[Melbourne] 24 and time to invest?

Richard Taylor wrote:

Hi Steve
Every investors strategy for wealth creation is different and if you are comfortable with that approach is sounds good.
Many investors prefer merely to pay the interest on their loans and keep the surplus funds in an offset account in case their strategy decision changes or circumstances dictate and they decide not to sell the property after all.
What sounds like the way forward today might not be the case in <dfn class=”dictionary-of-numbers dictionary-of-numbers-quantity-94608000s dictionary-of-numbers-processed”>3 years</dfn> time.
As long as you have been casually employed for a while financing the deal shouldn’t be an issue.
Just ensure your buying and selling costs are factored into the deal and the end sale price covers these.
Cheers
Yours in Finance

Thanks Richard,

I am more so wondering what the potential risks are in my strategy here? If this is the first house I’m buying, and I’m not living in it, I’m aware I have to pay more taxes or something to that effect? Furthermore, I’m uncertain as to how much profit I’d actually be making in the long run – such is the risk with the property market. I mean, ideally, I’d be looking to use the rent money I’d be receiving from the property to cover the large majority of the mortgage, leaving me to only have to pay an additional $100 – $300 or so out of pocket.

In regards to back up funds in case of an emergency or what not, I’m entirely fine on that front as I have a supportive family, and another account with some backed up cash.

cheers

Richard Taylor wrote:

There will be a difference in the amount of Stamp Duty charged on the transaction and in the case you sell the property at a profit less costs you will pay CGT on the difference.
If you took the loan over say a<dfn class=”dictionary-of-numbers”> 25 year term and </dfn>were only paying the rent received and a top up out of your own pocket to cover the repayments you certainly won’t be paying it off in 2<dfn class=”dictionary-of-numbers dictionary-of-numbers-quantity–94608000s dictionary-of-numbers-processed”>-3 years</dfn>.
Cheers
Yours in Finance

Well, see, I wouldn’t be looking to pay off the entirety of the house in 2-3 years. I simply was thinking that over say 2-5 years, the properties value would increase. And then, I could pay back the bank, and have a remainder to make a small profit from the house itself.

Colin Rice wrote:

As Benny conotated to above it is of vital importance to engage a team of tried and trusted professionals to assist and guide you on your journey.
A good start would be to engage a broker who is familiar with investment property financing. There are a few on here that can assist you and distance isn’t usually an issue with modern technology these days. A good broker who cares about their clients will guide you through the whole process and beyond as we are usually a well connected lot.
Once you have established borrowing capacity which is the first step then you can proceed with an offer on your property subject to finance approval and building and pest inspection reports.
In a nutshell dont go it al<dfn class=”dictionary-of-numbers”>one when you have </dfn>access to good people to make the journey a pleasant and successful one.

So, my naivete is quite prevalent here. How would I go about finding a reputable broker, and what kind of payment/fees do a broker usually have?

After doing some preliminary investigation with my family, we’ve discovered a rough borrowing capacity. But, yes, what steps should I take now?

Thank you so much for your reply!