Hi guys,
Im 17, from Perth just graduated from year 12 going to study commerce at uni, have a part time job earning only approx $100 a week and have about over $2000 in savings. I am looking for another job. What i want to ask is can i start investing with such little money.How do i go about it? Will Bank Managers just laugh in my face? I have read books from business to stocks to realestate since i was 13, pritty much read all of Robert Kiyosakis books, a few of Dolf De Roos, John Burley. However i have found these books only cater to people over 18 with the exception to Rich Kid Smart Kid and Retire Young Retire Rich.[?] What do you guys think[?]Hi Shaepower,
Good to see, that you have read many books and have a hunger for property investing. I know that you can purchase property under the age of 18, via trustes and all. If you are opting for this way, best way would be to setup a Hybrid Trust,
though, back when i was your age and long before i started my own property investing. I would instead invest my earnings and money saved into shares, term deposits and managed funds.
The banks wont laugh at you, as long as you can show them, exactly what they want to hear and see, they will be more than happy to help you.
Good to see that you have a good working/saving pattern happening, though you might need to get your first place guarnateed by your parents, to help you and kick start your property investing career.
In the mean time, if its not long till you turn 18, organise and get everything ready for a pre approval loan, this too will help kick start your property investing portfolio.
cheers
s.i.sshaepower,
Noel whittaker has a book aimed at the teenage + years, anyway check out http://www.whittakermacnaught.com.au/content/students.shtml
I’d speak to a mortgage broker ( i.e “mortgagehunter” or “TerryW”) For more exact information regarding your ability to loan !
A good ‘savings’ record never hurt anyone though, keep your statements looking good and ‘growing’, and stay at home till Mum and Dad ‘drag’ you out or change the locks when your out [
]REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Redwing,
Do you have any good websites about getting a mortgage or contact details to “mortgagehunter” or “TerryW”?stillinschool,
whats a Hybrid Trust. When you first started did you use the help of your parents? How much money did you have or need to have to get started or did your parents finance the whole thing? Also who did you speak to? Is it hard to start up How long does it take to set up? Who helped you find the deals? Who did you get a loan with? What areas did you look in? Are all your real estates investments locally?Shaepower
put a post up for them, or search the forum.. they’re here and you don’t have to look too hard [
]Trust’s cost a bit to start up ( approx $700-900) or so i’ve been told, but Still-in-school seems to know what he’s talking about when it comes to IP’s.
Agree with his post re; Shares or a bit safer ‘managed funds’ and even safer term deposits. I wouldn’t recommend margin lending with regular deposits attached at your age..
Regular savings, steady and increasing income, and adding to your knowledge great starts, the option of your parents going Guarantor on your first IP would be of great benefit to you, speak to them, show your commitment and start cheaply.learn researching skills and ‘search’ all over this forum to learn..
Build on your skills my friend, do any courses you can relating to property, renovating etc, learn from anyone you or your family know in the industry.. your only just starting out so ‘make haste slowly’..
REDWING
Hi,
(I’ve moved your post to its proper spot.)
Not can you or can’t you, but how can you?
Your problem won’t be buying property, but rather securing finance. No bank I know will lend to a minor.
So, some ideas…
1. Buy on a long settlement so that you tie up a deal today (subject to it meeting your requirements), but it does not settle ’till you’re 18. Of course, you’ll need to qualify for finance at that point.
2. Find deals and get a money partner. Go 50:50 on the profits/losses.
3. Buy in your parent’s name in trust for you until you turn 18. This might be a little more complicated, so see a lawyer.
4. Sell deals to earn cash so that when you turn 18 you can hit the financial road running.
…there’s lots more you can do, but finding solutions to your problems is your responsibility and will define (or not) your ultimate success.
I echo the sentiments that it is great you are thinking about these issues – but so was someone else I know who was ultra keen and progressing vey well at age 17, yet to date he’s not been able to translate his good intentions and steady school days endeavours into investing success.
Maybe you can… best to give it a try at the shallow end of the investing pool and see.
Good luck!
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Shaepower,
Hybrid Trust – is similar to most other trust, the real basics are that it gives Asset Protection, and some Major Tax benfits to your Assets, via the correct use and distribution to the beneaficeries.
When you first started did you use the help of your parents? – I Had my mum go guarantor for me, in the begining.
How much money did you have or need to have to get started or did your parents finance the whole thing? – I had a fair bit saved up(been saving and investing from an early age of about 13), but i was also in debt at the same time, the major problems were that i had moved out of home so i had many expenses and hurdles to calm down. In doing so this forced me to work fulltime and work 7 days a week for about 6 months, on top of my studies, eventually i got into control and no longer had to work 7 days. (though i did go a little wild, with the amount of finance that was approved and this is really what caused me to work hard and long for that 6 months period, i had sorta over committed myself, to too many investment properties)
Also who did you speak to? Before i turned 18 i use to go with my mother to the bank, shes also a professional property investor(and professional accountant), but due to my mum, she was able to get me in contact with her bank manager who does all her dealings, and that sorta led from there. Yet back when i was 18 i didnt feel quite ready for property investing, and when the time came and i was ready…. i just went all for it.
Is it hard to start up How long does it take to set up? – Setting up finance and organising people, isnt really hard, its just your attidute towards, how serious you are. For me i was able to purchase when i was 18, yet i was not yet confident as, i had been failing school and the fear of not getting into uni or getting a good job, held me back.
Who helped you find the deals? – This is a good question, hard to believe, but it was me, but with some approval first by mum, she would tell me why, it was either no good or good, investment purchase to get, though before all this, i would useta travel with my mother, when she would look at investment properties, organise finance, going back and forth to her solicitor. (Very Similar to Rich Dad, Poor Dads, growing up)
Who did you get a loan with? – All my loans are with Commonwealth Bank.
What areas did you look in? – In the begining, i mainly bought, in the surrounding suburbs of Brisbane, this is were i use to live. (now live in Sydney).
Are all your real estates investments locally? – Only 2 are local to my Brisbane residence, though the rest are scattered else where.
Thanks for the questions, hope this helps you.
cheers
s.i.s
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