On the weekend my girlfriend and I attended one of her work seminars in Sydney.
(Btw can really recommend the Din Tai Feng restaurant in World Square)
Anyhow I got left for a few days by myself, and after reading a property investor mag I got onto a book called 'Rich Dad, Poor Dad.' Which was quite a good read.
I ended up finishing the book on the plane on the way home, with my partner reading over my shoulder.

Anyhow as I finished the book and was about to put it away, the gentleman to the other side of me asked if I enjoyed the book.
I was a little suprised but he must have looked over my shoulder and seen the cover. I told him that I had, and asked him if he read it etc etc.
After a bit we started talking about property, he told me he had quite a few investment properties.
I haven't really had the chance to talk to many people about this subject so I asked some questions as we landed and taxied down the runway to the gate.
He told me he had some properties in the SE suburbs of Melbourne but was currently diversifying and just bought in the west side of town, saying the land there is cheaper and you'll get a better return.
He also told me that when he buys a place he expects it to cost him money for the first 5 years. Then at the 10 year period it gives back what you put into it. And then after that it makes money for you. (During all this time being a vehicle for tax purposes.)
Somewhere in this equation the property doesn't become an incentive for tax and that is the time you go out and buy a new one.

He was quite proud when he told me that he has had tenets for years. Saying that when something breaks you should get on it and fix it straight away.
Also he pointed out to me that having a good property manager is really key, and to be prepared to pay more for one (6-7% he said)
I asked him if he used trusts but said they weren't as efficient for balancing the positive and negetive cash flow for tax.

The biggest tip he gave me and he repeated it as he left was to make sure you get started. His approximate words were 'a lot of people read the books but most people just put it on their shelves. The first one is the hardest you just have to get out there and do it!'. I would love to have an investment property by the end of this year, if it is my PPOR that will be renovated in time, or an apartment somewhere, that is a goal for my 2011.


I was really happy to talk to someone about this subject because I haven't really been able to talk to anyone knowledgeable about it yet. It was great.
(the book was also great that might be a post for another day :)