How did you get started?

Discussion in 'Investor Psychology & Mindset' started by Catalyst, 1st Jul, 2015.

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  1. Catalyst

    Catalyst Well-Known Member

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    Sounds interesting. Do you have a thread on your strategy in SS or here, Ace?
     
  2. Catalyst

    Catalyst Well-Known Member

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    Hey Bob. I enjoy reading the interview threads. Not everyone has a thread though.

    My finances had been organised since end of last year. Using equity from PPOR to start the ball rolling.

    Have checked out a few suburbs but didn't dare bite the bullet as my plan is still hazy. Buy close to city and pay more? Buy further out, and go for cash flow? How about cg? Buy units? Buy houses that require reno???

    And now Perth market is slowing down. Seems like a good time to buy, but fearful that the value would free fall :eek:
     
  3. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Nah.
    I self studied plenty of gambling theory, probabilities and statistics all throughout my high school days and early working years.
    Knowing the odds helps a lot with everyday decisions, business and investment decisions.
    Because of this, I've never created a business plan or done any in depth analysis for investments because I just do what feels right at the time.
     
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  4. Tony Fleming

    Tony Fleming Well-Known Member

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    No idea what I wanted to do after school. Did real estate at tafe and listened to how much the teachers were making through investing. Made the great decision to quit tafe and stay in my low paying job with the goal to build a portfolio before 30 to support myself. Seven days a week of work and some luck and some more work I'm well on my way :)
     
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  5. Jingo

    Jingo Well-Known Member

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    Hi Catalyst,

    With so much information available, it can be very confusing. We started by buying a block of land and building a house in an outer suburb. We then bought our first IP - a town house in an inner suburb which has grown substantially in value. From there we kept buying more IP's. Some in outer areas, some in inner. We have a mix of flats, houses and units. At the moment we are concentrating on investing in shares and etf's rather than property. Also have an investment in an unlisted property trust.

    In all truthfulness, originally we never had a strategy. We bought the first IP to live in if we ever wanted to move closer to the CBD. Incidently, it turned out to be a great move! Now my wife and I have a lot of options to consider, and could stop work if we really wanted to. (This would involve some restructuring of the portfolio).

    I say just make a start. Buy something you can afford to keep if your circumstances change, and something that will generate further equity for you to continue buying if you so wish.

    Read all the material on here and SS. Be amazed by success stories and figures you read, but don't be overwhelmed. Success is well within reach.
     
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  6. Catalyst

    Catalyst Well-Known Member

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    Where and what did you buy for your first IP, Rick? Did you do as much due diligence as what you're doing now? Do you still have the IP?
     
  7. Catalyst

    Catalyst Well-Known Member

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    Thank you, @Jingo for the down-to-earth advice. Really appreciate it :)
     
  8. JesseT

    JesseT Well-Known Member

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    I moved to a regional area for work and bought a PPOR.
    Was made redundant eventually and rented the house out, liked being a landlord and seemed to work well. Started reading books, SS and attending seminars

    Decided to spend my redundancy package on another investment property.
    Then continued saving to purchase a third.

    Still yet to see significant gains but feel as though I am well set up and will continue to buy when funds allow.

    Funny how what I considered to be a huge negative in my life quickly opened new doors and sent me in an entirely different direction, always had an interest in investing but if I hadn't been made redundant I would now be trying to pay down my PPOR and probably 10 years away from investing.
     
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  9. JDP1

    JDP1 Well-Known Member

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    I Would think it's more fun and also beneficial to keep these two roles separate.;)
     
  10. The Y-man

    The Y-man Moderator Staff Member

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    This is absolutely key.

    I used to spend a tonne of money on my hobby (motor racing). It was actually relatively easy to "change the hobby" to "property collecting" as I was already used to writing out big cheques (when your tyres can be $700 EACH and you need a fresh set of 4 or more each round..... and wait until you get to brake pads, engine rebuilds....)

    The Y-man
     
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  11. The Y-man

    The Y-man Moderator Staff Member

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    Part of our start into IP's was when we bought what was to be our PPOR, and found that it could generate more in rent than we were paying in rent. We stayed put, and rented out our new purchase.... Subsequently, one of our underlying "rules" has been to buy places we would (or sometimes "could") live in. This can rule out suburbs we don't like for irrational personal reasons and we miss out on some spectacular growth, but we figure we are "normal" enough that where we would like to live, some renter would like to live too.

    The Y-man
     
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  12. Catalyst

    Catalyst Well-Known Member

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    Whoa! $700 x 4 each round :eek:
     
  13. Catalyst

    Catalyst Well-Known Member

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    So interesting to read of the different paths investors take. This route is a no-no according to Lomaz :rolleyes:
     
  14. Daniel007

    Daniel007 Well-Known Member

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    ahaha i feel ya, what car did you have?
     
  15. bob shovel

    bob shovel Well-Known Member

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    The "where to buy" thread should tell you where to buy ;) but seriously, for me its Bris followed by Adelaide. Work out how much you want to spend then let the numbers guide you. just cruise around on re.com.au finding medians that meet your budget, do it for houses, units, townhouses etc or what ever you fancy.
    For me im after CF so i use the investor page on re.com.au to give me an idea of CF for each pocket of the city area.
    If your plan is to hazy but ready to go, just go for it! the first one will be a learning curve in its self and wont define your plan. and if you stick to bris, adelaide as the mob suggests things will start/continue moving and you'll get the CG in the short term ready and wiser for the next one.
     
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  16. The Y-man

    The Y-man Moderator Staff Member

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    Mitsubishi Galant VR4 for dirt and track
    BMW 323i E30 for track

    :)

    The Y-man
     
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  17. wategos

    wategos Well-Known Member

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    Always been share market oriented since a teenager ... late 20s halfheartedly looked at some properties (Sydney eastern suburbs) to "diversify". Agent pestered me about one, promised him I would go to the auction, went out of politeness, was the only bidder, got it cheap. old flat next to the beach. In 20 years it quadrupled in price.
     
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  18. Catalyst

    Catalyst Well-Known Member

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    Wow! Very cool.

    When did you get your next IP?
     
  19. Catalyst

    Catalyst Well-Known Member

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    Thanks @bob shovel :)

    How do you buy interstate, after the online research?
     
  20. Rixter

    Rixter Well-Known Member

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    IP was purchased in 2000 - brick and tile 2 bed villa located in Midland.

    Have never sold any IP's.

    Today its value is approximately 350% what I paid and rental yield has also tripled.

    I was taught what to look for by a mentor who was 33 had 9 IP's at the time..that was the start of my learning curve.

    With each subsequent purchase I duplicated interstate to fine tuned things and remoulded into my strategy today
     
    Last edited: 25th Jul, 2015