Hi All
I am 21 years of Age and as of a week ago I have been spenidng/investing all of my money in several cars owned & sold. After reading your forum, my perception of life changed dramatically and I was filled with a sudden purpose. To one day achieve the dream of owning multi-IP’s and to never have to grind it out 9-5 to pay the mortgage and worry about bills.
Up to date I have been involved in several Internet Start Up’s, completed VCE although have yet to decide wether to proceed with Tertiary studies and have always had a fascination with Property Investment.
In the past week I have researched every day extensively (every waking moment until early morning), particularly in the NZ (Auckland, Christchurch & surrounding suburbs local & rural) area as I don’t work (quit) and schooling doesn’t resume until October if I choose to attend.
I have around $40,000 cash & don’t want to work, my question to all you knowledgable people out there is:
Will the banks/financial institutions have problem lending me money (not working) if I can put down 30-40% percent as a deposit and prove that it is a +ive geared cashflow investment?
Should I be borrowing the money in Australia or New Zealand?
Can someone explain to me about Trusts and would it be benificial with my current lifestyle to set one up and proceed with IP’s through there?
What happens with Tax with regards to buying a Investment Property if I don’t work?
Is it possible to start out not having to work, invest in an IP and from the equity through CG and +ive cashflow, invest in more & keep that circle running?
Also quickly what questions/terminology should I phrase/be asking when enquiring about an potential IP through RE agents.
I apologise for the length of this thread, just wish for everyone to have all the facts thereby making it easier to answer. Thank you all for your time and I hope to be actively involved in your community!! [8D]
You can lend in Australia with a 25% -35% deposit.
Yes, you can keep the circle running.
Hi YoungGun,
Only know Oz lenders but as picja1 says, given you sound largely self-employed (& diverse!) you can lend on a low doc or no doc basis with a lot of lenders at following percentage of purchase price:
Metro (eg Brisbane) – up to 80% low doc at 6.5-7.5% interest, up to 90% no doc at 8%+ interest.
Regional/Rural (eg Townsville) – up to 76% low doc at 6.5-7.5%, up to 85% no doc at 8%+ interest.Low doc is obviously the preference if you have clear credit, otherwise no doc which can be expensive but a lot of the no doc lenders decrease the interest rate as reward for consistent payment history. $40K is a great start. Also, have you thought about doing a JV with someone with income or equity but no cash or property investing knowledge, eg sibling, parent, friendly uncle? If you pull the first one off and they are impressed they may want to join in the fun for the next 129!
Happy investing!
MelHi
Thank you for taking the time to answer my questions.
<<Metro (eg Brisbane) – up to 80% low doc at 6.5-<<7.5% interest, up to 90% no doc at 8%+ interest.
Is that up to 80% of the Purchase Price of the IP with 30-40% deposit?
Is it 20% deposit when the banks start lending without jobs/documentation or is it 30-40% deposit?
Should I see a mortgage broker with my situation or should I talk straight with the banks? Any advice would be great and if anyone knows any mortgage brokers/finance or whoever I need to contact to now get a loan at a good rate and start my way then that would be most appreciated.
Thanks
G’day young fella…
Use a mortgage broker… the wraps on stuart on this site are pretty good…
“I have around $40,000 cash & don’t want to work”… I know what angle you’re coming from here, but try losing “don’t want to work” from your mindset, because this IP stuff is bloody hard work. Nothing worthwhile comes without a slog, as you probably already know…
have a great day
Cheers,
RGreat point Richmond,
You must work hard to reap solid results, however the harder you work at this game the easier
(I believe) you will find the decisions that need to be made, and therefore the less you have to work in the future.
Remember one very important point: If it was easy then everyone would do it.Hey Guys,
Richmond/Garfield: Sorry I think you misunderstood, when I mentioned “work” I meant as stated above a 9-5 “grinding it out” job just to financially scrape through life.
With regards to working, If interested & motivated I become absolutely obsessed/confined and engrossed in my work. Am currently in my 25th hour straight researching IP’s (gone through over 300 and still nothing perfect yet) in NZ (hence some of the very early morning posts) I think i’ll end up sleeping tommorow sometime, lots of coffee, theres just so much work to be done, so much stats/info/background work to be gathered, real estate’s to contact, no time for sleep, ok.. i better stop now before i lose it.. [
]Well thank’s for your help guys, most appreciated and I wish everyone luck in their pursuit for financial freedom.[
]g’day young gun,
I knew what angle you were coming from… I think most people would like to be free from the chains of 9-5 work… I freelance, so I haven’t had a regular 9-5 job for about 7 years and it’s marvellous, I’ve got 6 IPs and a great PPOR however I think a full time job would be good for a while because me and my fiancee are going to start having kids in about 18 months or so, and having a degree of certainty about my income will help my IP goals… anyway, I digress…
I’m 29… like a lot of people I wish I had better investing knowledge now than I did when I was 21 because I would certainly not need to be working now however there’s no point having regrets because I had a lot of fun and did a bit of travelling overseas which I wouldn’t trade for anything… I know that IP can become an obsession, but as I’ve said elsewhere be patient, and remember the old saying “work to live, not live to work”… don’t forget to live and enjoy life as well mate… my dad died when he was 26 and in the prime of his life, so you never know what’s around the corner (sorry to be morbid)
have a good one
rHi Young Gun
>I hope to be actively involved in your community!!
I salute you!>Is that up to 80% of the Purchase Price of the IP with 30-40% >deposit?
no that means you only have to have 20 percent deposit.
Although it can be good to have a higher amount of equity in a house for lots of reasons, also consider that 40 percent deposit on a house is equivalent to 20 percent deposit on two houses….hehe….cheers-
Minicheers-
Mini
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