I invested in property some time ago – I was only 19 at the time, sold the property when I was 25 – the outcome of this was a significant loss of money – it was a negative gearing investment with the result being a capital loss. I know some poor decisions made at the time – however I can say that I did learn from this experience.
It is now 6 years on & i have built up net worth of approx 450k, mainly through PPOR and investments in shares. I would probably have about 180k equity to use (as some of the net worth is in shares).
I am very keen to use this equity to get back in the property market (I am more comfortable with property than shares), however I am a bit concerned about the timing. I do not really have the time to purchase a ‘problem’ house & turn this into a postiive geared outcome due to work/family commitments. Also as I understand the market it is some time before we can expect capital growth.
I have read a number of books on investing (Rich Dad, Poor Dad series, Steves Books) , however have not been able to determine the right solution for me. Are there any suggestions out there re where I can go to help build a solution. I have often read about the need to develop a strategy and plan , but have not been able to build a strategy – not sure what should be considered. What solutions should I be considering?
Cheers
Tigers13[whistle]Hi Tiger
well done to bounce back after your initial set back in investing.
My advise is to look beyond the normal parameters of investing. You could look at O/S. I invested in Oz up until 2003 when i discovered NZ so i invested there, Now I’m investing in the USA. Its a big step for many but rewarding for those who who do it well.
Sorry it looks like an ad as i have a business sourcing properties in the US, but the truth is that’s were my investment $ are going.
regards westan
Over 100 deals done in the USA in 2005
Buy in the USA email me at [email protected]I am a bit concerned about the timing. I do not really have the time to purchase a ‘problem’ house & turn this into a postiive geared outcome due to work/family commitments. Also as I understand the market it is some time before we can expect capital growth.Howdy Tiger,
Two things.
1. If you don’t want to buy a problem house – which attracts problem tenants…then don’t…probably a damn good strategy.
Plenty of other types of property in the “market”.
2. Don’t worry what “the market” is doing….you can’t buy “the market”. Worry about the individual title that you are considering and focus on that…..you can actually buy and profit from that.
As a general comment – great to read all of the guru’s books…..but let’s face it, what do you learn from and what’s really interesting in their books…..yep….the really small specific examples where you can actually glean something from it and apply it to your little neck of the woods.
Pontificating about general NSW house trends, QLD interest rates and what the REIV quotes from it’s leading agents about the general investing environment won’t help the investing little woodduck one bit…..but it will confuse the hell out of you.
But then, you’re not buying the NSW house trend, or whatever….what you’re looking at is # 6 Grovesville Pde Worthington or whatever….on a 780 sqm block with a nice aspect and a quiet park at the back, and negotiating with a crabby ol’ vendor and a friendly female agent whose just got her badge.
What the president of the REIA or the Governor of the Reserve Bank think of the deal is quite irrelevant…..actually I’m sure they wouldn’t give a stuff about your little deal…..but it means the world to you and your family.
Paddle your own canoe, don’t worry which way the tide or stream is going….soon you’ll upgrade for a V6 outboard motor, and then it won’t matter which way the general tide is going.
Make sense ??
Hi, I’m 21 now. I opened my first company with my husband when I was 19 and now we are developing our second company (this time with my husband and my dad) which is real estate agency in Bulgaria(however me and my husband are in the UK). It has been going for a year and has seen a massive rise in prices through that time. I personally brought a house on the coast of Bulgaria last summer for 5000paunds, which is now worth over 20,000pounds. There are several hotels on the website as well – probably a better option for you, as you are looking to invest more. They start from 140,000Euro(less than 100,000punds) and if managed though a company can still give a good return. At the same time as Bulgaria is entering the EU in 2007 the rise in prices will be steep and an investment seems like a good idea at the moment. I’ll be going back to Bulgaria to purchase several more properties in April myself.
If you want to have a look at my company’s website its: http://www.balkandreams.co.uk/.you can’t buy “the market”. Worry about the individual title that you are considering and focus on that…..you can actually buy and profit from that.Great advice from dazzling.
You are doing okay already and have learnt to diversify which is fantastic. From this point is would take small, measured and regular steps to increasing your portfolio.
Use the equity to buy a mixture of quality investments and be mindful of your cashflows along the way. Positive cashflow property may help you in this regard or you could balance the cashflow in your portfolio through trading property, renovations + additions, (wraps also spring to mind but have not done one so will leave that up to the others) or developments.
Dazzling said it, you can’t buy the market so look for gems. Properties that you believe will outperform others of their type based on your research which would include at look at the historical performance of the area…but don’t look to far into the past.
If you are resi think what do people want to live in right now and what they will want to live in in the future. Who lives in the area now and what to trends suggest the area will look like in 5 years and 10 years.
Diversify – but with a goal of setting up different growth and income streams with different exposures to risk rather than jumping from pillar to post because of the lastest book or trend.
Regards,
Don
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
[email protected]Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Hi Tiger
i differ from dazzling and DDLP
i suggest you do keep abreast of the macro picture, its important to know where the economy if heading and what interest rates are likely to do, all of these factor will effect the performance of your investment.
I also differ as i believe you should read as much as possible from authors who are investing themselves, there are many ways to make money through R/E find one that you ffeel comfortable with and be willing to adjust and change it to reflec the changing market. By reading you will brouden your understanding of ways to make money (ways you never dreamed of). Filter what you read and take what you can use for yourself.
all the best
Regards westan
Over 100 deals done in the USA in 2005
Buy in the USA email me at [email protected]
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