what has been some people pitfalls when first getting into property. Wife and I are very early on in wanting to buy property. We just after some general help. EG magazing after magazine says you need to do your research but I am yet to find a article along the lines of this. What is the most important things to research when buying property. Every article says research but does not actually say what is helpful when researching. As I said we are very green but have 4 years ahead of us to save and gain experience in ways to go about the topic of property before buying our first house.
thankyou in advance
Stephen
Hi Stephen
One of the best books I've read that actually relates to selecting an IP was Margaret Lomas' 20 must ask questions. I like the strategy she uses and the book is helpful for those starting out. For $20 it's a pretty decent investment – prob could get it cheaper of ebay.
Here's some IP related websites that may also be of assistance – http://www.passgo.com.au/property-data-websites
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hey Stephen,
You must be a nice block with a name like that
.Many people comment that starting out is the hardest part – not only is knowledge an issue, but so too is confidence.
I could go on an on about this topic (in fact… I will be at the upcoming seminars I have just announced), but for a quick answer that I hope points you in the right direction:
1. Many investors buy a property and then make a profit. That is, they buy then strategize. This is a flawed approach.
2. Instead, the first step is to work out your wealth creation goal. That is, what you are trying to achieve from your investing.
3. Once you know your goal, you can then look for a model or investing approach that will get you there. For instance, you may need to buy multiple properties, and 'trade them' as you build your capital. Or else you may have a long term approach and can buy (say) a property every couple of years and achieve your goal if you achieve your growth targets.
4. Once you know what profit you want, and when you want it, you can select the most appropriate investment strategy.
5. Armed with knowledge about the goal you have, the profit outcome you want, and the best strategy to achieve it, your next step is to identify an area you want to invest in, and then ultimately the 'right' property for your needs.
6. Of course, once you have found the property, it's up to you to do your due diligence and then negotiate a price you're happy with.
7. Then, once you've bought it, you should look to apply skill to get above-average growth and income returns.
Phew! That's quite a bit to take in, but it's a quick step-by-step approach which I strongly believe will lead to the most successful investing outcome possible.
If you'd like to know more on this topic, then I suggest you take a look at the seminar series I'll be running soon. The link is provided in the signature tag below.
Cheers,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thankyou both for your assistance. It really is appreciated. It has given us something to think about.
HAve a great day
Stephen
Hey
So we have layed a plan of attack for our investment future. Our end goal is to be able to live off property. So passive income is the goal. We like the idea of renovation to increase equity to fund further purchases. Buy and hold is also and option. Any further help would be appreciated. Only getting few responses from my posts so far getting bit disillusioned
Stephen,
Perhaps if you asked a few specific questions you might get some more answers. The more general the question, the harder it is to answer.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hey Steve some good advice will work on that keep tuned
Stephen
Hi layingplans,
Everyone has a different strategy. At the moment part of mine is to only buy stuff that I can drive to after work if necessary to get a personal visual on any issues.
Can you help us understand something of your lives? Where you live, what industry you work in, where your family is located… this will help us understand what towns are not a major bother for you to visit often for research, reno, etc…
jacm
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
laying plans wrote:HeySo we have layed a plan of attack for our investment future. Our end goal is to be able to live off property. So passive income is the goal. We like the idea of renovation to increase equity to fund further purchases. Buy and hold is also and option. Any further help would be appreciated. Only getting few responses from my posts so far getting bit disillusioned
You also need to look at your own individual risk profile when it comes to purchasing property. Do you need the comfort of owning a generous portion of a property (ie. using a big deposit to purchase) or are you happy using only a small amount of your own money and borrowing the rest from the bank? Personally, I prefer the latter but I had no problem sleeping at night when my portfolios LVR was high.
You also need to look at your financial situation – this will help determine what you can reasonable achieve. You might have grand plans to grow a portfolio but find that your current circumstances might not allow you to get off the starting block.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hey guys thanks for replies.
JacM you want to know a bit about us. Well we are married have 3 kids under 4 . My wife stay at home mum. I work 5-6 days a week earnign approx $80000 per year. We currently renting in Croydon in melb. Looking to buy around MT Evelyn, Montrose or the Basin which is in Melbourne as kids going to school in Mt Evelyn. We just opened a first home saver account so have 4 years to access funds. This may seem like a funny thing to do. However we feel totally comfortable with this idea. Another reason is our bankruptcy is finished in 4 years. to hard to explain what led us down this path. Suffice to say that is done so it forces us to wait. Our initial plan is to buy our PPOR hoping to be under market value do some renovation get it revalued a year later after purchase and release that equity to buy our first IP. We are not really locked in just to Melbourne.
We are interested in buy and hold in other states as well that have good prospects. Just have to do our due diligence [what is this] I guess. We just really want to get a solid idea on how to approach this property investment path we have started on. I am the sort of personality that when i start something. I want to find out so much about it but I want to getg it right and Know I am on the right track as if I dont understand something. I can get a bit frustrated that I dont seem to be understanding it. Which then hampers everything. So any help would be GREATLY appreciated. Please help us anyone and everyone lol.
All the Best
Stephen
Will write more tomorrow, but here is a link to a thread that asks the very question of "What is due diligence" that will help you.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Thankyou so much JacM.
That helped a lot am poring over it now and will do also when free of kids so can really concentrate. Your help has been so helpful so far. Thankyou very much
Stephen
laying plans wrote:Thankyou so much JacM.That helped a lot am poring over it now and will do also when free of kids so can really concentrate.
Stephen
See you in about 20 years then.
It can be confusing with all the different strategies. You have the right idea with reading lots and getting your head around it before you start. Keep reading and asking questions and when you are ready you'll know where you are heading and what to buy to get you there. That's a lot more than your average property investor. Most buy an IP to save tax. Most people buy and sell their first IP within 5 years and never buy again because they don't do what you are doing. Well done.
I see your point catalyst lol. Our reason to get into property is to free ourselves financially. We have been driving around Mt Evelyn [victoria] last few days and have found some areas that we really like. Few other options but firstly getting a feel for an area that we like. This property forums has really helped in answering some of the questions I have had and confirming I am on the right track, even if very early. All I can say is thankyou for your support. There is so much to research and we are finding obviously different strategies have different things to research. We are tending towards the buy under market value and renovate and then revalue release that equity along with some CF+ properties. OUr PPOR is goint to be in Melbourne's east but IP wise we are happy to look in other states and obviously use strategies that would benefit that area.
Can I ask other people who have gotten this far. What sort of team do you need around you for a good support. The ones we have thought of are in no particular order
1. Mortgage Broker
2. Accountant
3. ConveyancerWe know there would be others but who are they and what a good way to find some ones. I assume word of mouth is best way or one of better ways
Thankyou in advance
Stephen
.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
