Hello everyone. First time poster here. I must admit I have been scrolling the forums for a week or so and have seen some similar topics in line with what I would like to ask. I wont go into to much detail but I will give you a quick run down of my story and would appreciate any advice given.
So, im well aware that getting into the property market isn’t easy and requires saving and hardwork but I have a few questions. Im 32, I have lived overseas for many years and teaching English in chile was my last adventure. I have not saved any money while overseas as I have always travelled and seen as much as I can while there. I have recently returned to Australia where I have started a property development course through Deakin Uni as property has always interested me.
So currently while studying at night I work full time and bring home $800 a week ( one of the reasons im at uni, need to make a better life, I have no debt, I live with a friend and pay him $100 a week rent and I have set myself a budget of saving $350 a week which I have been doing for the last month. So, even though im well aware im a long way from having a deposit or anything like that, my question is, do I have any options to get into the game so to speak. My parents said they will go gauranter if I save up enough for stamp duty and show I can save. I have heard buying an investment property and having people rent that while I live with my mate is possibly a good way to go or should I be looking at purchasing my own home. It should be noted that I wouldn’t mind building a portfolio with the goal of hopefully one day being able to subdivide some land and put my uni course to good use so to speak.
I have also seen lots of books and seminars advertised on my searches lately. Nathan Birch and BINVESTED for example. Any good or waste of money. The reviews don’t seem to good.
Any advice would be much appreciated and I know its not as easy as just saying gee I have no money but how can I get into the market. Im just ready to settle into the next chapter now and put my head down and see what I can accomplish.
PeterJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Without your own savings to go towards the deposit/costs it might be possible to use a family guarantee.
The folks would have to put up their property as collateral for yours.
You’d still need to be able to demonstrate that you can service the debt.
Guarantees are generally for owner occ properties but some lenders are ok with them securing an investment.
With an investment – your borrowing capacity is likely to be higher due to the rental income it will receive.
Having said all that – I’m a bit old school and think it’s good practice to save for the first deposit/costs.
Thanks Jamie. I totally understand your way of thinking in regards to the saving of the deposit. I’m certainly not looking to get a free ride or anything. Saving a deposit on what I earn would take me years and that concerns me.
Thanks for the swift reply.MikeParticipant@mikesonthemicJoin Date: 2008Post Count: 43
I remember being in your position and the most important decision I made was to start. You’ve done that, so congratulations.
It doesn’t seem so popular in Australia (or at least on these forums) but in the UK (where my portfolio is) many people starting out in property look at other ways they can make money through property without having to own it. A couple of examples are rent-to-rent (basically subletting) and deal sourcing (where you go out and find good deals and sell them to investors – I guess this is similar to being a buyers agent).
In terms of your learning, for you current situation this forum (and others) and books would be a good start. Cheap, accessible and packed full of useful information. The events are good for meeting people but leave your credit card at home for the time being.
Don’t underestimate what you can do in the long term with the power of compounding. It might be slow to start, but things will speed up as you progress.
Good luck, stick at it.