Is it too Late?

Discussion in 'Investment Strategy' started by LateBloomer, 1st Jul, 2021.

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  1. LateBloomer

    LateBloomer Well-Known Member

    Joined:
    1st Jul, 2021
    Posts:
    75
    Location:
    Sydney
    Hi Guys,
    I hope all of you and your loved ones are healthy and safe.

    I am a new member and have been lurking around the forum from sometime now.
    A little bit about myself -
    • Moved to Australia 2 Years back
    • 38 years old
    • Gross salary 140K
    • Married
    • Spouse is employed
    • Spouse's Gross Salary - 100K
    • No Kids
    • NEVER bought a property in my life
    • Living in a rented apartment (AUD 1100 Fortnight)
    • 1 Car Loan (AUD 750 Per Month for next 2 Years)
    • No Credit Cards
    I have been extremely stupid all my life. Wasted all my money in vacations, designer clothes, sneakers, cars, electronics etc.

    Sounds stupid but recently I was in a mall and saw a lady who was in her 70's and working as a janitor. That is when I realised that I am not getting any younger and have not even started planning my retirement. This was a gut wrenching feeling.

    As I was not sure where to start so I started by reading books like Rich Dad Poor Dad, Unshakable, Richest Man in Babylon, Think and Grow Rich etc.

    I have started investing in ETF's , Crypto, Stocks. We are also saving for deposit to get into the market.

    I REALLY want to give real estate investment a serious shot but I don't know where to start. It is too overwhelming and YouTube videos, articles are not helping much.

    Can I please request for some guidance around -
    • Resources I can refer to (Books, Courses, Seminars etc)
    • What should be my strategy
    • How to search for positive cash flow and/or growth focussed IP's
    • Lastly, is it already too late? All the books I have read so far talks about the magic of compounding and how important is to start early. I am already in my late 30's and have nothing
    I just realise that most of my queries are really open ended and naïve. I hope to get some responses.

    PS : English is not my first language so please excuse my grammar and other mistakes.

    Thank you,
    Kind regards.
    P
     
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  2. Trainee

    Trainee Well-Known Member

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    Do you have savings? How much are you saving?
     
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  3. LateBloomer

    LateBloomer Well-Known Member

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    Unfortunately not much. Current savings stand at 70K.
     
  4. wylie

    wylie Moderator Staff Member

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    Welcome. It's never too late to start, and you have $70k which is better than nothing.

    Are you likely to have children, ie. possibly may lose one salary for a time?

    Would you consider buying somewhere other than Sydney whilst continuing to rent in Sydney?
     
  5. datto

    datto Well-Known Member

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    Nah, never too late. Just grab a ticket and join the queue. Line up for agents, banks, solicitors and accountants.
     
  6. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Mate, never too late. Just need to sit down with someone and work out a plan for yourself.
     
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  7. boganfromlogan

    boganfromlogan Well-Known Member

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    Get a different car!! 750 pm for 48 months? That's a lot of cash. 39k!!
     
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  8. kacheek

    kacheek Well-Known Member

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    Get a gun mortgage broker, sit down and create a strategic plan!! Read the book "Positively Geared" by Lloyd Edge!
     
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  9. LateBloomer

    LateBloomer Well-Known Member

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    Location:
    Sydney
    Thanks Mod. Appreciate it.

    No, we don't plan to have kids and wife intends to continue working.

    Like I said, I don't know what I don't know and that is the reason I am very keen on learning (via books, seminars, meetups etc. and need help with that)

    I feel that I have 2 options.

    Option 1. Keep saving and when I have around 150K in hand then I buy a place to live. Once it gets appreciated and I save some more money then I buy first investment property.

    My wife wants to take this route as she wants to live in a house where we don't have to think twice about the marks a nail will leave if we hang a picture on the wall. We have a 14 week old pup and she really want a backyard for him.

    I read in Rich Dad Poor Dad that place of residence is not an asset specially if there is a mortgage. Anything which takes money out of your pocket is a liability. I shared this newly acquired knowledge with my wife and she is now open to option 2.

    Option 2.
    Continue to rent and buy investment property first.
    Question is if we take this route then when can we buy a place to live. What should be the ideal strategy?

    I am fine buying an investment property anywhere in Australia till the time it takes me closer to my goal.

    Thank you,
    Kind regards.
    P
     
  10. wylie

    wylie Moderator Staff Member

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    I'd be reaching out to a mortgage broker to find out what you can borrow, and then take the next step from there.
     
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  11. LateBloomer

    LateBloomer Well-Known Member

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    Location:
    Sydney
    Thanks Mate. Appreciate it.
    I will order that book for sure. I am keen to learn.

    Can you share some pointers and questions which will help me in evaluating a good mortgage broker? Do you recommend anyone? (I hope sharing contact information of professionals is not against the forum rules)

    Thank you,
    Kind regards.
    P
     
  12. LateBloomer

    LateBloomer Well-Known Member

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    It is a 3 year loan with 750 per month as repayment. I am done with 1 year and will pay for another 24 months.
     
  13. Trainee

    Trainee Well-Known Member

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    Australia
    Would it cost you less interest if you just pay out the loan? What are the fees?

    You prob know it already but 240k income and you need to borrow that amount for a car?
     
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  14. hammer

    hammer Well-Known Member

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    Bah...it's NEVER too late. You're in a good position.

    I'd definately do something about that car loan. Either pay it off or replace the current car with a cheaper model. Car loans kill your ability to borrow...and your soul. Get rid of it.

    Read the barefoot investor...if you do nothing else - his strategy whilst not very exciting is a total a no-brainer and it does work.

    I'd also spend the next 3 months reading this forum. It's a helluva resource!

    You'll be fine. :)

    oh...and welcome!
     
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  15. wombat777

    wombat777 Well-Known Member

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    A home mortgage broker would be more appropriate than a gun mortgage broker :p
     
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  16. boganfromlogan

    boganfromlogan Well-Known Member

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    Go to government auctions buy Toyota camry.... white. Get rid of current car loan.

    I feel funny saying this. I usually spruik buying fast car with a stripe!!
     
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  17. Shazz@

    Shazz@ Well-Known Member

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    NSW
    +1

    I think you and your partner need to go through the barefoot steps, and accelerate your savings.
    As a minimum, if you purchase your PPOR, and then make sure your super gets to 1.6 million in the next 25 years, you’ll be okay in life/retirement.
    This is a simple strategy and it’s not too late at all.
     
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  18. Sackie

    Sackie Well-Known Member

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    Start the education. Don't focus on any one book because you need to understand the broad game from different viewpoints so you can then make more informed decisions. Books, forum, meet ups etc. All good. Devour as much as you can. It's daunting at first but eventually a picture starts to develop.

    Personally, I also strongly recommend you spend some time to enhance an optimal mindset for creating wealth. Youtube Jim Rohn and Les Brown.

    If you want your goal bad enough and you're willing to take consistent action for the next 15 years, you'll have a good chance to get there. But it won't be easy.
     
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  19. Piston_Broke

    Piston_Broke Well-Known Member

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    Nah I reckon you're gonna do well at that rate.
    The car is not a much of a big deal if you like it and you can hunker down and save 150k in about year. You'll probly pay exit fees on the loan and end up whith a ****box as used cars are expensive atm.
    I wouls suggest read lost around here on how people have gone through their journey and be very patient. It's 10 to 20 year plan.

    You may be able to get first home buyers incentives if you by a place to live in. You can then decide if you want to stay or rent. And keep saving for the next one.
    What i would suggest is that while we don't know what will happen in the future, look forward and don't think of it the place where you're gonna spend the rest of your life.
    I see people getting caught up with the perfect house. And then 6 mths later, it's anything but perfect even though it was "exactly" what they wanted.
     
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  20. spoon

    spoon Well-Known Member

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    Agreed. Save 2 years of depreciation!
     
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