just wanting some advice with the investing world am only 18 and want to get into onvesting , is it a bad idea to own the house ur living in while investing. And as a first time investor would it be better to focus on cheaper properties to begin with.[exhappy]
Hey Shrimpo,
If your living @ home or living somewhere with cheap rental, my recommendation would be to stay there while you get an investment property or 4. [exhappy]
Being a young investor myself I choose to rent and rather then by my own home, mainly due to the fact it’s cheaper in this circumstance.
When your worried about not getting the first home owners grant think of it like this…. If property double every 7-10 years, a $250,000 house is going to go up in value on average approximately $25,000. So if you worried about not receiving the FHOG think of it as less then 3 months capital growth.
To get your first property and you haven’t saved a deposit there are several ways you can do it.
1) have a look at doing a no money down deal (read the post on this forum for more info re: this)
2) borrow the deposit (personal loan,c/card, FFF bank(Friends/Family and Fools))
3) equity in parents home (often called family pledge)
4) if it’s your first home obviously you can use FHOGThere are a few lenders now that will lend you 100% finance with no genuine savings.
As a young investor also, I am also buying property that have low values and relatively good rentals.
More then happy to help with any other questions you may have.
Happy Investing
Joshua
Multiple Property Strategist
Investor Finance
[email protected]I’m trying to buy my first property and going thru a mortgage broker.
I can buy an expensive studio in an expensive tourist area and holiday let for most of the year in which case my “rental” return would yield 10.47%. I would live in it 6 months of the year which would initially decrease my return but get $7000 grant plus save $7000 on stamp duty… effectively I feel like I’ve been given $14000 which I wouldn’t at any other stage of buying and my broker thinks I’d be mad to miss the once off opportunity.
My concern is that I’d have to wait a full tax year for the returns to show on paper before I could get finance for my next cheap (around $50-100000) investment property, therefore delaying the positive cashflow from investments for a full year.
It will be a private holiday letting run by myself instead of thru any agents so I wouldn’t have any lease agreements or such to back myself up until the tax return is done a year later.
Am I right in thinking that I’ll have to wait a year or is there another way to prove that I’m not losing money (or at worst $40/week) therefore establishing that I can borrow for further properties?
I don’t know whether to trust my gut (and optimism… because I may not achieve my investment goals) or trust my broker… he says he has years of experience and sees a lot of people trying all sorts of creativity with property.
HELP??[confused2]
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