Hi I’m from Invercargill-New Zealand and i’m 18 years old. I am very interested in property investing and was just wondering if i should buy my own home before i start buying investment propertys???? Thanks Regan
Hi Regan,
I’m a conservative type of thinker – if it were me I would buy a PPOR (Primary Place Of Residence) first, when that is paid for I would start investing.
Other (probably most other) people who regularly visit this site will tell you I’m talking &¤#”&%¤# and tell you to invest first.
What you must do is a huge amount of research to find out what will suit you best. Search this site, there are mountains of info for beginners. When you’ve done a heap of research, do a heap more and you may get closer to an answer. This isn’t meant to discourage you (far from it) – the more understanding you have, the better choices you’ll make.Regards
Patrick
The dumbest question is the one you don’t ask.
Hi Regan and Patrick
i take the other view. I think that you need to start with IP’s first. Regan your 18 years old, i’d say if you can, stay at home as long as possible and start investing asap. Once you Buy your own home and move into it you will find it near impossible to save. Moving out for the firt time is so expensive you have so many things to Buy. So stay home get rich with your IP’s and then when you are ahead financially buy your first home.
Well thats what i’d do if i was 18. I’m not i’m 40 so maybe i’m out of touch with how hard it is to live at home with Mum and dad. But its like cars don’t buy expensive cars, you are lucky in NZ you can buy good second hand cars very cheaply. The longer you can avoid buying a car the better also. Gee, i’m getting boring aren’t i? Stay home and don’t buy a flash car ? Yes it will damage your love life but hey you’ve got a lot of life ahead of you start setting yourself up when your young.
Regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hello,
I am 20 and i bought my second IP that settled on Friday!!! So excited
[biggrin]
Anyway, I have decided that i want to live where i grew up which is quite an expensive area. So i bought my first IP when I was 18 with the plan of paying it off while i stayed at home and then selling it in 5 years to buy my own home. Well, i was VERY VERY lucky and it doubled in price.
So I have bought a second (now fingers crossed for that to happen again). I have five brothers so i wanted to move out of home. I rent a cheapie apartment, which i know is not the best thing to do financially, but for my mind it works best. Hopefully in 3 years i can buy a house in my dream suburb.
Good luck with it, i think invest first so that you are in a better position later.
Tink [rolleyesanim]I totally agree with both Westan and Tink.
Hi guys
Tink what a great story, well done, i hope your can achieve your goals, go for it.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hey Guys
Thanks for the help its awesome hearing what other people think!!! I get on really well with my parents and enjoy living at home so i think i will start to invest first!!!
Hear from you soon
Thanks REGANAt 18 years old you don’t need to be tied to a mortgage if the property is not self financing.
At your age you have everything to gain but I suggest you spend as much time and effort as possible on educating yourself on property and other investments.
There are many books out there that tell you how to get rich from property but few of them can guide you through the pitfalls of an investment gone wrong. How you manage the problems will determine your future success as an investor.
Having said all this, go mortgage yourself upto the eyeballs. If everything turns to custard you can always try “exploring new foreign markets”
Happy investing
Jeff
Hi Regan,
what Westan didn’t mention – is that he travels to Invercargill alot – He lives in the South and he’s probably the best person to help you out considering you can even meet with the legend – unlike us Melburnians [glum]- oh well, life goes on…
Go on and Invest first
Kind regards,
George.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
Hi Regan,
I take my hat of to you. If you are thinking like this now, you are going to be very well off in 10 years time.
Go for it!!
regards,
MartyWelcome to the show Marty – I can see your new to the forum.
How are you with investments? Where are you from?
Kind regards,
Geo.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
Regan, as with all of the other people in here it is great to see younger people with thier heads screwed on. Good on you for getting it into your head to invest as I wish I had even 20 years ago when I was 22.
Now 42 and doing ok with it all, I think that someone in your shoes is set to take on the world and win. With the reduced costs of living at home with your family you get on with(wow thats great too)you are in a better servicing category financially than someone in a flat with expenses and phone bills etc.
Get one then when you have some growth get a second and then a third. When all the yahoos of your generation are still renting and struggling with young families in 10 years you will be financially set with the then equity from your three investments being used to get into your own home.
Just remember that selling incurs tax where refinancing doesnt. So if you get there and have 3 and then consolidate into a bigger loan with a lender refinancing your IP’s then you will have (theoretically) good propeties with a great servicability for the expensive suburb purchase of your PPOR.
Dont forget thought at any mortgage on your PPOR is bad debt which you cannot claim any tax benifit from. So another thought would be to sell all three, wear the tax and have a tiny mortgage on your PPOR. Whatever works for you is the right solution. Keep researching as it never ends.
The only day you dont learn anything is the day they bury you.
So good luck and keep on with your dreams, they soon turn into reality.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
Regan,
Deciding what to do depends on your circumstances. If you’re working, you can make all kinds of decisions. If you’re happy to live at home with your folks, then it sounds like a PPOR isn’t a priority for you right now.
It’s great you want to invest early… but I don’t have the “live lean” philosophy. I have always had a car- since I had a licence, and to me, that was an essential part of life. I saw “non-earning years” as a part of development, too- University, a car, going out… you can’t bring back the early years, and you’ll be working for much of your life soon anyway- well, many people do- me, for example
Wealth or fun as a teenager? I’d go for fun any day
Or, if you’re going to buy an IP, I’d do what most of us probably did for our first IP- buy a cheapish one, so your first mortgage doesn’t seem overwhelming and takes over your life.kay henry
[biggrin]
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