All Topics / Help Needed! / How to start? Age 20

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  • Profile photo of Steven BSteven B
    Participant
    @steven-b
    Join Date: 2010
    Post Count: 10

    I'm 20 and i want to start investing, I have enough for about a deposit, just not the know-how, confidence and salesperson persona. 

    Can someone help me out with the step by steps and how to succeed etc ? (things I need to know)

    Thanks!

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Steven

    I'd start by educating yourself.

    Read investing books by different authors – get a feel for the different approaches to property investing.

    Read up on this forum and others – they're a great free resource of up to date information.

    When you're ready to go, find a good finance person and a good accountant. If you're looking to purchase interstate, then a good buyers agent can be handy too.

    All the best.

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of jennyfryjennyfry
    Member
    @jennyfry
    Join Date: 2012
    Post Count: 3

    Hi Steven,

    I agree with Jamie's comments – educating yourself first.  However decide why you wish to purchase firstly ? Is it to make money? Is it have somewhere to live? Is it for independence reasons or Is it a combination of factors? And if a combination then  prioritise the importance as a percentage ratio of your final decision making process. This will help you to clearly identify your needs and why you are buying. From there you will make a better informed decision and will decide whether  to buy emotionally  ie you intend to personally enjoy the property , or whether it is purely a commercial transaction . If your decision is purely to make money then EMOTION has to be left behind., and this is not easy to do. Talk to as many people you can who have bought property as an investment,  consider a buyers agent who you pay a fee to who may act on your behalf and when and if  you do proceed to make an offer ask for a full  due diligence addendum incase their is something you are unaware of. The due diligence can cover the trickier aspects and pitfalls that arent so obvious such as council regs and building compliance. issues. Due diligence can also involve a second opinion such as a sworn valuation or getting a respected person such as a parent , uncle, builder, accountant  etc to look over the property after the offer has been made  to check in case there is something you have'

    nt considered. . Being  a younger person, a thorough 10 to 14 day due diligence addendum can almost act in a similar way as a cooling off clause does. In my experience l have used due diligence addendums for  very young buyers as a matter of course with the sellers consent and whilst no young buyer has exited an offer because of due diligence escape clauses, they have acted more as reassurance for the buyer that : A what the selling agent has disclosed is true and reasonable and B to deflect other family members from shock horror pancking that their young relative has been taken advantage of. Once family members are assured you have make a good financial decision and that you havent been tied up in an immediate and binding way and that you have done your homework prior to the purchase then all parties to the transaction rest easy and are not defensive. Hope this info helps.  

    Profile photo of Steven BSteven B
    Participant
    @steven-b
    Join Date: 2010
    Post Count: 10

    What's the best books to educate myself any suggestions

    Profile photo of Steven BSteven B
    Participant
    @steven-b
    Join Date: 2010
    Post Count: 10

    What's the best books to educate myself any suggestions

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Here's a sticky thread on recommended books https://www.propertyinvesting.com/forums/community/heads-up/6845

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    I would certainly read some of Steve McKnights books will give you insight to what is possible.

    When you say you have sufficient funds for a deposit have you calculated all of the purchase costs ?

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Steven, whatever you do, do not get yourself into negative gearing.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    Aaron93 wrote:
    Steven, whatever you do, do not get yourself into negative gearing.

    Hi Aaron

    Do you care to elaborate?

    There's no right or wrong answer with whether someone should opt for a positively geared investment over a negatively geared one.

    I'd rather purchase an investment that was going to achieve some capital growth in the  next 10 years but cost a little to hold onto rather than a regional property that puts $10 into my pocket each week but doesn't move in value for a decade.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    A bold statement. It depends on the person's risk tolerance, experience, time, financial backing and strategy.

    Capital growth over a 5-7 years period can and does make more money then positive gearing,- higher risk…potential for higher return.

    I personally think it's good to have a balance of both strategy, capital growth and positive gearing. How "negative" is a different story…

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
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    Same Banks. Better Rates. Served With a Passion.

    Profile photo of kong71286kong71286
    Participant
    @kong71286
    Join Date: 2009
    Post Count: 261

    Maybe start with your end goal and then work backwards

    E.g. if you want $50,000 in passive income, and can 8% yielding assets, you would need $625,000 by the date you want to retire whether that be 10, 20, 30, 40 years from now

    You can then determine what strategy would suit you best based on your circumstances and preferences

    Profile photo of DGHayesDGHayes
    Participant
    @dghayes
    Join Date: 2009
    Post Count: 19

    I would thoroughly recommend Steve McKnight's Nationally Recognised Property Apprenticeship Program which not only is a great training program, (which anyone who has signed up will vouch for – including myself), but you can also achieve a Cert IV in Business as an outcome.

    Its designed for you to "Acquire The Skills & Confidence Needed To Achieve Your Wealth Creation Dreams With Australia’s Best Property Investor Training" as he puts it.

    Check under the Shop Tab for more information.

    Regards

    Dave

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