Hi all,
I joined this forum after reading Steve's book! I must say he was very admirable and inspirational!I'm 25, 2nd year into my current job, will finish my Masters in July, gross income is approximately $60k.
I don't have much saved, probably $15k at best…
I want to buy an investment property that would positively geared, but after doing research for a couple of months now, I've not came across with any opportunity. Would any one have any idea on areas that I may be able to look at? Or any suggestions on how I can start off?
By the way, I wanted to buy WealthGuardian, but it was sold out…anyone want to sell it to me?? I'm also interested to find an accountant that has good knowledge in property investing in Brisbane!
Thanks and sorry for the many questions!!!
Cheers!
Hi,
Thanks for your generous comments about the book.
Sadly, the days of going out and buying a positively geared property are now generally over. This is because prices have risen in excess of rents, and costs of owning property (in particular interest rates) have risen too.
Does this mean we should give up and look to other wealth creation opportunities? I don't think so, not yet.
The lesson here is that we need to evolve our investing as the market changes. My recommendation is that people now look to create positive cashflow rather than simply buy it. There are a number of means of making this happen. However, my preferred model, which will be fully outlined at the upcoming conference, is to take small sums of money, multiply them into an investing bank, and then use those funds to buy good quality commercial property that provides an income stream.
For example, in your case you could take that $15k and try to turn it into (say) $100k within two years (doing quick-turn deals), and then use that $100k to buy a $350,000 commercial property that will provide positive cashflow.
Well done on asking questions. Keep looking for answers!
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Didn't quite expect Steve to answer my question personally, I'm flattered!
A question with respect to your answer Steve, turning $15k into $100k within two years, it's a brilliant idea, but I did not quite understand the term "quick-turn" deals…
This is a great forum, I've read through a few threads, and found many useful hints and tips everywhere!
SteveMcKnight wrote:Hi,
Thanks for your generous comments about the book.
Sadly, the days of going out and buying a positively geared property are now generally over. This is because prices have risen in excess of rents, and costs of owning property (in particular interest rates) have risen too.
Does this mean we should give up and look to other wealth creation opportunities? I don't think so, not yet.
The lesson here is that we need to evolve our investing as the market changes. My recommendation is that people now look to create positive cashflow rather than simply buy it. There are a number of means of making this happen. However, my preferred model, which will be fully outlined at the upcoming conference, is to take small sums of money, multiply them into an investing bank, and then use those funds to buy good quality commercial property that provides an income stream.
For example, in your case you could take that $15k and try to turn it into (say) $100k within two years (doing quick-turn deals), and then use that $100k to buy a $350,000 commercial property that will provide positive cashflow.
Well done on asking questions. Keep looking for answers!
Steve,
You mention looking towards commercial property. Would this be for a long term view? WIth increasing interest rate pressure and a looming recession wouldnt this be a more risky sector?
Hi,
Quick-turn relates to quick turnaround property projects where you get in, add value, and get out thereby banking a profit. Quick turn is b/w 6 – 18 months depending on the project.
While some types of commerical property will be risky in a downturn, I'm not talking fish and chip shops… I'm talking about blue chip property that is leased to good / established quality tenants.
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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