All Topics / Help Needed! / Aspiring invester, where to start??

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  • Profile photo of MattJollyMattJolly
    Member
    @mattjolly
    Join Date: 2009
    Post Count: 3
    January 29, 2010 - 9:42 am

    Hello all,

    I recently purchased and read the second edition of 0 – 130 properties in 3.5 years, it has really got me interested in starting in property investing. I have a good situation at the moment, my employment allows me to pay very little rent for housing and after all expenses I earn $1500 per fortnight. I manage to save $1000 of this each fortnight and currently have about $18,000 in savings. I also have no debt that I am obligated to pay.

    I'm very interested in investing these funds in property, and positive cashflow property was one strategy that in particular caught my eye. I currently reside in Darwin and was just wondering if anyone could suggest what property investment options are available up here for someone in my current situation.

    Any help would be much appreciated,

    Regards,

    Matt Jolly

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674
    January 29, 2010 - 10:32 am

    Welcome to the forum !

    What you have to be aware of is that with investment property it doesn't have to be in darwin necessarily. It seems from what I saw that Darwin is quite expensive if you buy a house.

    You may need to look else where
    as stamp duty has to be paid if you buy a house and mortgage insurance.
    $18,000 based at 90% LVR is $180,000
    Most of the houses are around $300,000 to $400,000
    $2,000 mortgage insurance most likely to pay
    http://www.yourmortgage.com.au/calculators/mortgage_insurance/
    $5,000 in stamp duty
    http://www.revenue.nt.gov.au/calculators/sd_calc_normal.shtml
    Probably you could look at 2 bedroom units or apartments as you do not have enough saved up for a house deposit or the hidden costs in Darwin. May need to look elsewhere check http://www.realestate.com.au or http://www.domain.com.au

    First step would be ask local bank what you can borrow and what the stamp duty and nortgage insurance will be and any other expenses you may incur.

    second step – now that you know what you can borrow look for property that you can afford to buy.

    third step – work out likely rent in suburb / property type you decide on

    fourth step work out cash flow

    five – decide if buying or not

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