I am not sure where is my way now
7 months before i definitly know what I want–my first home, and i can use FHOG.
but about 1 month before i read the books of Steve and Robert’s ‘ Rich dad and Poor dad’. I reliaze that i should buy IP while renting.
But the thing is I waste FHOG, also I got my own small business and I can not go to the other states or even overseas to find positive IP.
So, now i am thinking maybe Stockmaket is easy for me to get in and start investing with my savings that used by the bank to make money for them.
So i totally lost. should I buy first home with FHOG, and then rent out for 6 month without agent? but it is still hard to find positive one.
Or i should get into stockmarked instead?Megapass,
I think u were on the right track: go buy aPPOR and use the FHOG.
Stockmarket: very easy to get into, very easy to do your hard earned money, very easy to take afew $ out for whatever, and very hard to save again.
Buy your PPOR and no doubt it will be _ve cash flow however, maybe rent out a room or two;improve / add value; over time it will appreciate; revalue then borough against the equity for the next property.
Make the move, get off the fence, and best wishes for the future.
hrm
fhog will be there when you buy your first “to live in’residence. It is not affected by owning an IP. So buying an IP first will get you 100% tax back on your investment. Alternatively if you buy a ppor now you get 0% tax deduction for repairs, fix ups etc and all of your hard earned disappears for a long time to pay it down.
$25k deposit gets you a 7% return townhouse or unit in Logan Central Qld, so your only limiting factor is your own thinking. Get an IP, pay less rent where you live than if you were buying it and paying a mortgage, and use the leapfrog effect of buying, reno then rent out, get better val, peel out deposit and do it again on the next property.
In a short space of time 2-3 years you will have a couple of comfortable IP’s and then use equity from them and FHOG to get into your own ppor with less pain and a bigger deposit. Securing your future in the process with a couple of small ip’s.
Good Luck, its all up to you.
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!FHOG is not guaranteed to be there forever. http://www.fhog.info. Other discounts and concessions are certainly not likely to be around forever.
I would use it while it is available.
TMA
http://www.email4money.info
Investor Links
First Home Buyer WebsiteHi Mega, it sounds to me that you r either very young or very inexperienced.
I suggest you read 50 books and attend some FREE courses through ASIC – ACCC – ASX etc etc
Read past posts from this site.
Read Read Read
Visit 50 real estate agents and interview them, ask lots of questions.
Get a finance loan capacity test to see how much you can borrow which will determine where you can AFFORD to start from.
Start a research journal, cut articles from papers and magazines.
resiwealth
I read Anita Bell’s book and in there she wrote something like : You can find someone who wants to buy a house using FHOG, and swap the house for 6 months with you to make use of it.
Thanks all here, really appreciate!
resiwealth: yes i am not experienced at all, and i am not sure i am still young or not–27 yrs old from the day before yesterday:(
Besides, I am not native here, so I think maybe that will be my biggest problem on to way to investing properties out of my own country.
But I will do my best, startting is the most hard period, I know.
So, yes firstly I will learn. from Being to Doing then try to Having[biggrin]
I am even thinking to give up my smalll own business now and to try to find some kind of job in the real estate sector straight way. like working for a builder and learn from the origin of the properties, because of my non-english background I think it’s better way for me to start my investing journey~~~~
any suggestions?? really appriate for the replies for my first post here. thanks all!Hi Megapass,
If your small business is providing you with a reasonable income then I would suggest you keep your business. You will gain valuable experience by running your own business. As you move across in to property investing you will be able to use the knowledge you have gained from your current business and apply that to your investing. Being your own boss now should give you more freedom later to concentrate on property investing. If you can show a connection between the two (your current business and your need to learn more about property investing), your books, magazines attending seminars or meetings may be tax deductible against your current business( check with your accountant). I think if you can spend 30 minutes-1 hour a day reading the posts here you will gain the knowledge you require very quickly without the needs to buy a lot of books or materials, excepts Steve’s of course.
My simple advice is that in uncertain times, and particularly when starting out with any kind of investing it is best to be cautious – don’t over commit yourself.
Wit property, a PPOR can provide fantastic tax-free gains, but it can also cost a lot to look after and there is no guarantee of capital appreciation. If you buy, aim for something you can pay off in ten or fifteen years. The savings in interest costs are huge.For example 2 couples, both with a maximum weekly accomodation budget of $320 are buying PPORs. The first couple buys:
$150k over 15 years
$312 p/w repayment
$93,000 total interest paymentsThe second couple buys:
$205k over 30 years
$317 p/w repayment
$289,000 total interest payments
both scenarios assume constant 7.07% IR.After 15 years the first couple have finished paying off their PPOR and start saving or investing their $312p/w.
After 30 years, the second couple has paid off their house, spending a total of $494k.
Meanwhile the first couple have paid off their house for $243k and also invested a further $243k (or at 6% compounding, $395k).Value land, look at the positioning of the house, consider whether you are likely to be able to subdivide / dual occ later.
If you’re interested in shares, managed funds can help you minimise the risk of losses. Read WayneL’s Trading Pages for some insight into how the pros work. You could try your hand at some direct investment with a couple of small parcels to get a feel for the mechanics of shares – conditional orders etc.
And finally, if you think Robert Kiyosaki is the guru, read This Article he’s written on the subject of house price booms, and their aftermath.
the best time to get rich is after a crash. My suggestion is: if you are new to real estate investing, this is not the time to jump in. If you are holding “junk” properties that are costing you money, you may want to consider unloading them.How long will the bubble last and keep expanding? I do not know. I just wanted you to know that I am currently preparing for a crash, an economic recession, and possible global depression. Why? Because this is a very big worldwide bubble… the biggest I have ever seen.
I also support his view that a few good gold coins are a very sound investment today.
Good luck with it all,
F.[cowboy2]All advice is general and should be considered as such. It does not consider the specific situation or goals of anyone etc blah-de-blah.
Thanks C2, now I realize that I need more cash to invest so i can not give up my daily business.
Foundation, do mean there is another way i can do which is to find my first home with good apprieation probability and try to pay off the morgage asap, and waiting for the bubble to bust?
What about buying a property for a short term,
renovate the minimum and back onto market? Need to do your homework, but I have done and am doing and it is raising more capital for me. Then if you invest with more deposit it will be more likely to be cah positive.Maxene L Thomas
Originally posted by DD:fhog will be there when you buy your first “to live in’residence. It is not affected by owning an IP.
Is that really true? I was sure you could only claim the FHOG if you hadn’t owned a house before.
Megapass, bear in mind that any capital gains on your PPOR are not taxable. Sounds like a good opportunity to buy a fixer-upper, if you don’t mind living on a worksite.
I also agree with Foundation’s post.
Originally posted by DD:
fhog will be there when you buy your first “to live in’residence. It is not affected by owning an IP.
Is that really true? I was sure you could only claim the FHOG if you hadn’t owned a house before.
Megapass, bear in mind that any capital gains on your PPOR are not taxable. Sounds like a good opportunity to buy a fixer-upper, if you don’t mind living on a worksite.
I also agree with Foundation’s post.
Yeah I’d also like this clarified i didn’t think fhog was available if you own or owned ip’s. If u can I’ll be 7k better of
regards
watchful
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