Hi All
I am just new to this post – its great – lots of really useful information.
I am stuck at the moment only because I don't know what to do – I earn approx $100k and have approx $55k in the bank – with no debt and no other assets
Do I continue to save to eventually buy my "first home" – don't fancy buying in Sydney so would just continue to save – or do I have enough $$ to perhaps get me in the door for my first investment property.
May be I need to see a financial advisor as I really don't have a clue but aren't bad at saving money – just want to make it starting working for me.
Any comments would really be appreciated.
Thanks
If you buy an investment property you do not live in it and it can be in an area where you can afford the loan repayments.
You will have to weigh it up with losing the first home owners grant.Baby steps are better than having a huge mortgage that you struggle to repay and that greatly leaves you at the mercy of interest rate increases. Once you pay off part of the loan you will start to have an extra income source to purchase the next house and equity that can be borrowed against to buy another property.
My general advice would be to buy investing books on property take a look at http://www.businessmall.com.au and look at Australian Property investing magazine http://www.apimagazine.com.au and another magazine I recently discovered called your investment property http://www.yipmag.com.au when you are in the newsagents.
Education at a very cheap price.
What you need to be aware of is the property takes time to build wealth.duckster wrote:If you buy an investment property you do not live in it and it can be in an area where you can afford the loan repayments.
You will have to weigh it up with losing the first home owners grant.Re the above, I know in NSW that you will not lose the FHOG if you buy an investment property prior, as long as you don't live in it – I imagine it would be the same elswhere but would pay to check on the govt website.
There has been some confusion over this however.As far as your savings and income goes….the world is your oyster. WHy not try something a litlle conservative, get some 'runs on the board' as it were, and enjoy the journey. Good on you for making a start too – remeber – one of the worst things you can do is nothing. Also remember, that unless you find an independant (rarity) financial advisor or someone qualified to give specific advice on property (I don't mean loan structuring or helpful advice…but specific planning) you will find most financial planners are not qualified to give specific direct peoprty advice, or can only provide it when it is of a general nature.
And…all the best. !
does anyone know if u can you keep youre FHOG if you buy an IP through a trust in QLD?
McNorman wrote:does anyone know if u can you keep youre FHOG if you buy an IP through a trust in QLD?
I have a client who purcahsed an Investment through a hybrid trust in QLD, and he has just purchased another home to live in and he has applied and received the FHOG in QLD.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi MissMolly,
Buying a property – as either an investment or your first home – might be a good idea. You have a sizeable chunk of cash that could be put to better use than just sitting in a bank account. Your income is more than likely able to service a reasonable mortgage, even in Sydney.
If you are worried about interest rate rises – fix the loan.
If you are worried about servicing the debt – buy an Investment property and the tenant and tax man will help you pay the mortgage. Or buy your first home and get a house-mate to help pay the mortgage.Cash is nice to have, obviously, but having appreciating assets is going to be far more beneficial !
There are many ways to minimise the risk., and the fear associated with it Take the step – buy something !! Ten years from now you will wish that you'd bought something earlier, and probably wish you'd bought more than one !!
I hope this helps,
Thanks,
BDM
Firstly as Terry has mentioned:
1) In Qld if you purchase an IP and then a PPOR later you are still entitled to receive the FHOG as long as you havent occupied the property.
It sounds to me like you may wish to buy a PPOR at a later stage and therefore I would be careful structuring your loan for an IP so that you can actually have your cake and eat it.
An interest only loan linked to an offset account will mean that you will save interest each month as well as having the funds on call should you decide to later purchase for yourself to live in.
A good mortgage broker should be able to advise you accordingly of your options.
In todays climate 8.25% Tax free is a sounds investment in your future.
Richard Taylor | Australia's leading private lender
Hello
Good to see you starting out- all I can say is what I did when I was 26 and started out and seems to have worked for me.
Buy in a good area, and a decent block of land if possible – flat, minimal noise, decent homes around it, close to facilities and something affordable min 3 bedrooms, and doesnt matter if it is cosmetically tired/ run down/ daggy- as all this can be changed and freshened up. I looked for something that was a good size, dump cosmetically, tired, funky wallpaper, but a good street, area and good block, close to transport- then I stripped it and cleaned it for days, ripped up garden, and worked nights and weekends sorting it out. This got me my first little start as went up very nicely, then when I got a bit more savings I put in a kitchen, and new bathroom, then resold it and used the profit to start my portfolio.
Key is to just do it and start and money in the bank doing nothing is a bit lazy-
Set a goal and timeline and research.Not sure what area you live? or state as read it quickly.
As for financial planners- no disrespect to them, but most have no idea, and only push shares, mgt funds and things they get commission on, and only do 1 subject in their course for a few hours on property. Most would earn less than you and have less savings than you more likely.
I suggest you pay a property advisor even for a few hours or a buyers agent for some help to advise you in areas, show you some suitable stock,and also get some idea from a finance broker on borrowing capacity and payments.
Maybe look into Destiny Solutions or Margaret Lomas- she also has some good books, buy Property Investor Magazine, and make a plan of action and timeline to do it.
GOODLUCK- Kylie
Kylie
Hopefully this is a general statement.
As for financial planners- no disrespect to them, but most have no idea, and only push shares, mgt funds and things they get commission on, and only do 1 subject in their course for a few hours on property. Most would earn less than you and have less savings than you more likely.
Must admit i havent done too badly out of property helped me retire from full time work at 39 years of age.
Richard Taylor | Australia's leading private lender
My comments say MOST, it does not state all. And most are not qualified in property, asset aquisition strategies through property, and most are very share and managed fund focussed.
No offence, and it is great to see what you have achieved. Read my words again and dont get in a twist, as I have stated "most", which in correct grammar does not mean "all".
bye
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