Hi Guys
I would like to explain my situation and get some feedback on whether I should continue in the direction I’m heading, or go towards a differnt path.
I’m 19 and have saved $10 000 for investment purposes.
I have an opportunity to buy my first property with a familiy member. The plan is we can borrow against my partners owner occupy property and have a 100% borrowing capacity.
Finance isn’t a problem at all, it’s more whether I’m going to put myself in to deep.
We don’t want a property no more than $200k (provided we get $250/week rent + $65 each = approx $380/week to cover repayments + rates, basic maintenance, etc)
Problem is I live in Cairns and this is where I’m looking at buying. It’s definatly a sellers market and I feel its starting to peak, its becoming increasinly hard to find a property for $200k which will give a high enough rental return to not put myself in a situation where I’m struggling to make the repayments.
I’m moving to Brisbane at the start of next year so I’m goign to have to deal with greater living expences and maybe even having to find a property manager which is going to create more expences.
The $10 000 will be used for buying fee’s as well as it gives me some money to back myself up with to make sure I can cover repayments for at least a couple of years.
I’ve been looking for a property for a few months now and thats why I’m starting to think should I be looking at different investment opportunites to start off with?
You feedback will be greatly appreciated.
Sometimes the best investment decision is to do nothing. Just watch what happens for a little while. This may be hard, especially when $10k is burning a hole in your pocket.
If you’re worried about being in too deep, then you will be when the deal is done.
Leave the money in the bank, move to Brisbane and then re-assess in the near future. Dont buy at the tip of a peak, or when you’re in transition.
And dont panic that you’ll miss the boat because if you’re a savvy investor there’s a boat leaving every day!Hope this helps…G7
why dont you look at Townsville or Bundaberg as another option, strong rent retuyrns that you are looking for
Have you considered looking at areas further from where you live ? Even flying to other states ?
I understand it can be daunting at first but treat it as a working holiday …
I’ve been working a long time for the money and have sacraficed a fair bit for it.
I would really rather buy in Cairns, 1. because this is my first property and I know the area really well, and no the areas I would like to buy, 2. After moving I will be travelling back to Cairns several times a year so I would like to be able to get a bit of a tax break for these trips, 3. I’m moving shortly, so I don’t really have the time, nor really do I want to spend the money on going to another city for a period of time.
The money I have is disposable, if I loose it through wrong investment choices I’m willing to sacrifice this as it won’t change my lifestyle at all and as long as I learn a decent lesson out of it in the end.
This will be one of many properties, the main reason I’m wanting this property is so i have my name against somethign in my port folio and the first property is always the hardest to get, so next time around things will be “easier”.
All your advice is greatly appreciated.
Good morning Temoit,
I was in a similar situation to you recently (I am young aswell), and was desperate to buy something.
I strongly suggest you read Steve’s new book, “1 Million dollars in property in one year”.
After I read it, I saw things in a totally different light, and realised that it is when you are desperate that you can come unstuck! (As I did a few years ago when I absolutely had to purchuse a property, which turned out to be a dud, and I’m now trying to sell it in a buyers market).
Just take your time, and do your homework.
P.S. Probably not a good idea to do business with family!
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