stressing to the max!!!
haha i realised im not so young anymore
i should have done all of this when i was 18.ok so i may sound like a diva. but honestly i like hard work and i love getting results.this is my situation.
just met a guy we are going to get married ect. we are both interesed in property and making money.
i wanna own lots of properties by the time im 30!
i wanna build and movei into my dream home by 32!!so… i live at home with my paretns and bf. we live rent free ect and only bills really are car, phone, tax and general living.
my bf has bad credit rating and is going to find it diffult to get a loan.
however im not sure which avenue to take first….do we buy a rental and rent it out whilst living at home
do we build and live in it for a year to escape tax and then sell or rent it out after
do we rent and move out of home
do we buy and then renovate then sell for profit??i still have the first home buyers grant yet my bf doesnt.
my parents have 50k sitting there on their mortgage they are happy to put into a property if we need it. also happy to go garantor.
i just dont know wat to do. and im wasiting time just sitting here not knowing!!! i know i have to speak to a broker to see wat is the most i can borrow but apart from that im not sure which path to take to gain money quickly so we can start building a portfolio soon!!??????PLEASE HELP!!!!!
Hi Breeza86,
Darling, what i’m going to say to you may not be what you want to hear. But first I want to stress that i don’t want to burst your bubbles. I just want to lay out some realities. Call it old age wisdom.
1. Do you have savings? If not, why not? If not, then you’re in no position to buy a house. Buying one takes massive self-discipline. Mum and dad being willing to guarantor the loan is a high risk business for them. You should have a demonstrable ability to live within your means.
2. If you are eligible for FHOG and soon-to-be husband isn’t, then buy before you marry. Once you get married, you are no longer eligible for the FHOG, too. Unless the policy has changed and I didn’t know about it. In fact, living as de facto is also “iffy.” Ask the experts here.
3. Whether you buy a home together first or a rental is up to two factors: Relational: Do you both want to be with mum and dad for THAT long? And do mum and dad WANT to have you stay at their house for THAT long.?
Second factor: How much you can borrow as a single person depends on what you eventually buy (assuming BF can’t get a loan).
4. What is the reason for soon-to-be husband’s default? There are lenders who will look at the circumstances in which a default was accrued and for how much? When I was mortgage broker, I helped three people with small defaults to get a home loan with St George. However, these individuals have very, very good reason as to how the default came about.
5. The idea of owning lots of properties is very thrilling, but the path is full of pitfalls if you’re not careful. Since your parents will be somewhat involved, they NEED to be PROTECTED as well. A mortgage broker with integrity can make sure they do not become liable for more than they should be.
These issues need to be bedded down first before anything. Speak to mortgage brokers who can educate you on certain aspects of getting a loan, and yes, it is essential to get a pre-approval before going shopping.
Good luck and good to know of your great intentions.
Take care.
angel
thanks heaps for the reply.
somewhat disheartening, but i guess i needed to hear it.
we have about $5000 savings.
he has defaults from a landlord which he has paid all in full but still have the judgement sitting there.if we get a loan together i assume i cant go for the FHOG cause he is helping out pay the loan off???
i just wanted to know which way would be best. say i could get the money for watever, i just didnt know if builder where equity will go up before its built compared to getting a rental property and rent it out whilst buying a unit in the CBD melbs and live int hat for awhile as it has always been a dream for us to live in the city for awhile, whilst building up our portfolio of property????off the plan, house and land, reno, rental??? which way??? sooo confused
You got some pretty good goals there… not impossible if you are living at home but is still very hard to attain… unless, you and your partner have super high salary… if combined salary of less than 100k a year, i would think this is hard to reach, especially by the age of 30….
you will need to do alot of your own research and find ways to get there… you might need to pay someone to teach you… people will not throw their strategy out there for you for free…
yeah we have about 110k a year combined.
but yeah im just not sure who can teach me?? like who can i go to??if that is your combined salary, very possible to reach your goal… i would suggest you first invest yourself in a few property investment books and have a read and understanding of some of the strategy, find and speak to family members, friends… etc who have succeeded in property investing and get some tips.
If I was in your shoe, I would be saving and putting away 30% of my salary after tax. I would be looking at the FHO savers account… i hear some pretty possitive things about it since they tweeked it abit… and i would plan to live at home for at least anohter 5 years just to build up enough equity in my PPOR before even considering an IP (so you at least have some money stash away for a rainy day).
remember to buy and try to "never" sell… unless the government remove the stamp duty…. haha
Hi Breeza,
Firstly welcome to the forums. You've come to the right place for advice.
It's good to see so much enthusiasm from you, and that you have a desire to succeed.
You've mentioned that you want to own many properties by the time you turn 30 and own your dream home by the time you turn 32
- How much money do you need to achieve this?
- What do you think will be the best strategy to achieve this goal in the timeframe suggested? Passive, buy and hold approach? Active, quick cash, renovation approach?
- Have you got the necessary knowledge to implement this strategy?
As many other members have mentioned many times in the forums, you need educate yourself first and do your due diligence before making any investment decisions. The best place to seek advice from is from experts in their field e.g. for renovation strategy, Dean Parker would be a great source
https://www.propertyinvesting.com/resources/products/complete-reno-system
Hi Breeza
I was 9 years older than you before i retired and lived off my property income so to be able to do it by 30 would be a goal worth trying to achieve.
Just to correct an earlier comment you made.
You will qualify for the FHOG as long as the Title is in your name irrespective of whether your boyfriend is helping you pay down the loan. Regretfully it is unlikely with his credit record that he can be a party to the loan (This will depend on a few things including how many and how much the defaults are for) either however as long as you qualify on your own then he can certainly assist in the repayments.
Using your parents property as additional security may assist but without the full picture it is difficult to comment further.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Breeza,
I think it is great that you are serious about looking after your future through investments such as property. I can understand your situation – limited credit, limited savings, getting married, getting older. All I can say is not to worry. You still have plenty of time to create a nest egg for you and your future husband.
If you are really serious about buying an investment property as soon as possible it will all depend on how much you can save and borrow. Im sure the guys above have already told you how you can go around your credit challenges. The only thing I would like to add is that you will be able to save the most by living with your parents – the amount of savings will be substantial because you dont have to pay rent. You also need to understand the level of risk you are willing to take. If you are willing to take a bit more risk you can leverage heavily (90-95% borrowed) but will be subject to more financial risk (i.e. the risk that you can't meet your repayments as a large portion of the interest will need to be paid out of your own pocket). The advantage is that you will be able to get in the market quicker as you dont have to save as much. Or vice versa if you want to take less risk. Obviously staying at home will improve your situation as you have more disposal income to service the investment property as well as the ability to save more money for a deposit as well.
Goodluck and let me know if you have any questions.
Jase
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