All Topics / Help Needed! / New Investor

Viewing 14 posts - 1 through 14 (of 14 total)
  • Profile photo of prospectorprospector
    Member
    @prospector
    Join Date: 2012
    Post Count: 10

    I am new to this site and have only just started to look at property as an investment. I have no idea where to start, there is so much info out there and also looks like plenty of pitfalls. Are there any agents or brokers that someone could recommend in Perth to help me get started

    Profile photo of gibbo1gibbo1
    Participant
    @gibbo1
    Join Date: 2008
    Post Count: 152

    Hi,

    My suggestion is to spend a bit of time reading through the forums, property magazines and books. By just meeting up with one broker you will only get one view. Having done some research prior you will have a better idea of what you are comfortable with and can ask more questions of the broker.

    If you want to PM me your email address I can send you a couple of resources.

    Regards

    Gibbo

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi prospector

    Welcome to the forum.

    I can't recommend anyone in Perth but most things are done via email/phone these days so you have the opportunity to choose any mortgage broker from across the country.

    Start with educating yourself, read up – there's some great books that explain the fundamentals of property investing and free forums like this provide up-to-date info. There's also a couple of national magazines – Your Investment Property and Australian Property Investor.

    Once you have an idea of what you want to get out of investing, have a chat with a good broker about your plans and they'll run some scenarios for you and work out what's achievable.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Cameron McEvoyCameron McEvoy
    Participant
    @cameron-mcevoy
    Join Date: 2012
    Post Count: 4

    Hi Prospector,

    Welcome to the world of investment property!

    As others have mentioned, the books, magazines, and forums are great. I’m a big audio-visual person so I’ve discovered Youtube as being a great mecca for local advice by industry experts and professionals.

    I also keep my own blog (funnily enough it too has ‘spectator’ in the title!) where I very recently blogged about the dangers of listening to mainstream media (versus specialist media resources such as this very forum). See, I’m from (And still work in) the media industry myself so I know how misleading it can be.

    This post is really worth a read, check it out if you have a few spare minutes:

    http://www.propertyspectator.blogspot.com.au/2012/03/mainstream-media-glamorisation-of.html

    Cheers,

    Profile photo of prospectorprospector
    Member
    @prospector
    Join Date: 2012
    Post Count: 10

    Hey guys
    Thanks for the comments and the links. I think my first step will be to talk with my lender and see how much equity is in my home i am living in now and how much i can borrow against it
    This should give me an idea of what price range i am shopping in.

    Cheers

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Wow prospector hate to say that is probably the worst thing you could probably do.

    Your lender will be looking to maximise its own security position and be wanting to cross collateralise your PPOR with your IP and certainly isnt going to tell you how to structure your loans correctly.

    Other little trick is lenders often do a quick credit search telling you that it wont do you any harm and that way they can confirm the deal and next thing you have fried your credit score.

    Talk to a Mortgage Broker who is experienced in investment lending and get some Professional advice on how to move forward and that doesnt mean the local Aussie / Mortgage Choice Broker who is a plumber by day and a mortgage expert at night.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of prospectorprospector
    Member
    @prospector
    Join Date: 2012
    Post Count: 10

    Ok Qlds007, thanks for the advice. Could you explain what you mean about the lender doing a credit search and frying my credit score

    Cheers

    Profile photo of Marie123Marie123
    Participant
    @marie123
    Join Date: 2009
    Post Count: 176

    http://www.propertymeeting.com.au/

    Here is something that should get you started. I am pretty new to the whole thing myself but I have picked up a few good contacts via this monthly meeting :)

    Profile photo of sapphire101sapphire101
    Participant
    @sapphire101
    Join Date: 2006
    Post Count: 203

    Hi Prospector,

    Some good meeting places to network are on http://www.meetup.com
    Talk to as many people as you can who are active investors. The wealth of 'street' knowledge they have is invaluable.
    There is also an investor group in Perth linked to the one in Melbourne – Active Property Investors (google it)

    Ian
    http://www.theblockblog.com
    Free Property Investment Info, Tools & Resources for Switched On Investors

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    prospector wrote:
    Ok Qlds007, thanks for the advice. Could you explain what you mean about the lender doing a credit search and frying my credit score

    Cheers

    Not Richard but what Richard is talking about is often people go into a bank and innocently ask how much can I borrow?

    During conversation bank asks how about we get a pre-approval to make sure these numbers are correct?

    You says – 'Why not'

    Bank submits all of your details and there is a hit on your credit record.

    Make too many of these enquiries without getting the loan and your credit record looks decidedly sick. So many applications and no-one has said yes. 

    New bank looks at next application and thinks "there must be a problem with Prospector so we'll decline the application"

    Notwithstanding Jamie's comments about doing all finance work remotely – some people need to see their broker. If you are such a person I can make a recommend for a Perth broker.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Excellent post from Derek above.

    It's amazing the number of new investors that get stung by this.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    HI Jamie – Aww shucks.

    Prospector – an addendum to my previous post.

    A broker will be able to crunch your numbers using a fancy piece of software that they all have which also works out which bank is best for you. Just make sure you don't get to pre-approval stage yet.

    So much to learn.

    Key point is start slowly – you don't have to own an IP by Friday.

    Profile photo of Marie123Marie123
    Participant
    @marie123
    Join Date: 2009
    Post Count: 176

    The Active Property Investors/Network is no longer running in WA. It is now under the Property group banner as above…

    Cheers.

    Profile photo of Cameron McEvoyCameron McEvoy
    Participant
    @cameron-mcevoy
    Join Date: 2012
    Post Count: 4

    Agree with all here.

    Whilst I’ve had the fortune (and in all honesty, LUCK) during my first property purchase to apply with just one lender and have that lender approved, many new/young investors do get stung by this.

    I’ve even had my lender, after pre-approving me, and then me saying ‘Actually, I might look at some other lender deals first’, ‘kindly’ remind me that I should not go and get pre-approvals with other lenders if I’m already out-to-market with him (effectively working his magic to ‘guarantee’ I’ll go with them!)

    The process Derek recommends via use of a mortgage broker’s software is a good one. Remember, mortgage brokers work ‘for free’ to their clients (instead, taking a small cut of the deal with which ever lender you end up with).

    Also can’t stress and agree enough that only make the pre-approval with the shortlisted lender you actually want to go with. If successful, you then need to act/work very quickly. This is easier for folks who have office jobs (or jobs where they are in front of a computer all day), because these days, most ‘processes’ within the purchase process can occur online/via email. Harder for those working outdoors/Not in front of a computer 9-5, as they have to do all of the work outside of 9-5 hours.

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