we would love to invest in property but dont yet have sufficient deposit. What is the best way to maximise income to achieve deposit and wealth sooner?
Hi Maxi
Welcome to the forum.
How to maximise income? Cut back on expenses. Have a look at your current budget – find ways to make cuts. You might have to make some short-term sacrifices to reach longer term goals. Do you have the capacity to take on a second job?
To get into the market you generally only need a 5% deposit (which has been genuinely saved – ie. not gifted) and funds for purchasing costs (stamp duty, conveyancer fees, etc). However, some states have certain incentives for first home buyers that significantly reduce purchasing costs.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
G'day Maxi80,
I'm in the same boat and saving away to buy a house next year to renovate with my father. I believe saving is all about planning and discipline as well as minimising everything that costs you money right now. I also like to set myself small bite sized goals and write them all down such as $1,000 saved by Australia Day, credit card paid off and cancelled by Feb 28th, $5,000 saved by Anzac Day etc etc…Work out how much you need and count backwards how many pays you have to achieve it then pay yourself first ie put that money away in a separate account on payday and don't touch it (not withstanding catastrophic emergencies of course). It's amazing how you can cut back on things when you simply don't have any money left in your spending account. I also give myself little gifts or bonuses for hitting milestones (ie credit card paid off new ps3 game (well new means 2nd hand or ordered online), first $1,000 motorbike improvement (seat repaired).
I'm on an average wage of $65k pre tax and my big goal is $20,000 saved by January 2012 starting from zero this year, I do however get extra work a couple of weekends a month as a scuba instructor. I saved about $16k before I went to live in Thailand for 6 months and I'm working on the plan towards a property right now.
If you provide some more information about your circumstances and your finances I'm sure some more experts can help.
Good luck and keep us posted.
Have you thought about doing a joint venture maybe with your parents to start you going?
Hi Maxi80
The deposit is always the first step. Unfortunately, you need to go through the boring process of actually creating a budget to understand what you're savings situation is and if you can cut back on your spending.
There's some free websites out there that helps you do this but a good one that I've seen can be found on the NAB website.
http://www.nab.com.au/wps/wcm/connect/nab/nab/home/personal_finance/1/4/7
Whilst it's boring, it's pretty important if you find that savings is difficult and you're serious about property investment.
Second step, are your parents willing to guarantee your mortgage? Some banks won't even require much of a deposit if your parents are willing to guarantee you. I'm not suggesting this as the best option to go with but it's a potential solution assuming your parents have some equity in their property.
Alternatively, find more work and earn more income if possible.
Final step, talk to a mortgage broker or bank. Find out how much you can borrow based on the savings that you have and the guarantees you have in place.
Good luck!
Jase
I agree with Jonsei and did the same thing as Jonesi at about the same time. A Thai wife found me, we bought land and built a house 18km from an international airport for $15,000 which in Australia would be worth $350,000, had a baby, bought some rubber tree plantations and development land. All looking good after 3 years relationship. For now Thailand is an easy small investment for big quality of life returns. <moderator: delete advertising>
Jonesi274 wrote:G'day Maxi80,
I'm in the same boat and saving away to buy a house next year to renovate with my father. I believe saving is all about planning and discipline as well as minimising everything that costs you money right now. I also like to set myself small bite sized goals and write them all down such as $1,000 saved by Australia Day, credit card paid off and cancelled by Feb 28th, $5,000 saved by Anzac Day etc etc…Work out how much you need and count backwards how many pays you have to achieve it then pay yourself first ie put that money away in a separate account on payday and don't touch it (not withstanding catastrophic emergencies of course). It's amazing how you can cut back on things when you simply don't have any money left in your spending account. I also give myself little gifts or bonuses for hitting milestones (ie credit card paid off new ps3 game (well new means 2nd hand or ordered online), first $1,000 motorbike improvement (seat repaired).
I'm on an average wage of $65k pre tax and my big goal is $20,000 saved by January 2012 starting from zero this year, I do however get extra work a couple of weekends a month as a scuba instructor. I saved about $16k before I went to live in Thailand for 6 months and I'm working on the plan towards a property right now.
If you provide some more information about your circumstances and your finances I'm sure some more experts can help.
Good luck and keep us posted.
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