Hi all
Just wondering if there is anyone who can shed some light on a subject that keeps me awake at night.I am considering selling a business which i run at present which would give me around 120-130k to use for investing via my current mortgage setup(split-loan).I have dabbled in property on and off but wish to pursue it as a full-time ambition.Just wondering if i were to use these funds how should i begin my journey so as to create income(living etc)whilst building a portfolio along the way.Any suggestions from seasoned full-time investors would be great.
Thanx
KeenazHi Keenaz,
I don’t want to be a wet blanket, but do you think that NOW is a good time to be doing property fulltime, and expect to earn a reasonable income out of it?
Many investors are preparing for a property downturn and getting themselves in a better financial position to weather the “storm”. There is a LARGE possibility that interest rates will rise early next year.
Just remember that when starting out an income is VERY important to enable you to obtain finance, and to build up momentum.
Good luck,
DelThanx Del
So are you suggesting I stay out of the market entirely until things settle or should I try to do PCF deals and buy,reno.flip to build cashflow?Its quite simple really…..buy low sell high!!! As simple as that, now do you think the property market is at a high or a low at the moment??
So many ‘experts’ on here but no idea…..two words that will save you thousands, and potentially make you millions-‘business cycle’ LEARN IT!!!
Hi guys
Del i agree i’m sitting on the sidelines (unless i see a snorter of a deal in Both Oz and NZ)
Blogs you are right it is really simple. But its not that easy in a downward market as its possible to buy Low and the market drops more, Added to this is the fact that not many people are buying in a down market so you could get stuck with a property.
Keenaz
I think the same strategy that i started investing in 1996 is still current in the right markets.
1. Buy below market
2. Buy only cash positive
3. Buy in areas where you will get capital gains
4. Where possible add value to the home.The above strategy has really helped my financial position over the years, first in Aust, then NZ and now US. Over the years i’ve mixed these up a bit sometimes its not possible to get all 4 happening in the one deal.
But if you can work a market where all 4 are possible then you are on a winner.
There are markets where this can be achieved.
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
actually blogs, its quite complex and involved!
There are different strategies and techniques that can be used for differnt markets. Buy low, sell high is one that is used in an up market.
Just like you would use options and short selling to take advantage of downturnns in the stock market, there are also tools to take advantage of sideways and downturns in a property market.
The Key word is EDUCATION. The techniques can’t be learned from one post or one seminar or by reading a few books. You need experience.
Keenaz, yes you can do full time investing even in a down market, but take the time to learn first! You wouldnt jump into any other profession without knowing what you are doing, so why property?
We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
[email protected]
phone 0412 437 582Thanx for the reply Dr X,
Apart from the many courses and books ive read can you suggest where else to look to further my knowledge.Keenaz,
one way would to be get out and look at deals, do the numbers, study the market/s, look at what ifs, Study prices, movements, returns, cash flows, etc.
Put the time in when you can to learn as Dr X suggests.
best of luckThanx for the advice Ronnie
Hi again
Just in response to what other have written.
Lets pose the question how do you make money safely in a downmarket ? As stated i avoid investing maybe others have some good ideas ?
On another matter
while i encourage reading and reasearch, Don’t overlook reading and research about the direction of the big picture
1. Where is the economy heading
2. Where are interest rates heading
3. Where is the property market heading.
These factors need to be seriously considered before you invest.
Sure money can be made in a down market but its far easier to take your time and don’t jump in. Use this time as learning.Better to have your money invested in markets that are moving upwards.
Thats why sometime you need to consider other investments apart from Real Estate during different times in the Cycle. Or even different real estate markets. Thats been my choice, to invest outside Australia when our market is flat. Today i’m investing in the US and in Central America, as my research tell me these areas i’m investing in will be rising markets. (hope i’ve got it right)
Its so much easier to make money in a rising market, you don’t even have to be that smart, as the market does the work for you. If you make mistakes it covers them also.regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Don’t bite off more than you can chew. Take small steps and learn along the way. My “job” is investing but my husband works fulltime to pay living and mortgage costs. We aim to both be fulltime investors by 2010. It won’t happen overnight but doing nothing results in nothing being achieved.
I agree with the others dont jump in before doing the research. Look at the Ipswich region in Qld.AJBS
Hey Westan, Whereabouts in Central America are you looking? Mexico, Belize, Guat, Honduras? I was backpacking through there last year and boy was it tempting – yields and prices looked great too but I don’t have my network set-up over there so the remote control element was going to be a real challenge for me. But for the past year, I’ve been an advocate of investing in US denominated assets. Especially when the Aussie was at 80. Its now 73 and only more downside IMO. If only I was cashed up. Bugger!
Westan, I too am interesting in about you posting about USA property. Can you direct me to where I can find out more?
hi all
asdf, sorry i can’t say on the forum where i’m buying. I don’t want to. Email me and i’m more than happy to tell you exactly what i’m doing in Central America, or PM me.
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Hello West,
I am also interested in the US & Singapore markets
.Just wondering did you see the housing reports on CNN the other day. I missed the full coverage and just caught the highlights, dont want to be a wet blanket, but indicators that they are in for a heavier downturn than the Aussie property market.
Just want to know your views on this, and if you could p/m the forum to me to be appreciated. ( why cos I normally go against the grain)
Cheers
Hi auzzielad
i’ve heard lots of reports about the US property bubble. The thing about the US is it isn’t one market, its many.
There certainly is a Bubble in California, New York City, Boston parts of Miami etc, the east coast and the west coast.
But there are huge parts of the US that are not experiencing a Bubblelook at these acticles, look at what this article says about areas i’m investing in, in Texas. San Antonio and Houston are where i’m buying.
http://www.usatoday.com/money/economy/housing/2005-08-16-home-prices-usat_x.htmhttp://money.cnn.com/2005/05/12/real_estate/re2005_100markets_0506/
or if your really interested read 75 pages http://www.ofheo.gov/media/pdf/1q05hpi.pdf
or 42 pages http://www.ny.frb.org/research/staff_reports/sr218.pdf
Properties in the USA 15-25% returns- email to join our database [email protected]
West,
Good reply and I appreciate it, this should keep me up to 1 am with some light reading and also trouble with the other half for staying up late again heheheh.
Cheers p.s huge source of info here from fellow investors
Westan and Alvin helped me get started – i now have a good few in NZ that are all CF +ve – great growth in the last 15 mths – i am looking to go again – fundamentals make the deal – keep it simple – whilst appreciating growth wont always be as strong
Any investors who bought years ago really chaep?
.
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