Hey all.
I'm just seeking a little advice on where to start.
I'm a qualified chef, food is my passion but I know for a fact that with the money that you earn as a chef will not make me financially independent later on in life, furthermore the hospitality industry does take a toll on your body/mind, whilst it's Ok for me now (age 23) I really do not want to be 40 years of age working 50-70 hours a week just to support my family and still only just breaking even.
Reasons to get into IP
#1, For my future, I have seen heaps of people that are just happy to just break even every week, that's not me. I want myself and my family to live comfortably#2, As food is my passion I want to have the backing to open a restaurant later on in life.
Where I'm at?
Live in Tasmania
I'm 23 years of age
I have about $5000 in savings, (currently putting away $400 p/w. Have a goal of reaching 10k by October).
I have no debt nor do I have a credit card (Can this work against me? as I have never had a loan so I don't have a credit rating?)
From the banking calculators online, I can borrow up to $144k on my salary over a 20 year period.
I have no backing from Family or friends.Outgoings
Rent $127 p/w
Car Rego annually + extras (tyres etc)
Phone $50 p/m
Internet $60 p/m
Allow myself $100 p/w for other things.ideas
Well I have thought about heading to the mines as a chef for a couple of years, while this is a good idea it is really difficult to get a job without having a contact in the mines. The money would be almost double what I'm on now (from what I'm told and looked into) and would be a pretty decent deposit.Save as much as I can over the next year or so, research and read, Talk to financial advisors over the next few months.
Anyways now you have a little info about me any ideas, tips and thoughts would be amazing, because at the moment I have no idea where to start.
Cheers.
Hi I would be happy to send you some complementary reports on investment hot spots written by some pretty savvy researchers. Feel free to shoot me an e-mail.
Hi Tony19,
No credit history shouldn’t be a big deal. As long as you have a good deposit and a steady income, you should be able to get approval from the bank for a mortgage.
Now with respect to where to start, you’re on the right track. You’ve already thought about investment and owning your own business as the means to your financial freedom. Saving in the short term for your property will be critical. Have you prepared a budget? If not, try the NAB Budget Planner – I’ve found it pretty good (http://www.nab.com.au/wps/wcm/connect/nab/nab/home/personal_finance/1/4/102/1). A budget is critical. I think working for a Mining Company as a chef is a good idea if you’re willing to make the sacrifices for the higher income.
Another good starting point is to read Robert Kioyasaki’s Rich Dad Poor Dad. The biggest take away is the concept of positive cash flow and the difference between having money work for you as opposed to you working for money. Whilst Robert Kiyosaki is referring to the US Property Market in his book, the book is still very motivating and he does explain some very complicated concepts very well.
From there, continuously educate yourself. There’s plenty of good property investment books at your local book store. Become familiar with the tax laws. Start talking to real estate agents and get on their mailing list so you’re front of mind if there’s ever any good investment opportunities.
Take advantage of online resources like this forum etc.
Overtime, with experience and learning, the pieces of the puzzle will fall into place.
Good luck and let me know if you need any further advice.
Cheers,
JaseThanks guys, appreciated for the responses
Looks like you are on the right track. Having saved $5,000 is already a step in the right direction. If the banks will only lend you $144k then you have to start looking for something that you can buy for $144k. You almost have your 5% deposit saved so you could start looking at buying a property this year if you really wanted to.
$144k isn't a lot when it comes to investing in property. If you lived in Sydney you wouldn't be able to buy a one bedroom unit. But the fact that you live in Tasmania may prove as a plus for you.
Are there any good rural centres in Tasmania where you can get a good property within your price range? Are there any positive cash flow properties around where you live?
Maybe you should think about buying a place that you can add value to through renovation or street appeal. That way you can grow your $5000-$10000 deposit by creating equity.
Robert Kiyosaki always suggests that you should start small and make mistakes on your small deals (because you won't lose as much money) before you move on to bigger deals. So maybe you should just think about starting small??
Ryan McLean | On Property
http://onproperty.com.au
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