I've been looking at investment and wealth creation companies to help me start investing. Each company has different ideas to investing and I would like to get some opinions them.
Here's their main ideas for investing in property and shares
1. Invest in established properties and use covered calls (with managed funds) to generate cashflow.
2. Invest in off the plan or newly completed properties and invest in the global market shares (with managed funds).Could I get some opinions, pros and cons, and the types of people better suited to the different strategies?
Thanks
Hi there,
I would suggest that you provide a little more detail on the specific strategies that you are interested in understanding. Also be careful as companies will have a prejudice to their specific strategy. Keep working on your understanding of the different strategies and your personal circumstances / objectives so that you can make the right decision for you.
Established v newly completed properties:
Off the plan / newly completed property are typically less maintenance and have some depreciation benefits (more significant for high income earners). On the downside, newcomers can often pay too much and with established properties there is more likelihood of getting under market value, Try and find someone who is street wise to help / support you on your first few investments…
As always, saying one route is better than the other is dangerous as every investment deal should be considered on its own merits. Look at the numbers and do your own research.
I have a mix of both in my portfolio, but this is what fits my particularly circumstances. Here are some questions you might want to be asking re the property:
1) What sort of gearing/cashflow strategy would they be recommending?
2) Are they advocating a hold and refiance, or a buy and sell strategy?
3) How would you source the properties?I am not so across the covered call options on managed funds, mainly having done CFD trading and general managed funds.
However, I would be looking at how you extract your returns with sharemarket investments, the risk profile and then how this investment strategy interacts with your chosen property strategy…
Hope this helps!!
Mark
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Looking (and trying) for years quite a few financial advisers and coaches I learned few things: 1. No one is going to care about your money the way you do; 2. No one really knows what is going to happen with the market.; 3. Financial advisors work at their job (or business) for a living. If they knew how to make money in property they would be retired!!! 4. If the deal they offer you is such incredible – it would be snapped of the market immediately without FA. If developer going to a different state to FA to sell it (often for a higher rate then a local RE) – there must be a reason for it (usually not good for investors)… 5. Unfortunately there are no lazy and care free money – if you want incredible financial results you have to do go extra mile to get it! 6. The best many are made in the properties were you can add value – development, subdivision, reno, extension, etc. FA will sell you a new property that already has a mark up from the work done by research, planning, building, development, RE (FA) sale… Now you expect to earn something here too?.. may be you will… But this will be get the most risky and speculative gain… Really – why don’t you jump to the front of the line earn safer money and let someone else carry the risk of buying the developed property.
Thanks for your comments.
I'm only just starting to invest so I don't really know how to start. That's why I was looking at some FAs to help me get started and learn along the way. There are so many different strategies out there that I don't know which one to follow and which is more suitable for my situation.
Are there any suggestions (books, sites, people to speak to) that can help me determine what strategy is right for me?
If you're in Melbourne, try Educated Investor in Collins Street. I find the staff there knowledgable and they'll definitely point you in the right direction. If you're not, try their website…
http://www.educatedinvestor.com.au/
No one book holds the key – read lot's and take little bits from all of them. I'd spread your reading between investment strategies, tax / structure strategies and even Bios of successful people – they provide the inspiration.
First books I recommend anyone read are the Rich Dad Poor Dad series (at least the first few). They're simplistic and they'll change your outlook on how money actually moves around and the difference between assets and liabilities. I never looked back.
I also read books by Dolf De Roos.
Steve's books are good too. His methods (wraps etc) aren't for everyone, but there's no doubt he's incredibly successful – goes back to taking a bit from everything you read.
Renton's knows his stuff inside out but can be a bit dry & tedious.
If you're interested in trading shares, Guppy is well known and renowned.
There's plenty out there – go get 'em!
Hi there,
I don't like to use the forum to directly reference my own site, but your specific needs are so aligned that I felt I should at least give you opportunity to check it out and make your own decision
I fully support the view that you need to get yourself educated to be able to make the right decisions. I bought heaps of books and went on tons of seminars / courses (some good some bad). Cost me alot but worth it for sure.
I set Keys To Success Club up to help other people have an easier journey than mine. One of the principal aims is to provide people with access to lots of experts to help them get educated. It is a paid site (but very reasonable compared to buying individual books). Both property and trading are categories and you can see what is available by using the in built search engine
There are also some free downloads, one specifically on property by Gordon Green.
Rich Dad, Poor Dad is also a good recommendation, need to get your mindset in the right place and change your paradigms!
Good luck, and remember to keep at it. It can be a little overwhelming in the early days, but persistance wills ee you through and it does get easier…
Mark
Hi
Before investing the money I was on the same stage, but my friend helped me. He suggested me to invest in real estate. I have invested and really I am getting good results. I realized one thing that investment in real state is a good and safe side to invest money. From it I am getting good return.Can I make the suggestion of wprking out why you are investing first.
Once you understand your why, you will find a strategy that suits you. This will help avoid alot of information overload. What I mean is, if it is your goal to retire in 2 years then your investment strategy will be different from someone who is looking to fund their childrens uni in 10-15 years, who will have a different strategy from someone who is risk adverse and happy to hold out until retirement.
The thing that you must remember is that there are no right and wrong ways to invest, it all depends on the reason behind it. At the end of the dayyou will make choices, your job is make then as informed as possible. Uninformed choices lead to alot of regret and sleepless nights.
And I agree, its your money and your butt on the line. Seek as much professional advice as you choose but ultimately it is up to you to manage your investment
Mick
Hi,
Also Margaret Lomas has written some very good books worth reading.
most libraries would have copies of some of them.
read everything you can.
frosty1
Hi ckI
Please be careful… could lead to Debt creation companies instead of wealth.
Please be careful… could lead to Debt creation companies instead of wealth. – Totally Agreed
Richard Taylor | Australia's leading private lender
Hi ckl
Unless one is extremely gifted and/or talented, most people these days usually have three investments choices, property, shares or the internet.
We recommend to start off by finding a strategy that is a good fit for you and that you're passionate about (or could become passionate about) and then become an expert in that area. You want to be doing something that excites you, that makes you want to jump out of bed early in the morning and that makes you want to stay up all night. If you're passionate about what you're doing you won't mind putting in the time and effort that it will require.We became involved in property because we just loved it, We do have a self-managed super fund where we dabble in shares but overall, it would only make up about 20% of our entire investment portfolio because we personally are just not as passionate about shares as we are about property. If shares excited us more then they would probably make up 80% of our entire investment portfolio. We've found if you love what you do the money will follow.
A lot will be determined by your own personal risk comfort levels – risk v reward. Any investment strategy isn’t without risks but we find that it’s important to “Be Risk Aware NOT Risk Adverse.” Start small – we figured that once we’d learnt more we could then take more calculated, knowledgeable risks and look for larger opportunities.
Once we found a strategy that we were passionate about and had a clear vision we started with the end in mind, set ourselves realistic goals and then worked out an achievable step-by-step plan but more importantly your success lies in your mindset. Getting your mindset right will be the underlying fundamental key element to your success. We had to change our money beliefs and reprogram ourselves so we could attract an abundance of wealth. We had to adopt a lot of the mental, financial and business habits of successful investors.
Jim Rohn, the renowned Amercian business philosopher wrote, "The most important part of becoming a millionaire is the person that you have to become to accumulate a million dollars in the first place." Likewise, many financial advisors will say "The first million is extremely difficult to acquire, but the second is almost inevitable."
This is a great insight – in our experience you will need to develop a different mindset and different habits from the average person in order to become successful. By becoming this kind of person you also become the kind of person who can then earn the second and third million. If you happen to lose all your money, you would be able to make it all back again because you have become the kind of person who can make a million. Essentially, by adopting the habits of the wealthy and the mindset of successful investors, you can become one.
If you do the same old thing then you'll get the same old results, if you want massive results then you'll need to make massive changes. If you just read this, then not much is going to happen for you. If you want to improve your situation you must Take Action because ahead of any other requirement is your personal motivation. Only then can true success follow!
Remember – your success lies in your mindset. It all starts with the quality of your thoughts! If you have positive thoughts, you'll have positive results and if you have negative thoughts you'll have negative results. You must first believe you have the ability to be successful before it can ever happen.
At the end of the day it's about enjoying the journey and the type of person that you become during that journey that ultimately matters.
Wishing you much success!
Adrian and Amber Zenere
http://www.RealEstateDevelopmentClub.com
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