How To Start From Scratch (Real Estate Investing In 5 Steps)

[@jazzinspire7967]

I've noticed that in some of your recent social media content and in this video, you've mentioned that most properties are now experiencing negative cash flow. Does this mean that if we go ahead with searching for properties, our first few investment properties will likely involve negative gearing?

[@d.j.z.j]

Yep and by a lot I think tbh

[@d.j.z.j]

Unless interest only invest loans

[@PersonalFinancewithRaviSharma]

Great question! I'm seeing on average on a 90% LVR, it would be negative by about $150pw only

[@Big_dog4006]

Ravi, I have run calculations on whiteboards, excel spreadsheets, and note pads. All indicate I can buy a property (

[@lukaslt88]

Why would you sell after 5 years ? You know you can just refinance to another bank to get another 5 years interest only ? Long term capital growth plus rental yield in good locations will out perform s&p Especially because you are using leveraged money , instead of making 10% on 50k you’d be making 10% on 500k just for simple numbers I think a balance of both is key to long term success though real estate and s&p

[@PersonalFinancewithRaviSharma]

Ultimately it comes down to how your structure your purchases an what you actually purchase. Plenty of misconceptions out there from people who aren't doing the right thing. You would be end up further ahead in terms of net wealth if you do it the right way with property. It's why I emphasise you need the right people in your team

[@justonepotato00]

My partner and I would love to invest in real estate but starting with buying a residence (we’re tired of renting, having to ask permission to paint a dang wall lol). Not our dream home, but something which is ok that we can afford comfortably. Maybe put a granny flat next to the house and rent it out. Would your organisation help with that or is it solely focused on investment properties? 😊

[@svenerikmoeller8809]

Definitely dude, build the granny flat, best investment! Personally sold a house in Roseville and bought two investment properties both with granny flats and now receiving over 40 percent more in rental yield . PS My granny flats where the first to be leased, greater demand for them.

[@et5712]

Sounds very convincing. Good video. Times are tough for many in Oz now.

[@PersonalFinancewithRaviSharma]

Tough times, make hard people ;) easy times, make soft people.

[@CelineandMerlin]

Thank you for your knowledge 😊

[@PersonalFinancewithRaviSharma]

Thank you!

[@giuliogreco]

If investment properties are pretty much all negatively geared right now what does that mean for people’s investment strategies?

[@georgeibrahim7945]

Thanks for the tips

[@PersonalFinancewithRaviSharma]

Thank you!

[@shashwattewari7458]

What's a good starting point (funds) to think about investing in Real estate ?

[@PersonalFinancewithRaviSharma]

About $90k

[@Chris.Mich_LC100FTE]

Can BA fees be incorporated in the Sale price so its essentially financed? Or will this be a separate out of pocket expense?

[@PersonalFinancewithRaviSharma]

No you can't however you can use equity from another property to pay for the service.

[@doublecrunch]

Can you please make a video about paying interest and how it doubles what you pay for a property in the long run and how to pay off your property sooner to avoid this?

[@PersonalFinancewithRaviSharma]

I've got videos on the channel about why IO can be a better wealth building tool

[@ItsJADA]

I hear a quarter of Australia's property investments are held by 1% of taxpayers. Pretty shit go Way to price people out

[@neck_minnet8939]

Still better than communism or having a socialist property market. Don’t worry about or blame others.

[@PersonalFinancewithRaviSharma]

You should look at how it is around the world. It's still better in Australia than most of the world

[@svenerikmoeller8809]

Umm, the statistics show quite clearly that 70 percent of Australian landlords own only one investment property whilst 20 percent own two. Me I own three, after taxes , council rates, maintenance and paying management the amount is not super. So in that it’s not the one percent but hard working folks that have worked 50 hrs a week and forgone partying or travel! Sorry matey but it looks like your gonna be renting for the rest of your life, it’s only your choice to change it.

[@neck_minnet8939]

@@ItsJADA you have to remember to that about a third of properties are investment properties. So 1% own 8.333% of all properties maybe 8.5% when you include their PPORs. I can live with that number. Good for them.

[@paulbeer9475]

Ravi can you do a vid of a scenario when say I earn 140k have 160k equity in my property want to buy another using this. In current market where would that leave me in a cash position as I know losses can be moved against you salary. How much cash outlay a year would your normal 600k home be

[@rajug596]

It depends on where you buy the property, but if you buy in a very good rental yield location for 600000 property usually around 14000 negative gear and, after tax benefit it will be around 6500 annually out of your pocket..

[@Ayeare]

It's all about borrowing capacity. If you have no borrowing capacity, doesn't matter how much equity you have unless you use the existing property as collateral (must have enough equity to cover the whole loan in this scenario) - this can be very very risky and highly recommend you get advice from a licenced financial advisor.

[@PersonalFinancewithRaviSharma]

Agreed with the comments down below and also comes down to you risk appetite/strategy.