Thank you all for your wise words , It has been hard trying to find the right person with all the Courses out there for 7,000 + and all the companies with free DVD's . I have been studying magazines and web sites . I am studying and reading as much as I can I shall work it all out along the way ... I will find a local financial advisor and have a chat to them ... Cheers =Gayle
This forum is more about housing economics, rather than specifically housing investment.
Better yet, do your own research. Read Australian specific property investment books. Try these two authors:
Margaret Lomas Michael Yardney
Those two talk mostly about property itself - how to pick, how to renovate, how to let out. Find some other authors that write about the finance and tax side.
Finally, I would recommend "Rich Dad, Poor Dad", taken with a grain of salt. The advice is very general and mostly American focused, and it's told very casually, but there is some good advice in there about creating cash flow, and using leverage wisely.
I would also set up a spreadsheet with some assumptions and play around with them, to see how risky your property investment is. So for example, see what your cashflow will be like if interest rates rise 1, 2, or even 4%. See what would happen if your place was untenanted for 6 months.
This will also help you understand if the cashflow is working. Do you want a brand new apartment for $700k, and get $800/week rent, or a $400k apartment giving you $600/week rent. What's the strata like? What's the sinking fund like? Are you going to be hit with maintenance costs?
Like any investment, the more time you invest in exploring your options, the better decision you will make. If you are simply looking for a financial advisor or a property investment company to take care of it all for you, you will be ripped off, and you probably won't make any money until you've held for a very long time.
Property speculation is a type of gambling... But everyone knows that in gambling, the house always wins in the end.
Try a book called the richest man in Babylon. PeterAnd the biggest question of all. is your property working for you or are you working for your property. Peter
Thank you all for you advise in slowing down and doing my research ... That's what I have been doing reading books , magazines and watching as many free dvd's as I can... I have also been researching the market and where I can get high rental returns ....
Just wanting to know a reputable person to us my hubby and I start investing in property. We have collateral in our home and feel the time is right ... Its a jungle of Finance and Property investors out there .. Can anyone share a company that has helped you get started and has given you the correct advise ... We are in Melbourne Victoria any tips are appreciated
Cheers Gizzy
Hi Gizzy,
My old boss might be able to give you a hand. He runs a professional services business, called MRD Partners, that assists people to create long-term wealth for their family's future. The preferred asset class they specialise in is residential real estate.
Nick started MRD almost 12 years ago as he saw a need to teach and nurture would be investors to the place where they can make informed decisions and to his credit his business has grown from strength to strength as he has stuck to his core values.
I haven't worked for him in 5 years or so, but I recently went along to a boardroom briefing he hosted for about a dozen people where he laid out the general feel of where each major city in Australia currently sits on (what's called) the property clock. Very interesting to listen about how different markets (cities) are booming and plateauing at different times. The basic idea is that if you have a property with new equity in it after an upswing / boom (e.g. Sydney now) you can unlock that equity to invest into another market that is coming off the bottom of the cycle and likely to experience its upswing (like say Brisbane). He talked about market sentiment and knowing when a market is going to move quickly. I'm being careful to not offer financial advice... it would be best to talk to him.
Nick gave us all a copy of his latest book to read and it was a good read. I went along to the boardroom briefing expecting to hear about actual properties for sale but was pleasantly surprised that there was none of that. He spent his time teaching and I came away with a better understanding of research, doubling cycles, market sentiment and stuff like that. Very interesting.
Anyway, I was always impressed with how ethically he runs things... he takes people by the hand through the entire settlement process, never abandoning people after the sale is made like many others do. This was perhaps one of the biggest thing I noticed when I was working for him. My wife and I now have 2 investment properties with a buy and hold type of mindset I learnt from him. While I haven't bought property from him before, I would expect we will in the future, so I trust him.
Anyway, Google MRD Partners. His website has a link I think to download his book (as an eBook) and if you ask I know he'll happily post you a hard copy.
Hope that helps!
Matt PS: During the GFC, Nick & MRD did a lot helping people out of the messes they had got themselves into - either by their own making or by dealing with others with less integrity. I have no doubt you'll feel very safe and be well looked after by him/them
Matthew made contact with me earlier and said that he had posted here in response to your question. I have read the thread of comments (and Matthew's kind words) and yes, I will happily send you a complimentary copy of my latest book - 'Property Investing in a Post-GFC World'; if you'd like me to.
Just go to mrdpartners.com.au/contact-us and send me a request, remembering to include where you'd like it posted to. I also produce a weekly newsletter as part of the ongoing education and mentoring of our clients which you can sign up for on the MRD Partners home page, if that's something you feel would be of benefit to you.
A scalpel and in the right hands (e.g. a skilled surgeon) can save a life or alternatively it can do much harm in the wrong hands (e.g. a crazy person on drugs); debt is very much the same. I believe the responsible use of the right kind of debt can lead to wealth creation but to recklessly misuse debt is 'fool's play'. Therefore it is important to get understanding before you get a property.
Well done for seeking guidance first so you can avoid the heartache that can come from rushing ahead and making ill-informed decisions - as so many unintentionally do.
When you are satisfied you have found competent professionals, who 'have your back', to support you... and you have learned how to responsibly manage debt (i.e. neither fear nor disrespect it), I have every confidence you will make great choices that will propel you closer towards your financial goals.
Whatever you decide I wish you every success on this exciting journey.
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