What is the average time between joining the forum and buying an IP?

[geoffw]

I had never considered IPs until I went to a DHA "seminar". It made sense so we decided in a very short space of time to buy a DHA property. 16 years later we still have it.

(We had an IP by default in England. That was an extremely bad performer, although we probably lost less by keeping it than by selling it).

I had no plans to ever buy another.

A colleague told me about Peter Spann. We got an intro video and very shortly after bought a unit in Brisbane. It was as a result of doing a search for Peter Spann that I discovered te forum.

So although it was about negative three years for me, it was a very short time between learning and doing.

 

[MsAli]

took me about 11 months.....

but between sis and I we've bought 6 since joining...more to come...

 

[Blueberry]

Joined 10-11 months ago. Have had an off the plan under contract for about a month or two now.

To be fair, I did lurk around the property management forums for a year or two prior to that, fascinated by the stories and dreaming of what it would be like to own an IP "one day".

Joining up here coincided with my decision to take action.

 

[redwing]

I thought you needed at least one property and had to pass a test on the acronyms, with at least a score of 50% to show an understanding of the propertyspeak here

The Test

 

[marty998]

I started looking round about the time I joined here last year. I haven't bought yet but hopefully soon.

 

[china]

I started looking round about the time I joined here last year. I haven't bought yet but hopefully soon.

You must hurry, otherwise you will outdo me in the procrastination stakes.

 

[MTR]

ok. what do you believe is the average time frame between joining somersoft and acquiring resi IP?

I was investing at least 6 years prior to joining SS, and have continued purchasing and selling on a regular basis.
I almost always get "buyers remorse" for about 1 month and then I move on

 

[Darlogus]

I first came across the forum back in 2001 when I read my first JS book, but silly me never became a member. I now have 7 properties and only joined last week to learn about smsf investing.
If I had joined back in 2001 I think I would have been much further than I am now with my portfolio. maybe my biggest mistake yet.

 

[redwing]

Me, I am a major procrastinator in all aspects of my life. Too much indecision. Paralysis analysis.

The main progress I have made since joining the forum is learning that property investment has to be part of a diversified portfolio - allowing hedging against inflation in order to create a passive income from a substantial asset base.

I have also learnt about the best financial setup for initiating this, mostly from Aaron's posts. I have LOC created against my ppor ready for action. This allows a 500k deposit on an investment property. I know that my cash should be preserved and placed in offset.

I peruse realcommercial.com.au daily in various postcodes located close to sydney cbd and ring agents sporadically.

I have also decided from reading the many posts that comm IP may be the better way to go for me and this is where I am almost two years since joining this forum.

Am I way behind in terms of time to action or on par with others?

I'm still not sure if your a physician or not China

I thought one of the investing traits of doctor's was that along with the fact that most of them are the source of their own wealth, they exhibit over- confidence rather than under-confidence in most areas

 

[handyandy]

-23 years.

Have only bought 11 USA based properties since joining the forum.

Cheers

 

[china]

I thought one of the investing traits of doctor's was that along with the fact that most of them are the source of their own wealth, they exhibit over- confidence rather than under-confidence in most areas

The investing traits of doctors are not well documented although the investing results are. If anything, they tend to underperform in terms of investment.

We know that this group, despite being consistently being in the top 1% of income earners from around the late 20s, do not consistently end up being in the top 1% of net worth.

The American experience:

http://www2.ucsc.edu/whorulesamerica/power/investment_manager.html


would suggest that very few doctors on retirement make it into the 15m plus net worth range which the author in the link above suggests as being in the top 0.5%. Generally, this group belongs to people who have some connection to big business or the financial services industries.

 

[geoffw]

I guess that investing requires a different approach to medicine. To an extent it requires a leap of faith as its quite possible that whatever you choose to invest in could go wrong. There's no way to guarantee a good investment outcome no matter how careful you are. However you do have time to make up your mind. If you don't decide about something today you may miss a boat but you still keep your money.

It could be disastrous for a doctor to have the same approach. You perhaps have to be surer of an outcome, where possible, but you don't have the luxury of time.

It takes a huge amount of study and knowledge to be food at medicine. It doesn't take too much to be a doctor.

 

[china]

I guess that investing requires a different approach to medicine. To an extent it requires a leap of faith as its quite possible that whatever you choose to invest in could go wrong. There's no way to guarantee a good investment outcome no matter how careful you are. However you do have time to make up your mind. If you don't decide about something today you may miss a boat but you still keep your money.

It could be disastrous for a doctor to have the same approach. You perhaps have to be surer of an outcome, where possible, but you don't have the luxury of time.

It takes a huge amount of study and knowledge to be food at medicine. It doesn't take too much to be a doctor.

Geoff, that is true to a large extent. However, there are no guarantees in outcomes in medicine either. That is why professional indemnity premiums are very high. Disasters can arise in treatment outcomes just as they can in investment outcomes.

But I take your point that investors often have the luxury of more time but not endless time.

 

[BayView]

I guess that investing requires a different approach to medicine.

In terms of income as a factor;

if all doctors took up investing with the same mentality as the lower-income property investor, then they could totally stuff it up and still be smiling.

By that I mean that the lower income investor is never going to be able to run out and buy some high-end OTP apartment for many hundreds of thousands of dollars - as their 1st, 2nd or even 3rd IP.

No; they'll have to settle for a lower quartile house or apartment, and hope it performs because they've no income to fall back on if the CG doesn't happen, or if the IP is vacant for a few months, or the stove blows up, etc.

If the doctor - who we assume is the higher-end earner adopts this mentality - they would start off with a very easy to hold IP, not buy something more expensive and perhaps risky in terms of cashflow and/or CG.

Sorta like rushing out and buying a brand new top of the range X5....which the doctor has no qualms about doing...except the IP sits in one spot, and has a rental return as well as the depreciation of the X5.

Just a doddle, really - if you are on a high income, and not even worth a minute of angst about whether you should do it or not.

 

[china]

BV what you are saying is that anyone on a high secure income can rush out there and start buying IPs with much less fear than a low income person simply because there is a much more secure buffer against mistakes, rental vacancies, no CG etc.

I don't totally agree with this because large sums of money can be wasted and lost just as easily with small sums.

In proportional terms with any investments, a dud investment is still going to be costly and painful. But procrastination may be the worse sin as nothing can happen. Nothing ventured but nothing gained.

 

[geoffw]

I've only ever known one doctor really well. As an exchange student many years ago my host dad was a surgeon. He was very well off probably, but had very few signs of wealth. He lived in an ordinary house and drove an ordinary car. He did have a holiday house in the area though- with fabulous lake views. One of the family's few indulgences was hosting exchange students.

It was only when I visited the family many years ago that I found out that he was a stock exchange investor, and spent some time keeping track of things. Although retired by then he still had an interest- financial and time- in his practice.

Income by itself will no build wealth. It's only when the income exceeds spending, and that income is invested well, that assets can be built. The ostentation of many high earners can be their downfall.

 

[redwing]

You have to face the enemy in the mirror

Apparently the majority of people get into a market near its peak and exit near its base. You can probably add those old chestnuts fear and greed to your old mate procrastination above

 

[geoffw]

BV what you are saying is that anyone on a high secure income can rush out there and start buying IPs with much less fear than a low income person simply because there is a much more secure buffer against mistakes, rental vacancies, no CG etc.

I don't totally agree with this because large sums of money can be wasted and lost just as easily with small sums.

In proportional terms with any investments, a dud investment is still going to be costly and painful. But procrastination may be the worse sin as nothing can happen. Nothing ventured but nothing gained.

There's still mistakes which can be made.

Real estate investing requires some knowledge. But it's not rocket science. It doesn't take years to acquire.

Just looking at demand vs supply for instance can help to avoid many mistakes. If there's a big supply of units coming onto the market and there's already a higher vacancy rate then you may have problems. Or if a newer suburb has lots of land available, it may be a while before existing houses show any rise in value, as most people moving there would want a brand new house for their money.

Just reading one of the books available on resi investing can help that knowledge.

 

[redwing]

This may interest you China (US Based though)

The White Coat Investor

 

[BayView]

BV what you are saying is that anyone on a high secure income can rush out there and start buying IPs with much less fear than a low income person simply because there is a much more secure buffer against mistakes, rental vacancies, no CG etc.

I don't totally agree with this because large sums of money can be wasted and lost just as easily with small sums.

In proportional terms with any investments, a dud investment is still going to be costly and painful. But procrastination may be the worse sin as nothing can happen. Nothing ventured but nothing gained.

It's real simple.

Keep earning what you earn, buy properties that yer average school teacher would buy - in a decent neighborhood - and wait.

That's about as low risk as this game gets.

And, in your case, if you use some of your saved cash - say 50% of the purchase price - the risk is even less because your cashflow from the rent is much better than the teacher who has to come up with an 80% loan or worse to get on the ladder.

Mind you; the more money borrowed and less of your own cash used means your IRR on the cash is way higher.

Or, just keep on doin' the Super and/or TD, and/or stick the cash under the mattress and hope for no break-ins while you are out.