How much will I need to start off!

hi diggo,

you are doing very well for a 16 year old. How much you need depends on the price of the property you want to buy usually around 20% deposit. Have you talked to any mortgage brokers? It may be worth scheduling a meeting with one and having a chat about what you need and what you are able to borrow. I’t wouldn’t cost you anything to talk with them.

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

How exactly does one get $2000 per month return investing online?

More stuff on the voigtstr at http://users.bigpond.net.au/voigtstr

Whooo….Hold on Diggo,

While I am in awe of what you have done to date at the tender age of 16, I can tell you that you do have to be 18 to buy a property. You can also talk to a solicitor about ways of buying a property that you inhert at 18 (a number of ways to do this).

Once you have established that, you need to be very careful where and what you buy. It’s like shares, buy a bad stock and you find there are no buyers when you come to sell, or it moves less than the market. You want a property that is liquid. When you put it on the market , it’s going to attract the largest number of buyers. So if for example, you bought a serviced appartment, and then tried later to sell it, you have excluded all those buying a property to live in and now only have investors looking. You want both, you don’t want to exclude anybody, so size, location, condition (or potential) are all important, regardless of the prize range or suburb.

If you plan to hold it for a long time, one small rule of thumb. If over the last 30 years, you added rents and capital gain together around Sydney (same applies more or less to all capital cities), you would have averaged around 10% pa return compounding.

What that means in English – the higher the rent, the less expected Capital gain. Sound a bit like the stock market?

Look at rent as dividends. Infact, rent returns are often refered to as Yields and calculated the same way the company yields are calculated. They are even quoted the same way, as a % return p.a on your investment.

Average rent returns around Sydney at the moment are 4%. Higher out West and less closer to the CBD. So you should get around $4,000 rent for your $100,000 investment, trouble is there is nothing around for $100,000 that you should even be considering as a first investment. I would suggest maybe spend around $250,000 and buy a 1 bedroom appartment around some of the inner west suburbs. Make sure it’s over 50m2 in living space.

It would be great to see where you are in 10 years? DOn’t loose that drive.

Yes Home Loans Pty Ltd

Is your mortgage advisor accredited with the “Non Bank Lender of the Year?”
(Money Magazine 2005).

Diggo, are you those figures correct, or is it 2000$ monthly from your job and 400$ from investments.
If they are truly correct sounds to me like you may not need to concern yourself with property at the moment. Perhaps you should concentrate on your current returns and increasing them.
Why the interest in property? are your current investments high risk?
Looking at the figures you probably only work 1 to 2 days a week. and gross 28800 annually, thats brilliant for 16.

Thomas

I believe you have to be 18 to participate in these activities. So I wouldnt be wanting to claim an ‘advertisement bonus’ for advertising on this forum if I were you gibbo, since you are only 16.

Goodluck with the property investing.

milly