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How long did it take you to get going?

Discussion in 'Investor Psychology' started by Steven Ryan, 27th Oct, 2015.

  1. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    How long between when you knew investing was possible, and actually buying your first investment?

    And did you have adequate savings/capital the day you decided or did you have to save?

    If there was a delay (other than having the cash) what were the obstacles? Fear, uncertainty, negative partner etc?

    I'm pretty curious as it seems there is such a huge spread among people depending on their risk profile, circumstances and personality.

    Some have a mountain of money wasting away in a savings account and um and ah literally for years, knowing investing is a "good idea" but not taking action.

    Others get so fired up that they cannot buy their first investment soon enough and get out of the gates like an Olympic sprinter.

    For me, I bought my PPOR as soon as I could afford to, then saved like mad while I learned about how the whole "investing in property" thing worked. By the time I had learned enough (saving in the mean time) I was ready to roll (though it did involve copping a nice big break fee on my PPOR loan to shake loose equity).
     
  2. larrylarry

    larrylarry Well-Known Member

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    I joined SS in July. Didn't really recognise the need to invest (PPOR fully paid) because I was relying on business to provide cashflow until such time I can put down a huge deposit. In the beginning of this year, I met a person who became my mentor and it accelerated my learning and affirmed my desire to invest, taking action. Bought and settled on a property on 2 October. It took more than a year.
     
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  3. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Great tale, @larrylarry. I am sure you're as happy as your mentor is :)
     
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  4. House

    House Well-Known Member Premium Member

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    Umm... About 5 years! Visa issues and inconsistent employment being the major hinderences to get started. Neither are still sorted but thought turtle it, if I don't do now it after 5 years I'll never do it. Plus had already made my way through a heap of savings that were earmarked for deposits.
     
  5. larrylarry

    larrylarry Well-Known Member

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    Thanks. I had a bad experience some 12 years ago with investment (that discouraged me) but I reckon I'm a lot better in looking at properties now. Hoping to snatched a second IP by year end or early next year.
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    I wanted to make more money when I was 19 or so so I considered studying accounting or financial planning thinking that if they knew all the rules, they could use them to their advantage to get ahead, right?

    With this in mind I went along to the university and tafe's libraries to have a browse of their finance sections. I found a couple of books by American authors on property investing and read them and enjoyed them. I assumed it wasnt the same in Australia, so I went seeking Australian authors on the same topic. I quit university (Computer Science is really boring!) to join the workforce, knowing that all I needed was deposit for the first house and I'd figure the rest out later. Jan Somers book made mention of her forum on the back page, where I learnt much more. I joined Somersoft in Feb 2003 when i was 20 and 7 months.

    Bought first house at 21 years and 9 months using deposit I saved up using Navra's (who I met via Somersoft forum) managed fund.
     
    Last edited: 27th Oct, 2015
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  7. lisawithane

    lisawithane Well-Known Member

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    I dabbled in it badly the first time around. Was young, didn't know what I was looking for and the property cost me a lot. The next time I realised i wanted to get back into investing was when I was about to have my first baby so 12mths off work on maternity leave wasn't a good time to try and apply for loans plus we didn't have any equity in our PPOR. Fast forward 3yrs, two children plus a redundancy which gave me some safety cash, I took the plunge. By this stage our PPOR had increased in value so I found a property mentor, did a course, got my finances in order and started looking. Took about 3 months before I made a purchase, then another month for my 2nd purchase.
     
  8. Befuddled

    Befuddled Well-Known Member

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    Grew up witnessing first hand the value of parents' property increase in value steadily over time, which gave me the desire to get on the property ladder as early as possible to maximise time for potential growth. Didn't really know if it was going to be an investment or a PPOR at the time.

    Started saving as soon as I got my first job whilst in uni. It wasn't a conscious effort to save like crazy. Stayed away from the fads or expensive hobbies because I genuinely wasn't interested getting the latest and greatest. Living at home helped.

    Took probably 3-4yrs to save up the deposit for the first property in 2012. After living in it for a while before renting out crunched the numbers and realised it costed very little per year to hold. Sydney was taking off and could see that the property had grown maybe 50-75k in 12months. This first little taste of success was really what drove me to wanting to learn more about investing
     
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  9. See Change

    See Change Timing Lord Premium Member

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    About a year . We'd just built a nice shiny new PPOR with a nice shiny new mortgage which we thought was way too large ( now we have borrowings around 10 times larger ... ) . Discovered somersoft and decided to sell PPOR , downsize PPOR and then start investing . From finding somersoft , doing research , selling PPOR and buying a new one took about one year .

    Cliff
     
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  10. joel

    joel Well-Known Member

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    In June 2014 (after my first month of full time work) I had $0 in savings and thought, boy I sure would like to retire. 16 months later, and I'm ready to make my first purchase.

    I've copped a lot of negativity from everyone around me along the way "you can't afford it, you don't earn enough" "houses are too expensive, you should just rent and save your money" "wait until you have a permanent job" and the classic "if you buy a house in Adelaide before Holden closes, you'll lose money"
     
  11. norwoodman

    norwoodman Well-Known Member

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    From when I first started considering investing to actually doing it took me about 4 years - savings/deposit being the main obstacle due to being at uni and being in and out of casual working positions. This was a few years before buying an IP before a PPOR was virtually unheard of, now it seems like every 2nd Gen Y is doing it or thinking about it. Bought just over a year after I started working full time. About to undertake a second purchase in the next few months.
     
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  12. Greyghost

    Greyghost Well-Known Member

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    No history of investing in my family, just pay off the PPR as soon as possible..

    Spent all my money on cars until I was 22-23.

    Went on holiday to cairns.
    Bought "think rich and grow" at the airport.
    Came back - sold car, saved for 6 months and bought my first IP.
    Had a rough break up with an ex of 8 years, sold a PPR we bought together.

    3 years with current GF tomorrow.
    3 international holidays including Europe, death of my mother @52, another 2k puppy and 2 properties bought this year....
    Hopefully our PPR early next year.

    Lessons:
    1. Unless the car is 1969 or prior it is a waste of money
    2. If you love it you better put a ring on it ( Beyoncé voice)...
    3. It helps when you and your partner have a common destination/goals/vision in life...

    4. Finally, personal development and taking responsibility for your own development/ education should be a priority and don't rely on the education system to provide security and wealth for your future. All it teaches you is to be an efficient cog in a wheel #matrix
     
  13. MsAli

    MsAli Well-Known Member Premium Member

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    Split second decision. Brother said - why don't you buy a home - I would if I was in your shoes. This was on his 19th Birthday. @monalisa and I were 23.
     
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  14. Tonibell

    Tonibell Well-Known Member

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    Too long - the biggest obstacle for me was embracing debt.

    Had paid off 2 PPORs and invested heavily in shares before helping out a family member by purchasing their house before the bank took it off them.

    After the GFC we looked around and thought property looked cheap while shares did not. The purchased our first investment property 10+ years after our first PPOR had been paid off.
     
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  15. WellnessWarrior

    WellnessWarrior Member

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    For me it wasn't even on the radar as I thought I needed to build my business to grow my income. The hook came 6 months ago when i started reading on PI and found I could create passive income and use leverage. For someone who trades primarily of their time for money this was hugely appealing and meant I didn't have to buy and build a 2nd or 3rd clinic in order to increase income. So we switched our Sydney house to a positive cashflow IP, drew equity out so we can buy a new PPOR and then draw that equity out again and use it to buy multiple IPs over the next few months. Cant wait!
     
  16. bob shovel

    bob shovel Well-Known Member

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    First one wasn't a problem it was moving on from there! I understood the ins and outs of it but without the proper people around me I kept asking questions people couldn't answer. :mad: I went to a property investing expo in Sydney and one of yardneys goons with a gold watch the size of a dinner plate told me to sell and buy else where! Haha i was pissed off but looking back he was right, poor purchase and there would have been little to no chance of ip 2.
    The mags were great to learn from and I did learn lots but stagnated for a while without knowing how to progress in real life.
    I recall coming across somersoft but all the mumbo jumbo about "strategy" "team " and "goals" was at a much higher level for me... I just wanted to buy and get rich!! :p
    Found it again a few years ago and started ready between the lines and it was making sense. Back on the bike, have a strategy, have a team and loving that mindset stuff aka fluff!!
     
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  17. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    In 1990 my hubby bought home an investment book by Jan Somers (pretty sure it was her first manual to buying investments or similar title) and a few months later we started searching for our first IP. Exciting times and I can still remember the immense sense of satisfaction when our negotiations on the little 3x1x1 house (in Penrith) were successful at $125,000!... long time ago now :D
     
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  18. dan2101

    dan2101 Well-Known Member

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    Was talking to my uncle when I was 21 and he said he had just purchased a property in an area he thought would do well. I asked him where, flew up a couple of weeks later and bought a house. Looking back my naivety makes me cringe but I worked out well in the end.
     
  19. York

    York Finance Broker Business Member

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    i got into property for a reason that would make most investors cringe. But its how i started. Was talking to my accountant who had brought me my tax return to sign with a tax payable of about $4000. He said you need to buy a property to offset losses. I said but I cant afford another house. I don't have any money saved. He said you can use equity. I said what? Within 3 months from deciding i had my first IP. Then I discovered SS. I had no idea about property. @Rixter told me the famous 'property is merely a vehicle' line and since then it's been full steam ahead. When someone who knows what they're saying puts it into perspective, it's amazing how much you can make what you have learned, create a clear path to travel forward.
     
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  20. Fungus

    Fungus Well-Known Member

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    Been wanting to get into property market really early, but while I was uni I didn't have the income to borrow. Then in Oct last year after getting a permanent full time role (was previously on a 12 month contract), I was talking to a couple of CBA business tellers about buying property. They booked me in to see an advisor and I got a conditional pre-approval.

    Went searching pretty much straight away - firstly around my area and then further out west (Mt Druitt/Penrith). When that got too hot I went onto the south-west area, still not willing to pull the trigger. I then spent a few months looking at the Central Coast and watched as prices went up.

    In the mean time I was reading SS/PC every day like a bible, and decided (with all the Brisbane hype) to look interstate for my first property. Settled on a property site unseen earlier this month just before my 25th. Only wish I could have started earlier, especially looking at some of the impressive portfolios on here.
     
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