hi guys,
my name is brady and i am interested in property. im a little young but im very confident i can go places. the question i need answering is wether i should save up all my money now and ivest it in property and if so how would i start.ChEeRs! (brady)
Hi lil_man,
Let me just start by saying “you’re never too young” to start saving/investing”. I personally started buying property when I was 18 (trust me, a long long time ago now!!)
Alot will depend on how well you can save (or alternatively if you were to borrow, your ability to service the loan) and how much you gave managed to put together so far.
Either way, regardless of which way you decide to go, your positive outlook is a fine start; after all, you have to be happy!!
All the very best,
Jo
Keep saving and more importantly Keep learning!
It makes you smile when you find a deal with 40% C0CR!
With the right education that isn’t hard to find.Rgds.
Lucifer_auwhats COCR[confused2]? by the way it sounds it could be a great way to start off my investment future[biggrin]. just to save you the time and effort i only need a link or something which could tell me more?
cheers again, brady.[goatee]
lil man,
If there is one thing I have learnt investing, it is that it takes time to learn and do, so be patient. If you are old enough, without being reckless, find the right property to buy. You’ll learn way more by doing.
I would recommended reading a few books while you save your cash. Two goods ones (not just for property, but more for financial improvement) are ‘Rich Dad, Poor Dad’ by Robert Kiyosaki and ‘The Richest Man in Babylon’ by George Clason. You should be able to borrow both from your local library.
Good luck.
ambskunkPS COCR stands for cash-on-cash return. How much cash you get back from a cash investment.
C0CR = Cash On Cash Return
To me COCR is everything (I only buy CF+ properties).
COCR tells how profitable an investment will be for example:
~You have a $100 in the bank, you get $5 in interest, so your COCR is 5%.
~You buy a CF+ property, you put $5,000 down ($2,500 deposit and $2,500 in closing costs).
You get rent and after you’ve paid your mortgage repayments and all other costs (vacancy, insurance, etc) you come out with a profit of $2,500. This means your C0CR will be 50%.So the formula for C0CR is:
Cash In Deal divided by Profit(Do not confuse C0CR with yield (in my first bank deposit example, you could say the investment has a 5% yield). Yield does not take into account if you have borrowed any money to buy the investment.
The formula for the Yield:
Income Generated from the investment (rent or interest) divided by the purchase priceSo if you went by yield alone, my first example gives you a yield of 5%, and my 2nd example (the RE one) gives you a yield of 5%. But as you can see one is way more profitable than the other!
I suggest you pick up some Robert Kiyosaki Books (Rich Dad, Poor Dad, etc), and then go onto Dolf De Roos (Real Estate Riches). They have provided a strong foundation for me, and have allowed me to achieve 40% Plus on my investments – Not bad for less than $25 for a book!!!
PM me whenever you want.
Rgds.
Lucifer_auHi Brady,
The formula which Lucifer supplied, if you multiply the outcome of the division by 100 the result will be expressed as a percentage.
BTW how old are you ? Are you working already ?
Pisces
Thanks Pisces!
Rgds.
Lucife_auBanks love the ability to repay debt eg A Job.
I think lil man you should concentrate on this minor detail first of finishing yr schooling to acheive that job…(whilst saving along the way)
Unless you can do a deal with your folks to get something happenning whilst you are finishing school. That way you will have a massive headstart.
thanks guys for all your help you’ve all been great on this post and i can go out and save up and things will be great.[thumbsupanim]
i have another post in the finance page called underage investing its based on the statement by superted
Thanks Again you guys.
brady[wink2]Originally posted by lil_man:thanks guys for all your help you’ve all been great on this post and i can go out and save up and things will be great.[thumbsupanim]
i have another post in the finance page called underage investing its based on the statement by superted
Thanks Again you guys.
brady[wink2]Ohh one warning. When i was a teenager I had a problem that effects many teenagers and is still a problem for me today. Doing up cars and/or just buying the things..they can waste many valuable dollars better spent elsewhere..then you discover boats and cars become small fry.
Dont fall into the car trap it will put you so far behind it isnt funny.
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