Hi,
How do I begin when I am trying to save for my first IP but am supporting myself and my unemployed boyfriend (besides get rid of the boyfriend[:p])? I have no assets besides a car probably worth $2,000, and no savings.[
]
I am desperate to get started as I am sick of spending dead money on rent but just can’t seem to get anywhere with a deposit.
What is the best method to getting started?[?]
Will I be able to get a loan?[?]
How do I go about it?[?]
AND how does the ‘nothing down’ strategy work and will I be able to do it?[?]
Please help a blonde understand…[:p]
Blondie.Newbie comin through!
Hi blondie_bec (no relation to Bec??)
It might be useful to focus on setting up sound money habits first, before you begin to invest. Some people can have 10 IP’s but have poor money habits which means they will never be accumulating, reinvesting and being good stewards of their money.
I recommend John Burley’s “Money Secrets of the Rich” book, (cheesy title but great book). It shows you how to lay the foundations of good money handling and then outlines how you put all those principles into practice with investing AFTER you’ve adopted those new habits. I can tell you it works because I follow it.
Brief examples. Never again use consumer debt, automatically invest 10% of your GROSS income before you even see it, (beginning with a savings account or managed fund until it’s big enough to put into something else), donate 10% of your gross income to charity (reap what you sow), use 10% of your gross income to add to the min pmts on any debt, live off the rest, never do negative gearing (make up your own mind here).
Cheers
skippygirl[]Skippygirl,
Why do you say ‘never do negative gearing’?? Is this a part of what John Burley is saying.
James
Hi blondie_bec,
I’m like you in never being able to save. Only in the last 3 months have I taken advise from several real estate/money type books (originating from Richest Man In Babylon I think) to pay myself first by transferring 10% of my wage into a separate account.
I honestly am yet to feel the effects of not having that money on hand. For me to do this is a minor miracle.[
]As far as getting a foot in the door, can your parents (or your boyfriends parents) help out with the deposit? That’s how I managed to get my first home because like you I hadn’t got it together.
Good luck and let us know how you go.
Black Jack,
I have approached my parents as they are the only one’s I know that are financial enough to help out. Unfortunately after having multiple conversations with my Mum about property investing she decided that her and my father would concentrate on paying of their own home then invest themselves…. so that kind of leaves me out of the loop! []
I am flying solo with this and don’t really want to get my bf involved as we have only been together approx 10 mths and I hate the thought of a messy problem with my IP’s if we splitsky and he wants his share…… not worth it.
From here I don’t know where to go as I know no-one who would be good for an investment partner hence my first problem of having little to deposit.[?]-Blondie
Newbie comin through!
Skippygirl,
I have done myself a detailed budget and am trying to stick to it, so I have in some way started to create some sort of money habit but unfortunately with training for my new job which involves travelling 5 hours from where I live and like I said supporting the boyfriend and myself, my pay tends to dwindle down to a few dollars each fortnight reagrdless of my budget. It is only early days for my budget, because I have just started and I will check out that book you advised….thanks.[
]-blondie[:p]
Newbie comin through!
Seeing as your parents are focussing on their own investment future, perhaps you could put a spin on your proposal!
You and your property can be their investment.
The deal I made with my parents was that the deposit they provide to make the purchase possible paid back to them on the sale of the property PLUS a percentage on that amount being the percentage of profit you make when you sell it. My parents are pretty tight when it comes to cash but it worked for me.
The fact that I don’t intend to sell the place anytime soon is something I chose not to mention. [}
] Meanwhile I used the equity on that place to purchase my current PPOR and, when available, will use future equity to buy another one.[
]Hi Blondie
Have a chat to one of the brokers on this forum who are experienced with non-conforming/no savings history lending, and who can do some sums for you.
As an example (if you were to be looking round the 200k mark) you could go for a 90% mortgage with 10% from a personal loan (plus FHOG). If the repayments are similar on both loans to what you’re paying in rent, why not do it?
At the same time, you have to be honest with yourself that you are disciplined enough to take on a mortgage, and i would recommend getting rid of all consumer debt first before looking this way.
We specialise in this form of lending if you want to chat, as I’m sure other brokers on this forum have access to this form of lending too. Keep educating yourself at the same time, and you will find that you will not need to ask these questions in the future.
Good Luck and hope this helps.
Brendon
Acute Mortgage Reductions
‘Better Finance for More Homes Sooner’
[email protected]Hi Bec
Are you really financially supporting your boyfriend? Unless he’s caring for your kids, I’d change that arrangement. Plenty of other good ideas have been mentioned in these replies.
Good luck
JudiJudi,
Yes I am supporting my boyfriend but only in the sense that I am paying for his half of everything…. fixed expenses such as rent I would have to pay regardless so as far as that goes he helps out as much as he can with food and stuff with what he gets from the government.
And don’t worry I am trying to change the situation….he slept on the couch the other night…[}] now he is extra pro-active when it comes to looking for jobs! (The couch must be REAL uncomfortable!![])-Blondie
Newbie comin through!
Blondie,
Speaking as a guy, i don’t think it was the uncomfortableness of the couch that he was worried about.Good luck to both of you
James
Couple of very, very scary thoughts.
Hate to mention this, but will anyway.
“as we have only been together approx 10 mths and I hate the thought of a messy problem with my IP’s if we splitsky and he wants his share…… not worth it.”
I hate to tell you this, but in the eyes of the law YOU ARE ALREADY MARRIED.! (i think defacto is only 3-4 months of living together is tantamount to marriage, and any property (not just RE, but businesses, tools, etc) will be deemed as being earnt in the “marriage”. Thus, if you do splitsky, he will get half of the increase in the value of the property! (Probably at his increased valuation)
Okay, now that you have had your first heart attack, now for the second. Whose name does it go in? Name on the title horror story one- happened to my ex landlord. His girlfriend of a few months got her name on the title, but not on the loan documents. How convenient. She was not liable for the debt, but able to claim half the gains on an inflated valuation. She threatened to sue, etc. Eventually, he got rid of the cow, but it cost him over 20 grand (and this is tasmanian prices of the mid 90’s). Remember blondie, you are already married.
Thirdly, this freeloader/husband/boyfriend. Sounds like hes on a good wicket, stay at home, good looking blond at work, can I hazard a guess to say that you usually cook for him, cause he says “your dinner tastes so much better than when I cook”. Hmmmmm, what to do? Why not have a rule that says that he works eight hours a day like (I assume) you do. He can do it flipping burgers, or voluntarily caring for the incontinent elderly at the local old folks home. Forget his crap about waiting for his real job, ANY job will do him (and you) the world of good.
Got to go now, my spleens leaking all over the puter.
BTW, can anyone think of how blondie could set up assets (maybe in a trust?), then personally guarrantour the loan, so in case of a splitsky, she wouldnt get screwed.
Originally posted by blondie_bec:Hi,
How do I begin when I am trying to save for my first IP but am supporting myself and my unemployed boyfriend (besides get rid of the boyfriend[:p])? I have no assets besides a car probably worth $2,000, and no savings.[]
I am desperate to get started as I am sick of spending dead money on rent but just can’t seem to get anywhere with a deposit.
What is the best method to getting started?[?]
Will I be able to get a loan?[?]
How do I go about it?[?]
AND how does the ‘nothing down’ strategy work and will I be able to do it?[?]
Please help a blonde understand…[:p]
Blondie.Hi blondie ,
How many jobs you/or your boy friends have done per day? My money and savings all from my hard working in my early stage, I take five year to save and do two jobs a day. then i made investment later. All my wealth not come from my parent, I want to solve my parent’s problem and I don’t want to them burden my problems. I told my kids same story. “Your work for yourself, not me!”Regards
Julain [
]THERE IS ALWAYS A BETTER WAY!
Eventhough your parent does not want to help you, but they still be able to be a guarantor for your purchase. This way you still be able borrow 100% for your purchase to start of.
Warm Regards
ChanDollars
[The bridge between where you are right now & where you want to be tomorrow is knowledge]Hi Blondie Bec,
ill tell you a little motivating story…
before anything happen, where i am or got today, i probably learnt the biggest lesson most people wont or ever will learn and that is how to fail.
what i mean is, before i got into property investing, i was at the very bottom, probably below the bottom. When i was much younger at around the age of 9 or so, my parents divorced leaving my mother on her own to bring up 3 children. my biological father, was a hard man and he gave me a hard up bringing, with him failure wasnt allowed and you had to be always number one in everything…
my parnets divorced, and i was that quick turn around kid, who went to many primary schools, end up repeating grade 2, as i couldnt speak english or understand the basic, i managed and went through high school, but by the time i had graduated high school i had gone to 5 different high schools, had failed at many of the schools, most subjects never interested me and the only subjects that i was good at were, business, economics and accounting, while at the same time, my mother only being a single parent and having to look after 3 kids, i had to go into the work force at a young age of 13 and almost since then till up till last year, have always been working either 6-7 days a week while doing full time study.
during this time, my mother had a close friend, who this man seem to act like a father role to me, taught me how to think rich and grow rich, he pretty much grew up in the same environment as me, and had failed school. he taught me how to get rich, and that even if i was failing at school it didnt mean i was gonna be poor or have no future, a few years ago he passed away, i always refer to him as my rich dad, (like in rich dad, poor dad).
today i know my rich dad, would be surprised at how far ive come in so little time, and the skills and knowledge that he passed on to me.
today most people dont know much about me at tafe, i havent changed in the way i act or think, i still only carry about $20 in wallet ever, i now have 3 diplomas and a further certification allowing me to teach, and currently now doing a double diploma in a complex level of accounting, but all back then while i was still in high school and struggle to keep up with the other students, i can guarantee you, most people would have thought i have little hope or chance for a future.
Those same people today, i see them struggling to get by and i do know, that they have little or no chance in bettering their situation or improving it.
Honestly really stay focus on your goals and dont give up, and keep persisting and dont ever let anyone ever hold you back…
With a little push in the right direction, and staying motivated, you will be able to achieve your goals.
Cheers,
sisHey SIS – good on you! And thanks for sharing your inspirational life story.
Sometimes, getting set back in life actually gives you the opportunity to build your financial foundations, because then you won’t be distracted by trying to climb to corporate ladder or getting along in your mundane job.
All the best, and don’t forget the One Minute Millionaire principle!
Cheers
EDIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
Thanks everyone for your advice and replys so far….[^]
Wrappack – Yes, I do cook dinner …..every night but I don’t think I would eat his cooking. He’s only cooked for me once and that was enough for me [8] and he knows that!!! Hehe. Plus I used to be a chef…..
I was actually wondering out about the whole defacto thing and wasn’t sure as to when we would be classified as being in a defacto relationship…..thanks for the warning, is there still a risk if my name is on absolutely everything?
As for him getting any job he was actually looking in to getting a job in a timber mill which is the one job he said he’d never do again…. so things are looking hopeful. I have to jump to his defence tho, it is hard getting a job where we live article in the paper today about it.Sis,
Thanks for your motivational story, I too have had a bit of a ruff trot in the past so know the value of working for what you want and also hangin in there when times are low. []
Don’t worry no-one is holding me back, I will just be leavin people behind!-Blondie[
]Newbie comin through!
Three years until you can claim anything thru a boken up relationship , marraige or anything.
Anything less then three years and he/she can make a cival claim for something like, if you decide to take of with his stereo.
Six months living together is an old thing of the past.
Least unless it’s different in different state, this is in Victoria.************************************
This seems to be about demographic arrangements.Hmmmmmmmmmmmmmmmmm……… I was under the impresion ( maybe mistaken ? ) that a de-facto relationship was classified as 6 months + of dwelling together in a relationship scenario.
Also if it came to the division of assets it was worked out on a pro-rata type basis of what was put into the deal ( here it gets tricky, as the non-working partner can show ‘value’ in housework, cooking, cleaning, even emotional support.. but the laws not a fool ( well..not always ) and if it’s evidenced that you’re supporting a free loader who wants part of what you’ve worked hard for, they wouldn’t get much..
However, start your savings now.. we’re all humans and need only the basics of – food, shelter and clothing[
]Go to your local library and take out some books.. Richest man in Babylon is a classic and in a very easy to read format
The journey of a thousand miles begins with a single step.. most of us try to do it a bit tougher now to enjoy the fruits of our labour later..
S.I.S
Thanks for a bit of background on yourself, and great to see you’re doing well
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
bec,
Save up for a deposit. And if you don’t respect your bf, then leave him. I am sure it’s easier to leave him than spending your time slagging him off on a property forum.
kay henry
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] Meanwhile I used the equity on that place to purchase my current PPOR and, when available, will use future equity to buy another one.
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