Young investor- tell tale

Hi Wallace,

We may not be up to the level of Still in School, but my partner and I are both in our early 20’s.
In terms of investing, despite the fact that both of us had a very keen desire to invest (particularly in property, but we have a modest share portfolio as well) at an early age, the best thing we decided to do IMHO was invest in ourselves first.
My partner completed a 3yr uni degree straight out of school (paid for upfront by working part-time=no HECS debt), while I recently completed a 4yr degree (only small debt left on that one). We both came out of uni into a great job market on very attractive salaries and continued to live like poor students for a yr while saving bulk. All our mates were still failing around at uni having a good time, so it was no big issue for us to bring a 4L wine cask to dinner[laughing] instead of diverting from the budget.

We were able to save quite quickly for a 1st home deposit (helped by 7K FHBG, and a guarantee from Dad on a 95%LVR). Settled on the property late last year – 947sqm zoned R40, 10km from CBD.
Just working really hard at paying as much cash as we can into the offset account now so we can subdivide and develop in 8 months. We figured it was best to at least jump on the Perth elevator while its still got a few more floors to up!! Though our short term investment strategy doesnt rely on CG at all, 10%pa would be a nice bonus.

Wow, that was pretty long winded. Hope to hear some other exciting semi-life stories in return!!

Best Wishes

Chris

Hi Steve

An interesting post. I am hoping your right but a net worth of $1m by time your 28 (6 years) seems optimistic. You mention you own an investment property but it seems as though your net worth is only 50k (am I missing something?). I am assuming that your hoping for a large capital growth, but still $1m is a way to go. Don’t get me wrong, I am not having a go at you, just wondering about the figures.

BTW, I am 30 and in Melb south east suburbs as well.

hey all im 26 and my first IP was a house that i paid $105k for at the age of 18, then purchased another at the age of 21 fokr $205k.
Got married and at the age of 24 purchased another house for $320k (this one was a JV with my sister)

This year i plan to get some develping done of a 3 bedroom unit (very slow process!) and onto biger and better things in the near future i hoe [biggrin]

“It’s not how much money you make, It’s how you spend it that matters.”

Aspiring property developer

Giulio Taranto

hi all,
Dylan 22 adelaide,

started reading books and 1 leads to another and then youve got some info and get going!

bought first property last year PPOR then started to get good at budgeting and started some good savings. kept reading good books and then bought some land (at a good price) and having a house built at the moment. then sell straight away using steve mcknights multiplication by division practice.

*property passion* be careful with that debt level-although you probably have some equity large debt = greater risk.[/size=2]

Totally legit question cadan [hair2]

I should probably explain that I have a couple of other things working in my favour…

1. I still live at home and as such manage to save around 2/3 of my after tax income

2. I have been investing a bit (a lot) in IPO’s over the last 6 months which has netted me way more than it should have [suave2] (not that i’m complaining). After quadroupling my money on an IPO 2 weeks ago i’ve decided to move away from shares and take my “winnings” for the next house deposit.

3. I have saved around another 15k over the last 6 months since finishing uni (including a good xmas bonus)…all together my equity is around 100k at the moment.

4. I “estimate” that my income will compound around 10-15% p.a (quite conservative) until im 28, so that will help [evo]

5. I have a lot of support from the bank in terms of ongoing finance, so that helps too. They know my plan, and im starting to develop good networks. [cigar].

6. I have a kick ass agent who charges very modest fees for a well above average service. I generally get to see props before they come on the market since I bought my first IP through him and he knows im a genuine buyer.

7. There’s going to be another significant property boom when i’m 26 which will last for about a year. (yes… i do have a crystal ball[mellow])

8. I LOVE to learn from my mistakes and be proven wrong. Hopefully I only make small mistakes, and make them fast!

So anyway, whilst im only at around 10% of my goal, I know i’m going to make it.

The hardest thing was actually buying the first one… I ended up getting a great deal on my first IP, but it would have been worth a few thousand extra just to get me to take the first step!!

If I was going to give advice for young people starting in IP’s (wow, I sound like an expert and I only have one [blush2]) it would be the following:

1. Save your ass off (could write a post on this alone)
2. Read every property book you can find.
2. Look at properties advertised, and embrace your excitement about the idea! Do this whilst you’re saving (keeps you motivated).
3. Go see sh*tloads of props on weekends etc and compare them to each other in terms of cost for benefit.
4. Once you have your deposit, find the best deal you can in a relative amount of time and GO FOR IT!

I always wondered why people said “It was so much easier after the first one”, but now im saying it!! [cowboy2]

Good luck!
Steve.

“Knowledge is Power”

Hi YoungInvestor (Steve)

Ahhh I see, thanks for clearing that up, that makes much more sense. You seem much more mature than your age suggests, most people your age are wasting all their money on cars, lol.

Hi All,

Im 20, and i have two properties. Both are in a coastal town great for CG. One is a house, which we used to live in, but is now being rented out +CF thanks to a good purchase price, and the other one is a very negatively geared unit, which will offset a high income.
I plan on buying four more properties this year, and from then on, i want to acquire at least 6 a year. [lmao]
Sound optimistic? Good. It should. If thats one thing i can recommend to others, is that you should set your goals impossibly high, so that say for example, i only end up buying 4 or 5 next year, hey thats still a fair accomplishment. What is the point in setting goals that are easy to obtain? There is no challenge in that.
Here are my tips:[thumbsup2]
PASSION will go a long way. Everyone in and related to this industry will love you for it and will help you more, because trust me, starting out, you will need all the help you can get!
EDUCATION you can never learn too much, and you will NEVER learn it all. There have been times (because im young) that i think i do know it all, and then i learn something new and realise that i may be 99 yrs old, and still never know it all.
GOALS set good goals and put them somewhere you see them every day so you subconsciously make active steps to achieve them. Sounds simple, but it can be quite hard to write them. Read Napoleon Hill’s, Think and Grow Rich. Classic.[medieval]
LEARN FROM YOUR MISTAKES When you are first starting out, dont be afraid to make mistakes. The lucky thing about being young, is that if you do stuff up really bad, and lose everything, hey your young, just start again. I made soooo many mistakes the first time round, and yes i did lose about 30k, but the good thing is, while it was an expensive way to learn, i learnt the hard way, and i will never make those mistakes again.[crying]
ASK QUESTIONS talk to everybody! [specs]There may be people who seem so unassuming, but who are so knowledgable on the subject. Which moves me onto the next tip:
NEVER ASSUME ANYTHING
Dont assume that that man over there driving that beat up ford, wearing grubby overalls has no money, or is stupid, what on earth is he doing at the auction blah blah, he may just be perfect for your next JV, or may help you in some way! Dont judge people. Ill tell you a story… a friend of mine, went to an open house one day, and there was no one in there but him, he was dressed not daggily, but casual, and the agent hands him a black and white brochure, and says “If your going to buy it, ill give you a colour one”!!!!!!!!!!!!!!!! what the?[grrr]
This friend of mine actually has the capacity to buy this place, but the agent lost out on a sale for sure because he assumed my friend couldnt afford it. he walked out of that door quick smart!
FIND A GOOD ACCOUNTANT make sure you find a ‘property’ accountant, not a shares accountant. I went to my ex accountant, and asked him how and what sort of structure we could set up for buying lost of CF+ properties, to protect them. I knew we had to do some sort of trust, i just didnt know what. He laughed and said why the hell would you want to buy those? Your just paying more tax! I was like get a clue, i would prefer to be earning money and paying tax, than not earning money and claiming for a loss?! What a moron![laughing]
Thats all i can think of for now, good luck everyone, i hope to post some good brags in the future when ive done really well.
P.S. Im quitting my day job at 25 to be a full time property reno-er and developer. Thats my end goal and ill do anything to make it![suave3]

Hi Audrey123,

Sounds like your well on your way to acheiving your goal. Great Work, you have a great mindset to be successful. Just wondering what age you started investing and how you funded your first deposit (if any).

Personally, Im 21 and am currently in the process of buying my first property (its taking forever- 8 weeks and counting so far, but doesnt worry me as am saving heaps a week which will be spent on the reno once bought).

Yeah can someone please give us some details to where i can find this book.