Hi I am currently 20 years old and am a university student. In 5 years I am going to buy my first investment property. So I have around 4 years to do some reasearch on property investment and the housing trends etc. Any advice about who I should talk to and some good resources to read through would be appreciated
ThanksHi there,
I'm in a similar position (20) and only very new to property as well. But here's some general advice I think you'll find worthwhile.
* Focus on your equity initially. If your looking at buying a $350k property (for example) down the track, how are you going to raise approx $65k in equity (includes 10% deposit, stamp duty, mortgage insurance and 5-10k contingency). I'm led to believe you will need about this amount before financial institutions even contemplate lending you money. I wouldn't personally get too carried away with property just yet (keep researching for sure!), but there are other priorities that need taking care of. Look within your networks to see whether there is an experienced and successful financial planner who is happy to overlook your investment decisions and give you free and trustworthy advice. Ask your parents if they know any, ask work colleagues etc. Generally it’s a case of being a friend of a friend. Point being, try to make the exercise as cost effective as it can be, because financial resources can be limited at this age. From here, go about setting up a financial portfolio with short and long term goals with the eventual aim of generating the level of equity that you need for your first property. By all means, look to the end goal (property investment), but don’t forget the process and groundwork to get there.
* Surround yourself with the best people. Again, it comes back to networking. It's important to surround yourself with people who are at the top of their field and have achieved all the things you wish to eventually achieve. For example: financial planners, property investors, commercial/taxation lawyers, property managers, mortgage lenders etc etc etc. Don't be ignorant and try to be a hero. In most cases, you’ll end up with egg on your face. Keep a database of contacts, and actually go out of your way to stay in contact with them! So what type of people successful property investors have utilised along the way, and do the same. You just never know when you may need their advice. I could go on all day, but there’s some advice to get you thinking. Any questions, don’t hesitate to PM me. SF
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