Just Starting Over

http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Save $100 at 5% for 30 years

Or delay 5 years

Save $100 for 5% for 25 years

Notice the difference?

It’s massive.

Now, knowing when you borrow money for a house that your $20,000 deposit can be $200,000 enter $200,000 for 30 years at 5%

Have I convinced you?

Everyone feels afraid at the start. I listed here so everyone can learn from your question. Totally normal.

This is just the beginning. Keep asking. Keep learning. You can do it.

WTR

welcome maycefactor, good questions…

Buffers are a great idea, and the size of them depends on your SANF (sleep at night factor) many people use multiples of time, such as “what if my property was vacant for 6 months”, or “what if I was out of work for 3 months” the work out what you need to keep the ship from sinking. I advocate basic percentage if you are just doing quick calcs – such as 5% of total debt (or 10%) for the more conservative. Just put in in an offset or redraw somewhere and leave it there in case.

Regarding costs – I generally find purchasing costs to be in the 4 – 5% range (being conservative) when you include stamp duty, solicitors, borrowing costs etc.

Independence is important, but remember everyone in the property industry gets paid somehow. For example I am an independent buyers agent meaning I am paid by the buyer only, no other commissions or kickbacks and I act only in my clients interest. My business lives or dies by my working to get my client the best deal possible each time. Brokers are more independent than banks as they get paid across the board so can often get you better loan products than your local branch manager but they still get paid. Jamie M above is one of the good ones in broking (and no I don’t get paid to say that) Solicitors act for you but also charge. etc etc. Knowledge is important, and there is a wealth of it in the forums, so enjoy your reading time! Its important to build a quality team to help you progress in real estate, so check out references etc to make sure whoever you choose is trustworthy and then leverage as much of their experience as you can. This will speed things up rather than having to know everything about everything all the time.