Hi All, I really love this forum for the great wealth of experience and advice given by its participants. Would love to “pick some brains” to see what advice you may be able to offer in our own situaton.
We live on the Gold Coast, Queensland. My husband and I have good income, both work full time. Annual salaries combined are approx. $110K. We have one child. We do not have any significant debt (including credit card debt – in fact do not even own one!!!), both motor vehicles are company cars so no expenses there either. However, we do not own our own home, we rent.
You may ask why we rent when we could well afford a home of our own. Actually, we rent for lifestyle. We live right on the beach in an apartment (absolute beachfront!!)and could not afford the type of property in which we live.
The problem is we want to get started investing in property NOW. I know we can (and are!!) save for a deposit, but as I said, we want to get started NOW (if anyone knows a way).
There is a lot of talk and info on “no money down” loans but that is mostly in relation to equity in one’s own home/assets. Is there any other way anyone knows to get started without having $10-20K in cash?
Any comments/advice would be appreciated.
Cheers,
OzHi there,
I might be mistaken, but if this is your first property, couldn’t you apply for the FHOG? I know it may take longer to get than in Victoria, and I believe it’s not for investment use, but creatively, I’m sure you could get this to help with your deposit? Someone who’s done this before might be able to help.
Cheers
Sooshie [
]There are no problems, only solutions
Thanks for the thought Sooshie, however, we previously owned a home back in 1991. Unfortunately due to a downturn in our business we were forced to sell. So, no cigar on that option I think.
Cheers,
OzHi,
Be sure to check out:
https://www.propertyinvesting.com/strategies/creativefinancing
There are many things you can do…
1. You could try to buy a cheapish property on a long settlement (6+ months) and then do some renovations in the meantime.
2. Wrap / lease-option a property.
3. Buy something, particularly a commercial property, and ask for vendor’s terms [
]Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Ozchick,
To me one of the most important prerequisites to investing in property is to have good money habits. You don’t seem to have this. Both yourself and husband are on $110k per annum with no debt tells me that. I understand that you chose to rent first instead of buying your home because of the lifestyle you are living, and yes that’s fine, but where is the rest of the money going? It seems to me that you don’t have $10k-$20k saved. A banks general criteria for DSR (Debt to Service Ratio) is around 30% for a couple, meaning that they believe couples can save at least 30% of their total income. Are you currently achieving this?
If I’m correct, then your solution would be first to address this money habit issue first.
Then you need to decide which way do you want to go.
What do you want to achieve?
Do you want to reduce some income tax?
Look at negative gearing perhaps.
If you do have good money habits but saving money is very difficult then look at some cashflow positive properties.
You have many options.Only you can decide what’s best for you, what you feel most comfortable with, once you have determined that, then you will know what strategy to implement.
Then we can help you with ideas.Regards,
Mannie.“It’s too late to go back and make a brand new start, but from today you make a brand new end”.
Mannie,
that would have to be the best advice i have heard on this forum “Good money habits”
FANTSTIC !! [
]Gordon Gekko
“Greed is good”
Gordon Gekko (Wall Street)Thanks for all your comments guys, I really appreciate it.
Steve, I will check out the site and the options mentioned.
Mannie, thanks for the reality check! Because we don’t have a credit card, we do save. In fact if we want anything at all we save for it. We have to!! And that includes overseas holidays etc. Its all done via saving and then paying/playing. I guess we have to now decide whether saving for an investment property takes priority over the next holiday or “whatever”.
Again, thanks to all for your feedback. This forum is awesome for its ability to give creative and practical advice without judgement.
Cheers,
OzHey Ozchick. I just had a thought that John Burley’s book may help you guys get it all in order. A good read and helpful to sort out priorities.
When next you are making the decision of now or later. Just imagine yourself being able to choose whenever you want to later on because of your sacrifice now. We are making that choice because I can see freedom down the tunnel. The time is not far away when I can choose to go on holidays when I want and where i want. That is freedom.
I strongly believe freedom is worth a little sacrifice. It really doesn’t hurt too much.Enjoy
AD [:0)]
(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinThanks AD, will check out the book.
What you say is absolutely true, a little sacrafice now for the freedom to do what you want later.
We also want to build a solid future for our son through property ownership.
Thanks again for the advice AD.
Cheers,
OzMaybe if you are really keen to get started now and not save the deposit which on a $300,000 property assuming you borrow 90% will be about $50,000 when you include costs you could borrow some equity off someone.
Parents are usually good with this and you have to make sure they are aware about how it works.
In a nut shell though if they have the equity and you have the income you can form a little partnership with them.
What you are doing, if you invest is actually called rational renting. As you stated it is cheaper to rent the house you want thena buy it. If you blow the money you are saving then you are making the rent money dead money. If you invest the money atht you are saving ten you are rational renting.
Petters
Excellent comments.
We are now starting to get onto our 7th property in just 2 years.
We earn a very good income and have one son, who I suspect is our largest expense.
We live very modestly but comfortable, because cashflow even with those properties don’t allow for extravaganzes, like o/seas trips, big screen Tv’s, fancy cars.
Our lifestyle is exactly as it was before we brought the properties.
At least we now have assettss and not fond memories and photos in the cupboard somewhere of that last overeas trip.
Hopefully, in about 5 years we will be retired.Hi regina:
7 properties in 2years thats great. I have been trying very hard for 2 years now but still dont seem to get any where near my 3rd property neither would the bank allow me that with my 60K salary. Just curious to know where all have you bought your properties that is in capital cities or country areas and whats your distributiona and cashflow situation. maybe i can do with some tips.-D-
Hey DJ,
Maybe it is worth putting down your purchase costs and rents and present values of the two you have. Through them out here and see what we can see !! Maybe give you some help.Enjoy
AD [:0)]
(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einstein.
Hi Ozchick,
This post looks similar to your situation:http://www.somersoft.com/forums/showthread.php?s=&threadid=8145
If this guy can do it, so should you:
http://66.111.38.199/forums/showthread.php?s=&threadid=7947
It’s a shame that you earn a decent income but don’t have any savings or assets.
I think you need to educate yourself by reading “the bible” called “More Wealth from Residential Property” written by Jan Somers.The fastest way to get where you want is to move out of your rental and rent a cheaper place while you save your heart out for the next 12 months. Put away 30% of your GROSS wage by automatic transfer every payday so you don’t see it.
Borrow as much as you can and negative gear – ideal on your income.
You should be doubling your wealth every 5-6 years if you do things correctly.hmm can i ask a question, what do u spend your money on!!?!?!?! how much is your rent and stuff???
i’m 19 and have been working just over a year and i have got a $30,000 car and just got my 1st IP!! and i make about a 1/3 of what u guys do!!
my lord with your pay packet i’d own the world!!
sorry if this sounds like i’m being a smart a$$ but seriously you could do ALOT! with that sort of money!
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