All Topics / Help Needed! / New to investing, help needed!
Hey,
I am a 17yr old student and am looking to broaden my future and ultimately aim for financial freedom in the long term.
I'm looking for passive income as opposed to capital gain.
I'm not looking to start investing money for maybe another 2 to 3 years until i have some base capital to use. I'm looking to use these years to gain information on the property market and getting my head around the game.
I am most likely going to invest in New Zealand. My residence.
My questions are;
Since i'm not looking to start investing as of yet, should i lock my cash away in a term deposit or look into shares for maybe 2 or 3 years?
If i can't afford the down payment on a bank loan should i go 50/50 on a property with my parents? (They are happy to do this) I think this will get me into the market faster. What are the negatives?
I've got an idea that if i find a property that i put tenants in and it will bring a return of 10% per year on the mortgage, that is a good property to buy and that is what i'm looking for. How realistic is this idea/generelisation?
Is it possible to gain 10% return per annum?What am i looking for in a property if i want to invest?
What can i do to broaden my knowledge on property investing and investing on the wider scale?
Sorry the questions are general but i hope help is out there!
Thanks in advance,
LimetorresHi linetorres
You are doing the right thing now. Stick around the forums and watch, comment, ask and learn.Many young ones I know of that got into the market and did well are those that got in with help from parents as early as possible, bought a 4 bedroom home and rented out three rooms and added that rent to their payment on the property. This was very profitable for them and quickly reduced debt repayment.
Re parents, they could be part owners or sign up a legal loan between the two of you and they could have a second mortgage. That gives you independence and they sound supportive with their advice and help.
Sorry limetorres. Didn't explain myself fully. Their loan could be the deposit on the house for you.
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