Loans for 18yo

Hi slodki,

I’d be really interested to see the answers some of the members come up with. I’m 19 and have been pursuing CFP properties activley for a year now. When i first turned 18 i went and saw my local loans agent at the bank who was incrediably helpful and gave me an idea on what i could borrow based on;
*what i had in current savings and other assets
*what i could borrow based on my predicted income that year
*the ways i could speed up my savings (ie award saver accounts)
*how to establish a credit rating without taking on unmanagable debt
This is was really encouraging for me as a teenager and it was great to have some solid numbers to work towards. I’m not sure what relationship you have with your bank or chosen lender but i guess it never hurts to ask.
Anyway i look forward to reading everyone else’s opinion.

cheers,

e x

The issue isn’t 18 or 19 years old.

It wil probably be your limited income that makes your broker earn his pay. Tho living at home with no expenses will help a bit.

All the best – I love seeing younger people getting into stuff – wish i did at 18!

Cheers,

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Hey Slodki,

I also forgot to mention that you’ll be paying Stamp Duty – so add an extra 2-4k

Kind Regards,
George.

I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how

Also with that Slodki,

Is that theres no Stamp Duty in NZ. If you feel comfortable with investing overseas, then NZ may be the best option for you. Ask Westan, Minimogul or Castledreamer to add you to their database – they’ve got great deals.

kind regards,
George.

I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how

Hi guys,

Following my above post, I had a few people emailing and asking how? So I thought I would explain how I achieved this…

The first home I bought was my own home (eg, PPOR – Principal place of residence). I lived in that for a couple of years then moved elsewhere.

The purchase price was $104k – the deposit and mortgage insurance etc required was about $9-10k.. so i contributed the $7k first home buyers grant towards the home and then abit of my own money (which i had saved up – which demonstrated my savings ability).

I was fortunate that you could still purchase homes in metro Perth for that price. I was also fortunate for it to return strong capital growth over the next three years which gave me access to equity in the property – which I then used to buy the next property. The property is now valued at $195k – which has given me equity to play with.

This is probably not a good model to use, though because of my age I decided to take the risk. When getting my second property I actually borrowed additional money on top of the purchase price of the second property which I put in a term deposit account and used it to cover the mortgage short fall on the second property. This was using debt to pay debt, though I figured that property only had to go up 7% in value that year to cover my contributions. Again, I was fortunate as it went up 65k in the first 12mths!

From the equity in both these properties I’ve now just purchased a 3rd IP in Merriwa, Perth. Which I will be doing up and renting out. I’m renovating the property for two reasons, one to make it presentable for renting – the other to increase the equity in the home for further lending.

With only being 23yr old, my strategy now is to try to purchase property in new areas with potential for higher than average CG and work out ways to fund the shortfall on the mortgage. I’ll have to tread carefully now though as the market seems to be easing off and the CG potential is dying down.

I’ve gotta get back to work, though if there’s any young investor’s wanting a chat feel free to post your questions! I’ll respond here rather than via email so everyone can read it…

People may disagree – though being young in this game is a major advantage, so keep thinking about the bigger picture as time is on your side!!! Also think that time usually equals CG, which equals Equity, which allows you to purchase more properties!!!

anyway back to work!!! Good luck – and keep persisting!!!

Wayne Leech

*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
http://www.homesearcher.com.au – List your property for FREE (Private sellers only)

Hey slodki,

I myself am 18 and still learning the many knots of the proverbial rope of property. I have no job, no investments and am practically living off my parents. However my investing of financial education in this past month has led me to learn a lot more than my parents have learnt in a lifetime about property. Like I stated previously I have no job and no money, however my recent conversations with my dad got him thinking to buy property for me however receive the benefits that otherwise I currently do not need. E.g. tax. Creating a company and trust structure is one of the ways that have began to get that old mouse in the cage running again and attaining a CFP with the income being tax free has turned the cage into a dynamo. I’d probably say to you be financed by your father instead of investing with him. Coz once u get one property a lot of your financial issues will hopefully fall into place.” or so my mentors say”
Keep at it alot of people are out there. You working and willing, sooner hopefully not later you’ll hit upon your mine if u can keep digging.

TIAAW

hi all, just thought i would contribute, as i am also 18yrs of age. Also’emcdonald’ tell your parents to read “Rich Dad, Poor Dad’ or read it your self its a great book and then you can explain to them about the rat race.
I have just written up a 3page plan for the next 5yrs, its good idea i believe, so if you are serious as i am you should do the same as well. I went and saw the bank 2days ago and to be honest she was a bitch when i said i earnt 12k a year and then didn’t really want to talk to me. But as i persued the convosation with the lender, for merely for information sake as i intended to use a NZ bank anyway, i let her know that i was able to get a garanteer on the loan that i was applying for, which then made it okay.
You can borrow money, if you have someone to back you up, like your parents, as you can’t use an overseas property as security, thats if you get a loan in australia, so i was told.
I am actually going in with my sister in the next couple of weeks, as she has a full time job, and together we have enough for a deposit for 2 places.
The plan in short is, buy those 2 property with her, and then save for another property for my self and use the first 2 as security….. in the end i take over ther world, nah j/k but i’m hoping have enough +cf to generate deposits for other places in the next 5yrs, whilist i still study (Robotic engineering / computer science). I wish to jsut merely use property as solid grounding, but my passion is to be a share guru.
good luck slodki, no doubt you are way ahead of all your friends, as i know none of mine have the same mindset, so heres for a positive future for us youngings (i figure 18 was a good time to start, cause i like the idea of compound interest)[grad]

Hey guys, just to fill you al in,
You can get a loan at the age of 19, i did.
depends on how much $$$ u earn though.
i had $40,000 saved when i brought mine aat 18, i brought in sydney this year for $260,000 with a $230,000 loan and am almost ready for my second property.
i had no garantor and no other help, i live at home have little expenses and earn $700 base wage a week, well at the time it was $592PW so yes you can get a loan for a prop at your age, but…. you have to have an income that can sustain the loan, my loan is $1600 per month p&i and i have no tenants in it yet so u need 2 be able 2 handle that + other expenses.
I feel that being an agent myself though gives me more confidence to suceed as i am surrounded by real estate and see hopw it6 works every day of the week.

If u have any Questions dont hesitate to message me>
Regards Nathan Birch.

I suggest you read what TerryW has written. Banks will lend to anyone as long as you can prove income/job, have savings and have a deposit. Minimum age is 18, if banks didn’t lend to you I think you would have a case for discrimination (you can vote at 18, and goto jail for murder…).

You can get 95% lends, and many banks allow you to capitalise mortgage insurance, so you don’t have to pay that upfront. So in the end these loans can go up to 97% lend aginst assets (you still have to pay a 5% deposit and keep 5% for closing costs).

As for deposits – go for lower priced properties (sub $150K), usually these are positively geared as well. Also check out student loans (must be a full time Uni or TAFE student), some have periods where you do not have to pay interest (check these loans out though… know the downsides). Beware though of using these.

Slodki check out the ANZ, through a broker (of course).

Rgds.
Lucifer_au