Hi i'm 14 years old and i would like to know how i would go about buying a house by the time i'm 20 but starting now. Do i have to be 18 to get a decent return (above 8%). I'm not happy with the banks return.
Hi again,
Good question… with six years on your side you have the chance to save for a deposit, start investing when you hit 18, make some property profits over 2 years, and then have a bank to either buy a home or keep investing.
The issue will be your ability to borrow at 18. You may need some help, which means having a parent co-guarantee the loan or else using someone else's money (family member/ money partner / joint venture partner).
Cheers,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Kean ,
You are in such a strong position because of your age . That may sound funny but you can acumulate so much knowledge by the time you are 18 yo .
My son bought his first house at 18 . The things the bank look at are basicly set in stone . Do you have a permanent job . Permanent casual is ok . Can you make the repayments ? . General rule is that up to 30% of your wage can be used in repayments . The obvious thing is that you live at home and have no expenses . (this helps) . A rental property takes into account the rent you will receive as well so you get to buy a more expensive house . Do you have a deposit ? This can be an unconditional loan from mum or dad or anyone really as long as it is unconditional . The important thing is to have an exit strategy ( how do you make some money out of the deal ) . Don't get stuck with thinking that having your name on a property deed will make you rich . Understand the real costs of owning property . The rates and the managers fee , even some money for repairs . Learn to look for properties with a twist . Something you can add value to easily or change it's use . You have time to learn all your lessons well .
My 19 year old daughter has just bought her first house as well . It will cost her about $20 dollars a week in repayments after the rent . After a few renovations it will actually make a profit each week . Don't be afraid to go further out of major cities to get started .
When you are 17 go to the bank and ask them how much they will lend you . Listen to what they say but remember there are lots of banks . Set yourself up to meet their criteria . Remember you can make money with a $100000 house as well as a $1000000 house . Make sure you listen to people who actually invest in realestate .
When I was 15 my thoughts were the same as yours . I didn't realise then that I couldn't legally sign a contract anyway . It took me a few years to get my act together .
There is a fellow called Dolf de Roos he wrote a book called Real Estate Riches . It could be a good book for yourself to read .
Good luck with it all .
Rodeo
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