Q - I am interested in getting into the property market but have no money saved up. Is there a way of getting started? Is there a lender who would lend me the money?
In answer to your question, usually you’ll need some equity or money to use as a deposit and fees to start you off. However some people have managed to get into the market with a very small amount of money, and sometimes with nothing at all. As an example one of the original speakers with Property Women made millions of dollars starting with one property that she purchased for no money down. It’s a really humorous and interesting story and very inspiring of course. You’ll find her story on our CD set http://propertywomen.com.au/events/december-special/
I can’t comment on whether you would be able to borrow money, but I’d suggest you contact a good Finance Broker to find out. We usually recommend Finding Finance as their finance brokers invest themselves, so they know how best to help people build their property portfolios. Their contact number is 1300 729 075 and their website is http://findingfinance.com.au/
If you’re serious about getting into property investing you should get some good education. You can find a number of places that will offer you free seminars – and that’s good for meeting people who are like-minded, but just be careful because generally they are suggesting only one strategy, and often they just happen to have some properties to sell you that fit that strategy!
So when you look for education, not just networking, make sure you look for something independent where there’s no hidden agenda and where the presenters are investors themselves. Obviously that’s what Property Women pride themselves on!
Q - I have been divorced for a year and half now. I came out of a 21 year marriage with 2 gorgeous girls who are now living their own lives very well. I am 44 have a very well paid job. I did not come out of my marriage with money but with debt which I am paying off. I am renting. I am nervous even asking this question, do you think it’s too late for me to start over again to be in a position to be able to buy property. I don’t talk to anyone about money issues as I feel embarrassed and ashamed that I no longer own my own home. Your advice would be greatly appreciated.
Congratulations on sending your email to me. It obviously took a lot for you to ask the question. Are you ready for the answer?
Of course it’s not too late!
In fact one of our speakers was over 50 when her marriage broke down and she also lost her business. She did spend a little time feeling sorry for herself and of course we’re all entitled to do that for a while. But she’s picked herself up and is using property investing to get her life back in order. It’s surprising how when you start to get your self-esteem back after going through Divorce, other things start to improve around you. She has a new business and that’s now thriving too.
If you have a good income that will certainly help you to qualify for loans to purchase property. Your first challenge of course will be to get a deposit or find other methods of getting the capital to purchase the first property. You might want to consider joining forces with some-one to start you off. For example, you might know some-one else who has equity and would like to invest, but doesn’t have the cashflow. One of our first speakers at Property Women events actually got into her first property with no money down at all. That was an interesting story.
Not owning your own home is nothing to be concerned about. In fact many investors I know actually rent the house they’re living in as it’s more financially effective for them.
Many of us feel embarrassed to talk about money. It’s because that’s the way our parents were, and theirs before them. These days though, money is not such a taboo subject and it’s time we relaxed about it. Money doesn’t make us the people we are, it just shows up our personality more.
Talking to other people who are investing or looking to invest would be good for you. When you can see what others’ are doing, it gives you hope, and practical ideas on how you can do it too. We’ve also found that women are much better at sharing their hopes and fears with other women. They seem intimidated to do so in front of men, which is why we’ve maintained our women only events. We are planning networking events for 2009, so keep an eye on the website for further information.
If you want to, you can join our Open Forum on our website - you don’t have to say your name so no-one will know you. Click on this link to register: http://propertywomen.com.au/forum/register.php and you can just get used to networking with people who share a common interest.
If you want to learn more about property investing from the comfort of your own home, we do currently have some sets of Audio CD’s of our first property women workshop that might interest you. The speaker I referred to earlier is on that audio too. Click here for more information.
Perhaps you should speak to your daughters about your plans as well – they might like to be involved too!
Have Fun!
Q - I am 21 years old and currently live with my partner just north of Brisbane. We have a mortgage of about $270k, but our house is worth at least $500k. We do not want to move houses but make this money work for us. I am very much into interior design, and he is good at the labour side, making us great for the job in hand. We want to set up the property developer's life style and need advice. But again something is holding us back. The numbers just look scary we keep thinking how can we afford this?
You have a good opportunity it seems with your talents, and you have some equity to begin your investing so that will help you. It’s also great that you are looking at the numbers. It’s important to understand the financial implications – both the risk and the reward of investing.
You don’t have to move out of your home to access the equity in it if you qualify to borrow the equity from the Bank or other Lender. You would need to make sure that it is a separate loan for business purposes though and keep any personal income or expenses totally separate that new loan. Speak to a good Finance Broker (Finding Finance is an option 1300 729 075 http://findingfinance.com.au/)
I would suggest you start investing or developing with something fairly cheap and simple and work your way up from there. That keeps your risk low and you start to get experience which is priceless.
The thing that often holds people back is fear. Fear of debt, fear of making a mistake, fear of losing what they have, fear of failing, fear of the unknown. Can you image a baby being scared of falling over – they wouldn’t try to walk, or run or skip or jump.
It’s a bit the same way with investing. One small step at a time.
Getting some independent education often helps people overcome their fear of the unknown, and also puts into perspective the fear of debt. Talking to others who have been successful in that area often helps too, because we know deep down that if one person can do it, so can the next.
A baby sees their parents and others walking – they know they can do it too. It’s just a matter of try, try and try again until suddenly they’re up and running!
