$2000 deposit

[nat r]

As long as you have a job (or the abilty to get a job) you can continue to service the debt and all is cool.

I look back and in 17 years in what is considered a volatile area of employment (financial markets) I have been without a job for 3 days in total !!!!

 

[wish-ga]

Hey thanks alot guys for your suggestions. I think I'll just wait until I save up enough of a deposit to put down on an IP. I don't want to rush things and make a life long regrettable mistake. Thanks for all of your ideas.

beetle

Hi Beetle
Good for you for
a) being ambitious
b) looking at options
c) being willing to rethink your plans

I agree with skater and it is the conclusion you have come to. Yes, there are more than one way to skin a cat and you are looking at the options so good for you. Don't feel it is too, too far away because while you save a bigger deposit you will be continuing to look at options. You may 'jump in' sooner than you think.

Even if you don't have a personal loan, car loan or owe money on credit cards you are in debt already. I know it is hard to believe but if you have done your degree on HECS that is a loan - a student loan. And it needs to be paid back so you may not have as much in your hand each pay check as you think.

If you are in the situation that your education is paid for (sponsored study, parents, scholarship?) and you are living at home you may squirrel more money to your depost than we are all imagining. I guess we assume you are going to have to pay back your study costs.

That aside... I think it is GREAT you have managed to save up $2000 already. No mean feat. Well done!!!!! You are doing so well so far. <round of applause>

 

[johnston]

Hi. I'm almost a 24 year old with another year of study left at uni. So that's how long it will be until I will work full time and earn full time wages. That's when I'll be able to put to practice whatever I can learn about IP between now and then. In the mean time, aside from earning modest paid work experience wages soon, I thought I would see what people think about this opportunity that I found in this months API magazine. Below one of the articles is an ad from Wilton Real Estate in Sydney who said that I could put down a $2000 deposit on an apartment that is located in an apartment complex which is under development. The remainder of the sum would be due in up to 3 years. Conditions apply to the $2000 deposit but I don't know what they are yet. I received more information from the REA and found that the least expensive apartment in the Homebush Bay development atm is around $430,000. Some buildings have been completed and others are yet to be constructed.

I thought about putting down the $2000 deposit to resell the apartment in 2-3 years before having to pay the full purchase price which I prob. wouldn't be able to afford. This would potentially help me to get some cash to put down on a house for buy and hold to rent. Has anyone here tried that before? What am I risking? What do you think? What would you do?

Any advice appreciated,
beetle

i admire your wanting to move ahead mate. there are risks alright with off the plan stuff particularly in this slow market. a "call option" (as opposed to a put and call) means that you pay money in .. the only risk being that if you dont go ahead with the deal you loose what you put in and they cannot sue you for anything else. if you go ahead with the deal it is credited off the deposit. "call options" are used in realestate and on the asx. they combine call options with residential leases .. thats called "lease option". also you can just option land and when it goes up sell your interrest in the option rather than buying it and you can use that anywhere you use options. in realestate you must have a clause saying that "your assigns" can buy the item .. then you can reasign it and get your profit without actually buying the realestate yourself. read robert allens books "nothing down in the 2000's" and "creating wealth". i dont agree that early retirement is a false god. you just need the rite info.. a positive attitude and your enthusiasm. and dont wait .. do it now while you really have it on your agenda. good luck.

 

[Cubed]

Just a quick quip.

Who sets the value of the property in the marketplace?

The market!

Therefore when the market finally gets to view your prospective property, will they agree or disagree with your vision of its value.

 

[DCA]

Hey thanks alot guys for your suggestions. I think I'll just wait until I save up enough of a deposit to put down on an IP. I don't want to rush things and make a life long regrettable mistake. Thanks for all of your ideas.

beetle

A Wise decision .. I got nothing when I was 24 .... I save for 1 year ... I then put that money into the stock and got lucky and double it in 2 years span .. I cash in and put down 30% deposit for my home ..
so basicly took me 3 years of saving before I bought my home.

this is my story, and I was lucky when I put that money in the stock market
I didnt know much about stocks back then and thinking back it was the stupid thing to do. I'm now a little wiser and consider that as one of my lesson even though I didnt loose that capital.

You should try to learn and understand investment a little before doing anything with your money. Best way to do is while you save, read and learn then when you have enough saving you can make a wise decision.

 

[DCA]

i admire your wanting to move ahead mate. there are risks alright with off the plan stuff particularly in this slow market. a "call option" (as opposed to a put and call) means that you pay money in .. the only risk being that if you dont go ahead with the deal you loose what you put in and they cannot sue you for anything else. if you go ahead with the deal it is credited off the deposit. "call options" are used in realestate and on the asx. they combine call options with residential leases .. thats called "lease option". also you can just option land and when it goes up sell your interrest in the option rather than buying it and you can use that anywhere you use options. in realestate you must have a clause saying that "your assigns" can buy the item .. then you can reasign it and get your profit without actually buying the realestate yourself. read robert allens books "nothing down in the 2000's" and "creating wealth". i dont agree that early retirement is a false god. you just need the rite info.. a positive attitude and your enthusiasm. and dont wait .. do it now while you really have it on your agenda. good luck.

A call or a put without coverage is called nake call/put and you certainly dont want to do that because you are speculating it either go up or down so you got 50% of getting it right and 50% is way way to risky may as well bet on banker or player at the casino