My Introduction....

Hello All,

My name is Brad , 28year old Electrician , residing in Perth WA.

I am a Offshore FIFO worker like most of the western australian population

I joined this forum because well....... its time to invest.

My backpacking days are pretty much done, Im more mature and seeing that I earn quite a good salary every year its time to get back into the real estate market and stay there.

Back into the market you say? Yes I once owned a property in Launceston TAS. 3x1 purchased for $170,000 in 2005. Used my first home buyers grant and lived in it for approx 2 years untill I went travelling overseas and subsequently sold the property and made $10,000 profit, which I than spent on alcohol and strip bars. whoops. Fun yes, but whoops.

I have regretted selling it for a long time, because if I didnt, it would be worth approx $230,000 now and could use the equity to start investing more.

but we live and we learn, I know I am at the age where I can invest soundly and have a good career/income so its time to start building a portfolio.

even a better one that rivals my old mans portfolio !

I know some about real estate, but im here to ask questions to learn and discuss many investing topics.

so Q1: First IP of the ranks, perth? Bassendean, Bayswater, Redcliffe.

I have Pre-Approval for $600,000.

Let the discussions begin.

Cheers

Brad

Hey Brad

good into, welcome.

There are sticky newbie threads worth reading.

And interviews threads on us old salts.

So my first question, what is your goal ....specifically?

Regards Peter 14.7

Firstly welcome - and be prepared to brain oversaturation when you start reading.

Peter is right ... first you have to define you goal. And be specific. You want to retire by 20XX on income of $XX ... and then work out how you are going to get there.

Read the interviews - they give a really good rounded view of the many paths of investing. In regards to place - the "where to buy" section is darned good.

sold the property and made $10,000 profit, which I than spent on alcohol and strip bars

Click to expand...

And any left over you wasted

geoffw said:

And any left over you wasted

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almost : )

I spent half my money on wine, women and song, and wasted the other half........ George Best I think.

ta

rolf

The version of the George Best quote I've heard is:

I spent a lot of money on booze, birds and fast cars. The rest I just squandered.

welcome. a wealth of info on SS.

Strategy and goal - definitely first step.

I would say though - dont over complicate it, and fall into the trap of analysis/paralysis. The cost of NOT doing anything is probably higher than small/micro mistakes you may make when starting out.

matto_ said:

welcome. a wealth of info on SS.

Strategy and goal - definitely first step.

I would say though - dont over complicate it, and fall into the trap of analysis/paralysis. The cost of NOT doing anything is probably higher than small/micro mistakes you may make when starting out.

Click to expand...

Agree that the first IP is L plater learner. Hopefully (unlike some of us, me included) you will not earn form your mistakes but others.

I can tell you, Somersoft is a gold mine. If I had this site when I was 28 and the internet existed LOL, I would have double the IPS I have now and we have more than few just quietly.

Regards

Peter 14.7

Graemsay said:

The version of the George Best quote I've heard is:

I spent a lot of money on booze, birds and fast cars. The rest I just squandered.

Click to expand...

gotta love life.

well im 28, so i see the next 10/15 years to be the money maker time.

I earn approx $230,000 Gross a year.

So not exactly sure the goal I should be aiming for?

Perhaps 8 properties and income of $100K ?

Wirra436 said:

So not exactly sure the goal I should be aiming for?

Perhaps 8 properties and income of $100K ?

Click to expand...

OK, we need to first ignore the income, yes ignore. And can I assume your income is from a job.

What is your goal? here are some:

Is it to retire at say 40. Not work at all. Live off your passive income from Property.

OR

Do you wish to work as late as possible , putting as much away as possible.

OR

Do you wish to build wealth for later donation to charity

OR

Do you wish to travel a lot. Like every year.

OR

Do you want a large family. Or no family.

OR

Do you wish to start your own business one day in what you do for work.

Try these to start and reply. By the way you can have all, just give them a priority of 1 to the end , 1 being first.

Peter 14.7

Gday Brad,

Welcome to the forum! We're all here to help you out.

I'd agree with Peter. Tell us more about what your goals are specifically, and in that way, you'd be able to get clearer suggestions and ideas from us all.

Below is not financial advice, it is in a general nature building on experiences I have had with clients in the past. The following could be totally different for you and you should always seek your own independent financial advice.

Once you have decided on goals you have to put a strategy in place. The strategy is more of a map on how you plan to achieve your goals. I have seen some people with week on weeks plans and other people who review it bi-annual. Do whatever suits you, but it is important at some stage to review what you are doing to keep motivated.

Many people fall down in plans when they just look at property - as this is the most exciting part. I would suggest that you consider not just the property, but other more boring parts which may include:

- Tax - By the looks of your income (depending on deductions) you would be in close to the top tax bracket. Ideally, for my clients I would recommend them a strategy that could reduce this high tax bracket.

- Financing - Many people think of this way too late, but how are you going to be able to service property number 5 in x amount of years time. They way you finance your properties and the types of property would directly influence what you can do down the track. I see way too many people come to me when they are stuck at property number 3 wanting to buy property number 4 etc.

- Asset Protection - (Depending on how you're employed) Without getting into too much detail, there is a lot more you can do once you have a few properties or you are self employed. It's a light tight as a salary earner, but there maybe some things to consider.

- Insurance Most clients forget, but if you go into debt and negative gearing is a component of your strategy. What happens if you can't work? Not only could you loose your income, but also the tax incentives like negative gear/deprecation etc.

- Exit Strategy - How does your strategy take into account a wind up?

- Estate Planning - How will your assets be split up should the worst happen? Anther tip, most estate planners are financial planers and traditionally financial planners are against direct property investment. This does not mean you should discount there advice, but you should be aware that they might be more inclined to recommend you managed funds etc.

Finally, the property. Here are some pointers I look at when purchasing for clients:

- Purchase a property which will compliment all of the above considerations. This might mean, meeting with all the above people (accountants, finance brokers, estate planners, lawyers)

- Don't look at what places are like now, look at what they could be liked in 10-20 years. Property is a longer term investment.

- Go for land value over building value. This doesn't mean land size, as you move closer into the city the $$$/sqm of land is higher.

- Look at supply! I see way too many people focus on demand side factors (this includes: transport links, facilities, basically all those nice things that make people want to live in the area). Make sure the area you are buying in hasn't got lots of supply coming up for the type of property you are buying.

- Add value. I'm always a big advocate for properties that have some other upside on top of organic capital growth.

- Hold rather than trade. Trading property is a business and investing in property is through buying a good quality asset that you can confidently keep for the long term.

- Due Diligence. Double check where you are buying, double check the property, double check the street, double check the suburb. CHECK EVERYTHING!

- In this market, don't be afraid to pay market value for a property, but don't pay for over inflated properties. I see this all too often in new stock.

I hope some of the above pointers helps, and don't be afraid to seek advice of professionals.

Wirra436 said:

well im 28, so i see the next 10/15 years to be the money maker time.

I earn approx $230,000 Gross a year.

So not exactly sure the goal I should be aiming for?

Perhaps 8 properties and income of $100K ?

Click to expand...

So in 5 short years time you will have earned $1.15mill gross. (more counting in payrises)

I guess you'd fit into the neg gearing category with that income.

You can only look up mate, good for you, you have the world at your feet.

i would say you should come to some Momentum Wealth seminars, some APN seminars and O'Rourke seminars (with your wallet firmly folded in half and wedged in a twisted pocket) and get an idea and listen to a few experts about what they're saying will happen in the coming years.

at the APNs you'll meet some likeminded folks and get some good insights. i'm presenting at the next one in October and I think you'll get a kick out of what I'm presenting on.

good luck - and hang around!

Good post Kent. Cheers.

Hi,

Welcome to the forum.

As others have said define your goals, have an action plan and keep asking lots and lots of questions

On the other side, you are on a gr8 income stream so you may want to diversify and look at other options as well

Wirra436 said:

well im 28, so i see the next 10/15 years to be the money maker time.

I earn approx $230,000 Gross a year.



Perhaps 8 properties and income of $100K ?

Click to expand...

On that sort of money why not do a 50/50 split ASX listed top 50 fully franked with div reinvest compounding blue chips,the rest in property and set goals that are achievable in small steps but also look at the other side,down the track you meet a Lady which you will and the Lady falls pregnant then you have to have the confidence to achieve what you both want,welcome to the fourm,and good luck..