Hello all, my name is Ron and I am new to property investment. I am only 20 and am still in school but I have saved up $30k for investment. I was considering lookiing at an apartment to rent out, but will my monthly revenue cover payments on the apartment each month? What other opportunites do I have with such little money?
Thanks for anyone that will respond, I am here to be educated so I want to apologize if I don’t understand everything right away.Hey mate,
I’m no pro either… but 30K isn’t a small deposit. Steve’s first was 10K, and look where he is now! Most brokers will let you borrow somewhere between 90 – 95% of the value of the property… so there are a lot of paths you can choose to walk down. Don’t underestimate your achivements, and what you can achieve.
There are plenty of good resources on this forum to help you started as far as finding tips for good. You won’t get all the answers thrown at you by asking in one forum… You have to work a little for it… Do a little digging [blush2]
Steve’s books are also an excellent resource… start with his first one, 130 Properties in 3.5 Years, and the passion will soon grow to learn as much as you can. [exhappy]
Hi Ron
I’m envious of your age – I wish I’d started investing that young!
Have you thought about student accommodation? There are people out there who are leasing 3-4 bed houses near universities and then sub-letting them by the room. Positive cash flow without having to actually buy the property. The only risk is having the property empty. But then you can either terminate the lease, or look for other tenants.
Being a student yourself, you’re in regular contact with your target market, so can find out what they look for in accommodation. Also, could be a great way to build up your cash.
It might be worth asking on the forum who has done these sort of deals and what their experience has been.
Good luck!
Janet
0427 778875thank you for your positive comments. I really want to put a down payment on an apartment/condo, open a mortgage and rent it out. I am just wondering if my monthly pay from tenents will cover taxes and mortgage. Eventually when I pay off the place, I can sell it for a profit. I would be looking somewhere where the market is growing. Am I off track and are there things I am missing with this plan? I want everyone’s imput on this. Thanks for all the responses!
I’d be looking to read as much as I can get my hands on.
Another way of looking at it is to buy an apartment,house and rather than sell it,refinance your mortgage then leverage into a number of properties at a comfortable LVR, then repeat process.
Make sure you set some sort of goal
Happy InvestingMate 20 years old go for it I wish I started that young
We buy properties cash fast settlements no fees no fuss. contact me on 0408 355568
[email protected]Hey Ron
20 is young and you can recover pretty easily if things go wrong…but 30 grand is still a lot of money to risk so you do need to be careful. Plus if you borrow heavily and things go south you may actually end up owing more than your property is worth. It’s all very well to just say …go for it but you need to know your market prices very well and ensure your getting a good return.
Janets idea sounds fantastic. Lease a very large 5 or 6 (or more if you can find it) bed house….preferrably in a student zone but it could be in a high single room demand area…live in one room and rent out all the other rooms. If you can make this profitable then progress from there. Plus it will give you time to understand the financial aspects (return ratios, yield etc) while getting your feet wet in the problems encountered renting out properties.
Ben
Hi Ron,
Firstly let me start by saying your on the right track, just by thinking, looking and more importantly saving to get of 1st base is brilliant, for that well done.
Now let me paint a scenario for you, lets say you had an opportunity to buy a 1 or 2 bedroom apartment in a decent Sydney suburb, and you had the opportunity due to a builders need to sell to actually keep approx $23k of your hard earnt money? How does this work, based on bank vals the builder is willing to rebate in cash up to 13% of purchase price, you only need a deposit bond, there are about 17 left in the block, and due to contacts within the industry being a financial Planner, I have not seen deals like this around since 2002.There are good deals out there if you happen to be in the right place and the right time, happy to share the full picture with you Ron or any one else.
Take care
FP
[biggrin]Hi gazmysta,
The picture you paint is a little blurry… And Ron, being new to the scene may be a little dazzled. How much are the apartments? It’s fine to say he’d only have to spend $7K, but how much would his loan have to be, and his interest repayments? How much do you expect rent revenue to be? [hmm]
Only once he (Ron), and other know this information can you proposal be determined as worthwhile… Not having a go or anything, I think you for posting opportunities (and encourage more)… but gaps in information need to be filled in… [exhappy]
here is an awesome saying mate the more knowledge you have the less money you actually need (ps Im 22 and i am just starting out myself)
Thanks for all the replies and danielcummins is right, I am only 20 and I don’t understand how property investing quite works. My main concern is to buy a condo somewhere where property value is rising. Is this hard to do since many are out to target these places? Interest is another big concern, and I don’t have much established credit, but my father does and he’d probably be signing, and I’d co-sign for that matter. I am not planning on living in this place, just renting it out. In the mean time, I would be going to college as well. Would this work? Will I be able to stay in school and start something like this, or does it require a lot of time? And I mean after the fact that I’ve searched, bought, and am renting..
Hi lads,
Yes Daniel your correct my comments were not detailed, there is a reason for this, however as I mentioned if someone was interested in discussing this further I would be more than happy to discuss it via email or on the phone, but I won’t be using this forum as a sales tool, but if someone shares an interest in great deals and they wish to discuss outside of this public forum, no worries……..let chat
FP
You must be logged in to reply to this topic. If you don't have an account, you can register here.
