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to sell or not to sell!

Discussion in 'Investing Strategies' started by Triu, 14th Sep, 2006.

  1. Triu

    Triu Well-Known Member

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    WA
    Hi everyone can you guys give me some opinions on this!

    Is it advisable to buy renovate and then sell for a profit and the move onto to the next one to build up cashflow as business. Or is it better to buy renovate and revalue then draw equity out and start again!

    My dilemma is that i am in a govt job boring!!! and want to do this as a business as i enjoying renovating and working hard to access a lump sum of cash instead of waiting for each fortnight to recieve a pittance! any way around this?

    thanks

    triu
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Do you want to build wealth, or do you want to be self employed ?
     
  3. Triu

    Triu Well-Known Member

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    I want to ultimately build wealth while being self employed! is that possible. I just want to work for myself but all the while building wealth with the property business. What would you suggest, apart from being in this boring job and getting told what to do all the time!
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Selling won't make you wealthy ... holding growth assets long term is what will. It's all about having money work for you ... not about you working for money.

    My suggestion (and it is only a suggestion), is to sell only when you absolutely have to. Hold as many as you can for as long as you can.

    If you think you can make more money being self employed (or at least as much money but more fun), then do it. Just be mindful that the banks won't lend you as much money as if you have a solid full time job - so that may limit your wealth growing potential. Non-traditional finance is easier to get these days, so it's less of an issue, but it still can cause problems when you first start out. Speak to a good mortgage broker before you make the move ... make sure you understand your finance options and how they might impact on your returns.

    Perhaps another approach is to focus on investing for now, think of your job as just a means-to-an-end ... use it to get as much cheap finance as you can safely manage and invest in growth assets. Your job is just a tool that you can use to get you along the path to financial freedom more quickly. Once you have some decent equity built up, then you'll be in a much better position to work for yourself and still grow your asset base.

    I know plenty of people who have quit work like you mentioned ... it can be done, and you may well be better off as a result. But you need to fully understand the ramifications - both the pros and cons of that strategy. Make sure you are doing it for the right reasons, not just because you want to buy yourself another job.

    I suggest you get to know some people who invest full time - find out how they made the transition, learn what problems they had to overcome, and find out what activities made them successful.
     
  5. TryHard

    TryHard Well-Known Member

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    Hi Triu

    Judging by your posts since you joined InvestEd, you're on a quest for 'information overload'. I fully understand how you feel working in a boring Govt job, as I used to have to, till I became self-employed. However, property is quite likely NOT the quick fix to all employment woes. The way you generate your daily wage may not ever necessarily be related to your wealth creation efforts. But hopefully it will be :p

    We are really enjoying our property and investing efforts now, but only because we also enjoy and profit from our 'day jobs' which fund our investing. I personally would love to do property development as a job, but at the moment I know it would not replace the income I receive in my 'real' job.

    Some people look on quick renovations and on-selling as a way to generate an income, but as Steve Navra would most likely point out, what they are forsaking is the monumental and (almost) guaranteed long term growth that comes from good quality property.

    If you're certain property is suited to your future plans for a career and/or wealth creation, I'd suggest you keep on your quest for education, do the Reno Kings as you have planned, also a Navra seminar, Bill Zheng, maybe Peter Spann, check out some threads on Somersoft, read all the articles available on InvestEd, and anything else you've seen recommended by people who know their property stuff. Just don't buy the first thing recommended at the first seminar you attend - look on them as a lecture in part of a degree course, not necessarily the be all and end all. Remember all people running seminars are usually doing it to sell something, and that's not necessarily bad, but it pays to remember :)

    Digest all the info you've gathered over a few months, or whenever you can make it all come together, and try to apply it to your current situation. Talk to a good financial planner and structuring expert and start the journey, fully prepared :)

    Otherwise, picking the eyes out of a few good concepts, like property investment as a career, HDT's, selling PPOR to trust etc, can get quite unnecessarily complicated - you really need to put such things into play with some really good quality professional advice based on a very clear strategy generated by yourself. I can assure you of that, based on personal experience ;)

    Above all enjoy - and remember property is a journey of many many years so a few months info-absorption is a drop in the ocean :cool:

    Cheers
    Carl
     
  6. Leandro

    Leandro Well-Known Member

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    Very good advice TryHard ;)
     
  7. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Carl,

    Agree. Took me over a year of in-depth research, a few false starts and over 1,000 posts on SS before I finally bought my first IP.

    There's no rush, particularly in the current property market environment. Plenty of time to really sharpen that sword before you act.

    Cheers,
    Michael.
     
  8. Jacque

    Jacque Team InvestEd

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    Hi Triu

    If you are thinking of quitting your present job, make sure you get the loan before you have no income stream :D