I am a newbie but have always been interested in PI
I am still unsure what steps I will need to take to ensure I don’t out myself in a far worse position than what I started at.
let me elaborate. I am 22. I will be a first home buyer – however, at my current stage in life, I do not need a residential property – and cannot afford it. I am making Ok money (being a 1st year auditor) and believe the bank will lend me 160-210K. But Im really looking at cheaper property to start off with – you know 70-120K maybe (dunno). So I need advise on1. What the hell do I do? Is it worth it to forgo my first home buyers grant, Sydney prices are so high these days that saving on stamp and the other 7Gs seem so worth it to hold back on investing – only problem is I cant afford anything in Sydney
2. If yes in question 1. Where do I start – seminars, books, magazine – I have been reading API but is all there stuff pretty hyped up? I mean, If they start telling us that theres no property to buy who would be interested in their magazine.
3. Guy , any advise (and I mean any) no matter how big or small will be deeply appreciated. PI is such a large learning process, and no advise will be taken for granted. I want to learn as much as I can.
Cheers, [goatee]
Rossco
Hi Rossco
You’ve posted some pretty big open questions. Reading is a good place to start. My book (see title below or go to my website) was written for average guys starting out (i.e. entry level investors) but there are lots of good books out there.
It sounds like you’re in Sydney. For the prices you’re looking at, you should do some research of regional centres where the prices might be lower and percentage returns might be better. Also if you check the guidelines for FHOG, you might still be eligible even if you buy an investment property.
A good simple starting point in your research would be to look for returns that are at least higher than interest rates (eg 7% or better).
Try (Rent pw x 52 weeks x 100)/Purchase price
to get return yield.Gary[aacool]
Author of “Property Millionaire, The Guidebook to having Great Australian Dreams”
Creator of “Property Millionaire – The Boardgame”
http://www.888abundance.comIf you are purchasing the property as a investment property then you are not eligible for the FHOG, this doesnt mean your not able to get the FHOG further down the track, its just that intially you wont be able to apply as you need to owned & occupied the property.
Is there anything in particular that you would like to know, finance wise as i could go all day with explaining finance
.Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieHi Rossco
You need to educate yourself before going further. There are many great property investing books in the marketplace, just spend a bit of time in the bookshop. Spend your money on books and if you want, seminars to educate yourself. Keep reading and visiting sites like this. Ask the questions until you decide which strategy suits you better.You have an advantage in your age. You will have many years to work on the different paths your life will take so dont stress over it.
Sydney prices are always going to be high and there is an old saying that they will never be as cheap as they are today. HAve you thought about a unit as a PPOR? You may be able to get a unit for the price you mention in the west. Not sure where you are located. Good start though, having your own home. From this you can build your wealth.
API is a great read and the investor stories are my favourites. These are real people – real stories and you can learn a lot from their journeys.Cheers
Toni [biggrin]
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