How much money do i need to begin?

The minimum deposit required to purchase an IP is 5%

You then need enough funds to cover purchase costs such as stamp duty and legal fees.

Unless you have enough money to purchase an IP outright (which isn't usually a great idea) then yes, you will need to take out a loan.

A decent broker/banker will be able to assess your situation and provide appropriate advice.

Cheers

Jamie

Hi Steven,

I'm not an expert, I don't have any property myself (yet). But I'll offer what I can.

Did you mean you had under $30k as a deposit or is it your wage?

If you meant it as a deposit you are well on the way to making this happen. (I wish I had thought about buying property at your age.)

So all I can suggest is to do research, ask questions of people who know more about it than you, and read books and magazines on the subject. There are many ways to buy property and you need to find the way that suits your needs and ability the best. Being a part of this website is a great place to start.

There are still properties around priced between $100k – $150k that are cashflow positive. You could potentially use a $30k deposit to buy one of those. I know Steve McKnight recommends buying with a 20% deposit to avoid Mortgage Insurance but in the end the banks will probably lend higher than that depending on your ability to service a loan. Talk to a mortgage broker to get an idea of how much you are able to borrow on your wage, etc and that may help you work out your strategy.

Like I said, I'm not an expert and there are plenty of others on this site who can offer better advice than I. So, good luck with your venture.

Cheers, Lyn

Hi Steven,

I am not sure where the 58 properties came from but the key when starting out is to get to the start line and start the journey. In other words focus all of your efforts on number 1.

When that one is tucked away then look for number 2, then 3 and so on.

Property is all about one step at a time.

Jamie has given you some ball park figures to work with.

At this stage grab yourself a broker and talk to them about your dreams and aspirations, your income and savings level and see what sort of information they can come back to you with. There are a few brokers on this forum who would be good to have in your team. Jamie is a broker so might be worth banging him and email or giving him a call – I hear he doesn't bite. 

I don't know your situation to make reliable comment at this point in time but it is possible the broker may say 'you haven't got enough income or savings now' – If this is the case don't walk away crest fallen and defeated, rather use the information to set yourself some achievable goals.

Then when those targets are met go back to that broker and get going.

Hi Steven,

That’s some good advice from Derek, one step at a time. Slow and steady wins the race. I believe 58 properties is achievable. If you work hard enough, and never lose site of your goals you will get there. If it means you need to get a second job so be it.

Hi Steven,

I'm 23 and have just bought my first IP.

I needed to have 30k saved and an income of approx 50k to afford an appropriate property.

I don't have any other assets and I moved out of home into a rented apartment at the beginning of the year. Taking the first step and officially assessing your borrowing capacity with a financial advisor will give you the best idea of whether your situation can support an IP but know that it is possible and you don't need much to do it.

Good luck,

Emily

ps Jamie M, who has already responded to you in this thread, is a well-respected mortgage broker on these forums.  Give him a call and have a chat about your goals, and have him get you started on getting there.