Hi all , is it harder for people my age to get into property investing especially at this time where things arent going well in australia?
just wondering if someone could drop me a few tips about property investing, as its something i really want to do and want to get started as soon as i can. im pretty good with saving money and been workin part time for 3 years now. thanks.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
One thing which will slow you down for upto a year is your age as it is illegal to enter into a mortgage or be registered on a title until you are 18.
In saying this dont let this put you off as if you intend to utilise the FHOG and go to contract prior to 30th June 2009 you will still qualify for the FHOG Boost.
Serviceability maybe an issue but without further information it is difficult to comment on this.
Congratulations, Seddar. You might even take the prize for the youngest switched on person on the forum (at least for a while). Richard has pointed out above the obvious constraints to investing for you right now. However, there is alot that you CAN do now. After all, it won't be that long before you are 18, and legally able to own property and have a mortgage. RESEARCH RESEARCH RESEARCH. You need to have a geographic area that you are researching, and you need to get to know it really well. You need to know where are the good areas to live, and the bad areas, what is the public transport, shops, schools and other services like. You need to become familiar with what different classes of real estate are worth in your area, and what their rental return will be, and you probably need to make a decision about what class of real estate you would like to invest in. You need a plan, including a measurable and achievable goal and a date to achieve your goal by, and some steps to take to get there. You need to learn about finance, how much you can borrow, how much your repayments will be and how it can change when interest rates change. You need to have a contingency plan which takes into account problems like losing your job, working less and studying more, and losing your tenant. If you have the ability, attend some auctions. All these things are the things we all do before investing in property. Property can be a terrific investment, if you get it right. But, you are spending an awful lot of money, and you really need to be sure of your stuff before you go to contract. Keep reading here and get to know your property market. If you make a savvy property investment now, it could potentially change your whole life. Congratulations.
Swealth4life.comMember@wealth4life.comJoin Date: 2003Post Count: 1,248
Please go and read these books 10 times …
The richest man in Babylon
Think and grow rich
Rich dad poor dad
The science of getting rich
201 strategies rich people use when buying real estate
You're 17 so read a book every 2 weeks and make notes of what you read …
well yeah obviously im underage and not able to buy a house yet, i just wanted some useful tips as its something i really want to do as soon as possible.
thanks heaps shales for your input..seems i gota do a lot of research.
are u being serious about reading those books wealth4life? if so then i will take a look at them.Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128
All good books recommended by wealth4life Seddar — get reading lad
Well done BTW, I'm impressed!!!
With the drive and ambition you are exhibiting here, I'm sure you will succeed provided you do sufficient RESEARCH RESEARCH RESEARCH to keep yourself safe. SHales has provided you with an excellent list to be working on.
Continue hanging out here on the forum and ask lots of questions, no matter how dumb you might think they are. People here are real friendly and more than happy to help newbies out.
Happy researching and reading,
Vickycash flow plusParticipant@cash-flow-plusJoin Date: 2009Post Count: 4
Good for you for thinking about your future wealth at an early age
* What about enjoying your life a bit first, cant be to much money for fun after paying a mortgage on a part time job.
* Furthering education, this can lead to a full time job and increased dollars making your investment journey easier.
* Reading the books is a must, but I would also choose some that dont have "RICH" in every title
I would suggest these as well, more realistic reading and not a mention of "RICH" or pictures of Red Ferraris on the title page anywhere.
CF+wealth4life.comMember@wealth4life.comJoin Date: 2003Post Count: 1,248
Am I serious … or are you serious about making money??????? … it's your choice all you will get here are opinions it's your life good luck …
The difference between the rich and poor is knowledge.
There is alot of research to do. For me though, it is enjoyable. I really look forward to the Saturday morning property section with a good coffee and maybe some cake. It's my weekend treat. I find property alot of fun. I love playing with the numbers. I love business too. I don't read many of those books. Not that I'm dismissing them, just that just because someone has been successful and published a book, doesn't make them a good teacher, or necessarily the stand out expert about wealth. One of the things that a tertiary education has given me is the tools to seriously question the quality of the information that I use. Where did it come from and who prepared it, what was their motivation and how qualified were they to do it? An excellent example is how often we see on this site, an investor saying "but the Real Estate agent said it was worth this much…". Personally, I'm unlikely to listen to anything much that a RE agent says, unless it is one of the few agents that I have come to know are worth listening to. Read some books, by all means, in your own time, at your own pace. Kiyosaki (sp?) is a great place to start. But, most of all, learn to enjoy real estate. It's a wonderful game. Sometimes it is as predictable as an old fashioned dance. You are going to do your move, A, the RE agent will do their move, B, the vendor will do their move, C, then you'll counter with your move, D. It's wonderful fun. Observe the human nature, the greed, the attempts to push you or bully you mildly (which you might get a bit of, being so young). Expect it all, enjoy it and laugh it off – it is all a part of the dance. Negotiating can be a great thrill. I just thought that i'd mention how fun it can all be, because you sounded a little disheartened at all the work infront of you.
Thank you all for your great information and giving me a head start.
ill get to looking for those books and doin a lot of research in and out of this website.
once again thankskum yin lauMember@kum-yin-lauJoin Date: 2006Post Count: 342
Hi, great place to learn is to attend open inspections & auctions. Doesn't cost much unless you put your hand up.
For years I did that, walking from bus to train to open inspection. See, it gave me time to take in the feel of the place, the looks on the faces of people there, the vibes and ebbs & flows.
Very soon, something will say 'this looks good' and then one day the little voice literally screams from inside 'buy, buy, buy'
I am woman, don't need logic.
KYfatboy1730Member@fatboy1730Join Date: 2006Post Count: 15
I managed to buy my first property at 17. It could be done 30 years ago. I had to visit a judge in chambers and he deemed that the various contracts could be enforced against me if I defaulted. Find a lawyer and ask if it is still possible (this was in New Zealand) if you have somewhere in mind. I had vendor financing so no bank was involved. It was only when I became a lawyer myself that I saw what a risk everyone took to give me a start.
You have one thing running greatly in your favour, time. Start reading and watching. Remember that this is a numbers game and that slow and steady will win the property race. Think about what your strengths are and use them. You may well develop an investing system and once you do you won’t be able to believe how easy it is to make money. Do your own research and become your own expert. Where you have gaps in your knowledge ask and never worry about the cost of getting the best advice, it’s still cheaper than getting caught out.
This is sounding like a lecture. I’ll shut up.BanjoSmythParticipant@banjosmythJoin Date: 2007Post Count: 44wealth4life.com wrote:Seddar …
The difference between the rich and poor is knowledge.
I tend to disagree slightly – I believe
The difference between the rich and poor is not Knowledge BUT the application of knowledge.
I know plenty of people that told me the stock market was over priced a year and a half ago but how many of them took advantage of this and bought puts?
I know plenty of people who have preached about property being a great investment but have never bought an investment property
Most people in Australia will tell you that buying their house was the best investment they ever made – but how many then decide to buy a another one or two or three?
Knowledge is SO important but its what you actually do with the knowledge that really counts
okay thanks a lot, would anyone be able to give me advice on any uni courses that could broaden my mind in the property investing department? im currently doing business management and accounting at yr 12 right now and enjoying them. im thinking of doing accounting and finance at uni.. any suggestiions?
My Dad gave me some great advice when I was choosing a degree and a university. He said to choose something that broadens my options. I ended up studying a B Com at USQ via correspondence, maj accounting, and left early with an Assoc Deg in Commerce. The course covered a wide range of subjects, and as a business owner I use that broad introduction to law, marketing, economics, human resources, finance, and my more in depth education into accounting all the time. The degree would have given me choices between Accounting, and related roles, and a wide range of management roles, as B Com is a popular undergraduate management course. I'm very glad that I didn't major in Human Resources, or Marketing, because my accounting ttraining is more valuable to a small business owner than specialist HR or Marketing knowledge (the introduction I got was very useful). Choose a course that gives you choices. Finance and accounting and economics are useful fields for any business person. Double majors make you a little more marketable. Eg, B Comm double maj accounting and IT is a good combo for employment or self employment in the IT field. Do you want to be an employee or an employer though? My course gave me excellent tools for use as a self employed person and an investor. When choosing an undergraduate degree, choose something that opens opportunities for you, rather than shoving you down a narrow career path. You can specialise more distinctly with post graduation qualification when you have a better idea what you want to do with your life, career etc.
SandrewbeechParticipant@andrewbeechJoin Date: 2009Post Count: 3
Hi – not sure what your current part time job is but if it's not already in the property industry this may be a good "educational" move for you. I took my first part time job while studying at uni with a local developer and just being around property on a regular basis exposes you to tips and tricks that others may never get to see. I managed to buy my first property at 19 so its definitely possible at a young age. Alternatively you might find a good agent who will let you help with running open homes etc and be present while deals are being negotiated etc …. it all equals knowledge.
Another thing you could do while you are still 17 which will prepare you for purchasing your own properties is to learn to be a property spotter. Find a good deal and sell it to other investors for a fee …. this will allow you to build up your savings so when your time comes you can dive into your own properties head first.
Also put a book by Dolf De Roos on your list – he completed a degree etc but also started investing from a very young age and has never had a traditional style job!
Best of luck!