Strategy

hi new member... So happy to have found this page. Currently own a PPoR and two IP - one in regional Tasmania and one in Darwin. Darwin one bought as the market was heating up in early 2012 but was a PPoR at the time as we lived there between 2012 and 2015 and it was heaps cheaper to buy than rent at the time. The property in regional tas is currently on the market, and we will be looking to get into something else in the near future. This might be a silly question, but I wondered how people decide on what strategy they are going to use ? Ie buy and hold, renovate and improve to flip and profit etc? Sorry don't know all the jargon (!) Darwin we always planned to keep long term as we would like to live and work there again one day. also how do people determine what to add to their portfolio on terms of type of property - unit, house etc... I feel like I'm very new to this even though we have three properties between myself and hubby (we both owner occupied to in tassie before we met as PPoR) and then as I said Darwin was also PPoR so feel in terms of investment we are young in our journey to understanding if hat makes sense !! Sorry for the novel - love feedback !

 

Welcome aboard @annaw5599.

How to decide on strategy?

Work out your end goal (what do you want, and when) then figure out what'll be required to make it happen

 

I think for many people its a process that evolves over time and through experience. I agree with @Steven Ryan about trying to figure out what you want, by when, and then start to devise a plan. Heaps of learning, revising, networking and effort along the way, but it should give you a great path and direction that nears you to your goals, whatever they may be.

Good luck and welcome

 

I think most people stumble into a strategy. But you will be much more effective if you plan ahead.

 

Hey Anna, read as many books as you can get your hands on (I read slower than I can buy them) and get a handle on different author's strategies. You can then see which one floats your boat, or a combination of different aspects of a few.

 

Twin brother or something.....

 

Thanks everyone. Book recommendations for a newbie??

 

Books by Margaret Lomaz, Jan Somers, Michael Yardney.

There are others but I think books by them is more then enough to get started. Also networking with other successful investors.

 

I went the route @Leo2413 suggested, which, in my case, took around 8 months before we felt comfortable purchasing our first property. I also had mentors from the forum which really sped up the process, but till now there's things I don't fully get, which my lovely wife has a better mind for.

Strategy was a lot easier, especially if you begin by exploring capital gains vs cash flow. End goals were a lot harder for me to define, it was a lot more philosophical and requires a bit of navel gazing - I think it's something that comes over time and you don't need to fret about getting it right at the beginning.

fyi Australian Property Investor Feb 2016 issue has a good article on life stages, and Your Investment Property March 2016 has articles on Cash Flow vs Capital Growth - both good reading and worth tracking down.

 

Jan Somers, Steve McKnight, Robert Kiyosaki, Noel Whitaker, Jane slack-smith Are some authors I have read.

 

@Caltan which book of Whitaker mate?

 

@Leo2413 Winning property tax strategies
It's actually Julia Hartman and Whittaker

Is fairly boring and a lot of it I already new but definitely a good basics book for a new investor.

Although a person could probably get as much knowledge from reading all of Terry's tax and legal tips.

 

Thanks mate!

Agree @Terry_w tax tips are great.

 

Great book - except for the parts on trusts and asset protection.