Age 23 First time buyer/investor

Hi Steven

Well done for saving a deposit at such a young age – and what a great opportunity to get in the market while your overheads are low (still living at home with parents).

We might be able to comment a bit more if we understood how much deposit you’ve saved, and roughly what your salary is.

Gday @steven-b

I was 23 when I bought my first. The unit vs house question can be a bit irrelevant. As Corey said its about setting your goals, then taking steps to move towards them.

My first property (many yrs ago!) was a 2 bed townhouse in Brissy for 65k, but it had renovation upside potential and a desperate vendor. The combo meant within 6 months I could refinance it and buy a 3 bed brick home in the same area. Another renovation on that 2nd property meant a 3rd property after another 6 months. Holding 3 properties through the last cycle up there was what got me my start, it funded my wife and I having kids (with her no having to work for 9 yrs) and bought us a block of land to build our house upon. I could not have done any of that on the salary I was on at the time as a social worker. These were my stage 1 goals, mainly family related. These days I am looking at development sites for short term equity deals and long term cashflow deals as I am moving from my initial goals to my long term income replication goals.

So what you buy is really important, but not as simple as a unit vs a house. Location is also a big deal, are you thinking Sydney? I has had a lot of growth in the last few yrs.

Hi Steven ,

Mate the other guys have given some good points.
I would look at some of these things;

1)What are yr goals
(ie-are you trying to reduce working hours?Trying to buy a house to live in eventually?
What is your level of risk ? etc)
2)What are your gifts and abilities?(what are you good at/enjoy?)
(then you can work out what strategy will work for you)
3) learn as much as you can from those who are doing it/(more experienced)
4) Get some help planning a strategy; including a risk management,finance and protection strategy,

But at the end of the day if yr like most of us who learn through doing it
i would give 6 tips for a low risk startegy starting out;

Buy something under median price (for middle range product)at lower end of market price range)
That is under market value
That has an opportunity for you to add easy value(eg paint ,extra wall for bedroom etc)at low cost)
That covers its costs through rent once rented
In an area that has capitol growth potential,
then refinance (making sure you keep the property costs at neutral or positive)
and
go again

Get the right agent. A good agent can relieve some of the stress of house hunting. Get recommendations from friends and co-workers in your area. Don’t just let the listing agent on a house represent you both, as his fiduciary responsibility is to the seller. Interview a couple of agents to find the right chemistry and look over their record of sales in the past year. Once you have found somebody you like, make sure she is willing to communicate with you in the form you want (email, phone, text, etc.) and as often as you want.

Hi Steven, like others have mentioned, property is just a vehicle to achieve your goals. You need to work out a strategy so you know how property and what type of property can help you reach your goals. A good buyers agent or property mentor will be able to assist you here.

I own houses, duplexes, villas and units and they all have a place in my portfolio.

Well done on having a deposit at your age. Good luck

Here’s some inspiration for you @steven-b :-)

https://www.propertyinvesting.com/how-a-young-property-developer-is-making-hundreds-of-thousands-in-profits/

To expand on your idea, a common strategy used by a lot of my clients is to do small renovations on cash flow neutral/positive properties, draw out the equity from the increased value to buy another, rinse and repeat. Eventually you build a sizeable portfolio which has positive cash flow. Allow rental increases over time to grow you a healthy passive income (which can be aided by debt reduction/partial sell down at the consolidation or retirement phase).

The best way to build wealth is through residential property investments. My sources tell me that rental properties are now in demand in Perinth. I suggest you get a great local agent who specialises in residential investment properties. This is the best time for you to start! http://www.focuspropertymanagement.com.au