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If you were...

Discussion in 'General Property Chat' started by Matt Ad, 14th Jun, 2016.

  1. Matt Ad

    Matt Ad Well-Known Member

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    if you were 21, earning over 200k with a clean slate, no assets/liabilities with not much cash in the bank, how would you invest (in property)? Which avenues would you consider and who would you talk to?

    (this is of course... hypothetical)
     
  2. Mumbai

    Mumbai Well-Known Member

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    Start small. With 200k or shouldn't take much time to save deposit for a 300k property.
     
  3. ellejay

    ellejay Well-Known Member

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    $200k pa and no savings? I'd start developing money management skills, starting with saving.
     
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  4. Matt Ad

    Matt Ad Well-Known Member

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    Thanks Mumbai, so would you suggest a simple IP or sorts (as currently accommodation payed by work)
     
  5. Matt Ad

    Matt Ad Well-Known Member

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    ahahah thanks Ellejay, but remember, this is "hypothetical"
    If i was in this position, I would have at least a little saved by now (50-70k or so)
    any thoughts aside from money management?
     
  6. Mumbai

    Mumbai Well-Known Member

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    IPs are simple ;)
    Depends where you are based, you could probably look at capitalising first home owners grant. You may have to live in it for sometime or not lease it for few months.
    Contact a good broker to check your borrowing power and serviceability.
     
  7. Matt Ad

    Matt Ad Well-Known Member

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    Hmmm Iv looked at it, but i cant help that feel a IP is to passive... Im looking for adventure :D
    (assuming I was earning this)
     
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  8. Mumbai

    Mumbai Well-Known Member

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    Adventure? Here you go:
    Approach a builder/developer that has access to a developable property. Do a jv. You would chip in funds every month and the builder will build. Sell it for profit. He takes his cut, you yours.
     
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  9. bob shovel

    bob shovel Well-Known Member

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    It says mat is from Perth so he may be the premier to be on that money as the party days are over :D
    But. ... being on that with no savings and looking for adventure he could be hiding in Bali still on the fifo payroll :p
     
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  10. ellejay

    ellejay Well-Known Member

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    Work out what you aim to achieve-multiple IPs, just 1 or 2, net income per yr etc. How to get there-property, shares, both etc,etc. How comfortable are you with debt and repayments, this will influence what you buy. Do you see greater value or risk in buying one property at $800k vs 2x $400k?

    Discuss with a broker savy with property investment so you structure well from the start. Read this forum alot and reach out to those with proven sucess in making passive, not necessarily those who recently bought 2 or so IPs and have gained the ability to predict future boom markets as if by magic.
     
  11. D.T.

    D.T. Adelaide Property Manager Business Member

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    Property can be as passive or active as you want it to be.
    Someone on 200k presumably doesn't have a lot of spare time?
     
  12. bobbyj

    bobbyj Well-Known Member

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    Adventure?
    Speculative stocks on the ASX
    Forex and leverage your initial capital.
    Casinos.

    All above are gambling. Your hypothetical mate at 21 has nothing to lose and everything to gain (this is not to be taken a financial advice*).
    They have the benefit of age on their side.

    Being a property investor forum I'd recommend start small and get into the market. Depends on if the bank will lend as this hypothetical job sounds like a FIFO job that may not get a loan just yet.

    Thus, saving is the way to go. Education and invest in yourself (ie. Property investing talks, books etc).
     
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  13. Matt Ad

    Matt Ad Well-Known Member

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    ahahaha something along those lines....
    what are your thoughts? would my "hypothetical" best bet be to partner up?
     
  14. Shankiedoodle

    Shankiedoodle Well-Known Member

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    commenting just to subscribe :)

    Hi Mat, I'm in Perth too, kinda same situation, except.. maybe not such a ridiculous income :p.
    I'm looking towards landed, but if I can't gather up enough I would settle for an apartment. But defs don't listen to me for advice, lots of really experienced people here.

    Oh well that and I did what bobbyj spoke about and invested in really speculative oil stocks. fingers crossed that'll go somewhere, but I've already resigned myself to the fact that the portion in spec stocks is fun money
     
  15. Matt Ad

    Matt Ad Well-Known Member

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    ahh everyone is saying start small, but what fun is that!
     
  16. bobbyj

    bobbyj Well-Known Member

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    BUT, seeing as it's a hypothetical situation directed at us...

    I bought my first property 1 month into my new job with no deposit.
    Used parents as guarantors and used a 5% deposit bond.
    That property was bought for 290K in 2010 and is now worth $500k. Essentially bought it with no down payment.

    If I had $200k/year income that year, I would've done the same thing but would've saved up the next deposit pretty quick smart and buy IP2 within 6 months.
     
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  17. ellejay

    ellejay Well-Known Member

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    Can't see too much adventure in property investing. I use it to pay for adventures. Sure you can take plenty of risks with your money if that's what you're after.
     
  18. Matt Ad

    Matt Ad Well-Known Member

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    Thanks Shankiedoodle! I love all advise :D Iv looked at land, some nice spots out there for sure, sometimes I find that theres to much choice ahaha
     
  19. bobbyj

    bobbyj Well-Known Member

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    Well if you're earning $4000/week with no savings. You'll be earning about $5500/fortnight post tax provided your PAYG.

    That'll be $10k or so per month saved.

    I am a high risk taker with the share market and invest on speculative shares with more than your hypothetical yearly income.
    Win big, lose big.
     
  20. bob shovel

    bob shovel Well-Known Member

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    Partner up with @Shankiedoodle if you're looking for adventure, if you don't like the doodle you get the shankie;)

    Are you guys jokesters? Or serious?