How useful are the books on Realestate investing?

Discussion in 'Investment Strategy' started by lplplp, 15th Feb, 2020.

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  1. lplplp

    lplplp New Member

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    I'm 22 interested in getting into realestate primarily as a source of income in my later adult life. I've been looking into learning about realestate from reading and books like "0 to 130 properties in 3.5 years" are everywhere. Ultimately, I'd like to own 12 properties in the Gold Coast to Brisbane area. I'm not really seeking property income now or growth for that matter. in more detail, if the rent is stable, mortgage serviceable then I don't mind if the property dips in value after I've bought it or near the end of the mortgage. I see my investment strategy right now, with the little knowledge I have, as renting out the properties and serving the mortgage and expenses with no cashflow to myself. The question is are the books on investing in Australia reliable and good for learning or are there other more useful resources?
     
  2. wylie

    wylie Moderator Staff Member

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    Welcome to the forum. :)

    You'll get people saying they are helpful, and I've read one or two when I was probably not much older than you. But I learned from my parents who bought their first IP when I was 15. That was the first house I helped to paint, the start of a very long list of renovation tasks I mastered.

    So, I'd suggest reading the forum as well as reading books. Some books were written in a very different financial time, but I guess basics don't change.

    The thing that stood out to me is that you want to own 12 properties between Gold Coast and Brisbane, and I shuddered just a little.

    You need to be careful of the dreaded land tax. We hold just two properties in my husband's name, large blocks inner ring Brisbane, and the land tax on them last year was just shy of $14k. I believe from reading posts on the forum that Queensland land tax may be lower than other states (but I'm not sure) - but our threshold hasn't moved for so long that next year we will pay 15k on those two properties.

    Possibly look at diversifying through different states.

    And at nearly 60 years old, had I looked forward to this land tax problem, I may have borrowed to put money into some type of shares, rather than property, but I don't understand the various ways of holding shares that are discussed on the forum. All I know is that we would be saving at least 15k lost to land tax if we held share type assets.

    I'll also add that the two large blocks have just become three and we are building townhouses, so our long held plan is finally going ahead and the dreaded land tax situation will worsen short term, but we likely will sell at least one property to reduce loans and finally give something a go with the sharemarket.
     
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  3. lplplp

    lplplp New Member

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    I appreciate you taking the time to answer my question.

    12 properties between GC and Bris is simply because I'm not knowledgeable in realestate just yet and would rather base my questions on areas I move around in. A property for each month also seems fairly reasonable but yet again, I don't know much.

    I'll definitely look into land taxes and property in other states. Cheers!
     
  4. Trainee

    Trainee Well-Known Member

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    You dont care about making money from this. You just want 12 neutral cashflow properties.

    So you just want to do this for fun and bragging rights? Seriously. You need a reason to do this. Usually making money from capital gains.
     
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  5. Trainee

    Trainee Well-Known Member

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    Great you are interested in property, but you dont know enough to ask the right questions, or have any sort of realistic plan.

    Theres a book list somewhere. And read through the forum especially the newbie posts. Be careful not to get too into the advanced details as you dont have enough basic knowledge to understand the advanced stuff. Start slow, build up your knowledge.

    Investing is for a lifetime. If it takes 12 months of reading to understand the basics, thats time well spent. Expect the basics to be boring. Loan features. Whats deductible. Types of property. Interest rates. Demographics and growth. Tax returns.
     
  6. The Y-man

    The Y-man Moderator Staff Member

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    IMHO - they are a good starting point to understand the basics.

    The Y-man
     
  7. wylie

    wylie Moderator Staff Member

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    Just quoting this portion as this is exactly why I started too. My parents were aiming for five paid off properties to have the rent support them into their retirement.

    But land tax certainly takes the shine off these days.

    And capital gains tax too.

    I think superannuation has a place too. People say they will put their money to better use, and that's a fair comment, but I always saw it as icing on the cake and I know if it's gone before I get my hands on it, I'm saving without really thinking about it.
     
  8. The Y-man

    The Y-man Moderator Staff Member

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  9. Beano

    Beano Well-Known Member

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    Why not catch up with some of the investors and chat to them ?
     
  10. Sackie

    Sackie Well-Known Member Premium Member

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    IMHO that's borderline insane .
     
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  11. Beano

    Beano Well-Known Member

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    @Player is organising a meeting for either 23rd or 24th March. He is staying in South Brisbane
    so CBD or nearby looks like the place where you can learn a bit about property!
     
  12. Shogun

    Shogun Well-Known Member

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    Worth a read imho. I am a big fan of the null hypothesis. Try to convince yourself buying 12 properties is a dud idea.

    Our Investing Strategy Explained - Aussie Firebug

    From reading on here making money from property is possible but it's a lot of hard work.
     
  13. spludgey

    spludgey Well-Known Member

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    I really hate sensationalist titles like this that make you feel inadequate when you don't come close to their unachievable goals.

    But yes, there are plenty of great books around. Well worth the time and money!
    Just read them with an open but critical mind, you don't have to agree with everything in every book to get a lot out of them.
     
  14. Property101

    Property101 Well-Known Member

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    Reading your Investment Property and Money magazine they have a wealth of knowledge.

    Particularly they showcase the good and the bad. Which you can learn from both.

    This is just one example I learned from reading..

    Someone purchased an apartment and didn't realize until too late..that it was not for permanent living and it was going to be there ppr.

    Also an accountant who specialises in property is a wealth of knowledge and for only a few hundred dollars can save you reading and time.

    Also a chat with a friendly real-estate agent would't go astray as purchasing,offers and bidding does change and to keep you up to date and save the heartache of missing out on a property you really like.
     
    Last edited: 15th Feb, 2020
  15. Sackie

    Sackie Well-Known Member Premium Member

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    This is setting you up as prime prey for the men in suits.
     
  16. Trainee

    Trainee Well-Known Member

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    Better to train yourself not to fall in love with a property. Go look at so many that they become
    a blur and statistics.
     
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  17. lplplp

    lplplp New Member

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    I want to acquire property that will be paid off by the time I retire so that I can have access to the full rental return after taxes. Your reply is condescending and not at all constructive. People have different investment mindsets, tolerance and reasons. I don't see realestate as a capital gains only investment vehicle. I see it as an income producing asset. I have a high paying salary at a young age so cashflow immediate properties are not a need. The cashflow would be used as extra payment for the mortgage if it were the case.
     
  18. Sackie

    Sackie Well-Known Member Premium Member

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    It's honestly not worth it for the risks involved if your only looking for income. I'd definitely not put my money in resi RE primarily for rental income. You have better options out there. Resi RE only shines (IMHO) when you are able to capitalise on leverage to maximize returns for a small outlay of funds.

    Each to their own though.
     
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  19. The Y-man

    The Y-man Moderator Staff Member

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