Hi all,
I am new to this site/post and I am looking for some information regarding property development/investing. I am 26 yrs old and in the medical trade and own my own business which nets me an income of approx 220K p.a. from about 3.5-4 days a week work. I just bought a house in a good suburb in south east Melbourne, for 840K, single storey, 3 bed, 2 bath, double garage townhouse (Front 1 of 2 on the block of 900m2) Have a morgage owing about 450K. My fiancee earns about 50K p.a. working full time.
I have been advised by my builder with the income I have that property investment would be a good idea/prospect, but I am someone who has expertise in the medical field, not building.
He said that I could find and buy a property that would be suitable for development, after discussions with a builder ((doesn't have to be him) and get the builder to build a property/townhouses for me, and I be mostly a fianancial investor but still have some input into the planning/colours etc of the building.
I want to know what I should do or who I should speak to or any advise from more experienced people regarding my intentions. I am interested in property and building but have been previously occupied with buying and establishing my medical business, but now want to spend time focusing on property/real estate.
Any feedback or advise would be greatly appreciated.
Regards,
GPD
As you stated you know nothing about this field. I would suggest you look at buying books on how to do property investing.
You then can decide
if you have the time to do development ,
or buy and hold with a negative gearing approach
or a positive gearing approach.
Knowledge gives you an advantage.
Check out the business mall from API
Do a search on Google for Business MallIf you would like to learn and possibly meet fellow property investors come to the active property meetings.
http://www.activepropertynetwork.com.au/Hi GPD,
A couple of factors to consider.
1 – Why are you interested in going into property investing? (Probably the biggest factor)
2 – Area of expertiseTo me, if you are after a wealth accumulation strategy, clearly working on your business is the best option. You know your industry inside-out, and are doing very well from it. By diversifying into property, you have to take time to learn about the industry, the people involved, etc. Even if you outsource most of these (use a buyer's agent, contract a builder and project manager) to manage your property investing and development, you are taking yourself away from your business, where your time can be best spent; unless of course you have capable supervisors to manage your business while you are away.
My view is that many who go into property investing are employees or self-employed looking to become investors to get ahead in life. Most don't have a proper business where the company runs itself; eventually the property portfolio becomes their business.
You have a good thing going with your business, so I agree with you that you should really talk to other business owners regarding wealth diversification, accumulation and protection. Clearly, one have to focus on where one can reap the greatest results for the least amount of work. In this case, it is your business.
Regards
Daniel LeeMany thanks for the advice given.
My business is pretty much running at capacity and I can probably make about 160K p.a. running the business doing 0.5 days a week. I want to use the extra time I have available to venture into something else, and I feel that putting more time into my business will not increase my income really.
I am wondering that if i employed a builder who has experience in building/developing, and he gave me advice on what property to buy, and I paid him to obtain coucil permits and build/develop townhouses for me, that would mean that I didn't need a whole lot of actual building experience.
I'm sure there are some investors that are almost purely financial and oversee and organise for other professionals to do the work on the property etc.
Is this an unrealistic goal that I'm setting myself or is this a possiblity?
What do I need to do to go from a guy with an okay income, to a guy who is ready to buy a house and employ a builder to develop etc?
Kind regards,
GPD
Hi GPD,
To answer your last question. I think for starters, you need to do two things:
– acquire knowledge. Read some good property books, and they may assist you in deciding on your strategy. Development / Renovation / Buy and hold / location / size of project etc etc.
– find some like minded people who are doing what you are doing. As Duckster mentioned, attend some property meetings. Great for learning what other people in the area are doing, and for networking. And great for motivation.
I develop / project manage residential projects in the SE suburbs of Melbourne, specifically in Glen Eira and Bayside Councils at the moment. From the house price you mentioned in your first post, it sounds you're not too far away location wise. If you're interested, you can pm me on [email protected] and I can run through some of the projects I am running, to give you some ideas on how to get started.
Good luck!
And never take financial advice from Builders.
Richard Taylor | Australia's leading private lender
Check out http://www.redarmchairentrepreneurs.com.
Get yourself a good property savvy solicitor and accoutant. Then find yourself a Town Planner in the local area.
Cheers.
if youve got that much spare time on your hands, i dont see a problem with expanding into property. if your business is self sufficient then you can afford to.
i have a couple of associates in a similar position to you. whereas they act as full financial backing, i handle planning building and sales, and split profits. because im not financially tied to it, it works as a sideline for me, and we both make substantial profits. perhaps you can look at this option with another developer..
Thank you very much everyone for all your posts.
i3ravo, I think that is what I am most looking for, but just have to find good people to do it with because I'm sure there are people out there who will take advantage of someone with minimal experience who is funding a development.
Are there business or companies that specialise in this or is it something that I must go out and find a developer who builds but is requiring the financial backing?
Thanks again.
HI, since you're in Melbourne, why not talk to |Michael Yardney?
KY
GPD
email me at [email protected]
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