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Totally confused!

Discussion in 'Introductions' started by Mietre, 23rd Aug, 2016.

  1. Mietre

    Mietre Active Member

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    Hi,

    My husband and I are starting to consider investing in property. I am looking forward to reading and learning about the complicated world of property investment:)
     
    Perthguy likes this.
  2. larrylarry

    larrylarry Well-Known Member

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    Welcome. What and why are you confused? Ask and they will be answered by other investors here.
     
  3. Mietre

    Mietre Active Member

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    Thanks for your reply. We are confused about where to buy, how much to spend, whether to keep our current home as an investment property as we are hoping to move also. We are also trying to figure out whether to purchase property for our children who were left some money or invest in shares. I am mesmerised by the expertise on the forum, I can see myself lost on here for days!
     
    Perthguy likes this.
  4. MsAli

    MsAli Well-Known Member Premium Member

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    Hi @Mietre

    What does success look like to you? May be a bit soon to ask that..

    Though, it's understandable its a steep learning curve. Finding PC is the best thing that has happened though. You'd find that out as you get familiar with IP.
     
  5. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    I hate to say this but I've also been confused... i'm not sure where to buy the next IP... so many choices and options... having said that, I might have figured out what I want to do as my next IP move though tonight. :)

    So don't worry, it's not just newbies who have these questions!

    Re: Share investing. Check out an app called Acorns. An easy hassle free non property investing platform. :)
     
  6. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Just hang around here and the fog will clear.

    Think about a strategy that suits you and go from there.

    Oh and start to build a team of tried and trusted professionals instead of DIY. Mortgage Broker, Buyers Agent, Accountant, Conveyancer to name some.
     
    Jacque likes this.
  7. bob shovel

    bob shovel Well-Known Member

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    Be careful writing vague posts, you'll be bombarded with questions about your goals, visions, teams, strategy's and favourite incense fragrance! :p

    Keep reading and reading and reading, then when you're really confused... keep reading some more:cool:

    You've got a few things going on there in your second post. Simplify that a little, cut the kids out for starters! Prioritise :cool:
    Then work out the moving situation and start with getting 1 investment property. A broker can help you juggle those 2 things
     
    Jacque likes this.
  8. larrylarry

    larrylarry Well-Known Member

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  9. Mietre

    Mietre Active Member

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    Wow thank you so much everyone! We have our mortgage broker coming out this week so that is where we are starting. In all honesty we probably want to start with finding somewhere/something for the children's money, we feel as though it is currently not working for them.

    Mrs Ali, I agree about PC being the best thing I have done so far:) As for success, I'm not too sure yet. I know it's annoyingly vague but probably to retire owning our residence with an equivalent of one of our current single incomes.

    Gockie, it's very reassuring to hear that you are confused too!

    Thanks Colin. We have started to liaise with some real estate agents and we have a mortgage broker. Both times we have purchased houses we had awful experiences with conveyencing so that will be something we need to consider.

    Thanks Bob, sorry I was vague! It sounds like a logical idea to start with one thing at a time:) it helped me to see that it is probably actually the kids who we will start with!

    Larry, thank you so much for the reference, it simplified a lot of things (most of which I hadn't thought of!)
     
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  10. larrylarry

    larrylarry Well-Known Member

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    Thank @Leo2413 for his post. He's around somewhere.
     
    Mietre likes this.
  11. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Don't worry - it get's easier.

    Welcome aboard :)

    Cheers

    Jamie
     
  12. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Hey @Mietre. Welcome. Most of us started out pretty confused. That's why we found our way to a wellspring of great info (this forum, or its predecessor).

    You're in the right place to start illuminating those dark areas in your knowledge. Stick around, read a lot and ask questions :)

    Your broker will be a great first point of contact. She/he can paint a picture of what's possible now and into the future which will give you a great deal of clarity and eliminate lots of options.
     
  13. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Please be aware that while your broker may have been great for your PPOR, they may not be familiar with the best structures for an investment property.
    Many brokers will cross secure loans, using both your current property and new property as security for the loans which is far from ideal, so while you're meeting with them, just go through exactly how they'll structure your loans.
     
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  14. Azazel

    Azazel Well-Known Member

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    Hey @Mietre , welcome aboard.
    Plenty of helpful people here, make sure you ask lots of questions.
     
  15. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    Exciting overwhelming and confusing all at the same time- we know how you feel :D
    Start with a good accountant/advisor, mortgage broker (lots of great ones on here already) and know how much you have to/want to spend before researching the where/what/how. It does get easier and when you enjoy learning about property, it's even enjoyable :)
     
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  16. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    60% is the stat as most come from banks and its SOP there.

    I have a handout I give to clients on "Why Not To Cross Collaterlise" and happy to email you a copy so you know what it is and why not to do it.

    Absolutely. Its a frigging minefield at first but once you navigate your way through it may well become a passion :)
     
  17. Mietre

    Mietre Active Member

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    Sorry Larry I'm not sure how to do that?

    Thank you for the reassurance Jamie:)

    Thanks Steven. Our broker was great he recommended that we keep our current home (is that the acronym PPOR I keep seeing) as an investment for our children and purchase a new home.

    Thanks for the advice Jess! I was really confused and not sure how to ask out broker about what you had mentioned. He suggested keeping our home as an investment for our children and then using the equity to purchase a new home to live in. He said that he would use different lenders for each loan. Is that what you had suggested? The only thing that concerns me is I have heard that it is best to buy and sell in the same market.

    Thank you Azazel, everyone has been so helpful! I am sure I will have multiple questions!

    Thanks Jacque:) We now have a pretty solid idea of our borrowing capacity ehich is very helpful!

    Hi Colin that would be fantastic. I am trying to do as much research as I can to figure out our best options. Research is my favourite thing to do so I would be most grateful for any advice!

    I already love this place so much and am getting very excited about the possibilities!
     
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  18. larrylarry

    larrylarry Well-Known Member

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    @Leo2413 is always around in this forum. Show yourself Leo!
     
  19. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Sort of :)

    Just make sure the loan on your current house is split to reflect the existing loan and also the equity loan for the deposit. So in effect you'll end up with 3 loans in total.

    For eg -
    Current house - loan 1 = original loan
    Loan 2 = equity release to be used for deposit
    New house - Loan 1 - balance of new purchase

    :)
     
  20. Mietre

    Mietre Active Member

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    Thanks Jess. I think he said it would just be two loans?

    Eg. Loan 1 - Original home loan + amount of 20% of new home + stamp duty
    Loan 2 - total house price - 20%