If you were...

Correct, time is sort, although I have alot of motivation for the effort at work to be worth something (hence the need to invest)... hypothetically

 

I wasn't joking with the shares sadly xD i've learnt a lesson or two to say the least.. but well Young dumb and stupid right or young lucky and rich heh. and you're right for sure, a lot of choice. unfortunately no idea how to tell which one is right. For me I've been looking a lot for inner city (therefore apartments) just cos i work around there and can get a better idea of whats going on.

 

Start saving and assess your current budget. If you are earning $200k with no assets there is some serious reflection that needs to be done..

11k a month roughly take home..
I doubt you have kids at that age so it cannot cost you more than 3-5k to live a month.
So 6k as a minimum to save. Let's go for 8k.
A year is 96k. Push for 100-105k and that is a 600k purchase at 88%.

Because of your servicing power I would look to take a little longer and have a higher initial purchase, something like 600-700k.

If initially getting into the market is a must what about your parents going guarantor or getting them to refinance and "loan" you the deposit and with your income paying them back shouldn't be a real issue.

I suggest saving for a year, get in the zone of self discipline and take the time to learn as much as possible while building your deposit war chest. Having the self discipline to wait and get the first purchase right will make a big difference in the ability to grow and leverage off your portfolio in years to come.

 

As @ellejay said, start saving. No money, you'll build nothing.

Then, I would get into all deals that are value adding deals and create equity from day from. Keep building equity, then do bigger add value deals. Then multiple value adding deals together. Rinse and repeat, only numbers getting bigger. Profits bigger. Holidays and toys bigger.

 

What do you guys mean by add value? is that kinda like Renovations (carpet, paint, kitchen etc)?

 

Cosmetic reno, structural reno, subdivisions, acquiring DA and on selling, Development, etc

 

Would you normally get to that yourself or do you recommend hiring professionals to do the job?

 

Save save save, and sell the jetski and HSV Maloo

 

The cosmetic stuff some do it themselves minus the plumbing/electric stuff but many others gets trades in, or a combo of both. For the other add value options there are many consultants involved plus your own due diligence.

 

ahaha I drive a Holden, but i don't think my Barina has the power of a HSV

 

I wouldn't fool around in adelaide, perth, brisbane etc...id target the blue chips directly in sydney and give those Chinese etc a run for their money...but then, most likely anyone in that position at that age will likely be chinese etc anyway....

 

I'm trying to be serious, but this is a separate tip.
Put some into your Super for the "cant touch it today" factor and the initial tax savings. That is if you can stay within the low-tax threshold after your employer's compulsory contribution. The amount is about $25K, maybe it is still at $35K per year.

 

Start with a solid base of assets (properties with rent income), then look for "adventure" with the cash later.

High paying jobs don't always last, and businesses don't always go well.

Over the last 40 years, I've had 12 properties, 4 businesses - one still current, and 5th in progress and still being constructed, and numerous other "jobs" ...the jobs varied in remuneration, they come and go; two of the businesses went quite well while two not so well, the 5th "adventure" is yet to be seen (opening later this year); but all the properties have been solid and safe.

 

I am personally not a fan of these theoretical what-ifs. Its like having a great dream only to be woken up abruptly from it with a feeling of disappointment.
I like to dwell on what I have achieved and then think about what I can achieve int he future.

 

I would work on saving first as other have mentioned.

This 200k p.a. job how likely is one to keep such a high paying job if they were to lose it?

There is no point min/maxing if it isn't sustainable income, if it is 2 years of 200k then will drop to 80k you would need to work strategies based around 80k and see the extra as a bonus to help save.

1. If 200k is sustainable I would be buying median houses for Syd, Melb & Bris (not in order and depends on timeframe). This will allow you access to excellent capital growth, compared to cheaper properties which will only inflate your already huge tax bill (as you said you have no assets).

2. If it wasn't sustainable I would work still buying median houses in the three cities but at a smaller rate. However before the 200k pa job finishes I would go to the bank and max the equity you can take out (depending on your spending habits which appears horrible with a 200k job and no saving, you can also do this on point 1.).

3. If the 200k is going to be reduce to 40k in a couple of years I would look at maybe look at more cheap/cashflow properties, as your spending habits will need to change dramatically and the extra cashflow might help you adjust.

 

Ok I would sit myself down and say
1. $200k is awesome BUT it's not a guarantee. High paying jobs are higher risk jobs and the market place will fluctuate. Sooooo SAVE hard and fast
2. A barina (hairdresser's car) owner understands the value of money and some sacrificial pain. Saving hard is easier for that type of person
3. Understand the value of a budget and the challenge (fun and not so fun) of sticking to it and BEATING it
4. Understand that a small reward will help with the saving hard programme. Every $20k you save give yourself a $500 weekend away or something. In Perth that's a return flight to Bali and accomodation
5. Get a strategy, if I save xx and buy A how will that help me buy B, C and D

 

The best advise my mother gave me was "Fortune is like a wheel. Sometimes you are on top but there will be time you are at the bottom." Be sure to prepare for the bottom while you are still at the top.
I'm glad that I kept this in mind. Saving for the small stuff helped me get the bigger things. I'm not super wealthy yet but an adventure would have certainly made me poorer.

 

Thanks! I like #2, my blue barina was the best 3k i spent!

 

No drastic reductions on the horizon but I guess its important to think more of the "what if's" then I have been... might look a little smaller then

 

What if achieving a high paying income was goal number one and now im looking for goal number 2?