All Topics / Help Needed! / 19 year old, whats my next step?

Viewing 16 posts - 1 through 16 (of 16 total)
  • Profile photo of dammitdammit
    Member
    @dammit
    Join Date: 2005
    Post Count: 43

    Hi all,

    I have a few questions,

    Currently I have almost $6,000 in savings, and I am looking at increasing my net worth through investing. Being relatively new to the world of investments I have been reading lots and thinking lots about which way to go. I am only 19 years old so I am still working out goals etc, but am just looking at getting started so I have a few questions if anyone has any info to help me.

    With this $6,000, at the moment $2000 is in a 3 month term deposit @ approx. 5.25%pa interest, which matures soon. The other $4000 is in a HSBC savings account earning 4.75%pa interest.

    The institute in which the $2000 term deposit is invested (a Credit Union) is now offering 6%pa interest on a 6month term deposit with minimum of $5,000.00. I know its not much more but it would be a little.

    Am I better off putting $5000 into this (would like a bit ‘free’ in case of emergency) or should I be looking at investing in other things?

    Being only 19 I am a bit scared to risk it on the stockmarket as i know nothing about it, and right now I dont want to risk losing money so thats why I have it in a bank. I am wondering if there are any other low-risk ways of getting a better return on my cash? Or is this about as good as it gets?

    Also, being able to utilize my FHOG, I would almost have access to $13,000.00 which may almost be enough to purchase a very cheap investment property in a rural area. At the moment I earn only $35,000pa gross so I would need my parents to go as a guarantor on this purchase if i decided to buy a property. I would need a +CF property at the moment because my income is low and I cannot afford to pay money out every month. We would be able to live in the property for 6 months to qualify for FHOG.

    Currently I rent @ $310/week in canberra [my partner pays half the rent], and will be looking to purchase a home within the next few years, I am thinking if I own an I.P. i will be able to use the equity in that to secure the loan for our first home (which my partner could use her FHOG for?).

    Can someone give me some advice on what I should be doing at the moment, or should I just sit back and keep saving for now and wait until I am in a more ‘comfortable’ financial situation to invest?

    Thanks for your help! and I appreciate any advice/guideance.

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231

    dammit

    sounds like you are very logical for a 19 year old.

    Where to start????

    There are lots of options in real estate investing.
    buy and hold
    flips
    commercial property
    renovating
    etc etc

    I would suggest keep reading, educate yourself on the market and keep saving.

    If you are well educated, you will be able to spot an opportunity in a few minutes and also have the money to buy it.

    We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
    [email protected]
    phone 0412 437 582

    Profile photo of Barts78Barts78
    Participant
    @barts78
    Join Date: 2005
    Post Count: 35

    Hey mate.

    First of all… Relax and breathe in deep. You seem to be in a rush all of a sudden.

    You have tried pretty much all of the low risk options already.

    Your next step would probably be a manage fund, i.e. perpetual.

    M.F is ideal for people new to the stock market game. Current history indicates around an ave. of 10% return. Depend what type of fund. Organise and Automatic investment plan of around 10% of your wage for a min of 5 yrs.

    Hopefully buy then you will have enough money to play with in real estate! Or take a risk and invest in Steve’s books on how to invest in property. Well worth the investment.

    Try out his seminars. They will make things a little easier.

    Good luck and don’t forget to live a little!!

    Profile photo of dammitdammit
    Member
    @dammit
    Join Date: 2005
    Post Count: 43

    What about the Listed Property Trusts? Are they worthwhile or are they focussed on long-term gains? (At the moment I am probably after more short-term gains as I dont want these funds locked away for a long period)?

    I hope to have purchased my first IP within the next 2 years so I dont know if a 5year M.F. strategy would be ideal??

    Thanks for your input. =)

    Profile photo of wealth4life.comwealth4life.com
    Member
    @wealth4life.com
    Join Date: 2003
    Post Count: 1,248

    Hi dammit great to see you have started, when i was 19 i owned my first property and was doing an apprentiship as an electricion.

    Today i am a property developer and have just secured another subdivision in Crestmead QLD

    My suggestion – work hard save more money and put a 25% deposit on a property within 5km of BNE cbd, buy cheap renovate add value keep and repeat …

    Phil

    Profile photo of Barts78Barts78
    Participant
    @barts78
    Join Date: 2005
    Post Count: 35

    Nice one phil. : )

    Profile photo of jparsonsjparsons
    Member
    @jparsons
    Join Date: 2005
    Post Count: 91

    Hehe, sorry bit off topic, but Phil(resiwealth), I was pretty much the same, bought my first place when I was an electrical apprentice, had just turned twenty. good one. And you are now a property developer, well done on securing your news subdivision! I’m 23 now, I have started my own business- below, and am still renovating too! Love it.

    Dammit!- into it! As Phil said work hard and knowledge is power – is my input. Maybe you should consider long term, well at least until the next good cycle in the market. You are young in age, therefore if you are well postioned for the next couple increases in property value where you are, thats great $$$ for you. Be patient my friend, the good things will come.

    All the best

    Jarrod.

    http://www.jenterprisegroup.com.au
    data-security-communications-entertainment systems<- home networking and home theatres- talk to me first!!
    *Technology Consultants*
    Brisbane.Gold coast.Sunshine coast

    Profile photo of jamieljamiel
    Member
    @jamiel
    Join Date: 2003
    Post Count: 2

    good go for it. I invested 3000 in auniy in perth 3 yeras agoi. I am worth 1,0000 now how? jam

    Profile photo of AbbyAbby
    Participant
    @abby
    Join Date: 2004
    Post Count: 42

    Hi Dammit
    ING currently offer 5.40% for daily savings, no fees, money always available, no minimum…. I don’t like the thought of my money being locked away from me for 6 months.
    My 18 yr old son recently paid cash for his first car ($5k) and now has saved $3k in ING. To (hopefully) accelerate his returns I’ve been looking into managed funds.
    Me being a real estate junkie, I have just sent away for a prospectus from Navrainvest (closes 16th Sep) after reading about them on the forum boards here. Info on their philosophy and their excellent performance/returns so far, are available at their website http://www.navrainvest.com.au
    Good on you for your efforts so far. You are working ‘smarter’ at getting ahead financially. Don’t forget to stop and smell the roses occasionally.
    cheers
    Abby

    Profile photo of wealth4life.comwealth4life.com
    Member
    @wealth4life.com
    Join Date: 2003
    Post Count: 1,248

    Hi Dammit … a bit more from me …

    I have designed a goals coaching program (over 60 pages) if u email me i will send one to you, i only ask that you do not send it on with out my permission.

    Setting clear goals will get you to where you want to be sooner …

    [email protected]

    Profile photo of powmowpowmow
    Member
    @powmow
    Join Date: 2003
    Post Count: 91

    hey phil,

    if if you wouldnt mind, i would be greatly appreciative if you could also send me a copy. i have e-mailed you so if you get time that would be fantastic.

    thanks
    powmow

    Profile photo of Don NicolussiDon Nicolussi
    Participant
    @don
    Join Date: 2005
    Post Count: 1,086

    Hi Dammit,

    I bought my first IP at 20 and you are right, the equity will/should help you buy a PROP at a later stage.

    When your other friends are just starting to save for deposits you should be well on your way.

    At 19 the most important thing I can think of for you is to have an investing plan that is flexible enough to fit in with your other life plans.

    Be agressive but don’t go over the top. If your goals are not realistic there is no way you will stick to them.

    Be deliberate with your record keeping and make sure you and your partner speak about and structure your investments to account for your contribution. Seek professional advice in relation to this.

    Going out on a limb here but I think you could easily aim at buying one IP per year. This was my goal when investing was a hobbie for me during my twenties (was also single back then and had plenty of other distractions in my life as we all did and you will have) This is not a very aggressive strategy but if you set yourself that goal you won’t go far wrong.

    Cheers

    [email protected] – Experienced investors living in NZ who can find properties to meet your needs! Email us to receive details of upcoming deals.
    Project management also available – finding solutions for problem properties! We can manage your renovation project for you.

    Don Nicolussi | Mortgage Broker - Home Loan Warehouse
    http://homeloanwarehouse.com.au
    Email Me | Phone Me

    "I think of finance as a technology, a way of getting things done." Robert Shiller

    Profile photo of powmowpowmow
    Member
    @powmow
    Join Date: 2003
    Post Count: 91

    phil i tried to email you a few times but it didn’t work.

    my e-mail is [email protected]

    if you wouldn’t mind sending it to me that would be great

    Profile photo of emcdonaldemcdonald
    Member
    @emcdonald
    Join Date: 2004
    Post Count: 162

    Hi dammit,

    Congrats on the great savings you’ve accumulated! Have you had a chance to read the Young Investors thread in the Tell A Tale section? It’d be great to hear a little bit more about how you got into investing…

    Best of luck with your endeavours!

    Cheers

    erin x

    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi dammit
    Have a read of my post in blue chip shares.
    Have a chat with a broker in your area and formulate a plan of where you want to be and then design the vehicle to get there.

    here to help

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    You should be able to get a good savings rate without locking your money up. try ING, Bankwest (were offering 6%) and Esanda.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

Viewing 16 posts - 1 through 16 (of 16 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.