Hi there,
I have a couple of investment properties and a ppr. I would like to take my prop. investing career to the next level and do ‘buy, renovate, sell’ projects.
Problem is im finding that i have very little time (between full time work, uni study for work, and family commitments) to look for the deals let alone catch them before someone else does. Im in Perth and properties are selling within days. Even the dumps!
My partner is very supportive and is encouraging me to take a step down with work, ie. shift to part time so that i have the time for investing. We are both on good incomes and no kids (yet) so it is probably the ideal time to do it.
My issues are:
* my career – i doubt my current employer will agree to me working part time. So i would have to look elsewhere probably a lower paid job not in my profession.
* socially – when i discuss this with friends, they think im mad and that it would be bad for my career.
* failing to make a profit from renovating..
* potential problems in getting finance if we go down to 1.5 salaries.I have a passion for property and would really like to take the plunge but at the same time there are other things to consider…
Please share your similar experiences/advice.
Hi there
Many people have raised the same question and i guess there is no exact answer.
There is no good time to start full time investing and you will always find reasons not too so make sure you are confident in your own ability and have the resources set up to make a go of it.
Factor in time delays, cost blow outs and longer than expected holidng costs. Remember you will be dealing with Tradesman and Councils who are notorious for not sticking to a timetable.
On the finance side i would suggest you try and set this in place before you make the leap. I have a client here in Brisbane I am seeing tomorrow who has done as you are proposing. He has handed in his employment notice but not got in place the finance or the structure for what he intends to do.
What i would suggest is that after you have decided what structure you will use then register an ABN as quickly as you can so to avoid potential pitfalls down the track.
Check with a independant mortgage broker before you call it a day as it could scupper your plans entirely if you have not made arrangements for funding.
Certainly once you have a track records Commercial Funding opportunities will exist dependant on the size of your development deals however you are normally charged a slightly higher rate of interest and maybe a higher application fee.
Richard Taylor
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You’ve picked a tough market ot work in. Perth is red hot at the moment.
Having said that, my broker just told me she picked up another place in Perth over the weekend. Don’t know the details.I have similar experiences in that I started doing renos’ as part of the process in duplexing properties. This was also in Perth.
But I started in 1990.
And I was a shifworker hence had lots of time off.I have moved onto other things ( subdivisions, syndicates, etc) and I still have a full time job ( still shiftwork)
But now I jv and partner people and we share the workload around along with the profits.
My jv partner is like you in that he is spread too thin and suffering as a result.
We have both made a commitment to sort this out this year, and screen out some of the time sapping activities that do not produce the required results that we are getting from our property investing.As far as the friends go….. its much easier if you are mixing with like minded people.
That way you don’t have to keep overcoming objections all the time, and to have to justify your decisions.
In the end all that negative energy will create self doublt and distract you.Keep your friends by all means but just don’t discuss property and investing around them.
In the end they will observe how much better you are off in the wealth department, and they will approach you..
Even if they don’t you will still be better off.
Trust me, it will happen…but you need to maintain you focus and make conscious decisions to not allow doubting thomases to cloud your dream.kp
Richard,
I need to come and see you next time I am in Brisbane…..kp
Hi Jaclift,
I am on the same boat as you..cept I’m in SA and in the process of buying a house. I would love to quit my “Bitches” job and start my dream in Property Investing cuz its what I’ve always wanted to do. Having says this I also knows I have alot to prepare before I jumping in the deep end without any support and experience.
Well good luck with your decision….Thanks for your comments everyone.
It is not an easy question to answer and all i can do is prepare myself properly. Thanks for the finance advice Richard, some things i need to consider there.
The perth market IS a tough one at the moment but my feeling is that in a hot market (if i can manage to buy well), there is a bit of a buffer for any cost blowouts since the high growth factor is there. It gives false profits i know but i figure that it is a good time to learn from first go mistakes etc. If that at all makes sense?
This is not a decision you can make alone but rather with your partner. Your profile shows you aged 29 with no kids “yet”, and I think this is the crucial issue. You need to sit down and talk with your wife and work out when you plan to start a family, if at all. If you go head long into fulltime property investing and she desperately wants a baby then this would put a huge strain on your marraige and perhaps end in divorce. Sort this out first.
If the WA market is too hot at present why not use the time to adapt to living off one wage, it will give you a nest egg and prepare you for the future.
We have been property investing for 3 years now, my husband works fulltime and I’m the property guru and mother to 4 kids. We still need my husband to work to enable us to qualify for bank loans but plan for him to retire within 5 years.
We’ve done some amazing deals and both love the property game. The hardest thing is only being paid once or twice a year !!
It is possible to live your dream it just takes a huge amount of work and courage.Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”Can you easily get back into your current job should it not work out?
I just took the plunge and did it, didn’t take much thinking, my husband kept working to bring in some extra money for 3 years.
We now are both full time investors, and have never looked back!what is the worst thing that can happen? To us, it was that we would have to go out and find a job again!!!
Xenia Ioannou-Mena
Property Manager
Cash Flow Solution specialist
E: [email protected]
M. 0412 437 582Well im the future wife and the one who will be having the babies!
We are actually planning a baby within the next couple of years. My partner (fiance) has absolutely no problems with me going part time, he supports me and believes in me. He does not like anything to do with property and i am the one who manages our current properties.Im the one that is hesitant due to fear of failure etc plus i must admit part due to peers negative attitude to it. (i have to learn to ignore or get over that!)
I would not have any problems with getting my job back full time if i could just get them to approve me to work part time here. But im not sure that they will. I guess that the other part of my dilemma is that i am in the early stages of my professional career and fear is if i dont make it in PI i will have stalled my career or jeopardised its progress.
Jules
(worry wort)When will I learn !! Thats the second time I’ve assumed the wrong sex. Sorry Jules and Xenia[rolleyesanim]
Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”Jules, ask them about going part time and see what they say. As Xenia said, if you quit and it doesn’t work out you can always get another full time job.
Whats the worst thing that can happen? you don’t make anymoney – then you lose 6 months in wages.
With carefull planning, hopefully you won’t lose money.
Terryw
Discover Home Loans
Parramatta
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Im actually working up the courage now, and will be discussing it with my boss tomorrow!
I agree with ‘what is the worst that could happen’ comment which brings it more into perspective.
Thanks for everyone’s useful opinions, it has helped me hearing them from other property investors rather than my negative friends.
Will keep you updated!
hey jaclift,
im in the same predicament….i study full time, work a dead end job, and keep the heavy social life going which doesnt leave much time to focus on property investing and checking out properties. I think at this stage i need a partner to achieve my IP goals, what u rekn?
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