Hello im overwhelmed! :)

Hi Everyone,

Have always wanted to get into property investing but i fear ive left my run too late. Im married, 46 years of age and have so many questions i just dont know where to start!! so ive joined this forum to see what i can learn. Questions i hope to be able to answer soon are

how much can i borrow,
Am i too old
should i see a property investment advisor
Loan structures
Where to buy
What to buy
What are some sources of data that will help

The list goes on and on!! Anyways, time for some reading but i fear i may stay overwhelmed lol

 

Good mortgage broker should be your first stop. Knowing your budget will help a lot.

the rest of it should become clearer but about the are you too old question.
What alternatives do you have? The pension?
You won’t get younger. Start learning now.

 

Exactly! ive got to the stage where i am thinking i have no alternative... Im a little scared, the years kinda crept up on me!

 

A good broker can advise you on what you can borrow and more importantly, loan structure that will help you acquire more properties in the right circumstances. There are some brokers in this forum that can help too. @Terry_w @geoffw @Peter_Tersteeg for example.

 

My in-laws went bankrupt when they were 50.

All the owned at that time was a beat-up old car and a few personal possessions.

Through taking action, hard work, ...they were able to create a comfortable retirement for themselves.

My MIL passed earlier this year but my FIL is still going strong. He will be turning 86 soon. His mother died at 99 and he wants to pass her.

At 46, you are not too old but you have to get crackin sooner rather later.

 

how much can i borrow - see a broker
Am i too old - no
should i see a property investment advisor - see a broker first
Loan structures - low interest on investment. Either P and I or interest only. Refinance your house at the same tine with 2x offset accounts. Pay off your house first.
Where to buy - close to a CBD with a bigger block of land than average. Also different job avenues are available and not one industry town.
What to buy - house that caters to a large demographic of renters
What are some sources of data that will help - the property couch podcast.

 

Set a time frame for all these things. Procrastination has been an issue. 3 or 4 months for example

 

Not too old but it's totally dependent on how committed you'll be from this point on.

 

What are your goals and what's your financial position? If you don't have a cent to your name and you're planning to retire on $1M/year, yes, you may have left it too late.
If you've got a fully paid off $2M property (not that rare in Sydney these days) and want to retire on $50k/year, the that should be pretty easily achievable.

 

You're not too old, depending on how actively you invest (i.e. not just buying houses to rent out for 20years) you could set yourself up well in a few years.

Look at your budgeting to ensure you divert as much money as you can into Investing and keeping your debt manageable.

Speak to a mortgage broker. I've used Dustin McMahon from Nectar Mortgages for years and he's outstanding.

Don't make the mistake of analysing lots of data, you haven't got time to procrastinate.

If you use a Buyer's agent to source property for you be extremely careful to find one who has proven success in property investing for themselves. Otherwise you may easily waste tens of thousands of dollars.

Stay away from FB marketing related to property investing, there are many sharks using slick FB marketing to separate you from your money.

 

What makes you think you will make a profit? Gambling on capital growth?
Economy is flat and wage growth is low.

Probably possible to make money if you buy well a lot easier to get it wrong.

 

Hey @Procrastin8 , welcome to the forums

Definitely have a chat with a broker to see where you stand from a borrowing perspective. Once you know that, you'll be able to determine what's possible straight up, so you can start to create a plan that will get you where you want to be.

There's lots of great brokers here, so have a read and pick one that you relate to.

 

Hey proscrastin8 , you sound like me from 20 years ago

I started investing after turning 40 . I read rich dad poor dad , discovered somersoft ( property chat’s predecessor ) and started reading .

a year later there was a BBQ and I was given the “ Analysis Paralysis “ award after asking LOTS of questions but buying nothing . In the next 2 years we bought close to 20 properties .

I spent that year reading everything on the forum , reading every book recommended and spending lots of time looking at properties and getting a good feel for the market .

got to the point where we KNEW what to do and didn’t need to ask anyone .

in reality I think property investing is relatively straight forward , but there are different ways to do it that suit different personalities and financial capabilities .

At this stage , IMHO , time is on your side . While Sydney and Melbourne are going up , that is in the back of a big boom so I think they will be underperformers over the next ten years , Hobart has boomed and may have some more to go , but it is closer to its peak than its trough so I wouldn’t buy there at this stage .

brisbane , Adelaide are coming off flat periods and have moved up some what , they’re still closest to their bases . We hold in both and I expect them to go up over the medium term , BUT at the moment I’m not seeing signs of a boom in the next few months so there’s no need to rush and buy there next week ... time to look around and get a feel for the places

Perth and Darwin have been going down for a while and who knows when they will turn . As a new investor , you don’t need to pick the bottom of the market to do well . We’re bought and sold over 50 properties and picked a bottom in 2 ( one month after the GFC in Mosman ) but have done very well on the vast majority .

there are a whole range of people on the forum , some good , some harmless , a few idiots and an occasional shark . They don’t have labels in them and it takes a while to work out who’s who .

Be wary of anyone who suggests that there is only one ( their way ) to make money . That’s not true .

Whatever you do , YOU need to clearly understand it and not rely solely on an expert .

Get advice , ask questions , but most importantly , at the moment you have time in your side in the current market , though that can always change ......

my personal preferences ?

Timing is the key . The first PPOR we bought went sideways for the seven years we owned it . The first IP’s we bought doubled within 1-2 years

Capital growth is critical but good cash flow helps you hold more properties . Unless your getting into the territory of “ sophisticated investments “ , the cash flow you get from residential property , on its own , is unlikely to get you where you want .

Be very wary of experts who suggest you buy a specific type of property . Listen to them but spend time picking holes in what they suggest .

Cliff






cliff

 

Step One: Find a Broker. Look for one on these forums because they mostly deal with those that are buying/selling regularly, whereas approaching someone more local, might get you someone who is very good, but doesn't have the right experience for someone looking to grow a portfolio. For instance, many years ago we tried to get finance to buy something for under $100k & couldn't. We called one of the more experienced brokers here & had finance for nearly $1m with a little restructuring.

Your broker will let you know what you can borrow, and you can discuss structures.

What to buy & where to buy are things you will need to work on yourself. Data that can help is this forum. There's answers to almost every question within.

Property Investment Advisors....well, most are snake oil salesmen. Take your time & read, read, read. It's Christmas, so you should have some time off of work. Spend it wisely!

This is very important.

Work out what you want. There are many ways to skin a cat, but you need to first work out what you want, and then start a plan to get there.

In order to give some suggestions, I have a couple of questions for you.

What is your starting point? OK, we know you are 46 and married, but what else. Do you own your home? Where is it located? Out the back of bulla bulla, or on Sydney Harbour? Do you intend to stay there, or downsize elsewhere? Do you have any skills to bring to the table? Are you a handyman/tradie that can build equity? What sort of income are you on? Do you have a lot of debt?

 

Thank you so much guys! I think a mortgage broker who specialises in property investment will be my first point of call. i have 300k equity on 800k (recently valued) in regional NSW. my income is quite good so servicing a loan wouldnt be too much of an issue.

Will do some research here for a mortgage broker. Thanks again!

 

Welcome ☺ a great starter book is Margaret Lomas' 20 must ask questions. The most recent one i believe you can get on ebook and gives you the basics about how to research an area and what drives scarcity and growth.

 

Very fair question. my answer to that is i know zero about shares and dont know how to go about financing them. Also my perception of shares is that they are volatile and not "real". i guess i have an old school mentality of safety in bricks and mortar. As to a business, i dont consider myself to be an entrepreneur, not enough to give up my current decent salary at any rate

 

You need to learn a lot either way.

Buying a ppor years ago, without considering it as an investment, doesnt give you much knowledge. In a way its more dangerous when you are looking for an investment, and you think you know something about it.

Probably safer approaching this with the assumption that you dont know anything about property either. Read a lot, ask what the assumptions are, but keep an open mind and dont assume anything.

 

I agree and i dont pretend to know anything about property as ive only owned ppor's. I acknowledge i start at zero knowledge but with enthusiasm. And this is certainly not a definite either. My other option is to pay off my ppor within 10 years but that strategy has no "then what" goal.
I think my biggest barrier is trust. I KNOW i will not do this on my own and i have no issues paying professionals for help. I just dont know who i can trust and there are so many professionals i would need to refer to...