hi all,
over the last few months i have been saving and learning, learning and saving as i have the ambition to own my first investment property by the time i am 20 (i am currently 18). now this is all well and good but i was looking through the paper this morning and found a property that i desperately want to aquire. i have done the sums and the property works out to be a $150 per week ve+ investment.(this is through jaffasoft) [biggrin] it is in a high growth area and is also fully furnished as a part of the deal. the only problem is i have about $500 currently in the bank (damn uni!) and my parents are not willing to help me invest into any investment property. They are willing to go guarantor, but they will not help me with any deposit or the like (they think that if i want to own a house, it should be through my own doings, and they would rather refinance their PPOR and buy the property that i am currently looking at) ARRRRGGHH… as a result i am going insane.my question is, besides saving and crime to aquire a deposit, i am wondering how some of the board members aquired their first investment properties.
you see, i have read many books and all asume that you either have a full time job pulling 30k or have a PPOR to use the equity…. WHAT ABOUT THE PEOPLE WHO DONT…. [
] like me…anyway, i await your replies, and any idea’s
~stormoro?
advisor,
i forgot to mention that i do have a job, but i am only a casual worker at the local kmart (checkout chick here i come) it gives me maybe $400 a month and thats if i save evey penny. unfortunately there are no part time positions avaliable in the company and the managers are very vindictive (ie. you turn 18 and you get one 3 hr shift a week… not good)as for refinancing to cover all deposit costs, i have already talked to my parents about that and well… they just turned their nose up at the idea. ie. i show them a property and all of my workings and ask them what do you think about helping me get this as my first investment property and my mother turns around and says… well your father and i have looked at getting an investment property for ourselves….. Nice…maybe we could refinance and get it for our own….
essentially i am left out of all her thinking from the get go, and it is the same with my father, but he is much more blunt with his explinations. (wheres the money going to come from? you dont have any)
so there is really no point in asking them.the property its self is a 3 bedroom apartment that is desighned for university students. it is with in 15 mins of Griffith university on the Gold Coast (QLD) and would probibally have no problems with vacancies as the complex that the unit is in caters expecially for the student population. (very few of them around the goldcoast) the unit is fully furnished and each room has its own bathroom. When i was looking for a similar place at the beginning of semester the rent was about $160-180per week per room. its a great investment with a great potential as i have looked at some of the other apartments ( i was going to rent out a room my self and then i thought, hey why dont i try to buy one?)
~storm
oro?
Hi Storm,
I can appreciate your frustrations and the desire to roll your sleeves up and get started. In a sense you have already made a significant step – you know what you are wanting to achieve and you have a goal established.
A couple of keypoints;
1. Generally speaking the first property is always the hardest. It just seems so hard to secure.
2. You are considerably ahead of the pack already – the challenge for you is to maintain the desire and focus and to continue to work towards that goal.
When considering student accomodation you will need to look past the attractive weekly rents as in some cases there are extended vacancies between academic years and also within a year if you haven’t structured your rental agreements correctly.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Thankyou for your replies Derek and Advisor,
i know what you mean derek about the first property being your hardest, and being 18 doesn’t help. Lately i have been aproaching REA and banks about potential IP and loans and alot of them think i am just wasting their time. i also have the problem of being too old for a junior position, but not having enough experience for a full time or part time job. [grrr] very annoying.i will not give up easily and i have a friend who is into +ve geared IP aswell. i will put a few propersitions to him as he is also in the same prediciment as i am. united we shall prevail.!!
i have also thought about the extended vacancy problems (12 weeks in spring summer) the only way i can think of structuring this deal without losing major amounts of rent is to make the period from 4 weeks before the begining of semester 1 to 2-3 weeks after the end of semester 2 with an option to stay over the summer period. this cuts it down to only 5 weeks vacancy. i could also have it so rent is paid by the month, semester or all in advance for a discount (like alot of colleges). the only other option is to rent out the apartment to family or friends over the christmas holidays. (i have a lot of relatives from interstate and they come up every year for christmas and new year, and i bet staying in a self contained apartment is a heck of a lot cheaper than finding a hotel for 5 weeks on christmas rates.!!!)
Yasmin
~Stormoro?
Hi Storm,
Re – Wasting Banks Time.
Have you considered contacting a broker – I am sure (given your situation) they will probably also say no – but approach them from the perspective of what do I have to have to get a loan of $X.
This will give you some hard targets and really hone your goals down to the nth degree. It will make the achivement of your first goal so much easier.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
] like me…
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