Hi Everyone.
My names Eddie and I am 17 years old, residing in Sydney NSW.
I have always been extremely interested and intrigued with property investment, and decided too make a topic on this website for some more information, suggestions and tips etc.
If anyone could give me some tips and suggestions on direction for a young entrepreneur, keen too create an impressive portfolio over my lifetime, I would really appreciate it.
I have savings over 20k both from working and inheritance that I would like to invest into property.
What would be my options?
Also any further readings, sites, books etc that are of relevance to property investment?
Thanks in Advance
Eddie
Start a share portfolio first you will need this as a buffer against unexpected events, a period of high interest rates , peace of mind and knowing it is there you will have the confidence to take risks. I would take some long shots on unlisted companies that are developing future technology. At the moment I like the Kukler fuel injection system . there are numerous companies like this you might want to pick some you think will become common use. When your income tax becomes an issue that would be a good time to start a proprty portfolio There is more than one way to skin a cat but I feel the way generate real wealth is to buy high growth properties but you will have to decide wether you want to go with lower cost high yeilding property. This wil also depend on your income. My personal preference is to build a buffer with shares then buy high growth property Once you have built a reasonable share portfolio It is harder to extract your money without paying tax. With property you can create wealth without paying income tax and access your money via lines of credit. Personaly I think you would need much more than 20,000k to invest in property but I could be wrong.
Hi Eddie
Congrats on pulling together more importantly holding onto your 20K deposit.
You will hear a bunch of different approaches to both building wealth and property strategies in general.
In regards to what you should read… anything and everything !!!
Steve McKnights books are really good if you want CF+ property, Michael Yardney is good if your looking for more longer term capital gain… the daily papers are a great source of 'sensationalism'.
Ultimately, your strategy needs to be one that your comfortable with and motivated by…
Warren Buffet is all about Shares, Donald Trump is development, Steve McKnight is CF+ property and Micheal Yardney is inner city capital growth properties… all these guys have made serious wealth, so there isn't any 'single pathway'.
Hi Eddie,
Is it an option for you to live in it for a while in order to qualify for the First Home Owner Grant? I believe you'd also get stamp duty exemption which would be a help.
The rental returns and low vacancy rates in the Mount Druitt / St Marys area seem to be good, and the buy-in price is achievable. Perhaps a house in that area….?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
JacM wrote:Hi Eddie,Is it an option for you to live in it for a while in order to qualify for the First Home Owner Grant? I believe you'd also get stamp duty exemption which would be a help.
Hi JacM
I think this is a great option for a lot of people to get started… (certainly how i purchased my first place).
Around Sydney, i would also consider the Central Coast and Wollongong… personal opinion, but i still think that Mt Druitt / St Marys have a bit of a bad reputation, although i do acknowledge in ten years time, they could well be 'affluent areas'.
Hey Guys
Thank you so much for your responses.
In regards too the home owners grant, I just had a look at the website including the frequently asked questions.
I am interested in utilizing the first home owners grant as an initial start in property investment.
With 20k in the bank too start out, and also possibility of financial help from my parents; in your opinion, what would you recommend as too buying into houses, apartments, units etc? What areas of NSW, or other Australian states? How much can I borrow? I plan on working 2 well paying jobs in 2011, plus the added financial assistance from my parents.
I also was looking into careers with the Australian Defence Force, and noticed ADF members are exempt from the residence rule in regards too the first home owners grant.
How would I go about the financial aspect of things, such as financing the property etc. I read that I would have to reside in the residence within 12months of purchasing, but only have too reside for 6months, then I can rent it out. I guess I could purchase, rent it out immediately for 12months, live in it for 6 after the completion of the rental period, then re rent it again.
Any information or suggestions appreciated!
Thanks again.
Eddie
Sorry I forgot too add.
I have been researching units and apartments in the CBD area of Sydney.
I have seen small apartments in the 300-400k mark with current rental return of 500 per week.
What are your opinions with these?
Also
The NSW Housing Construction Acceleration Plan
50% off Stamp Duty if purchasing a newly built property before the end of June 2010, and if it does not exceed $600,000.
Can this plan and the first home buyers scheme be utilized together?
Thanks
Eddie
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