Hey Guys,
when i have saved up my money i would like to know
A: how much a small investment property goes for these days and also
B: if i take out a loan for the entire cost of the property would there be enough time to pay back my loan from the rent from the tenant?cheers, brady
Brady we need some more information.
Where are you looking to buy?
Do you have equity in another property?
Most lenders will lend on 80-95% of the property. You will have to pay costs as well.
With loans now days you can keep re-financing and always have time to pay it back.
ChrisAll post are IMHO.
Hi Brady Boy,
Long time no hear!
Still asking these questions and wasting people’s time????
Go get on your X-Box like everyone else….
Del [thumbsdownanim
Chris-Syd… no offence, but you need braces… eek!
This is for me in anticipation of others doing it:
[offtopic] hehe
kay henry
sorry,
i didnt really make things clear i know. i am only thirteen and what i meant by when ive saved my money, was when i reach 18 and then invest.i have never heard of re financing but im already questioning things like, fees to change banks, and such, what are these dangers and how do i avaoid them
brady [/font=Andale Mono][/font=Courier New]
hmmmm [offtopic] but once again del long time no hear.
im sorry if i was a little hostile last time we came across each other i admit my mistakes and im sorry i was a bit hot headed.i think you could be a very good mentor towards me if only you got over the “x box” comments i actualy own a ps2 but im not ashamed at it so while we’re here lets just be friends and stay on topic please?
You can still find properties for as low as $50,000. With a 95% loan you only have to stump up $2,500 for a depsoit and closing costs of around $1,500.
Although it sounds alot, if you save (though have a bit of fun!) by the time you hit probably 16 you should have enough.
By the time you hit 23, you shouldn’t have problems reaching 6 more properties at least!
So keep learning all you can.
Rgds.
Lucifer_auhey thanks.
you know how you mentioned about refinancing before? what happens in the way of fees when you change banks?No problem Brady Boy,
I will always try to help any people with *genuine* posts…
Please don’t abuse the forum.
There are a lot of people who give freely of their expertise and their time,
often very limited time..If you have genuine questions, please feel free to ask.
I will drop the X-box remarkes… Deal? [thumbsup2]Regards,
Del [upsidedown]
i actually thought that was a very important questions, what could be more important than getting your first investment home. i dont know enough about property yet and the only way im going to learn is to ask.[thumbsupanim] if people think the questions are minor or unimportant they dont have to answer them
CHEERS GOES OUT TO LUCIFER
thanks mate for your advice now i have a round figure of what to save for and i know its not impossible.[thumbsupanim][thumbsupanim][thumbsupanim]Brady
Hi Lil Man,
As a word of encouragement my nephew only yesterday had an offer accepted on a property in a cheaper area of Perth.
He is 18.5 years old.
I might also suggest you ask for a couple of investment books for your next birthday – Creating Wealth From Residential Property by Jan Somers and Steve’s 0-130 in 3.5 years – both books provide a lot of useful information and will round off your ‘education’.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
good onya lil_man!
im now 23, and have two properties in Perth.
You sound like me when i was your age! haha
Some advice for you though while youre still young, up to you weather you choose to do anything with it or not…
-SAVE 10% of anything you make, pocket money, work, anything!
-When youre ready to buy a car, buy a CHEAP car, instead of turning 23 and realising you have owned 10 cars since you were 17 and number 11 is a 60K Monaro sitting in your driveway
-Dont get credit cards, interest free deals, or borrow money for anything but property!If you follow these basic things about money and learn them while you are young you will be very comfortable by the time you are my age. (my age haha -I sound like im 50!) I would have about 20 properties now if I hadnt done some of the things I have done in the past 8 years… BUT ive learnt from it all. If this helps you (or anyone else)even one bit then it wasnt wasted [biggrin]
The other tip as stated by Derek is READ. Read as many property books as you can. Rich Dad Poor Dad is a good book too…
Any questions feel free to ask me or anyone else on here [strum]
Luke [cap]
Originally posted by devilcv8:-SAVE 10% of anything you make, pocket money, work, anything!
-When youre ready to buy a car, buy a CHEAP car, instead of turning 23 and realising you have owned 10 cars since you were 17 and number 11 is a 60K Monaro sitting in your driveway
-Dont get credit cards, interest free deals, or borrow money for anything but property!Okay, a couple of good points and one that needs to be refined I reckon.
Saving 10% is a good plan, save more and let 10% be the minimum per period (weekly, monthly, whatever).
An adequate car is great. I purchased mine new almost 10 years ago and it costs very little to run and still going strong, my first car was an old gemini, again cheap to run and solid.
Now credits cards are being made out to be bad, probably quite unrealistically so, as in this case if the person followed to the two previous parts they probably are already wise enough with their spending to avoid the pitfalls associated with credit cards. (for example I don’t pay more than $100 in fees a year total at all for my card yet I average at least that in value for points on my card for Myer vouchers and so on, since the card never gets on top of me it is extremely viable and helps me to better micromanage my offset account).
I agree sizzling_duck
Saving 10% is a minimum. I am now saving 15% of my gross income into an account paying 5.25%pa…
As for the credit cards, I have one with a $1000 limit on it with ANZ. I agree with using them for reward programs etc, as my $1k balance is easy to control, and have put around 200k through this card in the past 5 years which has earnt me many frequent flyer trips!!
BUT, in lil_mans case, the reason I say not to -is that when you turn 18 you seem to think that cause im old enough i might just go get a credit card… all my mates do so why not. I did this when I moved out of home at 18, and very quickly racked up $5000 debt. I also had a car loan and most of my income went into these two things.
It is EASY to get suckered in to these things and as a young guy wanting to go out, spend money on the car or what ever Id still say to avoid them!
Wait till youre old and grey like me (23yo) and you KNOW that youre sensible enough to deal with one of these things. [aacool]
Financial intelligence usually comes from making your own mistakes. My dad told me not to get a loan for a car- I did. He said not to get a credit card – I did.
I wish I had listened to him but dont regret doing it, cause I learnt from my mistakes very quickly instead of getting further into bad debt. Some of my friends are in their mid 20s and havent even thought about a deposit for a house yet!
I want to help anyone that can avoid doing what I did! [biggrin]
Luke [cap]
Lil Man,
Love and respect your mother !!
Listen to what your daddy says and
Read your bible everyday.
You will then have all the wisdom you need to handle whatever life throws at youWF
and
Read your bible everyday.Going well until that bit. I suppose each to their own….
I agree with Wallflower, read your bible, you can gain so much from this book that helps you become so much wiser beyond your years. Also of course read as many books on investing as u can.
Ian
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