Hi, I’ve done a lot of reading, including “Rich Dad, Poor Dad” which also brought me to this site and I’m ready and exciting about investing. At my age 18, property seems like the way, but is it just too hard? I have the deposit and am in a position where I am able to stay at home, so an investment property is what I want. The problem is I can not find a property viable, do I just wait until I finish my degree, not earn much in the mean while and join the so called “rat race”. Robert Kiyosaki states in his book(rich dad…) that the greatest lost is the lost of an opportunity, I’ve been approved of a loan, but what should I do now, as a lot of my readings has suggested, is to become more knowledgeable and that’s what I’m here for, thanks. Regards Jarred.
Hi Jarred,
Everything seems too hard in the beginning – ever watched a baby try to walk for the first time?
Having a desposit is one of the hardest first steps to accomplish – the temptations of life and the apparent slowly growing deposit can be a little disheartening in the beginning – you are well and truly ahead of the bulk of the population already.
Given you are studying in the immediate future you will have to see if you can locate something (you may have to look far and wide) that is positively geared if you do really want to start investing now.
I suggest you use conservative numbers to see if the deal will stack up so you have some cashflow up your sleeve should maintenance be required or you are without a tenant for a while.
The option is to use you study time to further study ‘property investment’ so that when you have a steady income you are in a position to maximise the enforced ‘time out’.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Thanks for the advice derek, specially about using conservative numbers, i will keep that in mind.
Start small, learn, sell up and buy big. Monopoly is the greatest game ever.
Thats what that book gave me too, passion that i have to do something, and you do!!!!!!
I started at 28, i wish i had started at 18, i would be retired now at 29. Well maybe not quite but i am sure i would be close. Although now i plan to do it by 40 and are well on the way.
Start small thinks big, mount isa, mackay, kalgoorlie. Multiple units, cheap, good returns, great tax some even with good capital gains to come.Good skill dude ( no need for luck when you learn the skill).
jspri,
It’s a pity Kiyosaki’s book gives people such an anti-work ethic- there’s a lot to be said for working. I don’t see it as a “rat race”- if you’re at University, chances are you’ll end up your own boss anyway, doing autonomous work, so don’t give up on the world of work yet :o)) Some people even *enjoy* their work- go figure!
It’s like you’ll need a job of some sort to start investing. You have a deposit, and that’s great! But properties cost a large amout to maintain, so you’ll need some extra cash reserves for maintenance, for lost rent (if that occurs between tenants), and for QS reports, mortgage costs- a whole heap of things.
Join the ratrace for a while with a part-time job, and you’ll be a far more viable risk for a bank to lend money to you.
Good luck
kay henry
jarred.
travel a bit, experience life a little and by the time yr in your mid 20’s the property market will be alot less risky then it is now..
someone w=once said ‘there is a time for everything’ and im not sure this person meant ‘this is the right time for an 18 year old to get themselves into some serious debt’. unlike 3 years, 10 years and 20 years ago, debt is a huge problem right NOW. so this has to be tempered with your desire to gain financial independance so quickly
chill and enjoy your teens i reckon…
i agree with kay
Wish I had started at 18. I don’t agree with waiting but agree with Derek about finding a positive cash flow place, that will get you going. Get a foot in the door with one place, then get that job, do a little travelling or whatever.
Trouble is with waiting is that it gets easier and easier to put off and all of a sudden you are retiring. BUT if you get one thing when you are young, then even if you have a break to travel you will know how to do it, see the results of first one and know it is worthwhile and also have collateral and credit history to make it easier second time around.
Good luckHi guys, thanks a lot for the replys, my aspiration is again high =] I dont want to travell yet, though i may study over seas in the next following years for 6month or something and that’ll satisfy that need. I do have a part time job and kinda a small business of my own, i have a abn etc, besides i dont have time to be comercial, but my part time job is great, working for my dad in the office of a small buy widely spread accounting software business.
krazystyler – thanks for the advice i will look into thoughs area and hopefully come up with something, as for all the other replys they’re helping a lot. Its the Information age, i need all i can get.
compliments on the great site.[thumbsupanim]Hi,
My advice is to work overseas for a few years; we did that for 7 years (hubby and i) and saved our pennies towards our properties; hard cash. My opinion is it is too hard in Oz with the high tax rates; try Hong Kong or Singapore where the tax rates is about 1 month of your annual pay! Don’t be afraid to venture out! That’s where i am pushing my kids to do…
Cheers
lee
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