All Topics / General Property / Hello all. Im New and Willinging – long post.

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  • Profile photo of dank78dank78
    Join Date: 2006
    Post Count: 30

    Hey guys. My name is Daniel 27 from Wollongong, NSW. I’m an unemployed university student wanting to get involved in property investing.

    I have no knowledge whatsoever in this field, so any advice would be bloody fantastic. I’m interested in renovating to make profits instead of buy and hold, flips, wraps etc….

    A little background – Like I said I’m a uni student and not working – but I am trying to find work. Currently I live with my parents, my partner of four years is now working earning $42k yr, she also has a child (not mine but I see him as my own). Neither of us have owned any property – ever.

    Since I am the only child this house will one day belong to me. We also own an opal field near Lightning Ridge where my parents spend about 28 weeks per year living there. But this house is not big enough for five of us and well I dont want to live with my parents forever – god bless them though

    We both have loans – she has a car loan ($250 per month) and I have a tertiary loan (not FEE-HELP) which I am paying $370 a month. I’m on a $398 per fortnight student income

    We have about $8k saved at the moment.

    Now that you have read a short part of my life. What are our options to get started. We want to live with each other as soon as possible but rent is not a favoured option.

    I have ordered books (yet to recieve) such as:
    $1mill in Property in 1 year
    From 0 to 130 Properties in 3.5 yrs
    Rich Dad, Poor Dad
    How You Could Build a $10mill Property Portfolio in Just 10 years

    I’m sure after reading these books I will grasp hold of valuable knowledge that will assist me in property investing.

    Profile photo of DanielCumminsDanielCummins
    Join Date: 2006
    Post Count: 37

    Hi Daniel,

    Welcome on board. I think everyone is in your position at one time or another, and as a result, this forum gets flooded with questions very similar to yours. [blink]

    This forum is full of rich information which you should try to absorb and take it (as overwhealming as that seems at first). In addition to the books you’ve ordered, which are all great, I’d also suggest a book called “The Richest Man In Babylon” by a guy called George Clason, and another book in the Rich Dad Poor Dad series called “Real Estate Riches” by Rolf De Roos. I’d suggest to definately read Rich Dad Poor Dad first, I can’t speak highly enough of it! [goatee]

    It’s great that you and your partner have some money saved up. Given your situation, and current level of knowledge, I’d suggest you took some time (I’ve spent the last 6-12 months) researching and becoming total familiar with the market. [blush2]

    The most important thing is to have fun! [chill]

    Profile photo of more freedommore freedom
    Join Date: 2006
    Post Count: 3


    You bought rich dad poor dad? That is a great book.

    I think you might considering first get your personal finance sorted before you start investing.

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    Profile photo of dank78dank78
    Join Date: 2006
    Post Count: 30

    Cheers for the replies guys. Im yet to recieve all the books and I just recieved $10Mill in just 10 Years by Peter Spann in the post today.

    I cant help but look at some houses for sale online. And when I see a house for a good/decent price I’m like ah I know exactly what I can do with that blah blah blah etc etc etc..[blink]

    Im sure once I read the books I wont sound to to to too much of a n00b.

    Can you give me advice on this –
    So we havent go our own home – both will be first home buyers. Would it be best to buy our first home then eventualy buy another for investment purposes or just renovate our first home then eventualy sell?


    eh maybe i should stop posting until Ive read some books [grad]

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    All you need is 20% deposit to get started using a No Doc loan. Maybe you could talk to your parents about lending you this money – if you feel comfortable.

    ps. Did Peter Spann really give you $10mil in 10 years?

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    Profile photo of v8ghiav8ghia
    Join Date: 2005
    Post Count: 871

    Hi Daniel. Good on you for making a start. Without getting technical, you are actually in quite a good position, in the sense that purely depending on how you go about deposit/finance, based on your goals as far as living arrangements etc, you are ideal to try and get into a cheap but oozing potential home, that needs some TLC, using the first home buyers grant, and your deposit, and then over a year or two just be sensible, freshen it up, and then you can sell it all going well, and whatever profit you make (assuming you do….which you will if make sure you look inot it a bit) you will not pay capital gains tax on, and then you can use this to fund the next place and so on. Some will say never sell (which I agree with in purely IP’s) but you can use the sale of the house that it is your principal place of residence to make some ‘tax free’ (not really, you pay enough along the way eh?) money to look at your next step together. The prices down in our part of the country have dropped a bit, and may do a bit more, so get a feel for what places are going for over the next few months until you are in a position to pounce. As a side pont, some of the books you ention are great, but while the principals still are spot on, the strategies are a bit dated now, as the positive cash flow properties for entry level purchasers are few and far between now, and eve[strum]n less with interest rate increases since the time they were written. Have a read of Cathy Jayne Pearce ‘Real Estate cash form treasure and trash’ and Paul O’Connor ‘Get rich get real’ if you are after some new ideas, and also wish to rennovate/value add to a proeprty for resale.
    I genuinely wish you all the best. V8

    Profile photo of dank78dank78
    Join Date: 2006
    Post Count: 30

    Terry thanks for the reply. Yes I have asked my parents for some help but they are fairly negative about it.

    V8ghia – cheers for the reply too. I’ll look for those books you mentioned and see how it goes.

    Keep it coming guys [biggrin][happy3][medieval]

    Profile photo of RiskyRisky
    Join Date: 2003
    Post Count: 146

    Hi Daniel,
    Firstly you have overcome the biggest hurdle and thats taking the first step. Alot of people want to invest but only talk about it , you have actually started to put it to action even if its only aking a question here it is still a positive step in starting.
    As for the question its a hard one, theres multiple ways you could go but i think start by spending weeks just reading posts here will be of a huge benfeit to you.
    The home home owners grant is probably your best ammo and the ability to be able to save 8k while not working makes me think you shall do very nicely in your chosen path.
    Just my opinion ,but dont be scared to look at regional towns as the dearer it gets in the city people will move to the country which will cause a moderate price rise to hopefully get you some capital gain to get started closer to the City.
    While on the subject of books , i found the book ” Think and Grow Rich ” by Nepoleon Hill to be a good read and if you like you can download a Free copy here .

    Good luck and dont give up but tread carefully.

    Cheers Shaun

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    Profile photo of coopranoscoopranos
    Join Date: 2006
    Post Count: 16

    Couple of ideas for you:
    – over here in WA we have a government lender called Keystart, they will take into consideration welfare payments as income when calculating your borrowing capacity. Not sure if there is a lender like this in your state but a mortgage broker should be able to assist with this (the WA lender does not lend on investment properties though, only main residence)

    – start going to home opens now in the area you want to buy in. after you look at 30 plus homes you will get a feel as to what is a good value home.

    – if you are handy, it is a decent idea to buy a place to live in, get the government grant, renovate it over 12 months or so, at which point you may have a job and the ability to borrow more money, and you should have some equity in your home. At this point your options will open up a lot (you can use the 12 months to read and get out to home opens etc increasing your knowledge).

    Profile photo of dank78dank78
    Join Date: 2006
    Post Count: 30

    Coopranos –

    Thanks for the tips…Im still yet to recieve my books and im itching to get reading.

    Your last tip is actualy something I have been thinking about and most probably will do. Say after the 12 months I have finished my renovations – would you say (and others who read this) it is best to lease or sell?

    Im happy to announce that I have completely paid off my Student Loan of $15k. Now I can throw in a total of $700 per month + partners contribution of $500 per fortnight.[strum]

    Well now after reviewing our fortnightly expenses, I have put in play a new savings plan for us both. We are now saving $1,300 per fortnight – So come March 2007 we will have roughly $26k.

    And once March comes I will review my savings plan again and see if we can better it or just keep the same going for an extra few months. Im hoping to find work come 2007 [worried]

    Anyway I hope this money will help get me started

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