Hi All, My wife and I have been toying with the idea of investing in property for the last few years however as is the case life things get in the way. However we are now in a position to get into it and during our recent information/learning phase have come across this forum. Its been a very informative and refreshing read given the knowledge and respectful interaction which is a credit to the members. From the initial reading the main thing seems to be putting a team together and maybe starting with a broker. Where to start..I'm not really sure what constitutes a good broker so was looking for any recommendations in Melbourne...just because its local and would be good to do it face to face with us being new at this? Any assistance would be greatly appreciated, even if a meet up with a member to ease us into it?
Welcome! You need to know your borrowing capacity so an investment savvy broker is very important. Knowing your borrowing capacity, research and research. There are heaps of threads on this forum. Do a search. Read. Ask. However no one is going to give you a magical formula or secret suburbs you can invest in. Your risk profile and investment philosophy may be different from many others. That's all I can say at the moment. Welcome.
1. Buy some recommended books and read, also read the wealth on info on the forum. Also attend meet ups and network with other. 2. Once you feel you are ready to go, engage a good finance broker to determine your borrowing capacity. You can actually engage one anytime really. 3. Try to figure out what your risk profile is and investing goals are because this will largely determine your strategy and then where/what to buy. 4. Build the team (usually in the beginning its very simple, just a broker, lawyer and maybe 1 or two others) 5. Go for it! The rest will come with experience and time. Just my 2 cents and own approach.
Hi and welcome aboard There's a few Melbourne brokers on the forum. Probably best to read up on posts in the finance section - and get a feel for their level of expertise. Then get in touch and see if you can work together. Cheers Jamie
Thanks larrylarry...borrowing capacity, first piece of knowledge on this journey. very much appreciated.
Thanks Leo2413...especially for keeping it simple (as it often seems overwhelming) Really appreciate point 5...pretty much encompasses the vibe I got from reading some of the forum, full of positive people.
@BH10 also put a timeframe on it. Don't get stuck in analysis paralysis. In essence if you put your mind to it you can do a lot of the key learning and research in 4-8 weeks. This to learn the terminology/concepts and get a feel for your preferred strategy. Then add 2-4 weeks for a finance pre-approval. From there you will have up to 3 months to find and settle on a property. Got to as many meetups as you can in that time. It will really accelerate your learning. I also went to a spruiker seminar in my first month - that also helped with learning concepts and terminology ( but I kept my wallet closed at the hard sell ). I started the process in January 2015. By April a contract was signed and in June of that year it was settled. I got my second IP last year. Have a look into H&L package strategies since you are in Melbourne. Some people are doing well with that in Melbourne and greater Melbourne. Your main risk is valuation risk on settlement, so be careful if the market is flat-lining. If it is a rising market you will be okay, provided the land settles in a reasonable timeframe.
I was just reminded of these two posts in a thread from last year in which I explained it better: Property/financial advisers necessary? Property/financial advisers necessary?
