Getting Started in Property - Suggestions please

[David Brent]

Hi All, I am brand new to Property Investment but very motivated to build up my portfolio quickly so keen for any tips:

a) I am thinking of starting out with a new build because positive cashflow properties seem rare and I have limited finance (around 30k). But although I have plenty of Project Management experience I have zero knowledge of building projects. Can anyone offer advice? Suitable books? Web resources for finding sections, finding good builders etc? Is a new build the wrong place to start?

b) Am also keen to find a mentor - how do I find a good one?

c) I see there are two Property Associations in Wellington, can anyone recommend one or other?

All thoughts/suggestions much appreciated

[Niall]

Welcome to PT David Brent.

I find it is usually more expensive to build than buy existing properties. Especially if you are looking for an investment yield.

Ask your bankers to approve a budget for you. Then see whats available in your price range.

You can go along to both Wellington Property Investors meetings as a guest for about $25 a meeting.

http://www.capitalpia.org.nz/ and http://wnpia.co.nz/

All the best,

Niall

[David Brent]

Thank you Niall - I appreciate the advice

[donna]

Hi David Brent - also check out the 'Newbies' forum - lots of info in there - also here are some books.....

Here is a good discussion

Andrew King & Lisa Dudson - Create wealth : the complete guide to residential property investment in New Zealand
Tony Steindle - Property law : a New Zealand investor's guide
Mark Withers - Property tax : a New Zealand investor's guide
Peter Aranyi - How to survive and prosper in a falling property market.
Martin Hawes - Financial secrets : the New Zealand everything guide to everyday finances
Graeme Fowler - New Zealand real estate investors' secrets
Martin Hawes - Property investment : a strategy for success

I'd suggest you spend lots of time in these forums - reading and gaining knowledge before you consider a mentor.

Cheers,

Donna

[Clark Kent]

Would also recommend reading

Mike Yardney books, subscribing to monthly property investor magazine, reading through some of the threads on her on PT. Reading some of Steve Mcknights books.

I wouldnt worry about a mentor, reading books and learning by doing should be suffice.

[David Brent]

Thanks Clark and Donna, will check out those books and links. Agree on the Steve McKnight and Graeme Foowler books - they have given me a real boot into action. WIll check out the others to maintain momentum,

Ben

[hele27]

Hi David Brent - also check out the 'Newbies' forum

I didn't know there was a newbies forum on this site, can someone direct me to it too. Have searched but not found it.

[speights boy]

Hi All, I am brand new to Property Investment but very motivated to build up my portfolio quickly so keen for any tips:

Howdy from Slough,

My advice......build your portfolio slowly; be conservative with debt, budget on higher interest rates and plan on tax benefits being removed.

SB

[muppet]

Hi hele27
Try http://www.propertytalk.com/forum/forumdisplay.php?f=32

[revdev]

I didn't know there was a newbies forum on this site, can someone direct me to it too. Have searched but not found it.

It's not a separate "forum" as such Hele27, just a section where newbie questions are kept together http://www.propertytalk.com/forum/forumdisplay.php?f=32

[donna]

Top 10 tips for Newbie Investors - a must read!

Hi David Brent - check out this discussion - I came across it accidentially and thought this discussion.

Cheers,

Donna

[David Brent]

Thanks to everyone, have purchased all the books - will devour ASAP. Will also get along to the local Investors association and start learning market in the area I want to specialise in.

Also, thanks for the note of caution Speights Boy - well heeded

Looking forward to the journey

[David Brent]

Thanks Donna - that discussion is a cracker

[Sebastian]

Hi David,

I've found renovating tired properties to be a great way to get going in real estate. You can renovate and sell to create cash, or you can renovate and hold to increase yeild and also build equity (you'll need to talk to your accountant about your plans so they can set you up properly).

If you're a handy person and time rich you might like to do a lot of the renovation work yourself initially to make your margins fatter. Alternatively some people don't like to do any of the work themselves and instead farm it all out to tradespeople so they can maintain velocity and keep working on other deals.

I'm no expert but happy to walk you through a house I'm currently doing up in Hataitai if you're interested (PM me your number and I'll get in touch).

Cheers,

Sebastian

[Max Percy]

Good question.
First of all always remember in any market and any economic climate there are always deals out there. it is a matter of spending the time to find them and being patient. You also have to know a good deal when you see one. I know of many a newbie missing excellent deals put right under their nose because they couldn't recognise a deal if it bit them on the nose, they listened to friends who knew nothing about property or they were too busy making a living to put in the hours and hours of work to find a deal.
Starting off I would look for existing properties where you can add value or gain some immediate benefit which does not necessarily need to be monetary. ie the structure of the deal can be critical Will the vendor leave finance in?. Can you obtain a delayed settlement? Can an additional room be added? Can the dwelling be moved forward or repositioned on the site so as to add another dwelling on the site?
Select an agent who knows about property investment and a good accountant. I would choose an older agent that has experienced the 80's and 90's property corrections and been involved in their own right as a investor. Don't be greedy. Consider a joint venture partner if in your best interest.
Remember banks are bastards when things don't go their way. Buy a property with your head, emotion has no place for the serious investor.
And finally remember the day you buy your property is the day you make your money. Don't use negative gearing. Luck doesn't play a part. Knowledge and hard work do. Just go and do it. You will make some mistakes which you must treat as a positive and learn from them.