What would you do if you were me?

Danny boi oh danny boi….I think you’ve missed the point.
Everyone knows what the ‘more common’ saying is…including Warren Buffet.

His cryptic saying was in context of all the new dogs who have forgotton the fundamentals of investing that are timeless and still hold true today. Of course he is speaking more specifically about the stock market, but the analogy also applies to property investing.

Buffet is currently sitting on billions in cash as he can’t find anything worthwhile that meets his criteria, to invest in.

Now that says something…….

kp

You know Prophecy, I think some folks reckon you might be taking the pith if you stay at home where your costs are low. While staying at your family’s place is a superb way to save, I agree that you can’t do it forever – but you never said you were going to stay at home till all your teeth fell out did you?

I think you have created a great opportunity. I imagine your borrowing capacity looks pretty good at this point and you might qualify for the FHOG. I don’t blame you for taking the opportunity you have. I also know a guy who left home, then came back and started saving a deposit. His parents were ok with this – up to a point, and then they started dropping hints for him to leave. Anyway, he went out and got a place and in the third year of ownership the value of his place is about $100K ahead of the loan’s outstanding balance.

I know another guy who has two brothers and they are going to live together while each buys a house in turn, with all of them slaughtering the loan on one before moving on to the next. Apart from having to be very careful with their tax returns, it should be a good strategy.

I know yet another whose parents let him mind their house for a year – no costs except for a weekly cleaner they insisted he hire – while he put his own place on the rental market and made extra repayments!

I don’t begrudge them these opportunities. Your parents will no doubt indicate it to you when they consider you to be sponging. In addition, you will make your own determination regarding how uncool it is to still be there.

If you are keen to get into the market and have a place you can call your own (which many seem to have implied you are not) then go for it, get in the market! You will have something to put in the “A” side of your A&L (that’s not Kiyosaki’s definition of an asset but people with low debt on their own homes can have pretty decent net worth and that can allow you to do Good Things). Just ensure the “L” side doesn’t get too big and – as Steve would tell you – get that income cranking too.

Oh BTW sometimes owning property will feel like an invitation for a number of organisations to put their hands in your pocket. But I guess that’s why you have to buy winning properties not lemons.

Some posters have said ‘read plenty of books’. If you haven’t already you should. And learn from this website. Then do something. As Steve said in his latest newsletter:

“… when it comes to investing, while a solid education in the basics is very, very important, the best way to learn is in the field.”

Getting out there and having a go is invigorating (read: scary), educational and empowering. It’s an adventure and it rocks. But you don’t need me to tell you that, you’ve travelled and you know that sometimes stepping out of your comfort zone shows you how silly you were to be afraid in the first place.

I say go back to some of those early replies to your post and consider them but only insofar as they suggest ways of being smart about your move into the market .

Good luck!

Bob

PS I hope that by offering you my 10 Euro’s worth with my right hand I didn’t poke you in the eye with my left.

old dazzling, you took the – you’ve got to be cruel to be kind approach.

everything you said should have been taken as encouragement.

don’t spit the dummy, we all help in our own way.

Trav, excellent idea. Do that asap.

Dazzling, I think you were spot on. I could not have put it better myself and nobody else did either – unfortunately for Trav.

Trav, you are in a real window of opportunity here at 22 years of age. Get out of home asap. Even though you are saving being at home – it may be costing you more than you realise. I believe a person in their 20’s has an enormous amount of energy that in my oponion is wasted if they stay at home – even if they do not realise it at the time.

Just an opinion, but focusing on (really focusing on) getting out asap with your first purchase will reward you may times over now and later in life.

So look for that house with a subdividable back yard and go for it.