Good morning all
Here's my situation:
24 years old
Law/Commerce (Finance) undergrad degree
Don't want to work for the man
Keen entrepreneurial spirit
$7K savings
Part time job = $25K/year
No debts apart from HECS
Have travelled extensively for a few years, ready to get my hands dirtyI have read a number of Steve's books and other property investing books over the years. I have researched starting out in the property game with car parks as an investment (low cost, not bad ROE), but am reluctant about where to start.
Can anyone point me in the direction of a good place to start thinking about beginning my portfolio? Should I work for a few more years to save up for a deposit or just dive in head first? Should I begin with low cost investments (such as car parks) and work my way up? Or is it better to save up that deposit and search for rural properties in a few years with great potential?
I am very time rich at the moment (have not begun a grad job), unfortunately also money poor, which is the main reason I am on this site let's be honest!
Any advice would be much appreciated.
Charlie
Hi Charlie
Welcome to the forum.
Land your first job, save like crazy, purchase your first home and take advantage of FHB concessions. Buy something that can be cosmetically improved at minimal costs, have it revalued, tap into the equity and purchase your first IP.
Just my two cents.
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]
I like what Jamie has to say.
Especially SAVE LIKE CRAZY
Charlie i tell you a bit abt my situation as In 2004 i was in a very simliar situation to you Charlie;
18 years old
Financial Mathematics undergrad degree
Don’t want to work for the man
Keen entrepreneurial spirit
1 part time job = $22K/year
+ running my own online retail business – $15k/year
No debtsAt a young age i been interested in property investing ( since my parents are part time- property developers ) so i knew what i wanted, where to buy and how…it was a matter of getting the deposit – i didn’t want my parents help with the savings so i did it the old fashion way—save like crazy!.
Bought first place at 19 with the help of my parents as servicing guarantors ( deposit all came from my own savings).
After uni; worked for GE money and CBA full time for the next 2 years ( + my online retail business )- bought a few properties during this time due to stable income ( full time perm).Get your first full time job first, but continue to read and look at real estate and locations of places you would feel comfortable investing into, then when you pass probation and your in the position to buy! go for it.
You could use your parents as deposit guarantors if you wish and they are happy to do so; it’s a personal choice- there are associated risksSometimes taking it nice and slow wins the race; as you said you have time on your hands- no point rushing + why can’t you die straight in and STILL work at the same time?? that’s how most ppl do it…it’s not possible to dive straight into IP and retire from the workforce so soon.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Time is on your side.
Keen entrepreneurial spirit needs to be matched by thought .. creativity and impetus. There is no point in having either thought or creativity if you are a 'gunner'.
My minimum for throwing onto a deposit would be 20k. Thats just me and my safety limit. However you can find ways to achieve your property expectations sooner by doing one of the next few things.
Vendor wrapping (sale and packaging for someone who cant deal with the banks properly).
Deal enhancement. A revamp on an old house at minimal cost that creates maximum value.
Combined ownership (know a friend?). Lots of Cambodians do that for the first couple years here. Split costs down the middle to reduce arguments.
Repackaging an existing property. Thats turning something that had one use into something that now has another. And sticking a house on top of a block of land is doing just that. Or splitting a block into 2 or more units with permits. The creativity is up to you.
Creative settlement terms. This allows you to do your enhancement and marketing while preparing for an onsell already.If few or none of these terms mean anything to you yet .. then its time for you to plug in and do your research on what you are capable to do.
And for that I wish you the best of luck.
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