are no short cuts. It's best not to put your trust (and money) in someone elses hands when at the end of the day ONLY YOU are looking out for you.

I bought my very first IP in April this year after spending a good 3 months here reading through all the posts. The search function became my new best friend. At every stage of the process, from working out what an offset account was to finding out about a depreciation report, I'd just return to Somersoft and type my query in the search function. Almost every question has already been answered here.

After you have organised your finance (go with a broker) and worked out what area or suburbs you are interested in (best to do that research from somersoft, too), then start inspecting a few properties and get comfortable with asking Real Estate Agents questions. The more properties you look at, the more confident you will be.

All the best and keep us updated!

 

[serendip]

KayTea

Thanks for starting this thread & thanks to everyone who's chiming in with support & advice. I'm a few years older than you & a single Mum to an almost 4yo so have another year of $15K / year of daycare fees ahead of me. I'm also just starting (again, after a false start in 2001 ) on my investment journey. I look forward to watching your progress

 

[KayTea]

Thanks for the reply Travelbug - I think you must have been typing while I was sending my last reply! I'm hoping to travel more, at some point, it's just a matter of getting the $$$ together (like most things in life, huh?)

Thanks MsAli.

I wish I had started at 41!

I got serious about property investing in 2008 (at 50). I'm retiring in 1-2 years. I could retire now (hubby just retired) if I didn't spend over $20,000 a year on travel.

I did have an almost paid off PPOR which helped.

Kaytea you don't say whether you have any equity in your home. It doesn't sound like it, so you need to rectify that. While you are madly saving a deposit, read and research so you are ready. I think I've got about 50% equity already - give or take a bit

I'm weary of all in one organistations. I did attend a group when I started and they did have a buyers agent but it wasn't all in one and there was no push to buy. They didn't sell properties. You need to be careful with these as their main objective would be to sell their properties.

The seminars taught me a lot and I also made some wonderful friends. Networking is the key. That was the thing that got me moving (finally!) I kept seeing people much younger than myself with limited resources making great gains. I finally thought "That's so easy, I'm doing it". Once I got over that hurdle it was plain sailing. I kick myself for not starting earlier. But having said that EVERYONE (except Nathan ) says that.

You can name the one your friend is using for some friendly (or maybe not so) advice. Or google it. The group in question is Canterbury Property Services. I've done a fair bit of research already on another forum and looked for general reviews on Google etc, and most of the feedback seemed quite positive. I know their website doesn't give a lot away, but I'm thinking that I wouldn't be giving away a working business strategy online either. I'll see what comes out of the meeting.

Good luck on your journey. I love teaching but I love travelling more!

 

[S.T]

Do some reading!

http://somersoft.com/forums/showthread.php?t=64015&highlight=Canterbury

 

[Macca]

Do Brisbanites ever have a get together, I seem to recall a BIG meeting or something on SS

 

[TMNT]

so whats everyones advice for a single mother who works only one dy per week, assuming she doesnt hsve a deposit

you could say htfu and work more, im not sure if she only wokrs 1 day becasue of shifts or looking after child

you could say scrape every doollr, but 10-20% of 300k seems like s uphill batlle....more like a brick wall

 

[KayTea]

Do some reading!

http://somersoft.com/forums/showthread.php?t=64015&highlight=Canterbury

Thanks Simtr - I'd already read this thread, plus the one on the InvestEd forum. There seems to be a lot of conjecture about their 'pros' and 'cons' - so I'm not yet swung either way by the comments made.

It seems that some people who have actually used them are really happy with them. However, I also see so, so many posts in this forum from people who are doing it all, completely independently, and having a great deal of success too. I suppose my main concerns are:

1. If I go with a company (like Canterbury, or others who are out there), are they only going to be trying to convince me to take on finance, properties, support (e.g.. accountants, property managers etc) from a very limited pool of options, from which they have a tight working relationship? Thereby, I'm not really getting a true, 'big picture', view of things, and am more likely to be 'taken for a ride'; and

2. If I try and do it all on my own - am I likely to be able to handle all of the work involved? There's a great deal of research and due diligence, many people to work with and coordinate, and a lot of balls to juggle (any one of which can fall down and create massive issues - and I'm not likely to know about it until after the ball has hit the ground). It's bad enough buying a PPoR on your own (and I've done this a number of times - it's just as scary and exhausting each time), but sorting out all the intricacies of investment loan types, LOC, tax implications, purchasing, solicitors, ATO approvals etc (while working full time, as a single parent) seems very, very scary.

I know, that for those who do this daily, it's probably not a very big deal. But, as a newbie, this is a huge step.

I liken it to learning to drive. Think about the very first time you got behind the wheel of a car and were told to 'go'. Trying to remember all the road rules, plus how to actually make the vehicle move, and deal with the other motorists on the road, following street signs and traffic lights - all a huge deal - at the time. You'd done all the reading, learnt the road rules (in theory), even got your Ls, and thought you knew how it all worked. But when it came to actually be in control of a car, on the road, it was a whole other story. Now, most of us don't give driving a second thought - it's just a part of daily life.

I suppose I'd just feel comfortable with a 'driving instructor' along for this next set of driving lessons..........

 

[Shovelhead]

Good pickup simtr!

I like this quote from the link you provided:

Used them, some years ago. Can't complain, however wouldn't recommend them either.

Bwah ha ha.

Ps.TMNT-If single mother is earning 1k per day,i can't see a problem.

 

[Aaron_C]

Is it okay if I say both?

Sure it's fine unfortunately you can never really get both financial and property advice together as it's hard to predict what property will do well in the future. Perhaps speak to your broker about your finance options first then go ahead with your enquiries and research?

 

[KayTea]

Do some reading!

http://somersoft.com/forums/showthread.php?t=64015&highlight=Canterbury

I tried to reply to this some time back - it doesn't appear that my post appeared.......

I had already read this thread simtr (amongst others), and like Shovelhead's observation, it's hard to decide whether it's supported or not (making it hard for me to decide one way or the other on them).

I see that I have two issues that I need to contend with:

1. If I go with a company that sorts out everything - helping to organise finance, sort out other professionals needed to complete the purchase, suggest properties to purchase etc, I'm concerned that I am limiting my options. These companies probably all work together to 'scratch each other's backs', and I'm not likely to get a 'big picture' approach to my finances, plans, possible purchases and risks etc. I'm worried that I'm going to get the wool pulled over my eyes, and not know it, because I'm new to this.

2. As much as I keep reading and researching, I'm worried about making big (and costly) mistakes if I try to do it all on my own. There is a lot to organise and deal with (both physically, and time-wise) and I'm worried I'll miss something important, or stuff it up. Purchasing a PPoR is bad enough, and there are so many extra hoops with an IP. As I work full time (and certainly not 9-5 on weekdays) and am a single parent (a little one is not going to enjoy being dragged around property hunting, into solicitors and accountants etc), the logistics seem a little overwhelming.

I really want to make this work, but to me it seems a bit like learning to drive a car. At first, managing the traffic, controlling the vehicle, and the dealing with the road rules are very overwhelming - even though you've learnt the theory and got your Ls. Actually driving the care is not the same, in practise, but once you've been doing it for a while, you don't even give it a second thought.

I'll get there, I know...............

 

[Shovelhead]

Perhaps speak to your broker about your finance options first then go ahead with your enquiries and research?

+1...Personally i'd search for a broker on the forum.They invest as well and offer sound advice.This would be my first port of call.

 

[S.T]

If it was my hard earned money, I'd be taking notice of any negative comments or reviews before choosing a service provider.

Maybe ask yourself, do you have the extra cash lying around to pay someone to do all of this work for you? Or can you take some time, a few months, to educate yourself using this forum and asking plenty of questions. Whats the hurry?

 

[Shovelhead]

Well summed up simtr!..I wouldn't be rushing into anything nor pay for a seminar..Learn a bit more and walk before you run KayTea.There's always opportunities,so you won't miss the boat.Slow and easy wins the race.

 

[skater]

While I have never heard of Canterbury, so can not comment on their ethics or services provided, I would suggest that you would do much better by reading this forum and asking questions.

Most of the 'one stop shops' have a vested interest in the properties they get you to buy, the Brokers they put you in touch with, etc.

Get yourself an independent Broker, who can advise what products are best for you & how much you can borrow. Stick around here & learn from investors that are currently investing, and have absolutely nothing to gain from the decisions you make. Go to any investor meet up groups in your area.

 

[Simon]

Sometimes we never get started unless we trust someone else to do it for us.

They need to make a profit. No getting around that.

To us more experienced folk we don't see the value of giving away money to someone who doesn't know more than we do.

But to the less experienced person it may well be money well spent. Especially if the alternative is never having got started in the first place.

And to the original statement about being too old and too poor. I'd just say that today is the youngest you are ever going to be for the rest of your life.

 

[WattleIdo]

property hunting, into solicitors and accountants etc), the logistics seem a little overwhelming.

I'll get there, I know...............

Most of the hunting is done on the net and consultation with the professionals can all be done by phone. Get with the times, girl.

 

[KayTea]

Most of the hunting is done on the net and consultation with the professionals can all be done by phone. Get with the times, girl.

Point taken, however I don't have access to a 'personal' phone for most of my working day (therefore, business, hours), and many websites are 'blocked' at work (also making dealing with many things almost impossible).