Total Newbie Question/Advice

Hi All,

I am quite new to the property game and have just picked up 2 of Steves books to get some know-how. I have also been lurking for forum for a few months now just reading the great suggestions and comments people have.

I may seem a little naive, or maybe the word is over-eager, but I have been looking at property around my local area and more so a little closer to Sydney (I am about 60k’s from Sydney, looking at places about 30k’s from the city so not city based but somewhere in the middle).

The situation I am in at the moment is the following:

I am 24 and my partner is also 24 and want to get into property investment early this year. We both live with our parents (separate houses) and have decided to do so for a few more years to set ourselves up. We are both on a wage of about 48k (before tax) and have about 25k saved combined so far with minimal other expenses other than my car loan which is not a lot (<8k)

I have been reading Steves book and the positive cash flow option seemed to work great for him, however I feel that Capital Growth may be slightly easier to achieve around my local area and will probably suit my situation more.. so in saying that, is my train of thought below on the right track:

– My partner and myself go for a loan for around 340k
– Buy a house with a potential for Capital Growth and possibly do some minor work on it to enhance it a little (can do most of this myself)
– Lets say the house purchased is $350,000. The average rent for the area of a similar house is $330. Rent the house for $330/w. My partner and myself contribute the extra $220/w or so to cover the loan repayment (I’d imagine that would cover it according to the ING home loan calculator) + we save an additional $80/w for repairs and other possible costs of the house.
– Lets say in 3 years time we reassess the situation, we will have had a tenant paying about 50k towards our loan while we will have paid about 30k and also hopefully the property has risen in value. In the mean time, due to the fact the property is negatively geared tax savings could be in order (for both of us?)

Is this the right train of thought in basic principle? I am sure there are many other things to take into consideration and I imagine self education is the best way to start and then possibly seek professional advice? Are Steves books the best place to start for a total newbie?

Thanks for your help and understanding. Look forward to learning a lot from this forum!