You people all seem to know abit som3 interested in alot of your opinions with regards to my next move.
I am 21 y/o and have a property my first house a 2×1 70’s Villa 5 minutes from the Perth CBD. My property in the last few months has increased dramatically as i paid 132k and a renovated apartment in the same block sold for over 200k last weekend.
My plan of Action is with my review after march and a quick reno with the value build up and borrow against that and buy a 3×1 house on the outskirts of Perth for around 200k possibly more. This will put me into extreme dept but i believe that this area is about to explode from my research.
Just interested in what you people regard to my plan as my current goal in life is to be a property mogul and buy a 911 at some stage.
cheers.
Hi and welcome to the forums.
I congratulate you on starting so young.
Equity growth in property is an awesome way for you to leverage and build you property portfolio.You plan sounds like a great idea you have and I would say go for it.
ChrisAll post are IMHO.
this sounds like a great idea. Just be careful that you budget your reno and make sure you spend the money in the right areas within the property.
“It’s not how much money you make, It’s how you spend it that matters.”
Aspiring property developer
Giulio Taranto
Theres probably only a couple more years in this cycle to go in WA before it catches up to the median prices of the East. Its already caught up to Brissy and closing in on Melb (if not already) so you’d better hurry. Try to get your hands on some stock now and negotiate a long settlement if possible out to when ur flush with funds. Serviceability would be an issue though. IPs in Perth are getting increasingly negative to hold. However the outer rings with circa $200K house with block of dirt will c the most % increase if you can find any. Best of luck mate. Why a 911? Aim for a Lambo or Ferrari…
Sounds like a plan to me if you can handle the debt.
One thing l’ve learned about exploding suburbs , pick the nearest cheaper suburb and it’s pretty hard to go wrong !
Cheers.
Mkc
PS , but don’t forget to have some fun along the way your only young once.Hi there,
Best of luck with your plans…
I bet you know hundreds of ppl our age that are spending all they earn (if not more) on a day to day basis with nothing to show for it. Good on you. The only advice I can give is to keep your dreams in view 24/7. eg, keep a picture of that 911 on your desk, in your car, in your wallet and on your roof above your bed. Soon you will be able to taste it and that will make you want it more.
Keep those dreams close to you.
It’s good to hear of someone in a similar boat to myself though.
I too bought my home at 21 and now one year later the property is worth $300k and we owe $250k.
I would love anyone elses advice as to how to go about buying our next property and where to start. My wife and I both have great incomes so capacity isn’t an issue.
Everyone I seem to get advice from all talk as if us youngin’s have $$$ to invest. No liquid $$$ and little equity at the moment. Just a real keen attitude and willingness to learn.
Please any advice would be handy.LW
Hi LW,
I am not a broker however if you leverage yourselves to the max you may be able to purchase another property. This onviously would be subject to serviceability tests too.
Whether or not this is the correct course of action is largely up to you.
Have you considered spending 12 months pouring as much as possible into your own home to reduce your non-deductible debt first. If you do this via an offset account it also means that you can acess the funds should your world go pear shaped at some stage in the future.
While this may not be in keeping with your long term goals the benefits of establishing a solid base are significant and should not be underestimated.
I guess you didn’t want an oldie to say you have got time on your side but I do believe that this is one of your greatest assets. So use this (time) wisely and you will increase your chances of long term success.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by Carl.Alexander:This will put me into extreme dept but i believe that this area is about to explode from my research.
Hi Carl,
There is nothing wrong with your plans and all the best for them.
I have copied a comment you made in your original post that needs some thought on your part.
Yes – you will be taking on more debt. Yes – this can be daunting. Yes – you will need to meet the repayments.
But – this debt you are taking on is to purchase an appreciating asset and therefore is considerably more beneficial to you than debt for a depreciating asset. Bear in mind this debt will ADD to your net worth in one way or another and therefore needs to be considered a little differently to debt for a 911[bigeyes]
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958This is a reply for both guys who had questions.
Good on you for getting in young.
Im 19, own two properties, and trying to talk my friends into it, as some of them earn more than i do, and they just throw it away every week, but thats their choice. T
he benefits of starting young, are huge! I plan on getting lots more properties, enough for a passive income. I plan on retiring at 25, so that still gives me 6 years. ( not really retiring, but being financilly free so if i dont feel like going to work one day i wont have to.)
My soon to be boss has done it and more in under 3 years, so you have to believe that anything is possible i think. Thats the most important thing, like someone else said, get a feel for your desire to own property, and oppurtunities will be everywhere.
The best way ive found of acquiring more property is to look at different solutions, rather than just buy and hold or renovate and hold. While there is nothing wrong with this way of going about it, its a great method, being young, i am highly impatient, and i dont want to wait 10 years before i can buy another property!!!
Also, i will empathise with you, its hard to get people to take you seriously as an investor when your young, so just persist with people until they get it.
If youd like to know some possible other options for you, email me and tell me what your trying to do, i may be able to help you. Not as an advertising broker or developer, but as an investor, helping out fellow investors.Your boss sounds like a good person to be around Audrey..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculatornot usually a seller – but i reckon sell that one if it is your ppor. Bank the CASH. Don’t bother doing the reno in a hot hot market. You will get nearly as much for it unrenovated. Really !
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
[email protected]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
hi Carl.Alexander
nice start
couple of things I’m not in DLPP camp I would leverage off this property into your next.
just keep a couple of things to keep in mind there is nothing wrong with debt as long as the income to cover the debt is there and that equity is growing across your porfolio.
so if you have a negative property find some thing, comm, shares, invest as an equity partner in a business or similar as a posi when you have a balance portfolio then it will grow.
look out side the normal 3br in the middle of perth and at your age take a couple of risk usually higher risk = higher return.
check into one of the investor/ discussion groups in perth ( don’t pay anything if the guy on the door wants money or sign up ask to sit in to see if you like it and soak up as much information as possible)( and make sure you take a diary or note pad and write down as much as possible it makes great reference material)
make sure your structure is correct for this property.
if you have bought this property and are looking at buying other properties in a company structure,
then you have another company that operates your structure ( and you need to have a chat to an accountant, you will need one not now put later so line him up now usually the first consultaion is free, again take the diary or note pad first it is good for reference latter,
but second it makes you look alot more professional)this company owns the 911 as a company car and as you will be leasing it via a (novative lease) you can have the 911 and factor in its cost.
I personally wouldn’t get a 911until the portfollio was into the 3 mil range.
I would get involved with a couple of the younger group in any forum not sure at 44 if I will make the cut and do some small developments as duplex,10 unit developments etc and hold equity in the deals.
developing can be like nitro to a portfolio and just as nitro can send you down the street faster then the 911 if not handled correctly can blow up the car the same with a portfolio if managed well that 3 mil leveraged off your current property can well be achieved within 2 yearshere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
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