Hello, I’d just like to introduce myself first and give you my situation (although I have posted here a few times a while ago). PS: Please bear with me as I have very little knowledge on PI.
I’m 17 years old (18 in a month) and I’ve been interested in property investing since a very young age! At the moment I just have a casual job giving me around $200-$250/week. Next year I should be making around $250-$300/week before I get a full time job. I can save around 80% of that each week. I have just paid off my car and have approximately $4,000 in savings and live at home of course. I’m not looking to buy an IP yet, hopefully when I am 20. By that time I hope to have around $20-$25k in savings.
Ok now I saw a story a couple of weeks ago on Today Tonight about some ordinary bloke who just purchased his 136th IP. They definately made it look a lot easier than done! But he reckons that he has been purchasing cheap properties in Broken Hill etc for around $100k or less. These are the sort of ones I am interested in. Apparently, these houses can generate up to $150 in rent. Is that true? If so, is it worth it when you factor in all the extra fees/charges involved in buying and maintaining the property? Also, am I elegible for the FHOG? Or is that only if I am going to live in the house?
Anyway, how much will I need for a deposit on a $100k house? Just 10%? Would it be better to have 20 or 30% instead? Should I pay the first one off before buying a 2nd? What do you find are the best methods?
Finally, does anyone have any advice for where to buy in NSW?
Sorry about all the questions but I would really appreciate your help! I also realise that I have to read a lot of books [ohno] hehe
Cheers,
BrettHi Brett,
I believe that you need to be living in the house to qualify for the home owners grant and also to get a benefit in relation to the stamp duty.
It is good to see that you are thinking of investing rather than blowing your money. Make sure you do spend some money on yourself though and don’t miss out on some of the good things your age can offer.
In some cases you don’t need any money as a deposit for an IP, even if you are only 18. Just as long as your rent, plus your income can cover the mortgage repayments. That way you can keep you saving aside for renovations/improvements that may be needed.
Good luck on all the reading you will need to do.
Regards
VICSANSWHi Diggo,
Its great to see someone youg and energetic wanting to succeed.
Its great to wanting to invest but remember to enjoy a little bit of life now cos when you look back when you’re 30,40,50…80 etc you want to remember some great times you had when you’re younger.
But best wishes on conquering the world.
Prakman
Yes you do need to live in it within the first twelve months and for a minimum period. The option you may have is to buy a first property as an investment, someone could be helping you to pay it off. However it also may be a bit of a draw back when applying for your own property due to being able to service both loans on a low income. This would not necessarily be the case if you had a positively geared place.
As per Broken Hill it was not all that many years ago that if I remember right the town was in big trouble I guess since the mining boom that has changed? If so what happens when the mining boom cools off if it does.
I believe you can purchase an investment property and although you would not be entitled to the first home owners grant for that property; it does not exempt you from applying later for your own home. Note you can not have lived in the investment property for a period of greater than six months and must have been purchased after the year 200 which would not apply to you
http://www.osr.nsw.gov.au/portal/page?_pageid=33,63440&_dad=portal&_schema=OSRPTLTWayne Skewes
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