Hi all,
I guess i’ll tell you a bit about my situation and hope for some positive feedback. I am a 20 year old student studying commerce/property and construction. I have some experience working for a builder, but at the moment have minimal cash for a deposit on a house/unit/apartment.
I work part time, which at the moment pays off my car. I am still living at home and don’t pay rent but on the other hand i have other expenses… car insurance, petrol, mobile, food, internet etc.
I have a few options i have been considering…
(1) buy a small house/apartment/unit, qualify for the fhog and then move into the place for 6 to 12 months. This would be a hard scenario as it would involve me selling my car and having to walk, ride my bike and take public transport everywhere. Additionally, i’m not sure i could cover the mortgage repayments by myself and may have to have another person involved. The plan would then be to do basic renovations and fix up the place – refinance and then decide to rent it out or use the equity to repeat the whole project again and again…
(2) another option which i haven’t really investigated too much is buying a parking spot. I’m told that it is almost neutral cash flow… but this almost defeats the purpose as i currently have limited cash flow and am looking for cashflow as well as capital gains. I guess cash flow is a bit more important at this stage.
(3) i recently listened to one of Rick Ottens cds and was very impressed with his lease options… however, a $3000 (that is what the course costs) investment when i am already short of money is not going to help me too much. Do people have experience with these strategies? do they really work? do they require significant funds initially? given my situation, do people think it would be a good option? at the moment it is the most appealing as looks like easier money than any of the other strategies… (i do know it will take some work and time)…
(4) i could stay living at home and save up as much money as possible… then invest in the sharemarket. I feel that this would be rather easy but i won’t really get too far… not making the most of other people’s money…
(5) i would love to hear about other strategies that people can advise…
Thanks for all of your help,
Regards,
Gilad
Hi Gilad,
Although no one can make a descision for you, I would advice staying with your parents as much as possible. I sarted investing in property at 19 but moved out of home at 30, some people couldnt understand why I had so many houses and still lived with my parents, but I got along with them and I don’t think I would be where I am now if it wasnt for that.As far as strategies go, how about buying a unit or house and lease optioning for positive cashflow, I may be able to help, send me a pm or email.
Xenia
We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
[email protected]
phone 0412 437 582or give me a ring on 0412 437 582 to have a chat
We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
[email protected]
phone 0412 437 582hi gilad
Have a read of the post I put in at what would you do if you were me I think its still on the first page of help needed.
here to help
Hi Gilad
My thoughts –
1. Share market – don’t know where it’s going unless you have a crystal ball that works well – in which case, can I borrow it![biggrin]2. Lease Option – interesting strategy but takes a fair bit of expertise and wouldn’t be where I would start in your position – also don’t know if $3K is an investment I’d make if I was at your stage.
3. Staying at home and saving – always a good strategy however it will take you a little longer.
Do you have a like-minded friend who might be interested in going half/half on your first property to get into the market. You could live in it, do it up and be up and running.
Otherwise, perhaps a little longer concerted saving would probably be my suggestion.
Regards
Megan
Hi
would stay away from the car space, so too storage units (not mentioned but worth a mention). If you do go the share market route, would suggest staying away from Managed Funds, or at least the larger ones as you are paying someonelse’s salary and bonus for minimal real returns (have you ever noticed how returns are quoted BEFORE fees and charges ???).
I did a bit of asking around after seeing Rick in may, was 90% positive, however as you said $3,000 is significant at this time.
My advice, start reading a few books, good investments at $20 to $30, better still if they are at the Library. Also, have you thought about options trading ? Paper trade for a period before going live, but is a good way to leverage your funds.
Read some Margarent Lomas, Robert Kiyosaki and that old fav, The Richest Man in Babylon.
Hi gilad,
Have looked at car spaces and found that they claim around 8% return. But that is gross, very gross[biggrin].
After costs etc they were not CF+. Also they are very small areas that can’t be adapted to anything else.Storage units can be ok but just like every other type of investment they require due diligence of the individual investment.
Unless you have educated yourself in the share market it is unwise to get involved in direct shares without assistance. But that assistance costs – reducing your returns. Trading is often made to sound good but it is very time consuming and not a great return on a comparative hourly basis in the vast majority of cases. Option trading is a leveraged situation which means that losses as well as gains can be multiplied. The very few people who really understand options make money off all the rest that think they understand options. This is how the market works.
Gilad, do you have a plan and a time frame for that plan? If not that should be the starting place. Then put into place the education you need, to be able to take the action necessary to achieve that outcome.
If you take a long term view and become good in an area of investing, whether property or shares etc you will do well. Some people have done well out of property while others have done well from shares. Pick one area initially, learn about it, get a good mentor and stick to it until you’re where you would like to be.
Regards,
pr
Hi,
thanks for the posts and advice…
while i have been reading a fair bit already, i guess i need to keep doing this and looking at new strategies… lease options may be the one…
Gilad, i am very much in the same situation its scary. Nearly 20, studying law. I have some experiene in the finance industry. Paid off my car, but still have usual expenses in running it, and i only work part time. So far this is my plan, not sure if you can utilise it. I found a one bedroom unit around 1km from home. its for sale for 159k, built in 70’s, very original condition. I am hoping they will accept my offer of 145k. I am trying to go halves with my parents in it, use my first home owners grant of $7000, my stamp duty rebate, and claim it as my PPOR. My parents are going to pay the deposit, and i am going to use the $7000 for the repayments i will have to make while i am supposingly living in it. In the 6 months that i am supposed to be there we will do some improvments to it. After the 6 months is up, get a tenant in there ASAP, then just sit on it till i graduate and can afford to buy out my parents. I still have to work out some of the finer details on who will make the rest of the repayments as it will be neg geared around $50 a week. Hope it helps. BTW where abouts are you located?
Matt R (Gold Coast)
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