Hi. I am new to this forum & was hoping some of you could give me some help & advice. I’ll take anything!
So I’ve been reading the forum here for the last hour or so and feel like I have learnt alot but at the same time wanted to ask some things more related to my circumstances.
I am 21 years old. At the start of next year (2006) I wish to get into the property market. By then I should have $30-35,000 saved. I work part time and earn $370 net.
My partner is also likely to want to invest with me, and he will have about $10,000 saved as he has only just begun to save recently. Combined we would have approx. $800 net income a week. We are both in no debt and are living at home so have very little expenses.
We are in Victoria and looking to buy a property on the Mornington Peninsula but are open to suggestions/advice if this would be a good idea. Seeing as we both have never brought a house, we will be eligible for the first home owners grant and are open to living in the house for the required 6 months before renting to receive the $7,000.
I would like to be able to buy the first house, and rent it after we have moved out after 6 months, and then with equity a bit later on and more savings buy another house to rent and so on.
I have a goal in my head to within the next 5-8 years hopefully profit $500,000 from these investments. Am I setting my goals too high and is this well out of reach and unreasonable or do you think this is possible and achievable with making the right choices. I’m not overly educated on real estate and such at the moment but have almost a year to learn before making the purchase and such.
Sorry about the long post and all but just wanted to post all the details so I could get accurate info. back from you more experienced folk and would be great if you could give me some tips/hints on what possibly to buy and look into as well as if my time frames and profits are way out of whack.
Thanks! Sarah.Sounds like a good plan.
Since you are both eligible for the FHOG, you may wish to consider buying one property in one name initially. This will enable you to get a another in your partners name later on with the grant – assuming you are not a defacto couple!
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for the reply, Terry. I am thinking maybe to not use the FHOG at all and not live in the house, so that we can use it a few years down the track on our own home, but if we do decide we need the grant then what you said is a tops idea, to just put the 1st house in one of our names. Cheers!
Hi Sarah, and welcome to the forum.
The FHOG in Victoria is currently $12.000 in total,
$7.000 courtesy of the Fed Govt. and a further $5.000 from the VIC Govt.However the $5.000 Victorian grant will finish in June this year, You may want to take this into consideration regarding your future plans, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Sarah,
I’d probably go the other way and say that over the 8 year time frame with the right technique and determined attitude, your 0.5MM target is probably a tad low.
Maybe sit down and map out a BHAG – Big Hairy Audacious Goal – and shoot for that…if you don’t achieve it, you may still get the HAG, AG or if it only comes together a little still get your G of 0.5MM.
My suggestion to the plan would be to flesh out the “and so on” a bit more. Yrs 6,7 and 8 is probably where all the action is going to take place.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Thanks all for your replise, I really appreciate your help and thoughts. Dazzling, I take onboard your advice and I will get to work on planning and mapping this out a bit more, I’ll write it all down so it’s not just thoughts in my head anymore. Do you (or anyone else) have any tips on what I should look for in a 1st property to get me started? Any particular areas or price ranges, etc.
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