Where to Start

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zimby
Member
@zimby
Join Date: 2009
Post Count: 40
September 25, 2009 - 12:07 am
Howdy
My Girlfriend and I(22 and 25) have finally Decided to stop wasting our money on liabilities and Begin our Domination of the Real Estate world
I made the mistake of buying a fairly expensive boat(At the time I was aware that it wasn't a totally smart idea, but there were a few reasons involved)
My Gf has just finished paying off her car, so she's starting to save as well.
I'm fortunate enough to have a job that provides a car/mobile and i've just moved back home, so my living expenses are next to nothing.
I have the option to use a guarantor, but if we have the option to buy now I feel we will make some common mistakes and end up with less profit or even a loss.
So I'm going to use this time to soak up as much information as I can
Sorry for the life story but just needed to provide some backround.
My Question is where is a good place to start, I've set myself a goal of 5 years for 5 Properties, this may seem extreem but the harder the goal the more driven I am.
We currently reside in Brisbane's western suburbs and house prices seem fairly steep for some basics.
Should we be building or buying and rennovating.
I'm an IT professional and contrary to most steriotypes, I am fairly good with a hammer etc.
We plan to use an offset account and focus on paying as much as possible to increase equity for an IP.
I've started reading 7 steps to wealth, but I believe more in the forums.
So thanks for your help in advance
Cheers
Denis
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
September 25, 2009 - 3:01 am
Hi Denis
Welcome to the forum and i hope you enjoy your time with us.
Also good to see a fellow Western suburbs boy on the forum.
One of the constraints in moving forward will be you access to deposit or available equity.
Most lenders will require a minimum of 10% of the purchase price to be offered as deposit plus the normal acqusition costs so for a cheap home at say $400,000 you would need to have saved around $50,000 to get into the deal.
There are a few way around this but this will at least give you a guideline.
Richard Taylor | Australia's leading private lender