Seeking advice to become an investor

Discussion in 'Investment Strategy' started by Kate05, 10th Mar, 2020.

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  1. Kate05

    Kate05 New Member

    Joined:
    16th Dec, 2019
    Posts:
    2
    Location:
    Melbourne
    Hi everyone,

    I'm looking for some advice on who to speak to regarding starting an IP portfolio.

    My current situation - I'm 27, live in the western suburbs (Victoria), have a remaining mortgage on my PPOR of $180,000 which is valued at around $460,000 and I have been ready to make an IP purchase for some time now.

    My plan is to continue to grow a long term investment portfolio that will hopefully assist me one day in retirement.

    I have done a lot of research, read a lot of books and threads on this forum, however, still find the investment world a little daunting/confusing and was hoping that I could find a professional to sit down with (locally) to come up with some direction and a possible strategy on how to research the correct place to buy, set up my loans, structure everything for tax purposes and get the most out of my individual situation.

    TIA
     
  2. Property Twins

    Property Twins Mortgage Brokers, Buyers Agents & Mentors Business Member

    Joined:
    31st May, 2016
    Posts:
    2,720
    Location:
    Australia
    H @Kate05

    Welcome to PC. Well done on your journey so far.

    What is it that you find daunting / confusing?

    Whilst you have the equity, what you can do will also come down to your income, and also your risk profile - what type of property (cashflow vs capital growth, how much negative cash flow you are OK with).
     
    Kate05 likes this.
  3. TMNT

    TMNT Well-Known Member

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    23rd Jul, 2015
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    5,573
    Location:
    Melbourne
    $280k of equity at 27 yrs is a great start!
     
    Sackie, Archaon and Kate05 like this.
  4. Kate05

    Kate05 New Member

    Joined:
    16th Dec, 2019
    Posts:
    2
    Location:
    Melbourne
    Thanks for your response. My superable salary is $95,000 Per Annum. As for everything else - that's what I was hoping I could find someone to help me with.
     
  5. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,372
    Location:
    Perth WA
    Hi Kate, Welcome to the forums :)

    I know how you feel - it can be super hard to navigate on your own! Having someone who knows your scenario inside out and can point you in the right direction is gold.

    It's hard to find people who will do this and not have a property to sell you at the end, unfortunately!

    When do you want to retire? And what kind of income do you hope to have at that point?
     
  6. Beano

    Beano Well-Known Member

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    7th Apr, 2016
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    2,992
    Location:
    Brisbane
    Or you could go for a cashflow positive property instead of a -ve one.
    :)
     
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  7. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    18,473
    Location:
    Sydney
    One tip I may share. You dont need to spend $1m to invest. Two smaller and cheaper investments may spread some risk and even consider two different areas. But strat with one and plan for two if that seems like a good idea. And even consider dual income property like a house + GF. Look for cashflow and you can wait out any market impacts. When I say cashflow I mean AFTER tax cashflow. A property can be cashflow negative but with tax refunds imapcts it can equalise and become zero. That said if a property is cashflow +ve on its own it even better BUT it could end up meaning there is tax to pay and that could take it negative.

    Be wary of people seeking to help you create wealth. They may only want some of it and its hard to make wealth so dont race at giving it away. This one is tough but a BA can work both ways. They cost a bit but can produce outcomes. Most buyers can do it themselves.

    Dont buy for the sake of it. Approach this thinking its real money.

    I will share a copy of our rental property estimator that helps demonstrate cashflows etc

    Start with a great experienced broker (from PC !!!) as they can assess your capacity so you can know your limits without being pushed by someone who works with a spruiker whho may push it too far.
     

    Attached Files:

  8. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    11,397
    Location:
    Melbourne
    Maybe pop along to one of our 2 monthly meetups (covid issues pending) or am happy to sit down for a yarn at my office in Hawthorn (again pending this whole covid thing)

    The Y-man
     
    craigc and Beano like this.

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