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Determined, delusional, or daft? I haven't decided yet…..

Discussion in 'Introductions' started by KayTea, 15th Aug, 2015.

  1. KayTea

    KayTea Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    286
    Location:
    Brisbane
    After listening to a neighbour talk about her success in the property investment 'game', I decided to do some research, and then try to get my feet wet.

    So, I saw a financial planner, and signed up an associated BA, in November 2014, but I'm yet to make my first purchase. After hitting a lot of speed bumps over the past few months (which I've decided to see as 'learning experiences'), and still not having an IP yet, I've found the emotional energy to try again, and finally get into the market.

    I want to 'be successful' at this, for a number of reasons:

    Firstly, I want to show my child that being a single parent hasn't stopped me from reaching my goals - if you have a plan, persist, and remain open to continuous learning and new experiences, the world can offer you anything you want to take from it (metaphorically speaking, of course).

    Secondly, I teach at an all girls high school, and it's amazing how, even in 2015, many of them still have the attitude that the only way that they are going to be financially successful is to marry a rich man! :( I keep telling them that they should never go into, or stay in, a relationship just because of the money. If they are financially independent and knowledgable, then they can choose to do whatever they want - whether there is a 'significant other' involved, or not. I want to be living proof of what I teach.

    And lastly, as much as I love my job, the idea of having to do this until I'm 70 makes we want to cry (working a 50+ hour week, for peanuts, isn't a great way to set yourself up for retirement - I'll be dead from exhaustion, and/or broke, when I reach 'official' retirement age).

    So, here's to Attempt #2 at getting into the IP game. Having transitioned from Somersoft over to PC, I know that I will get all the help and support I need from an amazingly knowledgable, experienced, and giving group of pseudo-family members.

    Thanks guys ;)
     
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  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    14th Jun, 2015
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    More than one of female mentors taught me that "a man is not a financial plan".

    Those same peops also suggested that sometimes failing at something can provide the greatest gift or opportunity.

    ta
    rolf
     
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  3. wylie

    wylie Moderator Staff Member

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    What sort of IP are you looking at, where, and what sort of price range? Are you looking to find something that is almost cash-flow neutral? Do you want something new, old, renovated or needing some renovating? Is the BA worthwhile?

    and.. of course... well done and good luck with the search.
     
  4. Azazel

    Azazel Well-Known Member

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    Hi KayTea, welcome aboard.
    Do you still have the services of the BA, or are you writing off that cost as a learning experience?
    Where are you looking to buy an IP now?
     
  5. Greyghost

    Greyghost Well-Known Member

    Joined:
    23rd Jun, 2015
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    Location:
    Melbourne
    Couple of points;
    1: the smallest action is better than the worlds greatest intention

    2: psychologists say the brain does not know the difference between doing something and talking about doing something, so sometimes we don't act on things, procrastinate and then they never happen.

    I suffered from analysis paralysis a couple of times. There will never be a perfect IP, it is still a game of risk and reward. Back yourself, commit yourself and take action.
    I think the BA will still be useful in your situation, give you some confidence etc and be a sounding board.
    Then there are members here who you can lean on for advice as well.

    Best of luck this time round.. You will make the right decision!
     
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  6. KayTea

    KayTea Well-Known Member

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    Location:
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    I've only lost the $1000 engagement fee, which, while unpleasant, I think could have been a lot worse if things had continued going down the path it looked like they were heading. I'm looking at finding a new BA - sooner, rather than later - while I'm still enthusiastic and have my rose-coloured glassed on for awhile. I've already been in touch with a few local (Brisbane) agents, so hopefully I'll find someone suitable in the very near future.

    I'm hoping for a Brisbane property. I'm not jumping on the SE QLD bandwagon that a lot of other people seem to be doing right now - for me, it's a case of wanting my first IP to be close to home. I think it would be easier to monitor, and keep my finger on the pulse of what's happening when it's in my own backyard (so to speak). Hopefully, as time (and my portfolio) progresses, I'll start to look a little further afield, giving more credence to what else is happening in the property market around the county at the time I'm ready to make my next purchase.

    Thanks for the welcome, Azazel :)
     
  7. KayTea

    KayTea Well-Known Member

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    Hi there, Greyghost.

    It wasn't analysis paralysis, or a lack of commitment, that caused me not to invest earlier. It was actually a major setback from a lender. While I had pre-approval to purchase, when the time came to actually purchase a place, the lender then removed their approval! Thank goodness for the 'subject to finance' clause.

    My mortgage broker had never seen anything like it before, and after exhausting all options, we had to walk away from the purchase. And, when I took the lender to task over it, they at least agreed to reimburse me for the cost of the pest and building inspection (which I only had done, because I believed that I already had the finance part of the purchase 'in the bag'). It was a horrible couple of months.

    Since then (April 2015), my BA (now ex-BA) hasn't found another suitable property. Given what I'm able to borrow, I think that their search parameters have limited my possible purchase options (as they were only recommending dual occupancy dwellings). I know I could easily afford a single dwelling (house, unit, townhouse - whatever looks more suitable and achievable, and legal, than a dual occupancy in Brisbane).

    So, I'm back to the drawing board, with a smile on my dial, and hoping for success in the very near future, with a new, more proactive, BA.
     
  8. JenW

    JenW Well-Known Member

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    19th Jun, 2015
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    Location:
    Perth, WA
    Welcome Kaytea! Good luck with getting that first IP - once you have the first one under your belt, it's a lot easier to buy the second one :D
     
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  9. KayTea

    KayTea Well-Known Member

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    Brisbane
    I'd like to think that, at least for my first IP purchase, using the skills and expertise of a BA is the way to go. I'm time-poor, and really don't have the knowledge or confidence to make that kind of leap completely on my own (just yet). Maybe next time I'll try it by myself……

    In terms of a location and property - I'm hoping for something in Brisbane (local, for me). I'm happy for either cash-flow neutral, or geared slightly either way, at this point. I'm hoping for CG, as much as income, right now. As for the type of property? That's a tough one. While I love a bit of DIY (pre-child, I was great with a paint brush, an on the tools), being a single parent, and full time employed doesn't leave me lot of time for 'house stuff' (even my own place is lacking in TLC at the moment). But, if I can purchase at the right price, I'm happy to consider just about anything.
     
  10. wylie

    wylie Moderator Staff Member

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    I'm curious because I've recently been looking for something in my area (Coorparoo, Camp Hill, Greenslopes, Holland Park) that would be close to neutral for our son. It would only be neutral because he has access to a deposit via an inheritance. But even without that, I did find quite a number of townhouses, units and houses, ranging from $300K to $550K+ that were almost neutral.

    In the end we chose a house, because that was his preference. It isn't neutral without his deposit, but was slightly cheaper than similar ones nearby and this needed nothing done, whereas they needed new kitchen and bathroom. It is in a good street with money having already been spent, on a smaller block (so the downside is probably never a chance to subdivide). There were trade-offs but for his first purchase, we didn't want him to think we've enticed him into something that needs lots of work and/or money. This would cost him about $100 per week to hold without his deposit taken into account, using IO very rough back of the envelope figures (Mount Gravatt).
     
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  11. Azazel

    Azazel Well-Known Member

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    No worries, make sure to check out the multiple fast moving Brisbane threads on here.
    https://propertychat.com.au/community/threads/brisbane-looks-good-in-2015.192/
    You might not need that BA after all :)
     
  12. lowIQ

    lowIQ Member

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    20th Jun, 2015
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    Location:
    Sydney
    I believe girls should marry first time for the money and second time for love ;)

    But jokes aside, from my investment perspective, having the right mind set is important and I think you are already there. Be prepared to make mistakes and don't suffer from overt analysis :)

    All the best at your Attempt #2
     
  13. KayTea

    KayTea Well-Known Member

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    That's my PPoR area, and the area I've lived in since moving to Brisbane (20+ years ago), so I'd feel comfortable buying in the area (as I know it well). But I'm happy to consider any suburbs where the numbers stack up. I would think that Mount Gravatt, and the surrounding suburbs would have good potential for CG over the next few years, but not be as expensive to buy into as Coorparoo and Camp Hill.
     
  14. KayTea

    KayTea Well-Known Member

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    Brisbane
    I wish it had been for money for the first time around…… I lucked out big time there. I'd be in a much better position now if I had. Hindsight is a wonderful thing.