Hi,
I’m 20 years old and Ever since I was 15 my dream was to become a property investor (for myself, not professionally) and retire early. I always planned on doing this on the side while working in another career but I’ve never known what that career might be. Anyway I just moved back home after leaving university on the Sunshine Coast (the course was wrong for me) home is in the Central west in NSW. I am thinking of going to university in Bathurst next year to study nursing, but my issue is that I am not sure I would be able to hold on to a property while at uni as I don’t know what sort of job I could have. I have around 13k in savings but dad wants me to spend that on a new car as my current car is about to break and I would need a reliable car to drive to Bathurst every day. So I feel like I’m at a crossroads. Do I put off owning my first property for four years while I go to uni (I was always planning on buying my first property at 18 so I’m already behind), do I spend my entire deposit savings plus more on a car or do I try to buy a property and hope for the best? I’m also wondering if it’s even worth buying a property in this market? Is there actually any money to be made? I feel like all the opportunity was 10+ years ago and I’ve missed the boat.
Thanks for reading and any insight you can offer!Hi Amie
$13k probably won’t quite be enough to acquire a property, but it’s a cracking start. Great job for saving such an amount by such a young age !
As to what career will inspire you is a question for you. None of us have any idea if nursing is the job for you.
In order to fund some property purchases you will indeed need a job, which may or may not require tertiary education.
The thing that stands out to me is this:
IF you decide to enrol at Bathurst uni… I am wondering if there is a more cost-efficient way of getting to uni each day than buying a car. Could you commute to uni on a bicycle/train combo? Or alternatively, would it be cheaper to rent a room in a sharehouse in Bathurst than it would be to buy and operate a car to commute each day from your parents’ house?
Second to this, have you looked into getting a part-time job that will help you cover your costs while at uni and hopefully a bit of cash to spare to continue your savings?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Amie,
I’m sure with the attitude you’ve got that an early retirement will be a given.
Here’s a few thoughts for you to contemplate
A car will depreciate and take quite a bit of your weekly cashflow to keep on the road. If you can come up with other alternatives you’ll be much better off.
Definately do not think that all the opportunities have passed, because that’s untrue. Investing in the past is impossible, as is investing in the future, the only time you CAN invest is NOW. There are opportunities everywhere, you just need to find them.
Because of your age you’ll be able to take full advantage of the 8th wonder of the civilised world – Compound Interest.
In short if you spend less than you earn and invest the difference you’ll get ahead. The greater the difference between earning and expenditure and the higher rate of return you achieve the quicker it’ll happen.The alternative is doing what many other young people do and live week to week using credit cards and expensive loans eventually just digging themselves in deeper and deeper. Try and stay out of that camp.
Hi Arnie,
Great comments from Jacqui and lauriek for you to consider. I think you are way ahead already with most 20 year olds not thinking with your winning attitude and goal in mind or having your substantial savings in hand.If you are not absolutely sure about nursing and you are just doing it to do something then maybe you should follow your passion for property. I did a Bachelor of Aviation Technology and got my commercial pilot license but i didn’t follow my passion which is also in property and ended up not achieving a career in aviation and am now an office worker with a years of life experience, a renovation done and renewed goal to be successful in property development. If i had a time machine…but anyway this is not about me.
How about getting a job working for a developer or real estate office or anything associated with property. You will certainly receive valuable lessons working with someone who will teach you what they know about property. I am sure your education in property from working there will be enough for you to make a more informed decision whenever you are ready. And i am sure you will come across inventive ways to buy property even without a full 20% deposit. ie: going into joint ventures, partnerships or even syndicates.
I am not an expert but if you believe you have it in you to retire young investing in property then you will succeed.
Good luck.Thanks everyone for your support, comments and advice. I’ve just gotten a job as a property manager in a real estate office so I will put going to university off for a few years. Hopefully this job will teach me all I need to know about property, giving me a leg up and also much needed funds. I can’t tell you how much your support has boosted my confidence in this dream, in a world where the people close to me keep telling me why I can’t, that it’s too risky, I’m too young or it’s a bad idea. I’m still trying to adjust to being an adult and when authority figures express doubt in my ideas I begin to doubt myself too. I’m thinking of going to Steve’s seminar- the more I can learn the better. Thanks again!
I’m sure you’ll get a lot of great experience working as a property manager.
I know exactly where you’re coming from where everybody close to you is telling you why you can’t. Here’s a little tip that was passed on to me that I ALWAYS follow now. If the person giving the advice has 6 investment proerties and loads of experience then listen to them, but if they have never had one (or had one and failed) then their advice is coming from ignorance and inexperience even though their intentions are to try and protect you.
I’d seriously recommend you go along to some of Steves events and meet other like minded people, they are definately a minority group within the population.
Hi Amie,
I couldn’t help but chime in to tell you one of my favourite recollections. It was about this bloke who was going to Uni to learn to be an Engineer. He also had a passion for Real Estate and was always looking for ways to make a bit of money in Real Estate. Well, it happened that he finally gained his degree, and started looking for jobs in Engineering.
What he found was that the pay that he would get for a year of work was about the same as he had already made for the year doing RE “deals”. He never did take the Engineering job (why would he? He was enjoying his RE jaunts too much, and they paid so well).
The bloke’s name is Dolf De Roos, and he tells that story (I think I have it about right) in the very early pages of his book “Real Estate Riches”. The rest of the book is filled with little ideas that make a lot of sense.
Fill your mind with books like that one, Steve’s ones, and other book recommendations from within the forum. The wealth of knowledge that can be gleaned because of authors like Steve and Dolf is awesome. And yeah, DO go to see Steve at one of those seminars – you won’t regret it.
Benny
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