I'm currently seventeen and just about to enter my last, but short high school term of the year and my life. I also currently reside on the Gold Coast in Queensland and am hoping to migrate north to Brisbane next year to study a Bachelor's Degree in Business Management; majoring in Real Estate & Development at the University of Queensland.
Keeping this question rather short and precise, is it POSSIBLE that I could invest in any sort of property with potential next year and over the next couple of years while I'm still at uni? Bearing in mind that I will be moving out to live with a number of friends in a flat/apartment which will also result in additional expenses such as bills, food, etc.; however, since midway through last year I've adopted a rather robust interest in the realm of property – investing and development – and I'm adamant that this is the path I will take towards my futue.
I know that I will be on a very limited budget aided by a part-time job, but i'm very motivated to make my goals a reality and persist with whatever is required to begin my property investment portfolio while simultaneously studying at uni.
I have highly ambitious goals and want to attain wealth and financial independence at an uncommon age (30-45) so that I can enjoy the greatest leisures of life. Ultimately, I hope to be a owner/co-owner of a property development firm after the completion of my university course, but I'd still be eager to maintain and accumulate a very respectable property portfolio too, so is it possible that a first year (or any year) uni student could begin their IP portfolio?
I know i strayed away from my question a bit, but I'm just adding some background info so that I can recieve the most accurate responses as possible.
Thanks for advice in advance,
A young and highly ambitious soon-to-be property investor & developer.
Hi Zsmith
Have you posted this before? It seems familiar.
Yes, it's possible when you turn 18 as long as you can show the banks that you have a deposit saved and a stable income which will service the debt. The rental income the property receives will also be taken into account (generally 80% of the gross rent).
The maximum a bank will lend is 95% of the properties value – so you'll need to be able to come up with a 5% deposit and enough funds to cover purchase costs such as stamp duty, legal fees, etc.
The other option is to use a guarantor to provide the equity in their property (in lieu of your deposit) but I generally advise against this when it's for investment purposes.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
As Jamie mentioned.
Other consideration is you will get the Stamp duty concession as it is your first purchase but wont get the FHOGC unless you buy something new.
5% of $350,000 plus registration costs etc is still nearly $20K and whether you can get LMI capitalised is questionable.
Get a parent to kick in 20% deposit from their equity and that would certainly ease the situation.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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