Forums / Property Investing / Help Needed! / Do it yourself or get professional do it for you ?

Viewing 17 posts - 1 through 17 (of 17 total)
  • Wiwin
    Participant
    @wiwin
    Join Date: 2011
    Post Count: 30

    Hi guys, I am looking forward to get my first ip.
    I have no PPOR and have no intention for it until I built my own portfolio.
    I am currently on 50k pa and had 75k savings as deposit.
    Been reading lots of book and follow the forum threads and attending all property spruikers seminar.

    I am honestly prefer to have a professional to help me to get me my right ip , right structure and to get familiar with the whole process. However it’s really hard to notice which one are genuine professional acting on my behalf and not acting on developers behalf.
    If I have to do it myself I am afraid I made a mistake and can cost me a couple years more to get on track.
    If I do it myself what is the order for it ?
    1. Get per approval for the loan
    2. Look for cash positive suburbs ( brand new , second hand or land / house packages ? )
    About this, anyone used Steve McKnight property calculator ?
    3. Get the right structure for loan
    4. Get building surveyor, pest control, depreciation reports , conveyancing
    4. Get property manager n tenant
    5. Get tax accountant specialise in property investing?

    After all and done, just wait until I have enough equity for next property’s deposit ?
    If my first ip somehow failed to get capital growth then is it mean I have to use cash savings again for the next one?
    I don’t really understand how people can buy 14 ip in a year’s time.
    Help please. Thank you.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,065

    Hiya

    Welcome aboard :-)

    Smart people recognise that they can’t excel in everything – so they outsource what they don’t know to the pros.

    Get a good finance person and accountant on your side and you’re already half way there.

    Cheers

    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 Don NicolussiDon Nicolussi
    Participant
    @don
    Join Date: 2005
    Post Count: 1,086

    Hi Wiwin – you are right.

    If you were to take as gospel some of the property investment tales you read then your expectations might be a little unrealistic. However, the keys are equity and of course income. Waiting for capital growth is a slow process and to move quickly you will need to buy below valuation. ( The hardest thing to do in investing ).

    On the question of DIY or get a professional my take on it is make sure you know enough to ask the right questions. Get others to do it. You will get the best out of your professionals when you can ask “why” with confidence and “what if” with confidence.

    Don Nicolussi | Mortgage Broker - Home Loan Warehouse
    http://homeloanwarehouse.com.au
    Email Me | Phone Me

    "I think of finance as a technology, a way of getting things done." Robert Shiller

    Wiwin
    Participant
    @wiwin
    Join Date: 2011
    Post Count: 30

    Thanks a million, guys.
    I think i will get myself good broker, good buyer’s agent, good conveyancing and tax accountant specialist in property investment.

    Profile photo of oc1oc1
    Participant
    @oc1
    Join Date: 2012
    Post Count: 148

    Wiwin, i would contact Jamie (above) if you want to get yourself a good broker. Very knowledgeable and reliable.

    Oscar

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,325

    Hi Wiwin,

    I don’t really understand how people can buy 14 ip in a year’s time.

    Well, not quite 14 in a years time, but Darryl did a pretty impressive job none-the-less. Take a look :-

    https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697977

    While you are in that thread too, there are a number of other useful posts and links answering or discussing many of the early questions asked by new investors. Maybe you will learn about things you aren’t even aware of yet. Happy hunting,

    Benny

    • This reply was modified 4 years, 8 months ago by Profile photo of Benny Benny.
    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    I don’t really understand how people can buy 14 ip in a year’s time.

    Hi Wiwin

    You’ve hit the nail on the head with that sentence. Generally speaking it can be done one of three ways:

    Assuming a bank is happy to lend to you on 14 properties (which may not necessarily be the case if they are not satisfied your day job income could support the mortgages if there was a problem with tenanting), you could fund deposits either by :

    Using cold hard cash for each deposit (you would need quite a bit of cash for 14 properties)
    or
    Using equity, which comes about through buying below market value, forcing growth through renovations, or natural price hikes in the area.

    Be very sure that if you are apparently buying below market value, that the price you are paying is indeed below market value. The same applies to valuations. Be sure that the valuation a valuer puts on your property is realistic. It’s all well and good to pull out equity to fund subsequent property purchases, however if you ever needed to sell a property, it would be very very unfortunate if its resale value was less than what you owed the bank. This is what is known as negative equity. It would mean you essentially could not sell because you would crystalize a loss. Or you sell, accept the loss and find the money to pay the difference to the bank from some other source. Since it is unlikely you’d have a big pile of money to bail yourself out of such strife, it’s really important to be sure you are either paying fair market value for property, or below. Not above. Same with valuations.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

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

    Profile photo of PHPPHP
    Participant
    @php
    Join Date: 2014
    Post Count: 111

    Hey Wiwin,

    first thing to do. educate yourself. read a lot. and then read some more. be active in property forums like this one.
    you have accepted the fact that you know little and wanted to do something about it. That is one of the best decision you’ve done.

    “You don’t know what you don’t know”

    Educating yourself will fix this. Soon you will be asking more specific questions.

    PHP | Mortgage Station Pty Ltd
    http://www.mortgagestation.com.au
    Email Me | Phone Me

    Give us a call or send us an email for a free residex report.

    Wiwin
    Participant
    @wiwin
    Join Date: 2011
    Post Count: 30

    Hi all,

    Thanks for great explanation. It is now make sense now Jacqui.
    I didn’t mean to be lazy but sometimes experience make a different.
    I believe using professional service will make the better investment experience and minimise errors.
    But on the other hand, i am definitely need to know the process and whether they do it properly as I know that some professional might not as professional as they seems.

    Profile photo of PHPPHP
    Participant
    @php
    Join Date: 2014
    Post Count: 111

    A good broker, accountant and buyer’s agent will explain each step to you as you progress. You learn from it and minimise mistake if done by yourself alone.

    PHP | Mortgage Station Pty Ltd
    http://www.mortgagestation.com.au
    Email Me | Phone Me

    Give us a call or send us an email for a free residex report.

    Wiwin
    Participant
    @wiwin
    Join Date: 2011
    Post Count: 30

    How do you know whether that your accountant specialised in property investing ? Can you tell me ?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    First, you should see if they claim to specialise. If they claim to then they probably will know at least a bit about property!

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404

    Hi, where are you located? People can then recommend (or head you in the right direction) with some groups.

    I’ve met a lot of people that have built portfolio’s very fast but none of them have done it without help.

    I went to a few seminars that wanted to charge $5,000+ for mentoring etc but I did not feel comfortable with them. There are many, you do gain some insight at them and you often get free books. I have met some long time friends at these. But don’t bring your credit card. If something sounds enticing come home, ask on here, then decide.

    In the end I found someone I could trust and bought a few through a buyers agent. I then started buying on my own as my confidence increased. I never would have the portfolio I have today without that initial boost (and reassurance that I was getting it right). Who would have thought you could buy property that actually puts money in your pocket from day one? (not me when I started). That iks also how people keep buying. If you aren’t losing your wages to buy and you gain equity you can keep buying.

    It definitely helps to be around like minded people. Networking is THE key.
    Go to meetups, chat with people.

    If you go to meetup.com and type in property and your local city there will be meetups where you live. Most are just informal meetups where people chat. Some have guest speakers etc.

    You have made a great start. Good luck to you.

    Wiwin
    Participant
    @wiwin
    Join Date: 2011
    Post Count: 30

    I am in sydney. thanks. I will try to fit it, but i am timely poor. I have been trying to all those free seminar and join free webinar as well.

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404

    Everyone is time poor.

    But at the end of the day we make time for what’s important. You know the saying- if you want something done give it to a busy person.

    Financial security is pretty high on my list of what I’m prepared to sacrifice time for.

    It’s taken a few years of endless time on the computer and looking at houses but I’ll be retired soon and will have all the time I want.

    Profile photo of PHPPHP
    Participant
    @php
    Join Date: 2014
    Post Count: 111

    I agree with Catalyst. Everyone is busy. It will all come down to how bad do you really want to be financially free and what you will do to achieve your goals.

    PHP | Mortgage Station Pty Ltd
    http://www.mortgagestation.com.au
    Email Me | Phone Me

    Give us a call or send us an email for a free residex report.

    Profile photo of RichardRichard
    Participant
    @richardppiadvice-com-au
    Join Date: 2014
    Post Count: 20

    Hi Wiwin,

    lots of info here about how to buy, who can help, not much around what is right for you and whether it will help realise your outcome. Mostly because this different for everyone. Expectations are pretty important, as your first step into property needs to be a positive one in order for you to stick at it and build your portfolio.

    What do you expect property to do for you? Are looking to build a base to yield income, or turning over stock for short term gains, there are lots of paths yielding varying returns.

    Any approach to market needs to be formulated. Concentrate on the outcome, and work backwards to the appropriate product to achieve this result.

    Professional support can provide this clarity, help define the required team, and give you the direction you need to channel your effort.

    • This reply was modified 4 years, 8 months ago by Profile photo of Richard Richard.

    Richard | PPI Investment Advice
    http://ppiinvestmentadvice.com.au
    Email Me | Phone Me

    Licensed Property Financial Advisors providing tailored property advice and solutions!

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