Join Australia's most dynamic and respected property investment community

18 yr old student in Melbourne

Discussion in 'Introductions' started by Thaihok, 11th Sep, 2016.

  1. Thaihok

    Thaihok New Member

    Joined:
    11th Sep, 2016
    Posts:
    3
    Location:
    Melbourne
    Hey everyone! Hope you're all doing well!

    I am an 18 year old university who is very interested in real estate investing. I joined biggerpockets but it seem to be US based and thus I couldn't find much about REI in Australia. The house prices here in Melbourne are currently extremely high especially compared to that of the US which is the reason why I believe most strategies in the US doesn't seem to work well in AUS (i.e the '2% rule'). This is just my opinion on it and I want to hear other people's opinion on this.

    I was initially only passionate about buy and hold properties but I realised that I could grow even faster if I knew how to do flips or wholesale(does this exist in AUS?) or other avenues that I still am unaware of. The problem, however, is that I am no expert at pretty much any of these; I can't fix anything and I can't analyse deals (I really want to be able to do at least this by the time I finish university in 3 years).

    Currently, I am trying to get an understanding of the game by trying to 'blindly' analyse deals and going to auctions nearby.

    I am ready to learn, network and help! Any help would be much appreciated!

    Hok
     
  2. oki doki

    oki doki Well-Known Member

    Joined:
    31st Aug, 2016
    Posts:
    55
    Location:
    Canberra
    Great !! Welcome. Great forum to start....at least this will keep you out of trouble :)
     
  3. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    902
    Location:
    Melbourne
  4. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    4,922
    Location:
    Sydney
    Hi Hok!
    Problem with trying to do flips in Australia is that you encounter capital gains tax (CGT) from dollar 1 if you sell within 12 months and we have high buying and selling costs. Stamp duty tends to be a killer and you can't get around it. This all encourages people hold their investments (as long as they are generally increasing in value or flat) and then pull out equity rather than flip.

    Anyway, lots to learn from the forum and its great you are thinking about this so young. My advice to you right now is to save as much money as you can now, read some good books (many mentioned on the forum), ask questions and continue to read the forum. And go to as many meetup opportunities as you can. Good luck. :)
     
  5. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

    Joined:
    9th Jul, 2015
    Posts:
    1,078
    Location:
    Perth
    Welcome @Thaihok. 18 years old and highly ambitious and now you have discovered PC Forum. What a great recipe for success. You have time on you side so be patient.

    Focus on building up a deposit so you can buy your first property and in the meantime read, read and read more, listen, listen and listen more. Think, think and think more, then do.

    Happy to email you some great info I have built up over the years that I know will help you on your journey. Just ask :)

    Cheers.
     
  6. Thaihok

    Thaihok New Member

    Joined:
    11th Sep, 2016
    Posts:
    3
    Location:
    Melbourne
    Thanks for the advice everyone! It looks like the general consensus is to read and listen a lot while saving up a deposit which I will definetly be doing. My plan so far is to learn about as many avenues of REI as possible and pick a niche to specialise in. What are some resources that can help me do this?

    Once again, thank you very much for taking your time to help this student out :D
     
  7. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,100
    Location:
    Melbourne, Nationwide
    Great that you're interested at such a young age. The sooner you can start, the more you'll have to work with over a lifetime.

    If you're investing in real estate, odds are you'll need to borrow money. There's fundamentally two criteria for this:
    1. Your own money - Banks want you to put some money down before they follow up. You're going to need a deposit and the purchase costs.
    2. Income - Banks want to see that you can pay the mortgage and still put food on the table.

    My own experience as a student had both of these lacking, but they will come as you move into employment and work towards them. In the meantime, educate yourself as much as possible so when things do line up, you already have a good understanding of what your moves will be.
     
    MTR likes this.
  8. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Welcome to the forum @Thaihok :) You're doing what you need to to learn - asking questions. Keep reading and posting and you'll develop an extensive knowledge. This seems to be the place most of the passionate Aus property investors hang out so stick around :)
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    Check out the resources section.
     
  10. Tony Fleming

    Tony Fleming Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    536
    Location:
    Sydney
    Welcome, you'll love it here.
     
  11. RetireRich101

    RetireRich101 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,307
    Location:
    Sydney
    18?
    have some fun, party hard, get wasted. come back here in few years time ;)
    but be good to your parents...
     
  12. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,145
    Location:
    Canberra and Sydney
    Welcome :) You've stumbled across an awesome place. Plenty of learning material here.

    Cheers

    Jamie