young investor

Hey guys, im in a similiar position. (as close to you as psosible, except im in melb)

1)  invest so i can be financially free before i am 30 years old.
fiancially free means making roughly $1500 a month.

2) Any sort of NET cash flow positive earnings from my investment properties. capital growth will be nice oto.

3) i dont understand your question to this tanya. Allocating money to a self managed super fund isnt going to be possible for me since my employer only allows a select few, but other than that, i dont *need* the cash, except to invest.

4) I would like minimum maintenance with portfolio. I mean, i dont want a job in property management, i want it as an investment. I wouldn't mind spending a lot of extra time (20+ hours) creating this portfolio.

5) Yes, heaps of time for learning.

lol why dont you ask for a magic goose that lays golden eggs while your are at it lol Yeah we all want exactly what you are asking for-you think there is a simple strategie that will magically give it all to you in a simple reply from a on line forum? Maybe Im sounding a little harsh but geez what kind of an answeer do you expect? Try the search function as this kind of stuff has been covered ad nauseum. Again a better question other than how do I become rich in ten years is to ask "o.k I have x amount of disposable income per week-what would be the most effect strategy for investing this money, I am considering a appartment/unit/house etc, what thing did you people look for when purchasing your first investment property, what traps have you fallen into, how have you planned your movements forwards over the nexxt 5 years" etc

Lol kids these days

Thats a pretty niave and backward way to go about things!!! Im guessing your parents must be quite wealthy because you dont seem to have any consideration as to how much they are justgoing to 'give' you? So o.k lets go along with your plan-we find you a nice $1million dollar property (remember amount borrowed is not an issue) who is going to meet the repayments? You parents I suppose?

What you NEED to do is work out what you can repay-from there you can then work out how much you can borrow, and hell if your parent are throwing around money borrow as much as you can from them-why give the banks anymore than you have to? Quite simple really….soooooo how much can you afford to repay each week?

Uh now we are getting somewhere-now for the next problem-the banks arnt guna give you shite with no history of savings-so did you save up the $18k for you car or did your parents buy that for you? Basically it would seem (at this point) that you probably need to consider going into a partnership with your folks on a property-you just arnt going to be able to do it on your own.

ricer & r_windows – Firstly, cogratulations on taking the initiative to get started so young.

Some recommended reading material:

Excellent strategist for building a portfolio quickly:  anything by Peter Spann

For positive cashflow:  anything by Steve Mcnight

For best structures – there are a couple of books – There's one called "Trust Magic"  I don't know the author's name. 
Another one called "bulletproof Asett Protection", and Renton's got a good one on Family Trusts.  There's different benefits to different types of structures and it's best to get advice on this one. 

If you want to speak with a good solicitor who is and expert in his field, I recommend Rob Balanda.  Rob Balanda is a specialist in trust structures, and property.  He's a trainer at the Real Estate Institute of Qld, a regular speaker in the Reno Kings seminars and contributes to the Australian Property Investor Magazine too.  I was fortunate to have been trained by him when I was doing my real estate sales training.

I'll be happy to elaborate further to answer your questions, but have to put in my disclaimer:  any information shared in this format, does not take into account the specifics of your financial situation and is for education purposes only.  The information provided does not constitute financial advice and it is recommended you speak to a qualified financial planner or associated professional.

Ok, that said, lets continue.

Firstly, even though you're keen to get started, it's best to do at least some reading before jumping in.  A good place to start is this month's Australian Property Investor Magazine.  They've got a list of suburbs in there within 20 minutes of capital cities, under 300,000 and also a couple of articles for beginners. 

You can google my name and to find me, just look for the link related to property (hint.  My Husband's name is Sean).

For now I must away.  I'll drop back in on Tuesday.  Have a great long weekend.

Kind Regards.

Tanya

The advantages of a SMSF are many, however, there is a bucketload of paperwork and record keeping required and the legislation changes frequently. Tax is the main advantage of super, and govt co-contr. if you’re a low income earner.

At your age, setting up as a company or a trust would hold more advantage because you then have the advantage of being able to borrow funds to purchase the property and take advantage of leverage, and you have immediate access to the assets.

Being a Pty Ltd and acting as a director allows you some legal immunity and the advantage of company tax rates of 30%ish. By doing it under that structure, you pay yourself as an employee, and only the amount you chose to take in the hand gets taxed at your personal tax rate.

A trust has other advantages similar to a company, but adds another layer of legal protection and limited liability depending on the structure take – ie, discretionary trust, family trust, unit trust etc. Nick Renton’s got some good books on the topic or a chat with a good solicitor and accountant would point you in the right direction too.

I’ve worked 10 years in the banking industry, I’ve got my Diiploma of Financial Planning and own my own real estate agency.

Real Estate is by far the most exciting and rewarding of all 3.

From the Diploma of Financial Planning, I learned that it’s really a salespersons licence. The course is designed to teach you to recommend reatil products to clients -(ie. managed funds, insurance etc) collect commissions, and shift your liability. Unfortunately, since the Financial Services Reform Act, came to be, you will be hard pressed to find a decent financial planner who will tell you honestly where the best returns are because they increase their liability to get sued if you don’t take the responsibility to use that advice wisely.

From my banking experience, I learned that everything is negotiable. I always recommend that when you are shopping for finance, don’t go through a broker. Get a copy of “Your Mortgage” magazine and make some calls directly to the loan providers. By dealing directly with the finance company, you can negotiate a better deal for yourself as far as getting fees waived, better products, honeymoon rates, fixed rates etc. It’s all negotiable, but with a broker, they only have access to certain products and offers, and will usually push you to the one that pays them the best commissions.

Before applying for finance, go and get a free copy of your credit report from baycorp. Every time you apply for finance, the institution asks for a copy of your credit report and it appears on your credit file regardless of if you get the finance. If you give them a copy upfront and shop around to several institutions, they don’t need to order a copy and it then doesn’t mess up your credit file.