Hi.
I'm looking to get started in property investing (duh!) but have absolutely no idea what to do next. Now let me give you a bit of background; I'm 23, I've read a multitude of property investing books (including "0 to 130 Properties in 3.5 years") as well as other numerous investing guides. The problem is I'm still at a loss as to how to go about it all.
I'm also newly graduated from Uni and awaiting more significant employment so beside my part-time position, finance is tight at the moment. I have managed to save a modest sum of $15k and wish to break into property.
I would appreciate any advice (especially from the old hands). I have scouted a few cheaper properties around (one of which I believe would make a nice positively geared property if my maths serves me well) and was wanting to know if it is just a case of jumping in the deep end and having a crack.
Would this be wise or would I be better off sticking my cash in a term deposit or other means of investment?
Would love to hear some views on this.
Cheers,
Matt
Hi Matt,
I wouldn't be frustrated with your 'predicament' if I were you.
You have saved $15K as a student and secondly at the age of 23 you are already looking to make investment decisions for your future.
Both of these are big achievements in themselves so recognise you are a long way ahead of others at the same age.
As a starting point work out what you want achieve with property. Are you looking to invest for growth or cash flow or a combination of both?
Ideally both. I would have to say though that I would like to ultimately end up with a large portfolio of cashflow positive investments.
Ideally I would like to secure multiple properties sooner rather then late (don't we all) so I've been thinking about following a "buy-lease-refinance-buy" type of model (with a few value adding endeavours for good mix).
Residential to start, commercial (and industrial?) towards the end. So in short, cashflow mainly with a few growth properties to diversify.
Sound like a plan??
Hi Matt
Welcome aboard.
Sounds like you're off to a good start on the IP education front.
Now it's just about receiving an income so you can show a lender that you can service a debt. Depending on the anticipated purchase price of your first property, you may need to also save some more cash for the deposit/costs.
In the mean time, I'd continue to read widely and get amongst forums like this one. I'd also start to look at properties so you can get a feel for what to look for when you're ready to take the leap and purchase your first one.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
"I'm also newly graduated from Uni and awaiting more significant employment so beside my part-time position, finance is tight at the moment. I have managed to save a modest sum of $15k and wish to break into property."
$15k with a uni degree at the age of 23 is hardly modest! You're being too hard on yourself!
Yes, $15k is not likely to be enough to get started in property just yet, but the first one is the hardest in my experience.
In my experience getting full time work was key to starting. Getting pay rises but not increasing my spending habits by as much.
Also joining forces with a partner can help you start. I purchased my first property with a close friend (which is not without it's dangers, though perhaps not as dangerous as never starting?) and continue to invest with my partner today.
I remember it being very hard to stay motivated to learn and research deals whilst not having the means to actually execute them. However, I believe this pays off and helps you start to identify the good, bad & ugly deals.
Keep hustling and don't forget to give yourself a pat on the back now and again for all you've achieved thus far:)
MatthewJP wrote:and was wanting to know if it is just a case of jumping in the deep end and having a crack.I believe it is. There's no better way to learn than by having a crack, and who knows, you might even have some success.
I bought my first property 2 years ago at 24 with only about 15k thanks to FHOG and stamp duty concessions, and although its not the greatest performing property on the planet, I haven't looked back since and now have 3, each one I buy is better than the last and I've learnt heaps.
Get involved.
Hi Matthew,
It slightly depends on the areas you are looking and also the type of property you are looking to purchase (unit vs house). Think about your long term strategy, e.g. when do you want to purchase your 2nd IP and how will the first IP help? Will it help cashflow or capital growth?
With a $15k deposit – you will be looking at a purchase of around $180k (depending on which state you are in and whether or not you will be eligible for any grants).
What types of properties are you looking at? Unit or house? Also what areas have you been looking?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
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