Young again? here's ur second chance

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From: Joo Joo


Hi Guys,

Im settling my first IP (DHA property, positively geared till june 03) on mon and am contemplating what to do next?
Any recommendations, everyone says what they will give to start all over, this is your chance, through me!!

I'm twenty, a uni student, have a full time job but am thinking of going back to uni full time in march. This first property was purchased with very little research (all I looked at for Capital growth was the percentage increase in the Domain website), since then Ive learnt a considerable amount.

Firstly, what is the difference btw a LOC or a normal loan that has the facility of redraw?

Secondly, what should I do? buy 1 or 2 off the plan using deposit bonds then sell on settlement? or buy land and build duplex and either sell or rent? Or should I give flipping a go, I'm not too sure where to find many investors who I could sell to? Or should I simply build up some equity and buy a small unit in my area?

How can I organise the unit to be revalued, I would like to do something around March, researching is one major thing, What should I do guys????

Awaiting ur wisdom
joojoo
 
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Reply: 1
From: Donna Larcos


WOW. Such exuberance! Now that does
make me feel really old. Congratulations
on your first property at twenty. I am
hoping my son is going to be in the same
boat in 3-5 years. I'm doing my young
again thing through him.

You could, of course, do all the things in
your post. They are all possible though I
would extend a note of caution. This site
opens up some wonderful vistas and
gives us access to all sorts of property
investors - flippers, wrappers, renovators,
buy and holds, developers - but what we
can't see from the desktop is the
experiences both good and bad from all
those investors. Which is best for you will
depend on a lot of things including your
income, current assets, personality, risk
tolerance, family safety nets, job security
and skill base. One of the problems with
the "YOU CAN BE A MILLIONAIRE LIKE
ME" seminars is that they do not
recognize that people really are
temperamentally different and something
that I think is like falling of a log could be
really difficulty and out of character for
someone else.

The other important point is a little line
that appears at the bottom of every
prospectus for managed funds - "Past
returns should not be taken as an
indication of future returns." Buying off the
plan may look really easy in a rising
market but in a falling market it can be a
disaster, particularly if you are not good at
reading plans. You also may find that the
banks start to get a bit jumpy if you are
putting a finger into too many pies at
once. They will like to see that you can
build equity and can buy appropriately.
Otherwise they may write you off as a
redneck.

I don't know what you are like but I would
say be very careful of over-extending
yourself financially at a very young age
and if you have a leaning in a certain
direction such as developing or flipping,
try to find a mentor on the site who is
willing to pass on their experience.

Property is a great way to build wealth but
it can also be a long time between drinks
if you get it wrong.

Anyone else care to comment? Am I just
being an old party-pooper?
 
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Reply: 1.1
From: Gee Cee Clay


A great post.

The trouble a lot of the time is that we all get sooo over exited at what is possible.

I think it is like a pie that keeps growing. At the start you think you can conquer every part of it. But in reality you really need to concentrate on every little part.

Eventually each little part adds to what you know and how the whole picture adds up.

Only problem is that the bigger you get then so too does the pie.

So you just keep moving up along with it all.

I guess basically what I m saying is don't get overexited and have your finger in to many pies. Grow & learn slowly.

Ho Ho Ho

Gee Cee
 
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Reply: 1.1.1
From: Joo Joo


Thanks guys, taking it slow, safe and smart is the way to go. I suppose I did get carried away, you know how we are image conscious, we want to be rich and we want it now!!. I really needed someone to drum it in my head that it is not as easy as it sounds and that when you fall, you really hurt.

Good luck in educating ur son Donna, it was a great post indeed and Gee Cee I know what u mean about the pie, its a never ending cycle.

Ho Ho Ho to you both

any other words of wisdom?

joojoo
 
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