All Topics / Help Needed! / Am i too old…

Viewing 19 posts - 21 through 39 (of 39 total)
  • Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi Rob,

    Did some work with a single mum a few years back.

    She was keen to get ahead. Spent some time talking through a range of issues, finding out whether she really wanted to invest (or just thought it a good idea at the time), her current financial situation, plans for the future and so on. She was late forties at the time.

    Ended up she bought a property.

    If she does nothing else she will have at least one asset she can sell and utilise the capital profits in some income providing capacity. 

    Bottom line she is better off with one property than none.

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    Not too old, obviously strategies change with life expectancy and investment preferences and goals.

    You're in the right place here.

    Some experts on the forum  have been here a long time and have many posts to their credit, been helping forum members extensively.

    Always nice to see new members doing an intro so we can get to know them.

    good luck

    cheers

    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
    Email Me | Phone Me

    selling motels in NSW

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

    Hi Rob,

    Derek has given you some sound advise and the thread overall is a good one. To iterate – start small but start with a focus, a strategy from the beginning. Often your financial position, available leverage and risk tolerance will determine your strategy. Then with what you can borrow and strategy in mind will to a degree determine the areas you can invest in.

    This process fine tunes things a bit so you're not looking anywhere and everywhere ( common mistake to achieve little).

    Get your goal and strategy in order, coincided with what you can borrow and your risk tolerance ie: what you can sleep at night with and then go property hunting.

    All the best with your investing

    Ian

    Blockhead – http://www.theblockblog.com.au

    Free Property Investing Info for Investors With A Sense of Humour & more…

    Profile photo of Ford FairlaneFord Fairlane
    Member
    @ford-fairlane
    Join Date: 2012
    Post Count: 10

    awesome responses on this thread and thank you all for them. @catalyst… yes, i do see your point about going regional being contradictory to my aim of capital growth. I guess the reason for regional is that its more affordable (and serviceable) to start a portfolio without having to pay the city prices

    Profile photo of PakGirlPakGirl
    Member
    @pakgirl
    Join Date: 2012
    Post Count: 2

    Hi Rob,

    When you establish a Self-managed super fund, you roll our existing super into it.  There generally needs to be a minimum of 2 members (that's why I suggest using your wife's super too).  You both then become the trustees of the SMSF, and you become responsible for all aspects of the fund, meaning you can choose how you wish to invest the funds.

    You must remember it is still a superannuation fund, therefore you can not use the money for everyday living.  There are strict rules that apply to SMSF, just as they do to retail and industry super.

    The ATO has some useful booklets for people who are looking at SMSF and if you have some time, download them from the address below and familiarize yourself with the requirements for running a SMSF.  I recommend that you see a SMSF specialist for the best advise for setting up the correct structure of the fund for you.  They will also be able to guide you with some of the investments strategies.

    http://www.ato.gov.au/superfunds/pathway.aspx?sid=42&pc=001/149/030&mfp=001&mnu=49150#001_149_030

    If property is the area you are wanting to invest in, there are many SMSF specialist that solely specialize in  property investment for SMSF.

    Good luck!

    Bec  smiley

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

    PakGirl

    You only require 2 members where the Trustee is not a Corporation.

    Sole Director Trustee's are fine.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of rusty05rusty05
    Member
    @rusty05
    Join Date: 2011
    Post Count: 94

    Wow, isn't age a funny thing. At 33 I've been in and out of property for 13 years but have wanted to go hammer and tongs for the last 12 months. After we get our PPOR and business sorted, after our little girl gets better, after the wife goes back to work after after after… We have around $850,000 of equity and a reasonably healthy wage but think I've still got plenty of time. But 39's not far away… thanks for the wake up call everyone. 

    Profile photo of Ford FairlaneFord Fairlane
    Member
    @ford-fairlane
    Join Date: 2012
    Post Count: 10

    Rusty! that doesnt make me feel good! lol

    Profile photo of rusty05rusty05
    Member
    @rusty05
    Join Date: 2011
    Post Count: 94

    I laughed when you asked if you were too old but only got worried when I started to read the posts where others tended to agree!

    Profile photo of Ford FairlaneFord Fairlane
    Member
    @ford-fairlane
    Join Date: 2012
    Post Count: 10

    yeah a little scary..but i am determined!!!!!!

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

    Hi FF,

    There is a critical piece of information missing in all of your posts.

    You have told us you are 39 and then proceeded to ask a question to see if you were 'told old' – you haven't told us what age you want to be independent/retire. What age is in your plans?

    This information may put an entirely different slant on things.

    Property is generally considered as being a 'long term investment' – according to businessdictionary.com this is defined as being plus 10 years.

    Profile photo of Ford FairlaneFord Fairlane
    Member
    @ford-fairlane
    Join Date: 2012
    Post Count: 10

    I really havent thought about it to be perfectly honest. I just cant see myself "working for the man" until retirement age… 55 years of age and retired sounds great to me.. How does that put a slant on things? quick retirement suiting a strategy of buy, renovate cash out as opposed to waiting for time based CG? is that the kind of thing you mean.. sorry im such a newb

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

    Hi FF,

    That is exactly what I meant – means people can frame their responses on the basis of you are planning to work for another 16 years. We now have a specific target to work towards.

    When I last looked at some REIA stats median property prices in capital cities tended to double (on average) every 10 years. This is not a straight line growth rate so allowance needs to be made for price flat spots and declines in any planning.

    For what it is worth I believe a simple buy and hold (of mainstream property) strategy at the moment is not likely to realise terrific results in the short term. We have just come off an incredible growth phase in most capital cities and country areas which has largely been fueled by easy credit, media exposure and a self-fulfilling prophecy. I am not convinced we will see the same circumstances repeated for sometime.

    For this reason value adding strategies such as sub-divisions, renovations and small scale developments look like being successful strategies during this time. Not only do these strategies add value it also means your rent return (on funds invested) increases which means the next property is closer.

    Profile photo of AussieKiwiAussieKiwi
    Participant
    @aussiekiwi
    Join Date: 2012
    Post Count: 29

    Hi Richard can I have a copy of your e-book please.Sounds to good not to miss.

    Thanks for the opportunity as well

    Profile photo of red123nzred123nz
    Member
    @red123nz
    Join Date: 2007
    Post Count: 73

    In regards to using Super/ SMSF to buy property. it is not as straight forward as people would like it to be especially in the residential property side. So Be aware of what your getting into if your going down that path. Commercial property investment in SMSF is more plausible but still have to consider the opportunity cost of alternatives.

    Hope that helps!

    Profile photo of JT7JT7
    Member
    @jt7
    Join Date: 2010
    Post Count: 286
    red123nz wrote:
    In regards to using Super/ SMSF to buy property. it is not as straight forward as people would like it to be especially in the residential property side. So Be aware of what your getting into if your going down that path. Commercial property investment in SMSF is more plausible but still have to consider the opportunity cost of alternatives.

    Hope that helps!

    Respectfully I have to disagree.

    In relation to using Super/smsf as a strategy to purchase residential property through I think it is easier than many people think. 

    My wife and I have just established an smsf and subsequent entities to purchase and hold property. We completed our own DD on employing the strategy and then engaged professionals to help facilitate the process. As a result the entire process was extremely easy and we're just about to settle on our first property in the smsf.

    We used a Queensland accountant who specializes in the process and were so impressed that he has won all our business and we live in NSW. Not to mention our MB who is a gun and also a Queenslander…thanks Richard! 

    To us the opportunity cost of leaving our retirement funds to be ravaged by the market and excessive fees paid to a fat cat fund manager was too great.

    The process of taking responsibility of our own future and our own money is empowering whether that be in or outside of super.

    Jack  

    Profile photo of LynFLynF
    Participant
    @lynf
    Join Date: 2012
    Post Count: 14

    Hi Rob,

    There are lots of valuable and heartening posts above. What you can take away from this is that there is more than one way to achieve your goal and age is not the barrier you first think.

    Please also be heartened in the fact that you are not the oldest to be looking to their financial future. My husband has just turned 50 while I am 10 years his junior. We have no property to our name at all and until I pushed the issue he had no plans for his (and our) financial future. We are now on a mad race to financial freedom before he reaches retirement. With the help and support of this fine group of like-minded people and also taking advantage of Steve McKnight's invaluable knowledge and experience we feel that our goal is achievable.

    Hope this helps.

    Lyn

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

    Hi red

    Can you explain why it is "not as straight forward as people would like to think especially on the residential side"?

    I have just settled my 41st SMSF deal and never had a problem as long as the client deals with an Accountant who has some idea of what he is doing (And as Jack mentioned you would be surprised how many do not have a clue)

    Done deals for clients as old 61 where the lender wouldn't take his S/E Contributions into consideration due to his age to a 28 year old who had less than $50K but was making a lump sum contribution.

    I would like to understand your reasoning for such statement.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of chanakyachanakya
    Participant
    @chanakya
    Join Date: 2012
    Post Count: 26

    Thanks god people in this forum are assuring 39 is not too old. I am in the same boat as ford fairline and need to make my first move. 

    Thisngs are not that clear but this forum is a great source..

Viewing 19 posts - 21 through 39 (of 39 total)

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