hi all i’m only 19 and dont know a whole lot about anything really..
i recently went to a free seminar about investing in property and i’m keen to start while i’m young. My 18 year old brother is also interested and we want to by an investment property together (while we live at home and scab of the olds for a while longer).
we dont have much capital together as we have both just wasted a shirt load of money on brand new cars. together we have about $500-$700 a week to invest and no properties to use as equaty, i’d figure its a bit tricky to buy an investment property with out even having our own homes??
an old run down (but livable) house in our area is only like $70,000 would we be better of starting to rent out something like that to the local uni students (simular house’s currently rent at about $130 a week)or jumbing in the deepend and getting a newer bigger house in the city to rent out to a family or somthing?
is it posible to -gear without owning or paying of your own home?
and what are some good tips u could give me that u’d all do if u’s could have your time again?
Tips – be nice to your mum and get a good education.
No – I’m not being smart.
Be nice to your Mum because maybe she will let you use her equity to give you that headstart.
And get a good education so you know what you are doing.
That is what I would do if I was 18 again – in property anyway – GIRLS – now that’s another story.
Petters
thanx guys, i am nice to my mother for her to give me equity what exatcly does that involve??
i cant remember exactly who the talk was conducted by but it was paid by a lending giant.. talk people into buying homes..
then lend them the money… not a bad con i say..ps. the car gets the girls
lolHi neologism,
Do either you or your brother have a full/part time job? If you both live with parents, could you sell one car and share the other? The saving on rego and general maintenance on a vehicle (a real money pit) might help you save up to buy without needing anyone else’s help. I promise you girls can walk! [
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Your savings seem great. At $500 p/w you could have $26K in one year! This 70K property, you could you buy it with 1k deposit down, long settlement, do a tidy up or little reno, and rent it out or sell it once you’ve improved the property?
At some stage you could revalue it and use the capital growth to leverage with and purchase another property.
Is this property likely to experience capital growth?Cheers
Sooshie [
]“Giving is a Blessing, receiving is the bonus”
thanx guys, i am nice to my mother for her to give me equity what exatcly does that involve??Basically home equity is the difference between the properties value and the mortgage value.
For example if a house is worth $200 000 and has a mortgage of $80 000 left, the equity is $120 000 (200k-80k).This $120 000 can be re-drawn (lent out by a bank as a new mortgage) and used as deposits on other investments. Basically you can re-borrow some/all of that $120k and use it as the deposit for a new property..
Hope this is clear and answers everything…
Pete
…Beware of the dreamtakers…
yeah something like that was the plan.. but i dont know the finer points.. ya see show’s on TV and hear ppl talk’n about it.. but ya never get an in depth insight on how to do it.. property has gone up a fair bit over the last 5 years but before that it was no good because of everything gett’n privatised.. my dad got 2 houses when everyone was selling and made about 60% on each house… but he doesnt really no that much.. was just lucky!!!!
Surely you both qualify for the fhog? One loan each with $7k dep from fhog, will get you 2 houses, then you have some bargaining power with the banks when you team up the 2, and have an investment syndicate with excellent disposable income!! Go guys[^]
Hilary – my understanding is that the FHOG is only avaliable on a property if its your principal place of residence – it can’t be used for an invetment property…
Pete
…Beware of the dreamtakers…
Hilary – my understanding is that the FHOG is only avaliable on a property if its your principal place of residence – it can’t be used for an invetment property…Pete
…Beware of the dreamtakers…
Congrats to you guys starting to get your thinking caps on. The FHOG is only available if you occupy the home as your principal place of residence within twelve months!!. So why not buy one as your home and the other as the investment.
the FHOG could cover a lot of your costs. Some lenders will even give you 100% with some saving history for an owner occupier, but be very careful and do the numbers.
lol
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