All Topics / Help Needed! / New PI Looking for some advise
Hello to all,
I am 21 years old and looking to start a property portfolio.
I have begun researching many areas and have narrowed down a few that I think would make good investment areas.
Ideally I would like to buy my first this year and it would be a rental that I would like to be +geared although the tax benifits of -geared are attractive to me.
I was wondering what the chances are with starting now with no deposit to get my foot in the door asap and start building some equity?
Cheers,
BrettHey Brett,
Firstly, good one for starting now at 21. Wish I had.
While I don’t have all the answers for specifics, my only real advice would be to start now and don’t procrastinate. As you’ve stated you have found a few possibilities. Pick one and go for it.
Don’t worry too much yet about mistakes. Truth be told the more mistakes made the more lessons learnt, which can only increase you wealth if you heed them.
I believe your at an age where you can benefit from the buy and hold strategy IN THE LONG TERM, if that is what you want, but capital growth might be a ways off. If you’re looking for something quicker then maybe another strategy or developing will be for you.
But I digress, the most important step is taking it. They say the first million is the hardest to make, so is purchasing your very first house.
Having no deposit might hold you back as far as standard funding goes, but if you use your creativity you will find something i.e. a money partner (friend/relative) to enter the market with you to get started. Look in the Getting Creative forum.
Good luck mate and most importantly – enjoy the ride, both ups and downs.
Regards,
K&R
You can dream, so dream out loud. – Bono (Acrobat)
Thanks K&R,
Much appreciated !
I am looking to buying my first IP, I have/am looking for an already rented property for sale is this a wise thing to do or should I be looking for somthing else if so what?
Cheers,
BrettHi Brett,
Congratulations on wanting to start your investment journey so early. A common thought throughout this forum is ‘if only I had started earlier’.
As it currently stands you have time on your side and as such you should, with commitment and diligence, be very successful in the long term.
The critical issue for you when determining which property to buy are its fundamentals. For this reason whether or not a tenant is in situ is largely irrelevant as a well chosen property will have little difficulty securing a tenant anyway. It is far more important to make a good choice of property in accordance with your goals.
Financing could be an issue and it is recommended you get in contact with a broker fairly early in the peace. They will be able to determine how much you can afford to borrow, which then, in turn, will help you to refine your purchasing areas.
Some lenders do lend 100% of the value of the property but you will need to meet their criteria and rules. You may also find that lenders mortgage insurance is prohibitive. This cost is tax deductible and will help make the first step somewhat easier to achieve.
Another option may be for a member of your family to lend you the required deposit funds from their available equity. This is something some parents and relations will do for members of their family. It has some pitfalls but a frank and honest discussion can alleviate these before they happen.
I hope this is of use.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Thanks Derek,
I have been in touch with a broker and he is looking over my financial state now although at first glance he said there shouldnt be a problem with what I have asked for,
As for the location of the property I am looking at buying, I find myself having second thoughts as my first PI I would like to be able to make a little Capital Gain so that I can continue to buy another property.
The location I have been seriously considering is Bundaberg in QLD there is currently alot of housing development occuring there although I cant seem to find anything business or industry related going on which is what has start my doubts on the area.
The other positive I can see is that it is close to the coast and in most cases only 10-20mins to the beach.
I am at a loss as to where else to look or can somone here advised if I am on the right track or is there other areas I should be looking at and why?
Cheers,
BrettHi Brett,
I must admit I do not know Bundaberg property market intimately so please take what I say with a grain of salt.
I just skim read Herron Todd White’s December property report and they indicate that the Bundaberg market after strong sales in Sept/Oct, the market appears to have settled.
For the full spiel see page 34 on the following
http://www.htw.com.au/pages/info_centre/review/MR%20Dec%202005.pdfBe aware that you are at a stage when you will experience some doubts (this is normal) so do not panic if this happens to you. It is par for the course you are embarking on. One of the side effects of this is that you will think that you are making an error in short listing an area.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Thanks again Derek,
I am experiencing some doubts although looking further at the positives and negatives of the area the positives win.
Cheers,
BrettHi Brett,
Good on you for starting at that age, and you are 100% correct in saying there are pros & cons to all situations including positive & negative cashflow properties, it all really depends on you particular sitation is, are you currently working? Is it best to get some capital gain to purchase against in the future? What can you affordwill determine where you can buy, ect, ect..
Happy to assist further.
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
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