Want to be a Property Millionaire?
I know I do.
But I can’t stand and I don’t trust those books and shiny seminars that promise to turn you into a property millionaire with just $1 from your pocket and 12 months of clever decision making.
If it were that easy, I’m quite sure everyone in my neighbourhood would be doing it.
The truth is, few are.
And the bigger truth is that even fewer women are doing it.
But I’m going to have a crack, and you can come along for the ride of a warts and all attempt to invest in property.
So where to start?
My family are crap at property investing. My family story is one of missed opportunity and disappointment. It’s historical and intergenerational. I’m wondering if I can shake this.
My grandparent’s family home was taken from them during the aftermath of World War II and my grandfather spent years engaged in his own letter-based war back to Germany seeking compensation.
My parents sold premium properties in Sydney in Croydon and Rose Hill in NSW before the boom.
They also probably over-capitalised the family property and couldn’t retrieve the investment on its sale.
Oh yeah —did I tell you about the time that I bought a property from my soon-to-be husband’s ex-partner? It wasn’t selling so he couldn’t settle his financial affairs with his ex. It had termites and was rotting. Much like my famlly’s history with investing.
And just as a final kick in the guts, my family passed on the opportunity to cheaply purchase the Mangrove Hotel … in Broome. Have you been there? Google it. Shed a tear for me, would you?
Full disclosure in property investment matters.
In all of these property investment seminars, I’m always left wondering about the truth of the matter. Was there family money involved? Was there a gifted property with equity they could draw on? Is the reported profit the position the truth?
For women, it’s a harder task. Statistically, I’m behind the eight-ball in turns of income, time out of the workforce for kids and less super. I’m also from one of those Anglo backgrounds where there is not such a familial desire to fund the kids or co-invest.
So how do you start out in property investment?
For the past five years I’ve been putting aside $100 a month and all my tax returns into a managed share fund. It’s been difficult — particularly when I was on maternity leave — but I did it.
It’s the principle of paying yourself first.
It hasn’t created much of a nest egg though, and certainly not enough to fund a project, so I need partners.
I also need partners because I stuffed up financially. After a tsunami of circumstances I ended up with a credit default back in 2013 when I was on maternity leave. Anyway, I cleared the bill as soon as I found out about it but it was too late to avoid the black mark. There aren’t too many lenders that would extend finance to me directly as a consequence, even if I did have the deposit.
So where to from here?
In the next installment of Follow My Reno, I’m going to talk about how to find investors, whether they be family, friends, fools and strangers to help fund your property investment.
I’ll also update you on my progress in finding a partner with more cash and less sense than me.
What will you build? Share with us in the comments below or hit us up on Facebook with your property investment plans.