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Hi guys, just wanted to put my 2c worth in particulary because I was in leewizza’s situation (early 20’s little money) six months ago. By the way this is my first property (yay). I don’t earn that much so I could only borrow somewhere around $150,000 + deposit. Houses deffinately cost more than that where I live.
So I used what in my opinion is the best source of creative finance for someone my age, my parents. I did all the ground work, found the house, dealt with building inspection, talked to brokers etc etc etc. My parents bought the house and I live in it. The plan was for me to do some renovations, painting etc. Sell the house, my parents would get their deposit back and I would have the CG for a deposit on a new place. Of course it didn’t work that way, we had only had the house a few weeks when my parents decided that they liked it and wanted to keep it *sigh*, so that plan was down the tubes. However my parents are happy to refinance.
My brother moved in, which was great because we had 3 incomes covering the mortgage so we all had plenty of spare income.
Its 5 months later now and due to work and me being a bit slack, I haven’t finished the renovations. However yesterday I decided to do a little looking around, I found four different properties worth looking closer at. One a block of land in a good position, two a cashflow nuetral flat, three a house selling below market value (owner selling), and four a house that needs renovation.
Dont just go to realestate.com.au or domain.com.au also check out owner.com.au and the individual realestate agents home pages eg prdnationwide.com.au etc.
These possible deals have inspired me to get back to it. Spent 3 + hours last night after work painting (I’m stuffed!!!!). Only need to paint the bedrooms + kitchen, and get tiling done and I’m finished.
I’m not sure if people will agree with me here, but I think if you are young and don’t have a lot of money you should be looking for houses that you can renovate and make money from. If I bought a CF+ property at the moment then I would not be able to afford a second IP until I have saved up (slowly!) a new deposit. Renovating and selling (hopefully
gives me enough money after a few renovations to buy multiple properties (one of them CF+).Some numbers on my current deal. The house I purchased was about 10K below lowest price in the area. It needs/needed 5K – 10K renovations to get it up to average. Prices have increased in the area and with the renovations we should come out of the deal 40K up. Worst case we come out 20K up, best case 70K.
Oh and I chose a house where I could do around half the reno myself to save money eg, painting, minor repairs etc, etc, etc. I am going to get proffessional help with tiling for this house but I plan on learning how to tile for the next one.
Anyway Just thought I’d explain what I am up to, I know it can be hard to start for someone my age but use your family thats what they are there for!!!!!
james
gives me enough money after a few renovations to buy multiple properties (one of them CF+).
