hi all,
i was wondering if anyone had any advice? i am only 18 but am really interested in getting involved in property investing. i have $6000 currently in shares and am trying to invest every spare cent i have. I know Steve talks about it not being extremely difficult to get finance, bit im not sure if it is posible for someone in my position, currently a full-time uni student with a part-time job. if you have any advice it would be greatly appreciated. thanks, Simon
It is pretty difficult to service a debt when you only work part time. The biggest problem would be faced if you got a loan and the tenant vacates.
When lenders look at serviceability, they make an allowance for living expenses. This usually eats up most or all of a part-timer’s income and leaves nothing else to service the loan.
You might be able to do something with a family member or close friend / business partner but I would recommend waiting a little while longer until you earned some more income and had some more knowledge regarding investing.
Robert Bou-Hamdan
Mortgage AdviserKeep saving and investing. If your first one is an investment property, the lender will take into account potential rent, making it easier to pass their serviceability test – depending on how much income you make. Is their the option of converting to full time for a while?
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
umm, i am only in my first year of Uni. it is possible to get a full-time job, however i would have to move to sydney where my brother works at Macquary Bank and is able to line me up a full-time job. But i’d probablt rather finish my degree first if it is possible. My brother also wants to get into property investing so it may be possible, as i have alot of spare time for me to put in my time whilst he could contribute the majority of the money.
Perhaps you have to make a choice between full time uni and part time work or full time work and part time uni. Stating out in investing has it’s costs. You need to get an asset/ capital base to start with. You need to live within your income and control your spending. The question really is do you want to be an investor enough to pay the price, whatever that price may be. It might be full time work and part time study now, it will no doubt be “I can spend my money on that item because I need it to invest”. These are all choices I had to make. I purchased my first home in partnership with my brother at 18 years of age.
Hi Simon,
Here is a reply I sent for a similar Q.Hope it is of some help.
There are ways of getting that loan just as my son has with some help from mum and dad.It went like this: 18 yo first year at uni, has regular casual job for the uni breaks, treasured each dollar he made(non-smoker,drinker. girlfriends, clubbing, and other things); saved for his first car than saved for a deposit.
We found a 2 br unit for $141K near his uni. Because of his low income I went as joint applicant for his loan of $112K. He got $7K from Jonnie FHOG and stamp duty exemption in Vic because he was a concession card holder. He had saved $11K and received the Mum and Dad grant of $5K.
He let the tennant stay till he had to move in to satisfy the FHOG (12 months) then moved in and found a flatmate to share the living costs and the mortgage. After living there for 8 months he found that he missed the comforts of home and it was difficult to study.
He is now 20 yo doing his 3 rd (last year) at uni, has a good tennant, works one day per week and receives Ausstudy allowances which he could not get access to when 18 due to his parents income.He is now $9K in credit as he deposits all his Ausstudy and wages into his load account and redraws when absoultely essentail.
You can do it!
Good luck.
hrm
hrm
Is Admin going to step in ??
If I was a moderator, I would delete everything!!!!!!!!!!!
How annoying would that be?
The Mortgage Adviserhttp://www.themortgageadviser.com.au
I’m surprised that the rubbish has not been removed yet.
Could someone please.
hrm
Hi Simon,
If you’re not in Sydney (and therefore are in a rural university town?) it might be a good idea to purchase a slightly run down multi-room house near to uni and town that you can live in for a while (gaining the FHOG) as well as rent out the other rooms to friends/uni students.
I know a guy who did just that to pay off a 4 bedroom house (and he lived in the garage!). If it’s close to uni, then you can offer a by room rent that is higher than usual for the general area, but considerably cheaper than university accomodation. Students are generally happy to live in slightly run-down quarters, so you can purchase a house at the lower end of the market.
Back in my (rural) uni days, there were lots of people who lived on campus for the first year while they got their bearings and made friends, then they moved off-campus in second year. A lot more people would have liked to move off campus, but the ‘effort’ of finding 2 to 3 other responsible people to go on the lease was too much for them.
You can also ‘rejuvenate’ the house bit by bit with help from friends and family – picking uni holidays to do the more serious stuff. Painting, landscaping, and so on. This will increase the capital value of the property to put you in better stead in the future when you decide to invest in a second property.
I would say it’s never too early to invest – the fact that you’re already investing in shares is fantastic. If you are getting good returns there, you may want to keep at it rather than take on a huge property debt – but the choice is yours.
Hi,
The fisrt think you should do is save as much money you can while educating yourself and talking to the right people to know do’s and don’t in property investing.
To start with read Rich Dad Poor Dad by Robert Kyiosaki
It’s a great book for anyone.
Second is Newest book by Seve Mcknight which i forgot what is called ! oooops. I have the old one which is called 0 to 130 properties in 3.5 years.
Keep us posted on how you are going..
It’s good to see people of your age already thinking ahead for their future and their goals.
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