22 yo - Investment story so far

Thanks Skater for the fantastic advice! Good to know im on the right path

 

Financially free by 30 is not unlikely at all, you only need to read through some of the stories on hear to realise that.

 

As I understand it (could be wrong), in general, properties under about 500k tend to have less demand (which is why they are cheaper), and therefore tend to have lower growth also.
So my question is - what kind of growth would you reasonably expect from a 250-300k property?

 

Its not been my experience at all. They might have less demand currently, which is reflected in the lower price, but that doesn't affect what growth they get in the future.

Otherwise you would see the most expensive properties getting the most growth and being consistently the best investment properties - which is not true at all.

 

Not my experience either. It's hoe hubby retired.

 

They are cheaper because they are further away from the city etc. Bonus big jumps in growth when they gentrify.

 

Thanks for sharing your story @MaddyG , whilst standard parental concerns I'm sure your parents are very proud/impressed.

I'm going to get my 16 year old to read this for inspiration. He has interest in doing this, as I did, but I find it frustrating that rather than put savings away for a deposit he still spends $'s on things he later realises he really didn't need.

Can I ask what motivated you, parents or someone close have IP's, how you saved your deposit (what did you go without, i.e. social stuff with friends etc), what if any assistance you had?

 

Hey WestOz!

Ill send you a message directly as to how I did it, what motivated me, etc

 

Hey hey share it with everyone

 

Don't be put off by the interstate option. If you're not confident about dealing with property in a location that you're not familiar with, consider using a buyer's agent, as it can take away a lot of the stress in dealing with 'the unknown'.

My agent bought me a place in Victoria - I live in sunny QLD, and have never even seen the purchased place (photos only) - and yet I think it's the best performer in my (very small) portfolio.

Follow the 'growth' that will help you reach your goals, and remember what they say about not putting too many eggs in one basket - you'd hate to have state laws and regulations change, and then know that it impacts on every single one of your IPs. Buying interstate may help you spread the risk.

 

Which capital cities? Hobart and Adelaide?

 

Yea

 

Depends what 'financially free' means to you. Having a passive income of 50k by 30 years old vs an income of 200k or more is a very different thing and different timeframe for most.

 

Update: 3rd IP purchased

 

Congrats, well done.

Where did you buy this time?

 

Ballarat Thanks to this forum & the help of a few PC guys..

 

Definitely consider hobart with that price range in mind. You can still get good 3BR houses for around $250. I can share details of good PM, traders, solicitors and the like.

Amazing work so far! I wasn't even earning an income at your age, let alone investing!!

 

Do you still recommend Hobart? I thought the prices are at peak due to the very recent boom.

 

Some of the surrounding subs are really well priced (more inland) found a couple large homes with 280pwish rental return for 150kish.

 

Why those 2 locations?