Hi all,
It has been an intersting few months reading and asking questions about property investing.
Now it's time to speak to someone specifically about the correct strategy I will need to employ for the goals I have set and the best way forward to achieve them from my particular starting point.
Are there any property investment strategists in Perth I can talk to that can assist me in determining what my particular strategy should be?
By strategy, I mean the overall picture, not just investment techniques. Someone who can help me determine my particular game plan to achieve my particular goals.
PJ
Be careful about Perth
Check out this article – interesting reading:
http://www.watoday.com.au/wa-news/perth-property-market-worst-in-10-years-20101206-18ma0.html
I think that article is great news!
We are in a correction which means bargins are more realistic. Negotiating power of the investor has increased.
This is why I need to sort out what my game plan is. Specific to my present circumstances, my starting point and what I need to do to achieve my goal.
I need to sit down with a seasoned investor, lay out the pieces of my jigsaw and discuss which piece goes where and why.
Should I be sitting down with the likes of Metropole? who are this 'MyPortfolio' crowd currently hammering the radio waves at the moment ?(which raises alarm bells for me)
I have spoken to a few mortgage brokers and my accountant has been with me for a while. These guys I would expect have a narrow view on the process, specific to their expertise.
How should I handle the next stage in creating and understanding my game plan? BEFORE I jump in and start spending?
PJ
PJ,
You are right about the article Charles presented. This is good news for Perth. There is an over supply of houses on the market in Perth and we are currently seeing Perth move into a buyers market and negotiating terms are good for investors.
When you talk about the correct strategy I dont believe there is a right or wrong. Different strategies suit different people and different situations. Many savy investors use more than one strategy. I believe in Perth buy and hold or adding value are the best stratergies. Unless you want to go to the mining towns like port hedland or Karatha and look at a CF+ strategy but this is very hard to achieve around metro Perth. You could also look at vendor financing and help people who cant afford their own homes but this stratergy is a bit more complicated.
Whatever path you decide to go down I think you should be getting your affairs in order because early next year around Autumn is going to be a great time to buy in Perth so you want to be ready before then. You might even want to look at getting some expert education to help you develop your master plan. I know Momentum Wealth in Perth have an education program and Damian Collins who runs it is a very experinced investor who knows the Perth market better than anybody. I have a good friend who works there so let me know if you want me to put you in contact with him and Im sure they could help you out even if it is just for a chat.
Good luck,
propertyjockey wrote:Hi all,It has been an intersting few months reading and asking questions about property investing.
Now it's time to speak to someone specifically about the correct strategy I will need to employ for the goals I have set and the best way forward to achieve them from my particular starting point.
Are there any property investment strategists in Perth I can talk to that can assist me in determining what my particular strategy should be?
By strategy, I mean the overall picture, not just investment techniques. Someone who can help me determine my particular game plan to achieve my particular goals.
PJ
Why do they have to be in Perth? Why not go for the right team player no matter where they are? These days with internet and skype video conferencing etc you can be anywhere.
Can I suggest, with relation to your own wealth strategy, that you get advice and a sounding board from someone who is not going to benefit financially from your decisions?
It is actually not too difficult to try to do yourself… in fact a standard business consultant/planning advisor, or even someone like PWC or a lawyer might be a good idea.
If you think you aren't even up to that stage, drop me a note. I used to work as a business planning consultant, and am extremely familiar with the whole "goal identifying and setting" process.
I suggest that you start with identifying your financial goals (how much by when), and work that way.
Regards
MarthaHi all,
Thanks for the perspective.
I believe I have a clear vision of where I would like to be in 5,10 and 15 years from now and the reasons for these goals.
In investment terms, I have quantified these milestones, giving me a target.
Applying residential property to achieve these targets from my particular starting point and personal circumstances is what i am nutting out.
Although I have spoken to specific technichians (Account, Mortgage broker), bouncing my thoughts and scenario in detail with an experienced property investor who is already where I would like to be will confirm my thinking or offer insight into areas I have not thought of.
This will hopefully focus my efforts on what is realistically available to me based on my starting point and circumstances.
Should I be contacting Metropole to assist in formulating the big picture?
PJ
propertyjockey, I was wondering who you ended up going with and how it all went? Feel free to PM me if there is anything you don't want to announce in a public forum! I am about in the same position now you were in back in 2010.
Hi,
To date I have used Metropole finance to refinance my existing PPOR and set up my LOC's. I am a newbie at investing and this will be my first IP I will be buying.
The refinancing process was handled a little unprofessionally only because of the inexperience of the account manager I was assigned. However, we got there in the end.
As for obtaining property strategy advice to help formulate an action plan as stated on their website – don't hold your breathe!
I have been asking alot of specific questions based on my particular circumstances so that I can understand and formulate an investment plan where all risks are highlighted as they apply to me and exactly how I am going to manage these risks.
All I am getting is a reharsh of the basic principals as described in Michaels books. Nothing specific as these principals would apply to me. It feels like the information I require will only be forthcoming if I purchase further products, which are in the thousand of dollars. I am disapointed with this outcome.
Having said all that,I will be using metropole as a buyers agent because I know for a fact I do not have the knowledge at this time to safely select the correct property. I believe the first two IP's are critical to your long term success and is a major risk factor. My time also is limited, so I will be engaging them to act on my behalf to find and secure my first IP. Hopefully, this decision will prove to be a good one.
The Metropole system is based on buying high growth properties with the ability to add value and manufacture further capital growth. This is great for building your portfolio assuming you can get access to the capital.
Given your business partner in this equation is the bank the fundamental flaw for the average joe is beating the servicability test. Your buffer funds will take you so far before you need to top them up. If you cannot refinance because of servicability you're stuffed no matter how much equity you have.You are forced to sell. Which defeats the 'Hold' part of the Buy & Hold principal
Trying to get an action plan to deal with this major risk, other than "You need to make more money" has been very frustrating. It feels more like speaking to a realestate agent interested in making a sale as opposed to speaking to a property strategist interested in formulating a decent investment plan.
Ultimately we are all responsible for our own actions.
PJ
Must admit concerned that the Broker Metropole have got looking after you according to your words was a "bit inexperienced".
As i say so often to forum clients it is a concern when you own more IP's than your Bank or Broker or have more of an understanding of the process than they do.
I hear from so many clients who tell me their Broker is still paying off their PPOR yet out there telling clients what they should be doing to set up the investment structures. Bit like going to a dentist to perform oral surgery and getting someone who has read the theory yet never quite go as far as the operation. Wouldn't inspire me…….
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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