starting out

Dont take advise from ppl who gain from you making a purchase, such as brojers, real estate agents, magazines extra.
These ppl make money from selling you things, not from investing.

Dont listen to baby boomers, neighbours, ppl at bbq or the person working behind the counter at your fav local shop.

Don’t by anything emotionally

Don’t by negative geared property

Don’t by positive geared 200 year old property in the middle of no where

By bargin good valued high yeilding property in smart areas with the cheapest finance possible at the highest lvg

Wait your turn and don’t get greedy when you see others appear to make money on spectulative buying

I belive there will be some great deals on the market in the mid term future when this current property bubble pops

Ohhh and I almost forgot lol, don’t by property on the expectation of capital gains

Ahh then you have four years to refine your saving skills, and also to identify stellar properties.  Here are few suggestions:

You could spend some of your weekends educating yourselves on things like:

– What kind of properties offer you more for less?  For instance, is there a massive loungeroom that could have a piece sliced off it to create another bedroom?  The cost of adding a wall might be say, $1k-$2k, whereas the cost of buying a house with the additional bedroom ready-made is more in the order of $40k.

– What kind of things can you see that you could do to improve the property?  eg does it need a whole new kitchen?  or would simply changing the handles on the cupboards and doors suffice?  Or perhaps keeping the carcass and changing the doors and handles?

– What sorts of things are prevalent in your chosen area that are likely to cost you a heap of money? eg is it an older area where the houses are all on old stumps?  Upskill on the cost of things such as restumping and re-roofing so you can look at a property and say to yourself "bang, right there – that's gonna cost me $5k".  such costs can be included in your reasons for your offer on a property.  eg "I know you want $400k, but I know restumping is required and that will cost $10k so I offer you $390k".

– Are there parts of town where the blocksizes are bigger, offering opportunity to subdivide and sell the backyard?  Take a visit to council and ask to see the zoning maps and have someone explain block size minimums to you.  Realise that the zoning and min block sizes might change during the next four years.

– Help some mates out with their renos.  It will give you a bit of experience in a few bits and pieces and give you the confidence to look at something and say "yeah I can see it needs this and that but I know how to do that and I know where to buy the hardware from, and the task will take me only 3 weekends".  You'll also be able to look at an ugly or dated room and look past it to say "yes this room is awful, but I know that if I paint it white, change the window coverings, the door handles and the lightfittings, it'll be just lovely".

– spend a bunch of weekends in the hardware store to understand what you can buy there, and what things cost.  it does sound stupid, but it is handy to know for eg, "well a solid new chrome doorhandle will cost me $25" for instance.

– visit free DIY sessions at your local hardware store.  watch "how to" videos on youtube.  You'd be surprised how much you can learn!

just a few things to get you thinking.  good luck!

Hi Stephen and Katrina

Welcome to the forum.

I like this idea. You'll receive the FHOG and potentially concessionary stamp duty (depending on the state in which you purchase). You also receive the non-monetary benefits of home ownership – such as stability.

If you buy something that you can add value to – you may be in a position to tap into this equity sooner, and purchase your first first IP shortly after (it obviously depends on your borrowing capacity as well). As you said – you simply repeat the process (which becomes easier as you become more familiar with whole concept).

Have you considered using a smaller deposit and taking out a 95% loan so you can get into the market sooner? It will incur some hefty mortgage insurance (which can be added to the loan) but at least you'll be in the game sooner and the general consensus is that right now is a "buyers" market.

Best of luck.

Jamie

Well just think about it for a second, Do you think a real estate agent showing you through a particular property is going to tell you what a bad buy it is ?

Do you think a finance broker is going to try and convince someone not to get a loan ?

Can you provide reasons as to why an Investor would want to take particular "Investing" advice from either a broker or real estate agent ?

Now don't confuse tailored advice concerning your profession with advice on investing before you answer my question

Sure – that's where there's been a misunderstanding. If the person organising the finance was also trying to spruik a property I'd be running for the hills.

Cheers

Jamie