Join Australia's most dynamic and respected property investment community

Purchasing our first IP

Discussion in 'Introductions' started by Ambo78, 11th Jun, 2016.

  1. Ambo78

    Ambo78 Member

    Joined:
    11th Jun, 2016
    Posts:
    5
    Location:
    Sydney
    Hi everyone,

    I have just discovered this forum after an interest in starting down the property investment path.

    We are a family from Sydney with a decent amount of equity in our home (PPOR ... A new little acronym I have discovered on here!! ). We also have a pretty good super balance and a fair amount of work life left. We have two girls 6 and 4.

    I am due to attend a 'strategy session' with Metropole in the coming weeks.

    Our goal is to be able to pay off a pretty significant mortgage within 15 years and be able to accumulate some properties in the interim to aid in this, and provide us with some financial freedom in the form of a passive income once we retire.

    We are new to this game so want to work out if engaging a company such as metropole to assist with the start of our journey, is worth the time and money.

    I'm worried about over analysing everything and then being paralysed to start if we try to go it alone.

    Any advice would be very welcome.

    Thanks so much
     
  2. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    Hi @Ambo78
    Found the right place. Sydney has done really well and poised to make a great foundation for your portfolio.

    Don't know a lot about Metropole. Though believe their focus is bluechip properties?? @MTR would you be aware?

    Read up this forum and Somersoft which was the previous forum to this.
     
  3. Ambo78

    Ambo78 Member

    Joined:
    11th Jun, 2016
    Posts:
    5
    Location:
    Sydney
    Thanks @MsAli ... Will definitely be trawling through these forums to get some more information! What a great tool
     
    MsAli likes this.
  4. TaylorChang

    TaylorChang Well-Known Member

    Joined:
    2nd Jul, 2015
    Posts:
    167
    Location:
    Sydney
    Welcome @Ambo78 :)

    It was great that you are taking steps to educate yourself before put down the hard earn money.

    Metropole is buyer agency service. I know people used their service before. Results are mixed.
    I guess it all comes down to knowing what you are look for in terms of cashflow and capital growth. Also, how much do you want to get involve in building build your portfolio.
    Are you willing to do some work yourself ? are you time poor ? do you enjoy negotiate the price& term with property agent ? ....etc.

    Good luck and let us know how you go at the strategy session with Metropole :)
     
    Paterson00 likes this.
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,154
    Location:
    Canberra and Sydney
    Hi Ambo

    Welcome aboard :)

    I can't speak for the company mentioned - I haven't used them so won't comment.

    However - as mentioned above - aren't they a buyers agent?

    You've stumbled across a great website here. It's full of plenty of useful information and helpful posters.

    I'd continue reading/educating yourself (via this forum, other websites and books) before going ahead with an advisory type company.

    Cheers

    Jamie
     
    DiligentPM and TaylorChang like this.
  6. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    I would not spend any money on any type of company that will guide you through the investing journey.

    By all means; attend the "Strategy Session", but seriously; leave the wallet at home!!

    Save that money towards paying down your PPoR loan; increasing equity (and funds towards your first IP), and reducing your interest.

    You can get all you need and more right here on this free Forum.

    First step is to read a lot of the threads and posts here (not mine; I'm a flog), then choose one of the several fabulous MB's here on this forum who can help you to set up your loan structures correctly.
     
    Taku Ekanayake and TaylorChang like this.
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    9,021
    Location:
    Sydney
    Look into 'debt recycling'
     
    TaylorChang likes this.
  8. Ambo78

    Ambo78 Member

    Joined:
    11th Jun, 2016
    Posts:
    5
    Location:
    Sydney
    Thanks everyone - great tips!

    Definitely going into this initial session with a cautionary outlook. Will leave the CC at home!

    Any advice on the questions I should ask? Anything I need to be wary of (apart from the obvious outlay of cash)???

    So glad I stumbled upon this forum .... am learning a lot.... some great info on 'somersoft ',and have just just subscribed to the podcast 'the property couch' which is filling up my work commute nicely.

    Thanks for being so welcoming and generous with your advice.
     
  9. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    At what LVR should I do the purchase? 80%, 85%, 88%, 90% 97%?

    Should I consider doing anything with my Super Funds?

    What's my strategy? Buy and hold, buy and add value, cashflow, development? Each of these have pros and cons and you need to match these up with your risk, time and comfort levels.

    My personal strategy is developing and its very rewarding but its cash, grey hair and blood pressure intensive.

    Debt recycling is going to be massive part of your strategy which Terry has touched on.
     
    Taku Ekanayake likes this.
  10. DiligentPM

    DiligentPM Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    443
    Location:
    Brisbane
    Excellent advice...wealth comes from taking the time to become an informed investor starting with learning from posts on this Forum including archived Somersoft posts....as soon as someone 'helps' you via a property 'advisory' service for specific new stock or charges a mentoring service that is not freely given without a conflict of interest or bias you are vulnerable
     
    Jacque likes this.
  11. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    519
    Location:
    Sydney
    Hi @Ambo78 and welcome to the forum!

    Agree with the others in that Metropole are predominantly buyers agents (and property managers) but be very careful with the whole "investment strategist" tag. As this industry is very unregulated and "grey" it is very important that you check out the credentials of the person and/or company providing you with any "advice". Independent Licensed financial planners (check out credentials here https://www.moneysmart.gov.au/investing/financial-advice/choosing-a-financial-adviser) should be providing you with impartial advice, that is clearly in your best interests and not influenced by commissions, trails, referral fees, third party payments or their own product or service (eg: buyers agency services, development stock)

    I believe you would be better off first approaching your own accountant and/or independent FP (there's plenty of good ones out there- you just need to ask around, hunt them down and interview them to see what you think) to get the structure and plan set up first, before you go down the buyers agency route. Do your research and best of luck :)
     
    DiligentPM likes this.
  12. wombat777

    wombat777 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,443
    Location:
    33°41'24.7"S 150°55'34.3"E
    @Ambo78 , why not come to one of the meetups. You can get some perspectives from successful as well as newbie property investors. You will learn a great deal from talking to regular people that are successfully investing and have no vested interests. Of course a few brokers and other professionals also turn up, but their advice is great.

    It might encourage you to try a DIY approach to investment. A couple of meetups happening soon. You are welcome to come along.

    NSW - North Ryde meetup - Thurs 23rd June

    NSW - Sydney CBD Meetup - Thursday 7th July

    I went to a Metropoole seminar last year, so broadly familiar with the way they operate. My purpose was to add to my learning without engaging their services.
     
    Taku Ekanayake likes this.
  13. Taku Ekanayake

    Taku Ekanayake Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    765
    Location:
    Sydney, Australia
    Terrific idea @wombat777. There will be a bunch of us at the meetup. Please feel free to join and ask plenty of questions:
    https://propertychat.com.au/community/threads/sydney-cbd-meetup-thursday-7th-july.11505/
     
  14. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Welcome @Ambo78 - this forum is a goldmine, well done on finding it. Sounds like you're in a great place to begin investing with plenty of equity and time on your side. The next step is to be a sponge and learn everything you can.

    I stumbled across its predecessor (Somersoft) when researching a similar company whose event I'd just been to.

    I read and read and read (and later posted and posted and posted), and decided I could do a great job myself and took my financial future into my own hands. It was the right decision for me.

    You'll pick up some useful info at the strategy session. Keep reading the forum and as @wombat777 and @Taku Ekanayake suggest, head to some investor meet ups. They're invaluable and no one has anything to sell :)
     
    Ambo78, Jacque and Taku Ekanayake like this.
  15. Ambo78

    Ambo78 Member

    Joined:
    11th Jun, 2016
    Posts:
    5
    Location:
    Sydney
    Thanks so much @Jacque .. Great advice here. Yes ... Definitely financial structures in place first before we look to acquire a property. I have also stumbled across 'the property couch' podcast which I've started listening to from the beginning, as well as some Webinars by Jane Slack Smith. I feel like I've learnt LOADS already in the last month from this forum and those avenues alone.
     
  16. Ambo78

    Ambo78 Member

    Joined:
    11th Jun, 2016
    Posts:
    5
    Location:
    Sydney