I have 50k, and i want to invest it in property, yet at the same time, people are saying, its gonna boom, its gonna bust, yet i have no idea what is going to happen. When it comes to this kinda money, I am worried that if I lose 50k, I will most probably not see that sorta money again
If you had 50k to invest in property, how would you go about it???
Cheers Matt [
]“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
My suggestion is to look for +ve cash flow properties and buy with 5% or 10% deposit as many as you can buy. I think with 10% deposit and property in range of 50k to 60k you can buy about 6 IPs with 50k.
If you find good property then this boom and bust theory is useless.
My view only.
Cheers
[
]
PropertyGuRu
Who want to be billionaire?Matt,
Just remember the property is not going to drop in price to be worthless.
Regardless of any bust you will only realise a loss if you sell it. Remember that as certain as the market goes down it goes up too. Time in the market is the key here.
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.
So what are you saying, i should buy now? +ve CF properties??…
57 views and thats all? come on guys, i know some of you have more than 50k in equity.
Your advice is very much appreciated
Matt“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Look for deals, do the numbers, if they stack up and you think you’ll be able to sleep at night, buy… if not, don’t. simple as that
cheers
rWell Matt,
If you buy 5-6 IP’s with 50k, you will then be in +300K (more like 400K) debt (with costs) for 30 years. Sure, you may have a possible $5 extra a week in your pocket, but can you service that kind of debt if hte mine closes down in this high falutin town you’re buying in?
Every IP you buy is a 30-year commitment. I say choose carefully.
These cheapies might require landlord protection insurance and a lot of upkeep. And can you sell one if your job situation changes?
Remember, if you only pay 10% deposit, you might have to pay lender’s mortgage insurance. It all adds up.
Will you have an empire at the end of it? or 30 years trapped and worried? It’s all up to your psychology and situation.
You could buy 1 investment property and make sure it’s a decent resellable one [
] and then plan to pay as much off as you can, get depreciation allowances if it’s a post 1985 building, and then aim for another IP each year after that.kay henry
Wow, you have got $ 50 K and you are only 17 years old as yet ?
You will set a record on this site.
My first thought was to give you a facetious response to your question ‘How to retire with
50 K’ by suggesting you move to a low wage country where, with that money, you could live like a king.There are indded countries around like that.
However, I take off my cap and bow instead, you are obviously a very enterprising and industrious young man to have earned as much as that before you are even eighteen years old.
I take it you are still going to school with a part time job ?
Now please don’t disappoint me by telling me that some aunty or uncle gave it to you.
Matt, you have the world at your feet.
You complain about not enough people having responded to your post. I would think that sofar you’ve had good advice.
If I may add to this it is to not ‘Act in haste and repent at leasure’. Take it slowly to start off with.
Just the one purchase is ample for the time being. It will get your feet wet and you can do some further study.
I also would like to suggest to not pay for the property out of your own pocket. Take an 80% loan with an offset account attached where you can park the balance of your money.
Then if you find another good buy you can move in.
Pisces133
hehe Pisces…
Matt seems pretty sincere. Doesn’t seem he has anything to prove. Now, as to others, i don’t believe a word of it! As the lies get bigger, so do the explanations- funny how some people think their audience is full of fools.
kay henry
Guys, these replys are very informative, and very much appreciated [
]17, yea, i turn 18 in a months time, so i am trying to organise finance approvals now, so that as soon as i found the right property i will be set. I finished school last year, but going to uni this year, to do business.
However, I take off my cap and bow instead, you are obviously a very enterprising and industrious young man to have earned as much as that before you are even eighteen years old.Haha, i have always been interested in investing, its just that i have now found my real passion. [
]Im well aware that getting a loan of more then 80% would require some gurantee, like my parents house or similar which i do not want to do. So i am going to stick to 20% deposit 80% loan.
Pisces133, yes, my grandad gave me the 50k, but you must understand the reason it was givin to me. He knows very how my passion about investing, and the money has given to me for the sole purpose that it was to be used on investment, and education.
That is the reason why I am asking for the help is because that is a large amount of money, and i want it to be used the best way possible. And by asking your advice, and what you would do with the money, gives me that little bit more hindsite to avoid the problems, and be that little bit more succesful.
Guys the replys are great.
Cheers
Matt“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Hi Guys,
I do remember Matt, talk about recieving 50k in the past. So he is telling the truth as far as i know.
Yet, i think serioulsy and being able to relate to his age, What Matt is doing is very Pro Active. Honestly, not many teenagers his age, are thinking about their future.
To many teenagers, these days dont worry about today or tomorrow or what the future holds.
I admire Matts confidence in asking this question, maybe because im not much older, but because its people like Matt, who will one day be the voice of us Aussies as we get older.
Sorry not to have answered your question yet Matt.
Though give me a few mins, id like to suggest as many ideas as possible in helping your reach both success and greater knowledge.
cheers,
s.i.sHi Matt
I would suggest your grandfather has made a smart investment in u.
U are in a fantastic position, a great start and the right attitude. U beleive you will go a long way.
Regards Bear
hi matt .sounds like u might have a mentor in grand dad .
Hi Matt,
There’s no need to rush in. As this is your first IP, take your time to learn the market before committing all your funds.
Instead of 5 or 6 IP’s straight up, you may be better looking at 1 or 2 (with 80% loans) and keeping some funds in reserve to cover vacancies, maintenance etc. It’s probably best to do as Pisces suggested and use an offset account.
Good Luck, you seem to be on the right track.
regards,
Rod.
Hi Matt,
Ok my suggestion is really the opposite, If you can purchase 5-6 properties, you will be in a much better positon, as long as you can service them.
Even if you use the offset gearing principle, this will work great and increase your portfolio very quickly.
I dont think you are rushing out and buying heaps, but your going out there as a real aggressive property investor. And doing this, there is a market right now for people wanting to purchase cheap investments.
As long as you can service them and you have large amount of +ve cash flow coming in, there should be nothing stoping you.
Even if interest rates go up, you only have to sell one of your investment properties, to provide some cash injection.
Though this is one strategy, but there are many out there.
cheers,
s.i.sI agree with Kay.
What good are six properties going to do you when you get $30 a week out of them, if there is a bust you can`t sell maybe for ten yrs in order to get any gain.
Anyone thinks this is a joke look at history once the boom stops it may not move up again for a long time, I know many are saying for instance Brisbane may still go up 25% or so a yr for 3 yrs, I`m not too sure about that one, I would not bet on it.
These properties might not cost you anything but they are always on your mind one way or another.
My advise would be be prepared to work at this point if you want to invest in anything, otherwise put your money in the bank a while biuld it up and keep your eyes open.thx for this guys.. Look.. i would love the idea of owning 6 properties, as suggested by sis and others, the slightest gain in property would increase my portfolio greatly. But as already mentioned having to service these could be costly depending on how the market goes [?]
I would like to go somewhere in between and, say purchase 2-3 properties with 20% deposits. Am i doing the write things.
Guys these replys have been great. It is very much appreciated [
]Matt
“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Matt,
If you’re only 17, it seems it will take a while for you to be able to get a loan. Unfortunately, you pretty much have to work in paid employment to get a loan :o))
Please don’t think me patronising in saying this, but make sure you enjoy your life too- as well as investing. Once you start fulltime work, you then have to do it for almost 40 years. So take your time and enjoy your youth too. Because that mortgage is gonna hold you in its grasp for decades.
But then, they say the person who loves his job never works a day in his life!
Wil I get killed on here if I suggest you buy a really nice car instead of an IP? hehe
kay henry
Kay, thx for replying,
I have been to the CBA, and they will give me a loan, i only gave them some details, and they were offering me a loan over 80%, but i told them i only wanted 80%. I am yet to go in and give them final details to have finance approved. I am getting a part time job this year as well.Kay, if property investing is my passion, then i see this as enjoying my youth, as well as the other mischief us youngins get up to [
]. I think i would like to spend the least amount of time in the workforce, and enjoy my investing in property. Its just the goals that I have set myself, and i certainly hope that i achieve them.Thx for ur help guys [
]
Matt“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Matt,
You mention that your Grandad gave you the funds for investment or education. What a wise man he is. You also mentioned that you plan to go to Uni to do business studies. Will property investment effect your austudy? Will you be able to support yourself thru Uni on your part time job?Grandfathers are one of the best assets we can have. When I was about 18, my Grandfather told me “you are going to be a bum just like your father!” When I was 20 I started my nursing training and everytime I contemplated quitting I wondered “what would grandad say to me!” I was too scared of him to find out. 20 years later, I have made a very successful career for myself and have a number of investments, because I wanted to prove to my Grandad that I was not a bum like my biological father.
Grandad is now 95 and I love him dearly. He was my inspiration.
Fibejebe.
PS. Sorry that I can’t give you any advise as to what to do with your 50K. Just wanted to tell you how special Grandads are.
Matt congrats on being motivated to do something at an early stage in life. As you can see there are lots of different opinions/strategies. My advice is not one way or the other but decide when you start looking at properties. I am mentoring some friends in exactly this way. The reason this is my approach is you don’t know what type of property you’ll find. It could be the 400k with good growth/rental yield or the 70k with good rental yield.
When you start looking you will firm up your strategy yourself as you’ll have a better idea of what is available. As you have been in this forum for quite some time I imagine you have seen the pros and cons of all different paths. Trust yourself and follow the path with which you are most comfortable.
Good luck.
]
] and then plan to pay as much off as you can, get depreciation allowances if it’s a post 1985 building, and then aim for another IP each year after that.
]
]. I think i would like to spend the least amount of time in the workforce, and enjoy my investing in property. Its just the goals that I have set myself, and i certainly hope that i achieve them.
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