I like the chapter in Richest man in babylon, "Meet lady luck"
Touches on how taking action is a big part of getting started. how procrastination is a big part of missing out on "luck" or opportunities to be lucky.
I got started by taking action!
sorry, random but relevant i think.
Ben
Scott.Dunstan77 wrote:What I would like to hear is how some of you people got started and how is it going or the outcome achieved good? Bad? Any advice on books/education and general wisdom for a wannabe property investor will be highly regarded!!
Cheers and thanks in advance
Scotty
Great thread Scotty.
getting back to the original post. This is our story…
We did what you should do-ie buy a house and pay it off as quick as you can. We aimed low so that it would never be a stress, which it wasn't. Now fully own PPOR. Meanwhile bought local business premises against our will, (because we could,) mainly to prevent erratic business partner from having too much control over things (great person, very entrepreneurial, good friend, this helped it stay that way). This was never planned to be an investment. Gave property no thought other than that it served a function and owning it meant not being kicked out unexpectedly when whoever owned it wanted it back. However this premises is insanely positively geared. (which I did not realise till later-read on)
Then in January this year while pulling out the BBQ on the concrete verandah, the gas bottle fell off and pulverised my big toe. Suddenly all the watersports and biking/hiking/motorbiking etc we had planned for a family holiday was out for me for a month. Couldn't even swim or walk properly. Our family holiday was at some friends' house who happened to have some investment magazines lying around (they were getting into shares), including Your Investment Property magazine and money magazine. So while all the kids/other adults did active things, I bummed around with coffees, timtams and investment magazines and in the process suddenly understood what "equity" meant .
Then how we could go and buy more property without actually intentionally saving any deposit money at all.
I have since devoured every book I can get my hands on, subscribed to YIP and API and Money magazines and the steep learning curve has resulted in us using some of said equity as deposits for IPs in different states this year. Now we want to get another IP in a capital city-just not sure which city as we want something for capital growth.
Books that have been excellent:
"Rich Dad Poor Dad" by Robert Kiyosaki- very inspirational and motivational. (and quoted by many other authors in their books, I might add!)
"From 0 to 130 properties in 3.5 years" Steve McKnight (essentially about positive gearing and going ahead by volume)
"20 must ask questions for property investors"-Margaret Lomas
"How to grow a multi-million property portfolio"-Michael Yardney. (He makes a lot of sense about how capital gain is so powerful)In summary we are still learning and our goal is not really properly formulated, except for the common thread in all these books , which is "get started", which we did quite quickly.
Other common thread is "Time". so we are learning patience and waiting to see what Time does to what we have bought.
A bit nervous about having over $1M in loans all of a sudden, esp with interest rates on the rise, too, but the numbers are all ok so have to trust my maths a bit.
Anyway, that's our story.
Hi,
Since the age of 21, I've always wanted to own my own house because of all the talks from my family about how house prices used to be so cheap (around year 2003). Especially, how they spoke about prices almost doubling etc…I was still studying at Tafe and in 2004 I'd finished my diploma and started working in the city for a measily 34k salary office job but I'd managed to save up approx $50k by start of 2007 (I was living at home). Bought my first home in Feb 2007 for $301k (got 6k gov grant) in Melbourne. I had help from my mum, who lent me $150k for 2 years. I got lucky because this was the start of a property boom!! 2 months later, a house one street down sold for $320k of smaller land, lesser quality, no opportunity to subdivide compare to ours. This was my first property.
I was dating my long time girlfriend and this spurred her to want to buy her own home also but her salary was only at 30k. In mid 2008 my partner bought her first property at $240k aged 21, doing 3x different part time jobs and studying at the same time. This was her first property.
In Sep 2009, we've managed to secure a property in the middle of a boom but with a bargain price of pre-boom price becoz the owners were elderly and had no insight into the market price. We were the only people to see the property and first to buy it before it was even advertised on the market. we got this house for $475k now valued at approx $700k (basing on sales around us).
Our total equity now stands at approx $460k if we were to sell all three properties. My partner's age 23 and I am now 27yo – we both look to achive financial freedom by age 40.
There was alot of luck, support and sacrifice (until this day we have not had a holiday overseas). We are now planning our first holiday to asia next year! Someone once told me that you need to risk money in order to gain money! That will stick with me for the rest of my life.
Ben K wrote:I like the chapter in Richest man in babylon, "Meet lady luck"
Touches on how taking action is a big part of getting started. how procrastination is a big part of missing out on "luck" or opportunities to be lucky.
I got started by taking action!
sorry, random but relevant i think.
Ben
Like it Ben.
And in regards to luck, i remember when Jack Newton was once asked how lucky he was to get the 40 yard put that won him his 4th American PGA tour championship… he replied to the reporter " I practise my luck 10 hours a day" !!! Very true
Similar to your ideas about procrastination, this quote sounded like it was written for me once upon a time:
"Knowing, without doing is like plowing without sowing"
My parents handed me "rich dad poor dad" and Cashflow quadrant when i was 20. I read steves books also but did nothing with the knowledge till almost 10 years later. I was the property expert to my friends, but the expert who had never taken the risk himself until now. I firmly believe that investing is State of mind that effects your actions. It took me awhile, i could have retired by now. But i am excited about what the future holds for me and my family.
Regards,
Dave
Got Started, at 23 bought a few acres for 15k revalued at $30,000 6months later bought a house and went from there
Now we have severals investment properties etc
[That's bad advice. You shouldn't invest in property for tax concessions.
The choice you make comes down to many factors, one of which is your individual risk profile. What do you feel comfortable with?There's no real right or wrong answer – it comes down to what you feel comfortable with. All three options above, in my book, are better than doing nothing….the one you choose is utlimately your decision.
Jamie[/quote]
Really? I beg to differ. The tax concessions by investing in property are the icing on the cake. You make your profit when you buy well, ….manage the tax deductions properly…. expense the depreciation in the accounts….. reduce your overheads by managing the property so your outgoings are minimal and……if some idiot wants to pay you well above what its worth because of the attractive yield you take your profit……
Instead of paying capital gains you purchase an even better property, prepay the interest in advance to offset your capital gain in the same financial year and start the process all over again.
Qlds007 wrote:Hi ScottyGrab a copy of July 2010 API magazine and you can read about how i got started.
Can anyone let me know what page it is in the API? Cheers
Nzuv Sorry i believe it is the August not July edition.
Shoot me an email if you want a PDF version and i can send it to you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Nzuv Sorry i believe it is the August not July edition.
Shoot me an email if you want a PDF version and i can send it to you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hey Scotty,
I got into property investing so I didnt have to through the stress of a "personal mortgage" and rest of the costs that accompany them. My basic plan is to gain enough property to pay for own home by either selling a couple and paying cash or having the rents I collect pay for it for me. I am 28 in December working as a surveyor in the construction world so I move around alot, but when I do find the right spot to call home I want to be able to be happy were I work with minimal hours and not just follow dollar signs.
If you do your homework and be patient it will all work out in the end.
Good luck mate
JJamie M wrote:We had our PPOR re-valued and took out a Line of Credit for $50k. This was used as a deposit for IP#1 and IP#2.
IP#3
In May 2010, we exchange on IP#3. It’s a three-bedroom house in Canberra. The deposit we used was from a Line Of Credit we took out on IP#1 (after renos, we had $40k in equity we could access).We're now on the search for IP#4 which we will use this years tax return as a deposit.
During this time, I've also changed careers and have become a mortgage broker. It just made sense, I enjoy everything property related and now I'm able to help others structure their finances to grow their portfolios.
What the hell kind of financial institution lets you use a line of credit as a deposit?
It concerns me that someone who structures their own finances like that is out there arranging loans for people.
Ouch!
C-R-E-A-T-I-V-E investing people….
If someone is happy to lend based on that then go with it. Good on you Jamie for having a crack, people need to make their own decisions and take responsibility for their own investing.
Sigh, I'm too boring to be published LOL!
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeHi everyone!
I've just joined this site to gain more info on how to begin a property portfolio. I have started reading Steve McKnight's book and it has inspired me further to create wealth.
I have just finished uni and looking for work at this stage and buying my first home seems so far away! Any tips on how to get going other than trying to get some money behind me?
Any comments or suggestions would be really helpful!
Hi and Welcome Jacintak!
Find someone who will partner up with you..
Find your passion and run with that, whether it is some sort of add value or mining towns or USA, be an expert in what you love, it will show.
It might take you sometime to get into the swing of it, don't rush as there are plenty of deals for everyone, I think most people here have taken at least a couple of years to really get going and to understand what they want to achieve.
Good luck!
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email Meorks wrote:What the hell kind of financial institution lets you use a line of credit as a deposit?It concerns me that someone who structures their own finances like that is out there arranging loans for people.
Pretty standard structure really. Take out a LOC or a seperate IO loan against a PPOR to be used as a deposit towards an investment property. Nice first post Orks…..or are you somebody else?
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 Scotty,
First of all, great post idea – it's awesome and so encouraging to read everybody's stories!
I got started about 10 years ago and I knew nothing! I made so many mistakes, but the one thing I did right was that I knew I wanted to invest and I got active. Unfortunately I didn't buy the perfect property and I put myself under a bit of pressure. Had I had the right education (which I didn't) I could have done far better out of property because I was ready to buy at the start of the boom. I ultimately missed some of the boom years through ignorance when I could have educated myself and done better.
But the good news is that, despite all of my mistakes, the property still performed pretty well and I haven't lost out! Now I'm building a portfolio by buying about one property each year – over time this will build a great retirement fund!
So where would I start if I were to do it all over? I'd look at forums like this. I'd download podcasts (there are free ones, such as the one I make with a friend of mine – we talk about the sort of info we wish we could find when we were starting out). I'd look at websites like realestate.com.au and also grab magazines about property to read through them. I'd set better goals than I did, and I'd make sure I understand that there are a few different types of property investing and not just one.
Anyway, that's my two bobs worth!
Good luck, and feel free to ask any questions you may have.
Cheers,
DenDWolfe wrote:Ouch!C-R-E-A-T-I-V-E investing people….
If someone is happy to lend based on that then go with it. Good on you Jamie for having a crack, people need to make their own decisions and take responsibility for their own investing.
Sigh, I'm too boring to be published LOL!
D
Cheers D
My investing will be a bit boring for the next few years – just about to exchange on my last IP for a while.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]
Cant see any issue with Jamie's suggestion and is what i started with and what i still recommend to investor clients today.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie M wrote:orks wrote:What the hell kind of financial institution lets you use a line of credit as a deposit?It concerns me that someone who structures their own finances like that is out there arranging loans for people.
Pretty standard structure really. Take out a LOC or a seperate IO loan against a PPOR to be used as a deposit towards an investment property. Nice first post Orks…..or are you somebody else?
Ok maybe that is standard practice, it just seems weird to me that you are using debt as a deposit to secure more debt. It's stuff like that that creates asset bubbles.
I'm way more conservative, but have probably been lucky with timing to some extent. Pooled some funds with 3 other acquaintances about 15 years ago and bought 20 acres of land in a coastal town in South Australia, and have been gradually subdividing it every since, using the profits from the initial sales to fund the infrastructure for the next stage. The land was on the edge of an industrial area but only 800m from the beach, and the town has grown way past our land since we bought it.
orks wrote:[Ok maybe that is standard practice, it just seems weird to me that you are using debt as a deposit to secure more debt.It's called leverage – it's how investors operate.
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]
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