Hi everyone,
I propably have one of those newby questions that everyone loves but hopefully there may be someone with some input anyways.
I am 25 currently working full-time on a wage of around $37k pa (not enough) and have around $13k in savings and live in VIC. I have read Steve's book 0-130properties and the new release 0-260 properties. They are both really informative but I am still looking for a little more in the way of personalized advice.
I dont have a house or any loans and i would like to start investing ASAP–be it residential or commercial, my main questions are,
1. Should i wait until I have more in the way of a deposit for investments? (I know that more money is always a good way but is it possible)?
2. Is it better as a general rule to buy residential or commercial– i know with commercial all the outgoings are paid by the tennant
3. In regards to loans, has anyone had good dealings with 1 bank in regards to rates and flexibility?Any help that you could give would be greatly appreciated
Thanks Dan
Hi Dan
You probably have enough to buy now if you were looking to go out into regional Vic or NSW and start off with something modest such as a small 2 bedroom unit in a small complex where your risk is also spread with a body corporate of a few other owners.
However, a good starting point might be to think about a few other questions first:<
-how long did it take you to save your $13K? (For example saving $13K a year might indicate what sort of loan/property running costs you could afford to comfortably meet)
-how much can you continue to save each week in a regular disciplined fashion?The answer to these questions might indicate how committed and financially prepared you are to service a loan (in the worst case scenario) of no rent or vacancy for a period of time. Without a diciplined savingshabit, it might be difficult to service any loan yet.<
There are several mortgage brokers on this forum who could probably help in terms of the "which lender to go with" question. I don't think that this is as relevant as the other questions I've posed.
I always think commercial would be something you might consider with more experience rather than as a first timer. However, with your funds you might be able to afford some storage units as a commercial investment.
Best of luck
Thanks for the reply Gary,
the info you advised is pretty much exactly what I was after. Savings wise I have always been not to bad at saving, in 4 months I have managed to scrape togethere about 5-6k in that time whilst having to pay for a fair few major expenses. The only other issue that I will be facing is the fact that I will be moving back to Japan with my girfriend by the end of the year so this will limit the amount of time I can actually spend getting out and checking out houses at actions and what not. After buying an investment I will be getting an agent to manage the day to day but how much input does it require in a physical/face-to-face sense.
This is probably a how long is a piece of string question but even just a general idea.Thanks again
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