Hi Guys! I've being researching property investing on and off for a little while now and have decided to take the plunge and hopefully buy into the property market for the first time. Having never bought property before I feel I will require assistance for two reasons: 1. Understanding and helping to buy a property for the first time 2. Ensuring I purchase a solid investment that will grow over time I've done some of my own research however would prefer being able to hear from other investors/experts on how best to start in my position. The worst thing I could do is purchase somewhere only to hear of all the better options I had later on! To help give you guys a better understanding of my position I'm 23 - Working full time - Have $60,000 in savings (with an average $400-$600 weekly savings) - Looking to buy & hold (preferably neutral to positive cash flow) - Living at home - No debts I have no specific number of properties in mind. I just want to be able to get my foot in the door now so I can use the investments later on for when I do move out and then again as a second source of income. My budget would be somewhere between the $250,000-$350,000 range so most of my searches have being away from the cities more so south east QLD as i've seen many positives about this area. Any helpful tips and/or advice would be greatly appreciated! Thanks Tim
Hi @Tim03 Welcome to PC. Congratulations on starting so young. We also started around your age, with a focus on cash flow neutral to positive cash flow. Wealth of information and experience here on PC. How did you come up with the purchase price of $250k to $350k? Do you expect your income to increase overtime? If so, worthwhile working out what your potential is, so you know what you can aim for - obviously subject to lending rules.
There is always a better option.... There is always the one that got away.... You cannot get things perfect first time (nor probably second or subsequent)
THE best thing you can do to reduce risk ( sometimes greatly reduce) and to give yourself the best chance to achieve your investment goals is to spend a little bit of time to educate yourself in this field of investing via books, forum and some networking. And if you can find a successful mentor on here who is really willing to take you under their wings, don't hesitate! The power and leverage of having someone to steer you left, right, faster, slower etc can be a massive advantage together with your own education. Me 2 cents.
My first reason is that Just based off my income and age I originally thought the banks wouldn't be willing to lend me anymore than that but I've also being following Nathan Birch and his story and one thing he's constantly said is to buy 'bread and butter properties' which range in that category I believe. I'd hope so! But yes and I've still yet to go and get a pre approval done so I'd say that's a good starting point.
@Tim03 Bread and butter is the way - definitely, so long as it is 'well located' good quality properties, and you have considered the supply vs demand factors.
Welcome to the forum @Tim03 you are in a great position for your age. As @Leo2413 said the best thing to do is educate yourself to get a full understanding of the many different strategies you can use to invest in properties. This forum is a great place to start but there is plenty of books on all topics from property tax, asset protection, wealth creation etc. Plenty of podcasts out there with successful investors to listen to as well. Develop a strategy and hit the ground running.
As John Kennedy said - "Do Something!". At worst at the end of it you can say that you did something?
Yeah but i don't think John Kennedy was worried about doing a silly thing to end up with negative equity. Personally I don't know why anyone would just do something to get a property. It's hundreds of thousands of debt your responsible for. Taking action is important...but no need to be hasty about it. Just my 2 cents.
Correct and agree wholeheartedly, but remember that he didn't make this speech at the start of the game. This was after the other team had started and his team were sitting on their hands waiting and hoping for the result to fall their way.
Check out @David Shih's property journey below: David's property journey I've found it useful to develop my own strategies. Read all the entries and that should be useful enough for you start doing some research
