Gaining the confidence and knowledge of taking the first step at such a young age is a difficult one. At this point in time i am stuck between and ethical battle of should I buy into my mothers house now my father has moved on and if so how can i use this situation to maximise the siuation and make it into a good investment. This is omewhat favourable at the house is at this stage is well in need of some TLC. I guess my biggest problem is how can I purchase property, attend university full time, and try to maintain some sort of job that can fund all this. After reading your books a lot of the situational analysis comes about after the individual already has property, however starting from stratch is slightly harder. Any help would be much appreciated.[confused2]
[biggrin] if you buy into your mother’s house you loose eligability for first home owners grant and stamp duty exemptions. Be patient, lenders all want a steady job plus savings (your mum can maybe be guarantoor) before they will lend to you.
Buy John R. Burley’s book on ‘Money secrets of the Rich’ Explore the chapter on ‘Quick cash.’ This may help you get started without getting involved in your mums house!
G’day Duggan
Firstly congratulations on getting interested in investing at your age.
In relation to your ethical dilemma, I bought my grandfather’s unit when he had to move into supported accommodation because he could no longer look after himself and nana. I bought it off him because he needed to sell and I was looking for my first investment. He was so pleased that he was able to give me my first opportunity on the way to achieve my goals. He still asks me how my investing is going.
I obviously don’t know your family, but I’m sure keeping the family home within the family and having family members benefit is what many parents would want. Ask yourself the question of whether your late dad would want you to buy the home and set you on your path to achieve your goals or that it go to a complete stranger?
As far as paying for it goes, there are a number of options you can look at. Firstly, what is your mum going to do with the money after she receives it? She may be able to vendor finance part or all of your purchase and receive income from it.
Another option is to ask your rellies if they would like to provide some finance, maybe one providing all finance or many providing a smaller amount each. Don’t be too scared to ask because they may have some cash sitting in a boring almost nil interest bank account and this will give them a better return, as well as help you along. If you can get say 50% from the family, you may be able to get the other 50% from the bank.
As far as repayments go, is your mum staying on in the home? If not, why not get a group of your friends or fellow uni students to move in and they should cover most of the repayments for you. This way you get a double whammy, party every night AND not have to pay much in repayments.
I don’t know your situation so only you can decide but explore all options rather than just the asking the bank for the standard 80/20 finance.
Go for it!!!!! You’ve got nothing to lose.
Regards…Peter
“It pays to stick your neck out”
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Email Methankyou for everyone who posted to this. after reading a few books and doing some more research, i have decided to save for a deposit while i am researching a few areas and then as soon as i feel i know 90% of the theory and the proacticalities i will go for it… i am looking within the next 3 months.
Giraffe thanks heaps for your wise words, dad has passed on but he has moved away, but thats cool i re read what i wrote and yeah it could have been misconstrued that way… hehe… sorry
I think mum may move out into he partners house in which case i would be able to live here and rent some of the house out. However at this stage the house is looking fairly run down and could probably with a bit of TLC fetch a substantially higher pirce than first thought.
once again thankyou to all, your knowledge is appreciated.
Hi Duggan
Being 23 I know exactly how you feel!!!! I own (well the bank owns, they just let me use them) 2 properties, one of which I am owner/occupier. The other i plan to subdivide etc next year…but anyway I digress.
Mate the important thing I have found is read as much as you can but don’t cross the point of procrastination. Just remember to have a crack and get over your fears like Steve says.
I admire you for having a go whilst at uni…thats a great effort.Cheers
Coops
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