I little bit of background.. I'm currently renting by myself (no gf/bf), work a pretty low paying full time job in security (my IT degree got me no where but seperate story), have no debts, no real valuable assests/car, have roughly 10k saved and want to some day enter the property market with some kind of an rental property investment (or other?).
I know 10k is hardly anything, but any suggestions on my best 'next move' ?
Regards.
Why ? You may be better served by seeing a financial planner to get you an investment plan.
Just keep saving as much as you can while trying to maximise your income. make sure you are getting good interest on your savings too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Even though you are not ready to enter the market just yet you can already begin planning ahead.
The first thing I would do it have a chat to the bank(s) you think you might like to borrow from and find out you're borrowing power.
Most banks will ask for a 10% deposit on the purchas price for first home buyers, anyway the banks I have delt with will be able to print out a summary of the estimated total closing costs for the amount you wish to borrow.Once you have done this you will be able to have a look around at potential properties you might like to buy and spend time getting to know the market.
That way you will know specifically how much more you actually need to save so you'll know when you ARE ready to enter the market.
khorasak,
I used to service the SE suburbs of Melbourne as a real estate sales agent. One of the key things that was visible in the Springvale area where there were a lot of Vietnam and Cambodian residents is that a lot of them started VERY low on the invest scale. But from the titles that kept coming up on resale it was obvious that they pooled their monies together to purchase property to get ahead.
Why is this relevant? You are thinking of your 10k as not enough. Granted if you stick out on your own .. yes .. it isnt enough. But if you act creatively and do a bit of dealmaking, your 10k can produce better results. Its never about how much money you have to start with. Its how you best represent yourself, and market what you've got.
Hi
It sounds like you’re going to need a bit more money behind you as a deposit and you’ll need serviceability for the banks to lend you money.
You’ll have to educate yourself also, but there’s lots of good resources here on the forum plus a few good posts on which books to read.
If you want to understand what the banks are looking for there’s a good article here that show help you.
http://www.propertyupdate.com.au/how-do-the-banks-assess-your-application-part-1.html
Good luck with your investment journey
Wtih 10k deposit + low income and no real asset + im guessing your under 35??? to be honest seeing a Financial planner will just be a wate of your time and money- not much to work with…
1. You could borrow with 5% Deposit these days- it’s very common; most of the major banks would do it
2. 10k is not a lot, but it’s a start….
3. Depending which state your in; you could purchase a place with 11k deposit; with the use of the FHOG…ie $350k purchase- 5% = ~18k ( no stamp duty + 7k for FHOG) = around 11k to invest.— but live in for the min requirement as per FHOG then rent out if you desire OR share the place.4. If you want a bit more buffer- place money into a high interest internet account OR buy bank shares ( 5.5-6.5% Yield + capital growth)
Regards
MichaelMick C | Shape Home Loans
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You need to talk yourself up a bit mate. Go see a FA. Even if you only have a computer and some chairs at home this can be put down as a couple of grand that you own.
I also have a an IT job of about $58Gs. I have never been on an awesome wage and never been on a bad wage, but I have still managed to aquire 4 properties.
You need to get a second job. Put your head down for 6 months and work you ass off mate. You will be ammazed how quickly you can save an extra $20Gs. Put that money in a high % interest account along with your $10G and you will hve 30 in no time. Then go find a nice country town with good growth and invest it. Buy a dog and use $5000 to reno it. Dont spend to much time on the reno. Two weeks max and have the real estate agent ready to rent it.
Then quit your second job and take some time off. Once your ready, do it again.
Good luck.
Research, research, research.
If you’re not currently in a position to invest, do whatever it is you need to do to get yourself into that position, get a second job, sell your body, ok only kidding on the last one. Maybe talk to a broker to get a rough idea of how much you might need and set yourself a goal, you’ll be surprised how much more direction you have when you have something to achieve.
While you are waiting for all this to happen, read as much as you can from a variety of sources and try and get your own feel for the market. At the end of the day you are in control of you own destiny.
CBA is now doing 97% LVR, depends where and what you are looking at buying
Tsk tsk, giving your money to FA’s and what you just have over them control and you hold all the liability? How about research for yourself, start the steps, it will also start the moment for your motivation.
Ask the questions, don’t be like others and don’t assume you can’t do anything with only limited amount of money.
And make sure you do calculations correctly, I know that there is always fear for hard earned money, but if the numbers stack up, then don’t let it pass you by.
P.s
I know a lot of guys do bar tending jobs at night to make up the extra cash, good tips and stuff, if you want it, you already know how to get it, it’s just doing it and having enough discipline.
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