Forum Replies Created
Hi Imron,
Welcome to Property Investing.Com! And all the way from China too… awesome!
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I’m an Australian, who’s currently living and studying in China.Hey – great! Pls tell us more about what you’re doing as it is certainly something very different. Is it an exchange type situation?
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Just recently, the idea of becoming financially independent at a relatively young age has become more and more appealing to me.I certainly understand! Good on you for looking for a new possibility.
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…and figured that property investment seems to be the way to go.I’d be interested to know the reasoning behind why you have come to this conclusion. There are so many ways to invest in property, and so many property investing outcomes… I guess what I am asking is ‘what outcome are you looking for from your property investments?’
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Obviously the sooner I could reach financial independence the better, however I’d still like to stay overseas both studying and working for a few more years if possible.Well great! That gives you time to develop an action plan that can combine capital collection (cash in) with investment activities (cash out). You are perfectly placed.
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I guess what I’m looking for is to hear of people’s opinions/experiences regarding whether it is better to start off with a larger amount of capital in a few years, or a smaller amount of capital in just 1 year or so (or possibly even no capital and now [
])Well, I think that you can only score a goal while you are in the game. My opinion is that it is better to get in asap and learn the ropes than holding off. I now say “you are only one deal away from financial independence… it’s that one great deal replicated many times over.”
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Regarding the latter two options, how feasible is it to invest in local (Australian) properties while living overseas and only returning home occasionaly during that time?Mate, only you can answer this question… you can make it as easy or as hard as you like. The key will be to leverage your time and to do that you’ll need to build a team around you. Regularly coming to this website is a step in the right direction too.
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Also, as an unexperienced but highly-interested newcomer to this field, I guess I’m just interested in hearing other people’s experiences of how they first set off down the path towards achieving financial independence, and the initial costs/capital that was required to do so.Good idea… I’d be interested to see the posts from a other people about this too.
Imron, thanks again for your post. Your contribution is always welcome.
Regards
Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Felicity,
Congrats! You have managed to completely confuse me with your post [
]As far as insurance goes, here are my thoughts:
1. You should insure the property for land and building insurance the second you sign the purchase contract. It’s a bit like getting car insurance before driving out of the car yard.
2. In a wrap you have two choices:
Option A: Have insurance in your name and have your mortgage and your client registered as having an interest in the policy. You pay and then get reimbursed by your client, OR
Option B: Have the insurance in your client’s name and have you and your lender noted as having a registered interest. Your client pays the policy and sends confirmation by way of a certificate of currency to you.
If you go with Option B then make sure any insurance proceeds go to you direct.
Whatever you decide, be very careful to ensure that you find out all the information about your client to ensure they don’t have a horrible past that may allow the insurance company to later claim that they wouldn’t otherwise of insured the property and that you didn’t make a full disclosure.
Some time ago I was working with an insurance broker to develop a wrap specific policy that protected against this risk. Negotiations stalled when they went broke and now I’ve had to start the ball rolling again dealing with someone else.
So much to do, so little time… I’ll report back if I hear any news.
Regards,
Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Josh,
Thanks for your post [
] and congrats on your potential purchase.Re: your question about the FHOG. I have cut and paste the following text from the State Revenue Office web site…
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ARE YOU ELIGIBLE?
To be eligible to receive the grant, an applicant and the applicant’s partner must meet certain eligibility criteria.
An applicant or the applicant’s partner must
*be a natural person (not a company);
*be an Australian citizen or a permanent resident;
*not have owned a home before in Australia;
*occupy the home as their principal place of residence within 12 months; (emphasis added)
*not have received the FHOG before; and
*not have entered into a contract to purchase or build a home before 1 July 2000, or not commenced construction as an owner builder prior to that date.On this basis I’d imagine that so long as you had the intention of living in the property within 12 months then you’d be OK. Perhaps be careful to only sign a lease with the tenant for less than 12 months from the date of purchase, otherwise it could be construed that you didn’t have the intention of living in it… otherwise why would you have rented it out for >12 months?
As for your property… seems like a good starter property to learn the ropes with. Just be careful on the body corporate fees.
Regards,
Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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