[8]I need advice that is real and practical. I am mother of three who has $1080.00 expenses per week with the introduction of school next year. I have $2000 debt in card cards and $6500.00 car loan. My partner and I rent and have little to no savings history because he has been studying at University to get into the Police Force May 04. How can we buy a property – anywhere – and take advantage of the property rises and make a profit to move us into a better financial situation and adventually be able to have our property investments as our main source of income.
Someone please help! I am desperate – work 38 hours per week – sleep five interupted hours per night and look after my children from 5am to 5.30pm 6 days a week by myself whilst my partner works his current job.Hi mumof3,
Sorry to hear you are so stressed out!
Did you actually mean you have $1080 of expenses per week, or did you mean month?
I think you need to look at your expenses first, and see where you can cut back…work out where all your money is going, in detail on paper, this may help you to get a look at the big picture.
Cheers,
Sue [
]
(Mumof4[])“Be careful not to step on the flowers when you’re reaching for the stars”
1st off it would be the best to get your expenses paid off before getting into property investment.
A great book to read about this is “Money Secrets of the Rich” by John Burley.
This goes into a lot about how to pay off debt quickly so that you can then invest.
ChrisAll post are IMHO.
In my opinion you missed this boat, for large capital gains, ie. if you buy know your buying at the near top of the wave.
To be brutally honest get your finances in order, and see how things look after your partner has been posted and working for a while, because that should put you in a better position to take advantage of property in a declining instead of rising market.
Another tip desperate people get ripped off, so take a deep breathe and relax.[
]BC
Mumof3 – I’d pay off the loan and credit cards as quick as you can and then keep those payments up as your savings towards as deposit.
Anita Bell has some good books on this – eg ‘Starting Out and Starting Over’ or ‘Your Investment Property’ or ‘Your Mortgage’.
Peter
mumof3,
I agree with Peterp and diclem (Sue). Go to the local library and look for books by Anita Bell; also Paul Clitheroe (about personal finance, not property!), Bruce Davis, amongst others.
Read ‘The Richest man in Babylon’ by George Clason if you haven’t yet done so.
Don’t buy the books if you can borrow them – use everything to reduce your card and car loans ASAP.
TerryTerence McMahon
HomeWin
Financehi !
I am not quite in the same boat but similarly looking to start doing something about my financial situation. Having read the above I am firmly committed to paying off my CC and Car loans as a priority this year and fortunately earn enough to do so fairly quickly so I can begin investing in my first property and then start the trail upwards. THe point is – you are not alone, we all have to start somewhere and I have been stupid in the past. My advice is to clear your head – work hard on those loans by seeing beyond tomorrow and your vision will become clearer to you as a medium term goal instead of a short term one. A plan is essential as well as monitoring those weekly bills to try and find ways of making them smaller – but with persistence and a concerted effort you will achieve what you set out to.
I wish you the best, and simply put – you are NOT alone – not everyone on here is investing yet … some of us are just starting to clear our backlog of loans to make it all possible, but if you try, you will succeed… just simple steps every day will see you on the path to recovery.
Happy New year,
Patrick and Heidi.Hi ,
Theres cheap properties in country towns that make good for positive geared investments, but i agree with the others that you will need to reduce your debt first . This will enable you to get finance easier and also give you more cashflow.Before you leap in and sacrifice your deposit saving ability (6 months is usually required by most lenders) to pay our your debts you need to understand whether it is the lack of deposit (savings) or lack of income (monthly comittment to the debts) that is the biggest factor is not being able to get finance.
In some circumstances you might be better advised to pay the minimum off the debts and get a 6 month saved deposit started.
Now if you are to have some decent incomes in May 04 then I would consider starting to save that 6 month deposit now and using the future earnings to chip away at those debts.
Remember the bottom line is that if you work hard to eliminate those debts before you start to save then you will be postponing starting the 6 month savings history normally required – unless you have a 20% + deposit.
Hope this is some more food for thought.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Nothing to do with your question but i just could not help myself.Police Service, they dont like using the “Force” word if you know what i mean.[
]Hi,
Just a quick point. My brother has just joined the police force, and him+wife and kids are renting. They were looking to buy something, but were advised not to, as he could be posted anywhere in the state once training is completed. Sorry not to be of further help, but it’s worth thinking about.
Cheers
PhilComdom, the AFP are definitely a Police Force not a Service.[
]Certainly comes across as semantics to me, and I prefer Force to Service (but I’m probably biased cos I grew up as a ‘Force’ piglet)
Cheers
MelMelbear,
I presume from Mumof3 profile that they are studying in QLD so thats why I wrote Service ,and did not see anything about AFP.
[]I have to agree with the book recommendations. I have read Anita Bell’s book and about to start John Burley’s book, which we bought at one of his brief seminars during the year. Yes, I still haven’t looked at it! Time is my main problem.
But it is now my main priority, apart form more family time.
An automatic savings plan is really needed, for everyone- I recall from Burley’s seminar. You should be able to put away 10% and not look at it util needed for investing, and even manage 10% for charity/church,etc. We don’t go that far, but we do sponsor a child in South America. I think this is important. It is about 5-10% of our income depending on which week it is.
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