Hi All,
i am very new to this PI and bought my house 8 months ago in Melb (my first one). i got a wife (looks after the baby) to look after and the reason i want to do PI is to create some long term income and if possible make a lot of money (as we all wish [biggrin]) now as i think my servicabilty to another loans is not quite high being single income earner and 3 ppl to live off with mortgage and i even dont have enough equity to dig in so i am wondering how can i start PI any suggestion/thougts will be greatly appreciated. i know it is dependent upon personal circumstances but still will like to get some suggestions. Any helping ideas will be appreciated. Yes one more thing i am not a handyman so cant do much renos and even not sure how they are done.
Regards,
[xmas]
[specool][/right]This question is hard to answer as you have not given any idea about how much you earn. With centrelink payments be careful with negative gearing as a loss is considered as income by Centrelink and it will effect centrelink payments. You also haven’t mentioned what your equity is (this is value of house minus loan amount). If I was you I would book a time with your bank loan officer and ask him or her what you can borrow with the income and equity in your current house.
If your equity is low you might be better concentrating on extra repayments on your house loan to reduce the loan while your wife is not working. I am the one at home with the babies while my wife works and I have found it hard to borrow money on my current household income levels. So it is worth checking this out first before deciding on investing in property.Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
G’day,
Thanks for your post. In the early days it can be quite tough if you have limited time and money.
Therefore, the biggest constraint to your early success is time because a good deal will always attract money.
My suggestion is to go and find a property that has a problem you can solve and look to ‘trade’ few a few early deals to build a bank of cash to fund bigger projects and/or a longer term investments.
While it’s a shamless plug, my latest book contains some ideas about how to accrue fast profits without relying on general market gains. There are also some case studies and stories that will help guide you as to how other investors are making a profit in today’s market.
It won’t be easy, which is why a lot more make a start than actually succeed in achieving thier goals.
I say ‘go for it’!
All the best,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Duckster,
thanks for the reply , as u requested i am on 50K a year and will have approx of 15-20K worth of equity at the max.. any more suggestions will like to get them.[specool]
Try this as an approach:
Buy a cheap house needing TLC on a longish settlement (3 month) with right of early access.
– Do the house up with minimum of expenses and maximum of effect. Their are several strategies to make this successful.
– Get the house valued before settlement to increase the needed funds or onsell it before you even have settled (Make sure your offer was bsgupta and/or nominee).
– A quick example:
Buy house for $150,000
Invest $15,000 in upgrade
House now valued $200,000
Closing Costs $8,000
80% LVR = $160,000
Total cash needed $13,000
[biggrin]It is very important to be sure of your figures, otherwise this can very quickly go pearshaped.
Hi Bsgupta,
Welcome to the exciting world of property investing!!
Here’s a simple 7 Step process to follow;
Step 1 Set your ultimate goals
Step 2 Prepare a budget
Step 3 Read and develop an investment strategy
Step 4 Build a strong team around you of property professionals
Step 5 Research an area
Step 6 Prepare a Feasibility study
Step 7 Negotiate the deal and repeat.Its that easy!! Need more help then visit http://www.propertydivas.com.au where you’ll find more details.
Happy investing,
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
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