The tired old phrase is “your first investment will always be the hardest one”, but if anyone can advise me on the following scenario without referring to that phrase it would be much appreciated!
21 years old, full time 4th year apprentice about to graduate to qualified tradesman, already in management, minimal expenses (car & phone), still living with parents, minimal savings on minimal wage has only just covered all the private study i’m about to complete. Can anyone see a way to have my portfolio started before age 22?
With no deposit, none of the banks want to know about me. Is my answer just to keep jamming coins in the piggy bank till im 30 and then try again?
Would your parents consider either giving a guarantee or lending you the deposit.
Hi noidea,
What is the private study you are about to complete?
You say you are already in management and are about to finish your apprenticeship and graduate.
So have they been paying you apprentice wages whilst you have been in a management position?
Is management part of the apprenticeship? Are you able to continue in a management role after you graduate? Could you clarify those Q’s for me please. I’m mostly just curious, but they also have a bearing on your ability to get where you want to go.
If you are in a management position & living at home with minimal expenses, you should be able to save like crazy for a tidy deposit. They call it delayed gratification.[biggrin]
Sorry to disagree with you crj, but
IMHO noidea, please don’t ask your parents to go gaurantor for you. If something unforseen happens (you loose your job, have an accident & are unable to work, etc) it will most definately fall on them to make the repayments. Would they be able to? They may loose their house/life savings, depending on their position.
Besides I’m betting you want to stand on your own two feet anyway, right[biggrin]
I think you have the right idea about jamming the coins in the piggy bank, yes sir!
Go your hardest for 12 mths or so. Be focused, and dedicated about your savings. Then with proof of a solid savings history, the banks will be willing to talk turkey[thumbsup2]
In the meantime you have the perfect opportunity to learn as much as you can about property investing (it’s a never ending process, but lots of fun[happy])
May I suggest you visit your library or bookstore and read as many books as you can, keep visiting these forums, talk to like minded people – you get the idea.
Steve McKnight, Margaret Lomas books & others will give you a good grasp of Positive Cash Flow (+CF) properties. On the other side of the coin is investing for Capital Gains (CG) not necessarily +CF. Peter Spann has a book out about this called $10Million property portfolio in 10 yrs. Its a great read also, and together with others will give you an appreciation of what choices you can make and where you will feel comfortable investing.
A bit long winded, but hope it helps[biggrin]
Regards,Sharon
Another option may be to secure a loan in both your name and your parents, that way you have more borrowing power. Start off in the cheaper range of property. Do your research. You can still buy units for under $100,000 returning say $130pw in rent, and furnished, with low body corp fees.
We helped our daughter at same age the above way, and as soon as she got on her feet, the loan went into her name.
Anna
shaz got it right, not about to ask for help from anyone except the bank at the moment.
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