Hi there,
I'm sure you get these questions all of the time on these forums but I'll ask anyway.
A little about me:
- I'm 20 years of age and earning $42,000.
- I do not have any savings yet.
- I live in Darwin (very expensive).
I'm interested in investing in property but would like some honest advice. Is it realistic for a young person earning as much as I do to break into the property market?
If so are you able to give me some guidance on the path I should take or steps I should take to begin my journey?
Thanks in advance for any advice/help,
Corey
a bit more information might help you get more feedback from others here..
like how much can you save for month?
what are you short and long term goals?Yes, of course it is. I have clients who are on modest PAYG incomes but own multiple properties. Start by educating yourself – read widely (borrow books from the library about property investment) and continue to participate in forums like this.
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]
Hi Corey,
Even on only 40k you can make a start builing a deposit and at least getting the investor mindset and learning to spend less then you make. Start learning to pay yourself first and dont be tempted to touch the money! Also is it possible that you could chase more money?
I was on under 40k a few years ago but kept saving as much as I could with the dream of one day entering the property market. Then I got a new job and went from 40K to 100K+ and bought 2 properties within that year before I turned 21. And I wouldn't have been able to do it if I hadn't started saving when I did even on the low wage. And if you teach yourself the right habits then they eventually stick. I am on 100K+ a year but still living like i make 40K and yet couldnt be happier. I would rather build my assets than waste my money away and have nothing to show for it.Anyway I was in exactly your position with people saying I was wasting my time but you have to start somewhere. Read Rich Dad Poor Dad if you haven't that helps get your mindset right.
We have a big advantage on our hands… Time! I think the younger you start the better off you will be and have more room for error.
It is good to see you are even thinking about investing… thats the first step. Keep it up
All the best,
Nathan
I never wish to put the dreams and aspirations of a young investor down but in the current climate on $42K per annum even if you live at home paying no rent or board you wont finance a shoe box.
Credit scoring is going to hurt you and you will probably need a minimum of 10% savings to get past Go on the first property.
Never the less dont give up and adopt some of the sensible advice already been given in previous responses.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Corey,
I agree with Nathan. Keep saving and educating yourself. Don't worry, you have all the time since you're starting at a very young age.
Rich Dad Poor Dad by Robert Kiyosaki was an eye opener for me. I wished I have read that when I was your age.
Good luck and keep dreaming.Couple of questions:
- How much per month did you save?
- How long did you save for?
- How much was your first property?
- How much was the deposit for your first property?
Thanks for the advice so far guys
enlightened1990 wrote:Couple of questions:
- How much per month did you save?
- How long did you save for?
- How much was your first property?
- How much was the deposit for your first property?
Thanks for the advice so far guys
1. What I saved per month varied but I think I aimed for about 40 to 50% of my paycheck. I was still a teennager living at home for free so besides turning down trips away with friends and parties etc I didn't really have alot of expenses. If you set up a scheduled transfer on your payday so the money comes out before you even get to see it you just get used to that amount of money and eventually don't even miss it.
2. I was taught to save when I got my first job at maccas at 15. But then I was saving up to buy a car so I bought my first car outright before I got my license which took every dollar of my savings. By then the saving habit had just become natural so I just kept saving. Didn't know what for though at that stage.
3. I bought my first property for 324K a year ago.
4. Had a 20% deposit and covered setup costs so I think it was about 70K. (My girlfriend had 10 grand to put towards this so I didnt save that much on my own)
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