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Hi to all from a new nervous nellie investor

Discussion in 'Introductions' started by Peter Taffa, 12th Nov, 2015.

  1. Peter Taffa

    Peter Taffa Active Member

    Joined:
    25th Aug, 2015
    Posts:
    42
    Location:
    Sunny Belfield NSW
    To all on this forum,
    HI from Sunny Belfield in Sydney.
    Both the wife and I are new to investing, we have a firm goal in obtaining our first IP within 6 months and at least another within 12 months.
    For a long time we were reading and studying what to buy and how to start, also probably had far too much family BBQ expert information offered which coloured our thinking.
    For a long time we have suffered from paralysis by analysis and could not make that first step. Our thinking was that we needed to pay off / pay down our PPR mortgage first before doing anything.
    After having a life changing episode in Nov 2014 and needing to take time off work we realised that to manage for our retirement meant starting now!
    There is never going to be a time when the "bubble bursts/ market changes/win lotto/rich uncle dies and leaves us the inheritence etc" we are in charge of our destiny so to speak.
     
    ellejay and bob shovel like this.
  2. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Haha "BBQ expert". I'm going to borrow that.

    Anyway, welcome @Peter Taffa. You've come to the right place to learn what you need to get going so read like mad, absorb everything and ask lots of questions :)

    Many others have the same mindset of wanting to pay off their PPOR before starting, but the opportunity cost is enormous. It's good that you've identified that.

    Is your 6 month goal constrained by your desire to learn more before diving in or are there other factors at play too?

    Where are you thinking of buying?
     
  3. Peter Taffa

    Peter Taffa Active Member

    Joined:
    25th Aug, 2015
    Posts:
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    Location:
    Sunny Belfield NSW
    Hi Steven,
    We actually are Ok with Equity in our home right now.
    We purchased in 2010 for 650 and have just revalued at 1.1.
    our mortgage is well under 140K.
    heres what some have advised is the scary part..we are speculating on 5 building blocks in SW Sydney near narrellan. This particular developement has had 15-20 % growth year on year since 2012.
    We will move on from all 5 by mid next year and are hoping for a modest profit.5-10k each block after expenses would be nice. Our deposts are tied up with bank deposit bonds in an ofset trust against our current mortgage buffer (around 300K).

    Apart from the above,Yes Our 6 month goal is to learn a bit more. However we are looking for the right kind of place where all the numbers stack up. Our desire would be to get a postive geared place for a bit of income to offset against a better negative gear place for growth.

    We have not pinpointed just where as yet.
     
  4. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    @Peter Taffa, with ~$1mil of equity you have some serious rocket fuel for when you get going and lots of options up your sleeve for fast-tracking your wealth creation (e.g. renos, subdivisions, development etc), pending income/serviceability of course. I would talk to some people about those kind of options because most beginner investors don't have as many choices and follow a much simpler (typically slower) course of action.

    When you say speculating, what do you mean? Do you have options on the blocks or something else?

    There are loads of options for finding good cashflow if you think outside the box. A couple of my mortgage clients (who I have to say, are making me very proud) have minor reno projects underway in QLD which will return 9-10%+ when done–more than enough to offset some negatively geared properties.
     
  5. Peter Taffa

    Peter Taffa Active Member

    Joined:
    25th Aug, 2015
    Posts:
    42
    Location:
    Sunny Belfield NSW
    Steven,
    regards to the blocks, we do not have options. Due to this being a private venture subdivison out side of landcom we can trade well before the blocks are registered and require full finance.
    So we will stump up for stamp duty etc however we have defered paying stamp duty and will wear the interest and pay at time when we onsell 'em.
    Our home in Belfield is on a 583 sq m bloc with a sizable back yard, we had considered a Granny Flat but were relucatant due to the loss of amenity and pricacy.
    As far as investment options we were going to work on the KISS principle and just accumulate IP's. I would rather avoid subdivions and development blocks...however it is early days yet and if the right deal comes up who knows. I just do not want to take on any extra stress and have another episode.
     
  6. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Location:
    Sydney & Gold Coast
    @Peter Taffa, ok, I think I understand about the arrangement.

    Makes sense about not diving in the deep end to begin. Took me a few purchases before I got my first development block :)
     
  7. neK

    neK Well-Known Member

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    Development block? Are you referring to the house in QLD you own?
     
  8. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
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    Location:
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    Affirmative, @neK.
     
  9. datto

    datto Well-Known Member

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    Location:
    Mt Druuiitt
    lol

    Peter your avatar makes me laugh.

    Sorry I didn't your post in full but welcome aboard just the same.

    datto