Hi All,
Just thought I would write and ask for some advice from the experts on my current situation. As a newbie in this world of property I am unsure whether it would be wiser to use my savings as a deposit to buy my first home (to live in) now or perhaps mid next year (when the supposed bust occurs) and brave the higher interest rates. Or whether to plunge in and buy an investment property now (or mid 2004) and carry on renting while I invest in property. Would someone mind giving me some tips as to what their situation was when they started investing? I’ve read Steve’s book and have the Buyers Beware tape all of which were very interesting but I’d like to hear from people just starting out and currently investing in the market this year.
Any help or advice would be appreciated! [
]Thanks
JHi Minxii [
]I bought my first place in September with the goal to make some quick cash. I used a spotter to find the place for me and got the unit way under market value. 3 Months later my property has gone up from 112k to around the 160k mark. I am living in the unit so I got the first home owners grant and I used that for legal and some of the renovations I am doing. The way I got started on all this was I went to a seminar about investing …there would have been about 40 people there and only about 5 of those people went through with the plan to set up for financial freedom. I think the longer you wait the harder it’s going to be to get into the current market place. My spotters took about 2 months to find this place and I would recommend maybe for the first couple of IP use a spotter, just till you get the hang of things. Well congrats on taking the first steps towards your financial freedom
Cornel
Thanks Cornel,
I don’t suppose you know of any spotters in Vic?? [
] Its almost impossible to find any cash +ive places in this state which was why I was thinking of waiting… However if I buy interstate I can’t get the 1st homebuyers grant as it is an investment right?J
Hi Minxii []I bought my first place in September with the goal to make some quick cash. I used a spotter to find the place for me and got the unit way under market value. 3 Months later my property has gone up from 112k to around the 160k mark. I am living in the unit so I got the first home owners grant and I used that for legal and some of the renovations I am doing. The way I got started on all this was I went to a seminar about investing …there would have been about 40 people there and only about 5 of those people went through with the plan to set up for financial freedom. I think the longer you wait the harder it’s going to be to get into the current market place. My spotters took about 2 months to find this place and I would recommend maybe for the first couple of IP use a spotter, just till you get the hang of things. Well congrats on taking the first steps towards your financial freedom
Cornel
Hi Minxii,
The million dollar question that everyone is asking and thinking about at the moment. The answer depends on your overall financial goal. My first property had 2 loans one at 13.5% and the other at 18%. The fear of interest rate hikes depends on how you start your inititial investment. I personal don’t worry about interest rates under 10% and this is because when I first started interest rates where so much higher. This thinking will differ from many investors. You need to balance up what ever deals you do with the return you want. My view is it is better to start small and gradually increase your investments. A deposit on a small unit or a cheap house that you can pay off quickly is my preferred choice. Finanally situations change and the first home you buy now may not suit your purposes later in life. Treat your first PPOR as an investment knowing that you will live there now but later will find the house of your dreams to live in. It would be interesting to know how many investors still live in the house they first called home or have they moved on to bigger and better?
C2
“Is it true the more you owe the more you grow until the bank steps in?”No I don’t know of any in Vic I am sorry. Buying interstate might not be a bad thing though. You might lose the 7 FOHG but I have heard some people say that you are better off not taking the first home owners grant and I just can’t remember what the reasons were…maybe someone can give me a hand here.
Cornel
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]
] Its almost impossible to find any cash +ive places in this state which was why I was thinking of waiting… However if I buy interstate I can’t get the 1st homebuyers grant as it is an investment right?
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