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Peter dont give up so easy. I bought my first property at 20 while earing about $25Kpa. I was a tight arse 100% of the time while saving my deposit. I was fortunate that I could live at home for free up until I bought a place but I also worked hard to save money.
I used to ride a bicycle to work in rain hail or shine to save $3 a day on petrol.
I use to make my own lunch every day to save $5-$10.
I use to cash and my holidays so I could go and work elsewhere.
I used to draw my living money (about 35% of my pay) out of the bank every 8 days so that every 7th week I would have double, and I could then save more.Sacrifices must be made and risks must be taken for progress to happen.
I now work full time in a job with a wage a bit above average. I have $20kpa in passive income from my two properties. In the last 5 years I have aquired about $500k in equity and paid about $30k off loans. I will buy another or upgrade one of my properties in the next 18 months.
The opportunities are out there. There is a peice of gold somewhere just waiting for you to find it. The more rocks you look under the more gold you will find. You wont find your gold by sitting back smoking bongs and doing crack.
Wylie is right. A contract already signed by you with a deposit already paid to the agent is much harder for the seller to say no to than some sound waves in the air. Even if the seller verbally agrees to your verbal offer either of you can back out in a heart beat.
Sign the Contract. Put in a finance clause and a building inspection clause. these should be adequate outs if you are serious about buying the place.
I would give an offer maybe even lower on a contract with a deposit. A seller can’t really say yes or no until he has the chance to sign off on it.
I would put on the contract the settlement terms that you ideally want but tell the agent that you are fairly negoitable to suit the seller. By giving the seeler this opportunity he may decide to accept the lower price to obtain terms that suit him.
It is far better to compromise on a settlement date by a few weeks than to have to compromise on price.
I set up a trust and a company as trustee about 18 months ago against the advise of my accountant. I only have 1 ip in the trust and really cant see an advantage. Just some higher accounting bills is all. Maybe when I get more ips it will make more sense but at this stage I have to say that my accountant was probably right and it would have been better just to use my own name.
Thanks brc. I am glad I am not the only one. Where would you go to learn about property funds to start off with?
My confusion is mostly due to the fact that a property I purchased last year is coming vacant soon. It will lease for $38000net pa or will sell for abou $650000. If I keep it in two or so years I will be getting a 10% return net on purchase price. However in the current market putting a tenant in on market rent rates actually de-values the property by about 17%.
Advise anyone?
