All Topics / Help Needed! / Property Investing for Gen Y

Viewing 15 posts - 1 through 15 (of 15 total)
  • Profile photo of Scott.Dunstan77Scott.Dunstan77
    Member
    @scott.dunstan77
    Join Date: 2010
    Post Count: 7

    Hi Everyone,

    I am new on here and have to say this is a great forum and hope to learn a thing or two from all of you. I joined up because i was impressed with steves books.

    I was wondering if anyone could steer me in the right direction on books/education about property investing and to give any advice for investing at a young age (I am 22).

    Thanks guys

    Cheers

    Scotty

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    There's plenty of good sources of information. I like the early Jan Somers stuff that teaches the basics of investing. Somewhat outdated, but the messages in the book remain relevant today. Forums like this are also a great source of info.

    If you haven't already purchased a property, then I'd make that a priority. The first one is often the hardest.

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Scott.Dunstan77Scott.Dunstan77
    Member
    @scott.dunstan77
    Join Date: 2010
    Post Count: 7

    Thanks Jamie

    I will read what you have recommended.

    Cheers

    Scotty

    Profile photo of kong71286kong71286
    Participant
    @kong71286
    Join Date: 2009
    Post Count: 261

    G'day Scotty,

    Firstly, I'd just like to say welcome to our community!

    This is a great place to discuss any issues regarding property investing. Whether you have questions about investment strategies, finances, or legal aspects – this is the place to be! And I'm sure you'll learn quite a lot simply by browsing the forums, and will enjoy your stay here!

    Rather than rushing out to buy a property I suggest that you take some time to think about what it is that you ultimately want to achieve from property investing and to invest in your knowledge first. What is your goal? Can you assign a number to it? When do you want to achieve this by? And WHY do you need to achieve this? By being clear on what you want you will then be able to determine what strategy would be best for you, whether it is renovations, buy and holds strategy etc.. Its better to invest a few hundred dollars in your knowledge and advice, than to lose thousands of dollars later down the track.

    If you like Steve's books, then you would probably love the 'MasterClass Starter Pack: How to go from 0 to 5 properties', which goes through all the basics you need to know about property investing, from identifying what real estate strategy is best to achieve your financial goals as soon as possible, to financing & accounting, and understanding what drives property prices and how you can ultimately profit from your knowledge.

    If you are interested, I can supply you a copy of the MasterClass Starter Pack in excellent condition at a 70% discount i.e. $150 (Postage and handling included)

    Regards,

    Kong

    Profile photo of aaabbbcccaaabbbccc
    Participant
    @aaabbbccc
    Join Date: 2009
    Post Count: 71

    If Scotty hasn’t already claimed that starter pack I’ll take them off your hands (for the $150 of course).

    .

    Profile photo of Grow SMSFGrow SMSF
    Participant
    @evolve
    Join Date: 2009
    Post Count: 66

    Scottdog,

    Read read read and then read some more.

    Grab a copy of API magazine (Australian Property Investor) when you can and read the stories – focus on the real issues – which are sometimes glossed over.

    You will need good advice once you get started – find a good tax accountant and a good conveyancing lawyer – ask around places like this for referrals.

    As an accountant myself I would say the following are key:

    – be patient – take your time, squirrel away the cash until you are ready
    – research – 'luck' in property investment is when knowledge meets opportunity
    – cash flow is extremely important – you can have all the capital growth in the world but if you can't pay the bills you are stuffed
    – numbers don't like – people do

    I hope this helps and provides direction.

    Grow SMSF | Grow SMSF
    https://growsmsf.com.au
    Email Me | Phone Me

    Self-Managed Super Fund (SMSF) Specialist Accountants

    Profile photo of kong71286kong71286
    Participant
    @kong71286
    Join Date: 2009
    Post Count: 261

    G'day Adam,

    Thank you for showing your interest and for contacting me

    The MasterClass Starter Pack is ideal for beginners interested in investing in properties, and you will definitely get a bang for your buck!

    I'm happy to supply you my copy of the Master Class Starter pack, but the only issue I have at the moment is that I am strapped for time, and won't be able to send it to you for another 2-3 weeks

    How would you like to go abouts this transaction?

    Kong

    Profile photo of rudra_rrudra_r
    Participant
    @rudra_r
    Join Date: 2009
    Post Count: 61

    Hi Scotty,

    I would recommend reading lots of books, magazines and forums, this forum has been great for me and I’ve learned a lot or at least it’s prompted me to do further research. I was only 22 when I got my first IP and it’s been the best decision ever, it’s not easy at a young age to get into property and will take hard work but it’s well worth it.

    Cheers
    Rudra

    Profile photo of elektricpinkelektricpink
    Member
    @elektricpink
    Join Date: 2010
    Post Count: 8

    Hi everyone,

    Firstly, thank you for your thread topic Scott (it’s my exact situation to a tee as well, so I’m following with keen interest).

    I’m new to the forum (but loving it), and am curious about anyone and everyone’s views on the following:

    As a starting/entry point to property investing: I had assumed that I would save a full 20% deposit on my first property purchase (to reside in as an owner-occupier), partly prompted by the First Home Owners Grant (FHOG), and to avoid mortgage insurance – then move on to purchasing subsequent properties to be tenanted, bought-and-held. But, now I’m thinking the time taken to save a deposit of 20% (up to $80,000.00/2 years+ as a target for properties within coo-y of where I currently live), and the saving of a few thousand dollars in insurance, may be better served by forgoing the $7,000.00 FHOG (for a pre-existing dwelling; or, $14,000.00 for a newly built owner-occupied dwelling – houses/land that are hard to come by), saving 5-10% of the purchase price, buying smart (positively-geared/cash-flow based approach), and renting to tenants immediately (while staying in my current residence for a little bit longer, and building a portfolio from a far, so to speak).

    I’m also in my early 20s and lucky enough to be living at home with my family (rent/board-free) and have a good income ($70,000 p.a., gross). So my current ability to save is the best it’s ever been. I am in two minds (but actively researching/educating myself to make the best entry into property investing) … Help!

    Thanks in advance for your input.

    Yours investingly,

    Stacey.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Stacey,

    I agree with the rationale behind not saving the 20% to simply avoid paying mortgage insurance. Your spot on, it will take years to save the 20% deposit – however, you can get into the market sooner with a much lower deposit (possibly 5%). Yes, you'll have to pay some mortgage insurance (which can often be capitalised onto the loan anyway) but you stand the chance of owning a property that's likely to appreciate in value over the next two years.

    Just say, in very simplistic terms, that you purchase something for $200k that increased by 10% p.a – and you took out a 95% loan. In this scenerio, you would have paid about $5k in mortgage insurance (which some banks will allow you to capitalise onto the loan) and your property would have increased to around the $240k mark. By using a smaller deposit, paying some mortgage insurance and getting into the market sooner, you've just made $40k in equity….sure beats spending the two years saving the 20% deposit :)

    This is a very simplistic explanation – but the point is, mortgage insurance allows you to enter the market sooner rather than later and as a borrowing expense, it is deductable over a 5 year period.

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Case07Case07
    Participant
    @case07
    Join Date: 2010
    Post Count: 8

     Hi evereyone,

     I'm in the same situation as Stacey but have a deposit,the thing with me is that i am not quiet sure on where to go from here,should i see an accountant,financial advisor??? The other problem is finding the right one that will suit me,any advice,tips or questions i should be asking when trying to find the right person.

     Thanks in advance  Case07

    Profile photo of ShelleyVealeShelleyVeale
    Member
    @shelleyveale
    Join Date: 2010
    Post Count: 4

    Congratulations on taking the first steps into Property Investing, Jamie gives great advise in that taking 2years to save 20% deposit when you could have your property being rented, all the time gaining capatial grownth. Mind you some times very small capatial growth. Depending on where you purchase. A great book someone gave me is Smart Borrowers Handbook by Stuart Wemyss. This little book is great easy reading and it wont advise what structure or positive vs negative just the facts. Then go and read as much as you can like Jan Somers, Margaret Lomas, Australian Property Investor's mag etc…
    Im not recomending any of these however you can go along to free seminars run by people like The Investor's Club. Defence Housing and not free Property Women etc.. Just try to stay open minded and absorb as much information as possibable, you will mix with like minded people and its amazing at what that can do for you.

    Shelley Veale
    http://www.empowerwealth.com.au
    42 Howard Streeet, North Melbourne VIC 3051 / 03 9326 8900 / 0409508211

    Profile photo of elektricpinkelektricpink
    Member
    @elektricpink
    Join Date: 2010
    Post Count: 8

    Thanks Jamie and Shelley, such great advice! : D

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Your welcome. Following on from what Shelley said – Margaret Lomas has some really good books. I enjoyed her "20 must ask questions" book.

    In fact, a good way to learn on the cheap is to check out the IP books in your library or have a quick search of Ebay every once and a while.

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of kong71286kong71286
    Participant
    @kong71286
    Join Date: 2009
    Post Count: 261

    Hey guys,

    If anyone is interested in buying my MasterClass Starter: How to go from 0 to 5 properties, I've listed it on E-bay. This is my first time listing anything via E-Bay so feel free to message me if you've noticed I've done anything wrong

    http://cgi.ebay.com.au/MasterClass-Starter-Steve-Mcknight-/260675899714?pt=AU_Business_Industrial_Courses_Educational_Services&hash=item3cb17e9142

    Starting bid is $100
    Duration is 7 days

    Let the bidding wars commence! =P

    Kong

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