i’m recently turned 22, dont live at home, and have no debts, and ive been working part time and trying to study…. not quite sure what i want to do with my life… might go back to uni… but i would still work part time.
I have been earning between $20k to $30 thousand a yr take home since i finshed year 12 and have been saving hard and managed to save over $70 000…. to be $ 85000 by the end of the year and over $100 000 by june 2008.
So far i’ve mainly been investing my money in online accounts with high interest……. I really want to buy into property now, but unsure how or where to start…… i have been looking into prices and the market in my area for years, and feel i know what a bargin is or isn’t…….
I just need some tips where to start, where to go, and whether or not it would be a good idea to wait until i have over $100 000 to start, seeing as my earing capacity is aroud $30 000 and i dont have parents to rely on… i really dont want to miss out on prices going up…. i’m thinking that $230 000 – $250 000 would be my limit given my wage…. What would you do if you were in my position (apart from seeking professional help)?
Congratulations on your financial progress so far!!
Here are a few basic steps for you to follow, the ‘nuts and bolts’ will come as you go.
First step – read a lot of property investment books, sit on this forum and others and watch and learn what we are all saying and doing.
Second step – set some goals and strategies; eg; how many properties do you want, are you investing for cashflow or cap gain or both?
Third step – talk to a property-wise finance broker, mortgage broker and accountant to establish a plan, the right loans, right structure etc.
Fourth step – study markets, neighborhoods, statistics and economic factors then take action; small step at first.
Fifth step – repeat.Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hi
Just to let to echo marc’s sentiments in saying well done to get this far and i hope the next part of the jounery is just as much fun for you.
With the advent of the nodoc loan you are able to borrow upto 85% of the purchase price / valuation in certain post codes without any evidence of income / expenditure, assets or liabilities and therefore as long as you dont over commit your borrowing capacity will be a lot higher than you may think.
Just remember as stated not overcommitting is the prime function in taking out any loan especially with no evidence of a capacity to repay being required. Think there will be days when your tenant moves out and you need to subsidise the interest repayments so always funds in a rainy day account.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
thanks guys, i really needed some advice, and i dont really have anyone to talk to as i have hidden the fact i have saved so hard so and much from my family- my mum and dad (separated)….. because i know it will only be used against me…… And i dont want to end up with nothing…
Thanks again… any other help or ideas would be much much appreciated!!
any other ideas would be greatly appreciated…. at the moment i have $70 000 in the bank to play with….
thanks
Congratulations! You have done really well for yourself financially.
If I were you, I would consider finding a property to live in and renovate, look for minor cosmetic things you can do yourself of for little cost to icrease your equity. Paint and polished floors make a huge diference also kitchens and bathrooms. Major structural problems can be very costly to fix if you don’t have the skills yourself.By living in the house yourself, you have the option of renting out rooms to help witht he mortgage and the huge bonus of not having to pay capital gains tax on the profits if you sell so long as you live there for 12 months or more (I think) and then sell. Even if you rent it out after, the cost base for cgt is the new value after renovation which means less tax in the future.
I don’t see any reason why you should necessarily save a higher deposit before you buy, though there is no need to be hasty either. You have loads of options, be careful, have a plan, do you research but don’t be afraid to have a go. If what you’ve achieved so far is any indication, you’ll go far. Good luck.
Louise
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