Hi all, this is my first post, I am interested in new ways to save/create cash for deposits. I am 22 and hoping to purchase my 3rd IP by late this year. With a meager deposit at the moment I would like ideas on short term investments, new money saving ideas, alternate income etc to help me grow it.
Many thanks
your doing great at 22 to have 2 IP’s already!
i save deposits the old fashioned way. SAVE SAVE SAVE! i find that the most effective way. Im sure there are more creative people that have other ideas [biggrin]How about refinance? Have your 2 IPs grown by, say, 20% since you bought them? If so you shouldn’t need to use any of your own money to purchase your next one.
hi indigo_violet1625738
***deleted – advertising***
here to help
Can you utilise any equity in the first two IPs?
Cheers,
Simon Macks
Residential and Commercial Finance Broker[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks all for your responses-
I have about 10K available for redraw on my own home, however I would like to avoid dipping into it. My own mortgage is a debt i want to quickly get rid off to allow me to free up cash for investing. I divert part of my income into a high interest savings account which i then use for deposits on IP’s. I was hoping for info/ideas on areas where other people have ‘cut-back’ in order to save faster- for example ways to save on electricity etc- to free up capital…?Originally posted by indigo_violet1625738:Thanks all for your responses-
I have about 10K available for redraw on my own home, however I would like to avoid dipping into it. My own mortgage is a debt i want to quickly get rid off to allow me to free up cash for investing. I divert part of my income into a high interest savings account which i then use for deposits on IP’s. I was hoping for info/ideas on areas where other people have ‘cut-back’ in order to save faster- for example ways to save on electricity etc- to free up capital…?What is the value of your home?
What do you owe on your home?Even better, why not list the current market value of your own home and your IPs, along with the balance of the loans against them.
I strongly suspect that the answer to your question on creative ideas on how to come up with your deposit will be answered as soon as you post those figures. 5 minutes effort, it’s worth it!
Scrimping on day to day expenses to come up with deposits for IPs is what I’d call working hard, not working smart.
Save on electricity by disconnecting the neutral from your electrical meter. – No! Don’t do that, I’m joking. Ha.
Save by- turning your p.c. off or put it on hibernate when you are finished. If you leave televsions, DVD’s etc on standby, they continue to suck the juice, dim you lights, turn off lights.
Turn off water etc. Just be aware of how much of these services you use and how much you really need to.
Walk, car pool, public transport.
Check the plans on your mobile, landline, internet.
Many options when you want to start cuttin back on expenses. If you train at a gym or something- use their showers after you finishing working out.
Don’t skimp on eating healthy food- that will save you medical bills etc. Don’t skimp on your health, other than that, there are plenty of ways to go about saving.
Shop at trade outlets, warehouses, second hand, sales, bargain everyone!
Have more ideas, but gotta roll……
hope this helps indigo.
J.
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastSave on phones with capping. I am with Telstra and have just gone onto $99 plan which covers me for up to $500 worth calls on my landline and one mobile phone.(per Month) Plus rental for landline. No forfeiture if spend is less than $99. Go to Telstra.com they should have details there. This is a fairly new product I think.
Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hi there [exhappy]
I am currently saving to purchase my first home, so have been looking for creative ways to save extra cash as well.
If you work full-time, the best advise I can give you is to pack your own lunch – Dont eat out! I stopped doing this and am now saving an additional $50 per week.
I also have starting offering to babysit my nephew and friends kids once a week. Just by looking after them for a couple of hours on a Friday night can give you an extra $50-$100 cash in hand.
I also have a phone cap – however mine is with Optus – it is a $79 cap with up to $500 of included talk and text (this has saved me heaps!)Anyway hope some of these ideas have helped
Great Ideas there, they should all be implemented, as said earlier, utelisind equity to buy another property is the quickest way to invest.
You’d want your investments to grow in equity faster than you can save to allow for another purchase..
Roy H.
L.R.E.A., Dip FS (FP)
Guardian Property Specialists (GPS)
http://www.gpsnetwork.com.auRather than depositing funds in an interest bearing account, put the funds straight onto your PPOR loan. This obviously has the effect of saving you stacks of interest, which in the long run would be a lot more than the 5.75% you would earn on an ING account etc.
Eric
Hi IV
Neo is right any interest you receive in a high interest bearing account is taxable and thefore the value is dimished.
Why don’t you establish a 100% offset account alongside the PPOR home loan and deposit every cent into this. This includes your salary, rents from the IP and any other form of income.
This way you will receive the same rate of interest as you are repaying on your home loan but it will be Tax Free.
You can always transfer lump sums over to the mortgage account periodically if it makes you feel better and you want to see the actual principal amount reducing.
Cheers Richard
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Indigo V
get a cf+ property with little or no money down. Use a bank garuantee as deposit – see what equity you have available, it may be more then 10K. get advice and a good Bank Manager or funder – build a good relationship with then – you will be surprised what one can achieve – there’s plenty of others cash out there to use. Find a way to accelerate.
Steve Bfind a partner with equity and no income….. theres heaps out there.
Add value to your existing props with reno’s to get more equity.
Trick rich uncles to overpay for all the other houses on the market in your street, then get a valuation.
jparsons,
don’t forget to get the plumber around to change the copper pipe (before the earth bond) for entertainment. They never believe a neutral fault zaps ’em until they actually get a boot.[devil]e
Oh, Oh, Oh…… You can eat your own limbs for food. Many survivors on rafts at sea have saved heaps on their food bill by eating themselves. You can only do this for a few months though…….. hmmm[blink]
Live, Learn and GrowLifexperience
hehe, good on ya life x. The tiff between plumbers and sparkys never seems to go away does it….. “accidently ” meggering the pipe is funny too.
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to me first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastIf you have a stable job you can borrow 106% using the property you about to buy without affecting your other IP. The idea to use an 100% offset account is very good. If you have a saving program you share it with the TAX man but if you offset your mortgage you effectively saving at the full rate of your mortgage!! Drop me an email using this forum if you interested to know were and how to get the full money amount (106%) which will cover all your costs and you can keep your 10K.
Regards
ES
If you have a stable job and can service the loan you can borrow 106% using the property you about to buy without affecting your other IP. The idea to use a 100% offset account is very good. If you have a saving program you share it with the TAX man but if you offset your mortgage you effectively saving at the full rate of your mortgage!! Drop me an email using this forum if you interested to know were and how to get the full money amount (106%) which will cover all your costs and you can keep your 10K.
Regards,
ES
You must be logged in to reply to this topic. If you don't have an account, you can register here.
