All Topics / Help Needed! / JUST started learning about investing 2 weeks ago

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of AdisKayAdisKay
    Join Date: 2011
    Post Count: 23

    Hi, Im 22 now and until recently i’ve been tragic with saving my money. Lucky i still live with the old folks otherwise i would have had some serious problems.
    At the moment I’m still in a $36000 debt (2 personal loans, credit card) alot better than what the situation was several months ago. Any knowledge i have about investing comes from the 132 pages i’ve read so far within the “0-130 properties in 3.5 years. & i’m hungry for more. After i finish this book, i’ll have the 0-270 properties in 7years. its sitting here waiting for its turn to be read at the end of which i’ll get my hands on this package about investing in the USA. my only concern is.. by the time I’ve accumulated enough knowledge and fixed my financial situation, the US market might change and I’llbe too late to grab any of these deals people are getting now.
    How long is this expected to last? i feel pressured to hurry up and get myself a deal while i can from the US while i can but i KNOW this type of thing could result in a very costly mistake.

    I have alot of reading to do. I just wanted to see how much time i have with the US market in particular. AND.. is there really no more positive cash-flow properties in Australia, anywhere anymore ?

    Profile photo of Jacqui MiddletonJacqui Middleton
    Join Date: 2009
    Post Count: 2,539

    Good on you – doing a heap of reading is key.  This is because everyone has a different opinion and strategy based on what is best FOR THAT PERSON AT THAT TIME IN THEIR LIFE IN THEIR OWN CIRCUMSTANCE.

    For you, best thing to do is get rid of your debt as fast as you can.  Meanwhile you read more.

    The debt you should eliminate first should be the one with the highest interest rate. 

    There are positive cashflow properties here.  You can't necessarily buy them ready-made and already CF+ off though.  For instance, you might need to buy something that needs a lick of paint, new carpet, and new kitchen cupboard handles to launch it to the next level of rental yield, thus becoming cash flow positive.  In other words, you often have to do something to the property to make if CF+.  Renovate, subdivide and sell the backyard, stratatitle some units etc.  My fave is simply buying something on a nice long settlement with a condition in the contract of sale saying that the current owner has to put the rents up before you take over.  That way by the time the property is yours, it's closer to being CF+.

    Jacqui Middleton | Middleton Buyers Advocates
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Jamie MooreJamie Moore
    Join Date: 2010
    Post Count: 5,069
    AdisKay wrote:
    the US market might change and I'llbe too late to grab any of these deals people are getting now. ?

    Hi and welcome to the forum

    To be honest, I'm not overly familiar with the US market. However, from what I've been hearing – there will be cheap properties for quite some time….cheap not necessarily equating to good. Like any investment, do your homework and balance the risks with the benefits.



    Jamie Moore | Pass Go Home Loans Pty Ltd
    Email Me | Phone Me

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

    Profile photo of AdisKayAdisKay
    Join Date: 2011
    Post Count: 23

    Cheers, And another question i have. might sound stupid. But i’m willing to move from my old folks place out as soon as possible. Whats the best option for me considering i’ll need money to investing in the near future? To rent or to buy ? If i buy i probably wont be able to get anymore loans right?

    my apologies in advance if im asking something silly, Thanks

    Profile photo of Andrew_AAndrew_A
    Join Date: 2003
    Post Count: 392

    AdisKay there will always be deals out there in all sorts of different countries and asset classes, perhaps even a little closer to home! Take your time to learn a little more before jumping into what might be later perceived as rushed action, though even rash (rushed) actions tends to work out very well for those who survive, adapt and refine their approaches, especially when they start young!

    Profile photo of MosquiMosqui
    Join Date: 2010
    Post Count: 43

    Keep reading, reduce your debt and learn from other’s mistakes, this will save you a lot of money. The US market is very strange, like any financial crisis you can not predict the movement much, even when you can see some indicators, but you should not rush to get into action yet. There are cash flow positive properties in australia right now, most of them mining towns.
    Read, learn and think which strategy you want to follow, so how much risk do you want to take.

    Don’t get anxious.

    Good luck (you always need some)


    Profile photo of xdrewxdrew
    Join Date: 2010
    Post Count: 479

    Adiskay, there are always cashflow positive properties out there.

    You just have to know where the deal is.

    Consistantly .. there will be properties poorly managed and maintained and you can make your money on knowing what the REAL achievable rental price is (validate this with market guides) and what is possible WITHOUT MAJOR EXPENSE to get the property to achieve that standard.

    Outside of that .. its just a matter of gearing a property to a positive cashflow status. I'm now at the stage where i view any fully furnished ads with great suspicion. But that just comes from knowing they've already tried to add extra value to the deal. I like there being value existant in the deal pre-purchase. Because to make my money i need to drive the property to another level.

    Profile photo of Matthew_WMatthew_W
    Join Date: 2009
    Post Count: 19

    Someone may want to back me up here, but hasn't the US market been considerably cheap {depending where you want to buy of course} for a couple of years now? Even today.

    I remember going to a Steve McKnight seminar in late 2009 where he was talking about $400k properties being bought a few years earlier, and selling for $150k in late2009. My memory is a bit hazy, but that was the gist.

    AdisKay, the market is of course unpredictable; but who knows? Maybe you will get some deals there in 1-2 years time similiar to deals now. You might be able to get better deals. Or if worse comes to worse, like others have said, Australia has plenty of deals out there

    Perhaps purchase 1 or 2 here first, live and learn from your mistakes, and then try overseas investing when you have more knowledge and a bit of experience. Being a bit older than yourself (just turned 23), investing overseas sounds very risky at suc a young age with limited knowledge.

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