First Time Investor Strategy

Discussion in 'Investment Strategy' started by ClimbTheLadder, 4th Oct, 2019.

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  1. ClimbTheLadder

    ClimbTheLadder Member

    Joined:
    4th Oct, 2019
    Posts:
    6
    Location:
    Perth
    Hi

    If this was your situation, what would you do?
    • 0 debt
    • $200K cash savings
    • $70K liquid non-cash savings
    • 37% tax bracket
    • $600K borrowing power
    Looking for a long term investment property (ideally in Perth, max price $600K).

    Would you go with a P&I loan or IO loan? Assuming IO loan is 0.2% higher.

    Has any one taken out a PPOR loan at 0.5% lower than investment loan then not living in the property for the first 6 months (renos etc) then rent it out and keep the loan as a PPOR?

    Any recommendation on mortgage brokers in Perth?

    Thanks
    Jeremy
     
    ClimbTheLadder, 4th Oct, 2019
    #1
  2. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,059
    Location:
    Vaucluse, Sydney.
    If it were me and I was a first time investor (as your question states), I wouldn't do any of that just yet. I would spend at least 3 months (could be less depending how much you absorb and read a day) to read up on and educate myself on these areas of RE investing before I jumped into to buying anything as well as reading through the forum.

    1. RE investing basics
    2. How to avoid simple mistakes
    3. Market cycles
    4. RE investment strategies and understanding your risk profile.
    5. How to conduct RE due diligence
    6. Risk minimization measures and strategies
    7. Goal setting
    8. How to choose a team to work with you to achieve your goals

    There are many good books out there which cover all these topics and more.
     
    Sackie, 4th Oct, 2019
    #2
    Propertunity likes this.
  3. DanseMacabre

    DanseMacabre New Member

    Joined:
    7th Oct, 2019
    Posts:
    1
    Location:
    Sydney
    I'm also in the same boat as ClimbTheLadder. Any specific recommendations for #2, #5 and #8?
     
    DanseMacabre, 9th Oct, 2019
    #3
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
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    Posts:
    42,003
    Location:
    Australia wide
    re # 2 = learn from the mistakes of others.
     
    Terry_w, 9th Oct, 2019
    #4
  5. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,059
    Location:
    Vaucluse, Sydney.
    Yes. Books. YouTube. Forum.
     
    Sackie, 9th Oct, 2019
    #5
  6. Mezza

    Mezza Active Member

    Joined:
    11th Jul, 2018
    Posts:
    31
    Location:
    NSW
    Was in this boat 12-18mths ago. I'm not much of a reader but found podcast a lifesaver and great material. Good ones to listen too are Property Couch, Smart Property Investment and Proerty investment insights. Great starting point
     
    Mezza, 10th Oct, 2019
    #6
  7. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,059
    Location:
    Vaucluse, Sydney.
    Yep some good resources. Whatever works for the individual. I love books so when I was in my 'hungry for knowledge' and obsessed phase, I devoured probably more than 200 books on real estate investing, renovating, property subdivisions, development, wealth creation, negotiating skills, mindset development, business, auto biographies of highly successful individuals and the stock market. Underlined, highlighted, studied key points etc.

    It allowed me to build a rock solid foundation. Hands down has been the factor which made the biggest difference to achieving my goals.
     
    Last edited: 10th Oct, 2019
    Sackie, 10th Oct, 2019
    #7