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Hey thanks learning guy. In an ideal situation, that’s exactly what I would do. For the last two years or so, I have been reading up and going to seminars about investing – property, options, sharemarket investing. Obviously I still do not know too much about it all yet, but my understanding is that is does take dedicated time to manage them. Due to the business taking up a large chunk of my time, I am looking for something that produces good returns yet does not require the huge time effort from myself which I just cannot afford to invest that time at the moment. In 6 months time, then yes, I do hope to get into investing for myself, but just for the meantime, I’m thinking a managed fund could do the job well. I could look into some sort of partnership with some friends – e.g. I put up some funding for a friend to work at it full time – but even then this is risky as they wouldn’t really know what they were doing and since I’d be using borrowed funds, this could turn pretty easily. I do know that all investing has risks, but this seems a bit too risky as the potential returns may not be too high even at the best of times. I’ll look into it though.
In the meantime though, if I can find a managed fund with relatively high returns, e.g. better than keeping it in the bank, then I’d be happy. Thanks for your help Learning Guy. If anybody does have more info or advice on the subject, please fill me in.
Thanks!Hey thanks foundation. I’ll look into that
My main aim in this is that even if the returns don’t “cancel out” my loan repayments, its still going to minimise those repayments, which is going to allow me to borrow more. Having that borrowing ability is going to allow me to get into the property market as well as run my business which is something that most 19 year olds haven’t even thought of. So while ideally, I’d be able to pay the whole loan repayment off – realistically, I’m wanting to minimise it and also prepare for the future.
Thanks. Any more advice and places to search through managed funds would be appreciated!
Thanks ez-rent. Thats helpful. However, where can I find out more about specific managed funds and their providers? How can I find out which specific one is best suited for my needs and where to start investing in it?
Thanks Terry. I’ll talk it over some more with my mentors who know me personally as well. Thanks heaps for everyones help! I’ll let you know how I get on.Tim.
I have no idea about Australia, but to my understanding, it is quite easy to get a personal loan in New Zealand. There are 4 or so big banks throughout the country and one in particular does up to $30k unsecured. I checked on one of their calculators on their website and I could easily get a $30k loan. I am on a high salary (NZD$34k/annum) for somebody of my age, but my job is only temporary, which is why I don’t have too much saved and cant rely on that as of jan 2005.
I guess I’ve been blessed with the ability to get along with people and really network which has led me to getting good, high paying jobs well beyond my ability and age (i am working as an accountant straight out of school with zero qualifications in accounting – never even did it in school, but have been trained up for the temporary position!) so without sounding arrogant, I don’t believe I will have a problem getting the loan as I’d easily be able to service the personal loan out of my own pocket if worse came to worst.
As for student loans, Im not a student so I wouldnt qualify for that unfortunately. Plus, the NZ student loan system is terrible and I think I’d be better off just getting a personal loan.
Is there anything else anybody can advise me on the topic? I am wanting as much advice and tips as possible as it is a reasonably big decision for me. Thanks!
Thanks for the replies!
I could save up and come back when i am 21, but I really do want to get into the market and start making my money (and other peoples money) work for me. 2 years is a long time and I’d rather work with the momentum I have now (and the freedom) to get property working for me. I want to be either financially independent or certainly on my way by the time I am 25. This is a big call I realise, and I do not intend to just use property, however I would like to get started with this.
As for borrowing off my parents. That had been our original plan, but unfortunately it does not look possible anymore due to some circumstances for them that have come up. I’ll continue to see about that one though.
I can probably get a 90/10 loan and with a 20-30k personal loan could get a good house or several ok places.
The repayments on the personal loan could probably be covered by rent (less mortgage and expenses), but it would mean that I am making no profit and not (as Steve says in 0-130 properties…) making profit from day one.
Is this worth pursuing as a way to start my way to wealth?
Thanks once again for everyones help.Tim.
