I'm not an investor, I am wondering if there are a lot or few people who have literally built a portfolio starting with next to nothing, as is often advertised? How would you cover ongoing expenses and fees if you have put your small amount of savings into a deposit… it seems one must be incredibly investment savvy not to go under straight away? I would love to hear some success stories to boost my confidence, thanks
If you haven't got cash savings you can use super to invest in buy and holds.
You could also talk to people who may be able to invest with you, this isn't always a great strategy, but if you are really stuck, might be a way to get a foot on the ladder. You need to set a bunch of boundaries, and be careful.
Also start saving, or sell some stuff. Plenty of household items you never use, go eBay or sell at a market.
The savings part is huge though, and so many people never want to hear it, put some money aside each week or month, then start cutting costs. Keep a money diary, and see where it all goes.
Thankyou very much for your replies. I shall read Steve McKnights book again, and continue to save slowly, keeping my eyes and ears open to these ideas
thankyou Richard…which lenders would lend 100%? Are they banks? After watching 4 corners last weekend and seeing people's life savings being robbed off them by investment companies that then go bankrupt, it would be very hard to know who to trust, especially if they were to offer to lend such a high amount, immediately I would be concerned, I think. Perhaps it is just that I know too little to see the whole picture.
Richard, I would be most grateful if you could email me your API interview too – you have my address. I would be particularly I tested in the high LVR options, as my partner and I have pretty good serviceability, just not a lot of spare cash. A case of mi$-$pent youth!
I started a portfolio at quite a young a age with no savings and no security. The best advice i can give is work your ass off if you can get a second job or work longer hours. It may be horrible and limit your social life but I'd rather work 7 days a week now and not work at all in 10 years time. Work out your strategy whether buy and hold, flips or VF. If you know what you think will work best for you it'll make finding your target IP earlier. As for your question about covering costs might be a good idea to start with cashflow..
I think most of us have started with no savings or assistance.
Your first property is the biggest challenge, I started at the age of 21 only 7 years ago.
I worked two jobs plus I was studying at night.
7 years later my wife and I have our PPOR almo st paid off, our dividends from our shares cover our repayments and we have another ip which provides us with an income. We also invested in a Bussiness up and down like a yo yo lol
The biggest thing for us has been this, my wife and I have bouts of anxiety some times we both need to take time off from work My wife has had 4 months off and to be honest having investments has made life allot easier
Very encouraging to hear you started with no savings no security – what a leap of faith, your property must have been returning cash flow from day one? What is your port folio now?
I have been looking at relocatable houses, it seems that the 11 second rule can apply to a number of these, and some of them are quite decent and spacious inside, so that may be a first option, what do people think of this… is it wiser to start with actual property? What annoys me most is that you might buy a $110.000 house, and pay another 50 000+ in interest over 30 years…
Do you think it better to invest with a partner or by yourself? Obviously being married is great in respect to doubling income and opportunities. What is PPOR? I am glad that having investments has helped you in the harder times too. thanks for your post.
thankyou Richard…which lenders would lend 100%? Are they banks? After watching 4 corners last weekend and seeing people's life savings being robbed off them by investment companies that then go bankrupt, it would be very hard to know who to trust, especially if they were to offer to lend such a high amount, immediately I would be concerned, I think. Perhaps it is just that I know too little to see the whole picture.
I know of one bank which indirectly allows borrowing of 100%, or even more. But you would need some money to get started.
I wouldn’t worry about them stealing your money in this instance as it would be you who would be borrowing their money with the bank taking the risk.
I'm at 7 atm and soon to be 8 at first they were just cash flow neutral and then as rents rose and after some small renovations(using youtube to teach myself how to tile and put kitchens together) it increased the capital growth and rents. The importgant thing to do is work as hard as you can. I used to work 7 days a week and still try and get as many hours of work into a week as possible. I know its a drain on your social life which is something i had to sacrifice but i wanted to retire when i was 30 and I'm still plugging away at it. Just work out your straegy whether buy and hold, flips or renovations and do as much research on it.Once you know what your targeting you'll be amazed at how many great deals pop out.at you. I have a link to an article on how i started out if you would be interested in that. Good luck