6 months on.

Chris,

You are doing very well by spending time on this forum. I wish I had started at 20! It takes times to generate results. I don't know anyone who got wealthy instantly. Life is a journey.

Good luck.
 
Hi Forumites,

Goals- great things. Well now that you mention it- my goals for financial wealth are quite broad at the moment. For schooling its pretty simple yet specific. For fitness and other things in life my goals are pretty good. But moneywise, well i guess its just save save save and spend less. I set a goal bout a year ago to acquire enough passive income, in 1 years time, to pay my petrol bill each week. That goal may have been a bit unrealistic. :rolleyes:

It's not really a goal, but more of a desire to understand the tax, contracts, paper work etc associated with property investment that i'm interested in next. I get the general principles and ideas to becoming wealthy, but the actual process of buying house and renting them out + all the little bits and pieces (traps & tricks) i have much to learn.

What are peoples thoughts about my move to Sydney? Since i last posted my savings have climbed perhaps 200 bucks. I had a good think about it the other day- and for the first time in my life i felt a bit restricted by my position. I'm not sure i can actually even afford to move to sydney. It was not a nice thought. I've read some posts on renting rooms, and i don't really like that idea... although i may have been influenced by other peoples experiences. I'm certain i can not afford university housing- but that's ok because most people can not afford such living either. (is this a cop out and the wrong attitude?)

Buying an apartment would seem like the best idea. But given my current situation that seems very difficult to do. I'd rather not rent- something about that doesn't make me feel to comfortable- especially when i could be using that money to be paying off my own place? Does anyone have any strategies or reccomended posts i can read regarding this 'next step of my journey' ?

AS for the melbourne meets- i went to one a very long time ago- i'm definately overdue for a good session! When is the next melbourne meet on and where? *going to check the meeting point now*

Oh, and suggesting i'm an inspiration? I'm not sure about that... i don't feel that i'm being really inspirational- though i am flattered and that remark has definately inspired me to try and be a better person! :cool:

All the best,
kris
 
Well next Melbourne meet is just down around the corner from me on the 29th. Unfortunately i don't think ill be able to make it.... i've got another mates 21st on that night. (these 21st are killing me)

Also, i'm interested in 'trusts' is this something i should be looking at acquiring now? Any good threads to read up on all about trusts? I'm not even sure what a trust is, so a trust101 thread would be awesome aswell.

Regards,
kris.

(AND WOO HOO Brisbane didn't make 4!!!! GO PIES :D )
 
krisvm said:
Buying an apartment would seem like the best idea. But given my current situation that seems very difficult to do. I'd rather not rent- something about that doesn't make me feel to comfortable- especially when i could be using that money to be paying off my own place? Does anyone have any strategies or reccomended posts i can read regarding this 'next step of my journey' ?
Click to expand...

Heaps of people living in Sydney & Melbourne buy IPs but rent themselves, up to and including gurus like Steve McKnight. Renting makes sense given rental yields in the big citeis are historically low at 3-4%.

Think of it this way - would you rather the tenant pay the mortgage or you?

Would you rather not being able to afford anything or having a few IPs that just about pay for themselves? Yes you will need several thousand per IP stashed away for contingencies, but these funds could be used as part of your savings/investing program - maybe part in an ING high interest account and part in shares or managed funds.

And as for debt, you'll have it either way whether it's your home or an IP, but wouldn't it be better if the maintenance and interest were tax deductible, as with an IP?

Yes you will pay capital gains tax if you sell, but if you choose it wisely that will be a long way off.

Though it doesn't translate into increased living standards (at least until you've paid your loans) your dramatically increased gross income due to the IPs is a real 'feel good factor', especially compared to the paltry sums ones superiors at work may get, all of which will stop when they cease working.

Regards, Peter
 
The Time factor

Hi Kris,

Congratulations on your progress.

Something came to mind reading this thread - that for me, once I left Uni and started full time work, I lost track of time.

When you are at Uni (or any other educational instituion), the contents of the year are already set for you at the beginning of the semester - i.e. your syllabus. Even your goals are set for you (course outcomes - i.e. pass that exam! get those assignments in!). Once you get out in the "real" world however (and you have probably already seen this in your part time job) there is nobody there to set the "timetable" for you.

As such, you tend to only notice things like public holidays, Christmas, the odd special occasion....it is unbelievably frightening how quickly a month, a year, or a decade can go by. After all, a decade is only 10 Christmases....

When I finished my 4 years at Uni, and got my first full time job, I thought "Beauty! Freedom at last!". No more assignments! Time to watch TV!. No cramming for exams! Stay out all weekend! Sounds great doesn't it? However, I had not set any goals for myself, and as such, the years went by very quickly indeed. By the time I was 30, I literally had nothing to show for it - other than a car that required a rather large amount of money to run.

Now please understand that I am not saying you shouldn't "catch up" on some major partying once you graduate - but don't let that become your life.

Do set investment financial goals - however ridiculous as they may seem - whether in terms of net worth, passive income, or number of properties, etc. I personally set short (1 month out), medium (12 months out), and long term goals (5 to 10 years out)for myself nowadays. It's a way of measuring how I'm doing, but more importantly, a way of marking time.

Cheers, and look forward to seeing you again at a Melbourne Meeting.

The Y-man
 
krisvm said:
Also, i'm interested in 'trusts' is this something i should be looking at acquiring now? Any good threads to read up on all about trusts? I'm not even sure what a trust is, so a trust101 thread would be awesome aswell.

Regards,
kris.
Click to expand...

Kris,

Trusts are something I discovered a lot later and wished I had known about a lot earlier........

Do a search forums on the words "trust magic". You'll come up with some great threads.

Cheers,

The Y-man
 
G'day Krisvm, at el,

THIS thread is one of the best - it's the forum community giving back to itself. It fully deserves 5 stars, and it is good to see it "re-generated" down the track. So, thanks, Kris, for posting it, and for providing updates. You are an inspiration to so many.

Keep in mind, that what you are setting up is the almost horizontal beginning of a hyperbolic curve. It may seem that progress is S-L-O-W, but it IS the beginning of a curve that will increase its angle as time progresses. Stay focussed, keep learning, and your hyperbolic curve will increase by degrees until it is un-bloody-stoppable!!!

The reminder of the "wheat and the chessboard" is the classic example of compounding. You might still be only on chessboard square #6, but your future is already looking pretty bright. Wish I'd known what I know NOW even at TWICE your age.

For other youngsters reading this, I'd like to add that I always did well at school, had what was considered a high IQ, but it still took me a half-century to "wake up" to the world of "financial knowledge". So much for "high IQ" huh?

And thanks to Robert K for giving me the RDPD story which woke me up. After Robert K came Jan, Peter Spann, Bruce Davis, Steve McKnight, Alan Falkson, and a bunch of other good people - AND this forum !!!

Enjoy it, add to it, and keep sharing YOUR experiences for all of us to learn from.

Thanks again, Kris - keep swinging !!!!! :D

Regards,
 
Moving State.

Hello Everyone,

Thankyou all once again for your support and positive input.

Well what can i say? How can i say this? I'm feeling rather nervous and it's not because i have an ip but, i think, because i don't :confused:

In one of my prior posts i mentioned that i may be moving to NSW to study at sydney uni. Well now it looks highly likely that i will be moving there late Feb / early March.... i suppose... maybe earlier if it turns out a time better to go.

All this reading and thinking, and now when i believe its actually time to do something and i don't feel at all sure of myself or confident. Infact, i feel as though i have no idea where to start.

Moving to sydney means that i must find accomodation. My parents are along the lines of thinking that i would simply have to rent a place- infact maybe spend ridiculous amounts of money staying on campus for a semester until i could find a place, meet friends, get comfortable with uni and sydney and all that sort of stuff before moving off campus. Actually, if it wasn't maybe for the desire in me to hope there is some way out of this they would have me resigned to this design... which maybe be ok.. but i think there is a better way.

I want to purchase a place. perhaps just one room- i've looked more and more at sydney realestate [so much for all my time spent checking the melb market haha- tho still not a waste of time.] and i've spotted a few places that are around camperdown/glebe and surrounding suburbs @ ~150k which seem ok. But it seems i am stumped when it comes to getting a loan from the banks. Actually, i'm sure i would rather buy a bigger place say 2-3 rooms, but that would require an even larger loan. I could then maybe rent some rooms out... possibly to mates i could make in Sydney. If i could get a loan ideally i would want to buy a whole block of flats.

But just about all the people around me, have me convinced that its not going to happen- financially. I have 11k saved. I'm working now after exams for almost 400 a week. I'm considering getting another job and working evenings maybe boosting my earnings to ~800/week while i'm still in Melb.

I'm trying to look for options here- maybe i could qualify as an independent student and receive rent assistance and youth allowance? I just feel that i'd rather be owning the place and paying the p&I or even just the Interest rather than renting from someone else and paying their mortgage. After at least 4 years in sydney paying rent i'm not left with anything... maybe this is the wrong pyschology regarding renting... i have read about the benefits of renting... but i want a Ip! i might have to look more closesly at the possibility of renting and servicing an Ip?

I have to get work done on my car.. again... could be up for 300. my fone is dead and i'm trying hard to resist shelling out 500 on a nice sony ericsson but i think i'm really losing that battle.

When is the next melbourne meet?

What to do? Read more of the forum? I want to act already! I would like to live around camperdown just because of the locality to the uni and city etc- but it may not be the best location. I don't know. There could be better places further out from sydney that are say 1/2 hour on train to uni. One thing is for sure, i'm really not planning to bring my car with me!

Thoughts, comments, suggestions, advice, guidance are all more than welcome!!!

All the best,
kris.
 
Hi kris

Moving to Sydney for study?

When my daughter was thinking of studying in Canberra, I did an Excel spreadsheet on why she should buy there and the difference in costing and social and emotional benefit to her if she did.

I don't know how to attache a file but if you are interested in seeing the worksheet I shall try to figure it out.

Regarding finance, are you still working consistently at your casual jobs? How long have you been at the same places? With your savings and constant work history plus the FHOG and Stamp Duty savings which apply in NSW you may just be able to scrape into ownership of something rather than spending the next three or four years renting.

Even a modest increase in capital growth could very well pay for your degree!

Cheers

Kristine
 
Kristine,

Thankyou for your fast response! I just did some reading and thought i'd check back here incase anyone has replied and oh la la! Also i can't tell you just how much your message has inspired me! haha.

I would be very appreciative to take a look at that file if u can attach it somehow... or otherwise if its easier, email me at [email protected] . Yeah study study study.. hey no bank fees when your a student :p

FHOG, + stamp duty savings + i've worked 9months in the same job and 2+ years in my previous job + savings + credit cards + maybe a small [very] family loan...... i hope i could do it! :cool:

Thanks + good night!

Kris.
 
Hi Kris

I've just emailed the Excel spreadsheet to your email, and as mentioned I'll do a detailed explanation of it all which I'll send to you and also post to the Forum.

It's a huge step leaving home and moving to another state.

I wanted Fiz to be able to choose who lived with her, rather than having not much choice who she lived with, if you can see the relativity of this sentence.

I appreciate Canberra property values and rentals are different to NSW but then again that depends on which University you hope to gain entry to.

My software has all the bells & whistles regarding Stamp Duty concessions or whatever applies in each State, so I'll glean most of the information I will need to do some specific costings for you from your existing posts. Which area are you thinking? I'll need to find out property values & rentals for that general area to make the figures relevant and reasonably accurate.

I gather we would be talking about March 2005 for occupancy?

Isn't this exciting? The world is full of possibilities which can be turned into action without much more effort than doing nothing!

Cheers

Kristine
 
Kris,

It's no surprise that the people around you are talking you down.

If they are not investors themselves they quite possibly have a very different view of how to achieve success....and it likely involves working til at least 65, retiring & living on the dole.

With the first home owner grant you can leverage your money a bit higher...with a loan/gift from a family member you might be able to achieve that 2 bedroom place.

If you can justify to them that you can afford to cover your loan repayments & living expenses it might be worth doing (particularly if you have flat mates paying for rooms....if so you might wish to appear as the leaseholder rather than the owner.

However it may also be that you're not yet at the point where it makes financial sense for you to buy the place in Sydney. If not, don't try to push it. While you are at an age where you have a lot of recovery time, waiting two years to buy in a relatively flat market may offer better prospects for you than to buy early, be unable to make payments & end up in a debt trap for MORE than 2 years.....

At the end of the day, you can do whatever you set out to achieve - but always look to your goals and what you NEED to achieve rather than pushing too far too fast.

Slow & steady wins the property investing race everytime. Going fast can win - but it's probably a harder slog :)

Cheers,

Aceyducey
 
Kristine,

Thankyou so much for your help this far- its sad, to know at this moment, of all my friends and family you are the only person that seems to be at least helping me assess the possibilites.

I have had a look at the excel document and it does appear to definately be a very useful tool, which from it, i'm looking forward to learning more about my own situation.

Yes, i too would like to choose who is fortunate enough to live with me! :cool:

As for location, well to be honest i would like a funky sort of place, though i know this is not the most important thing... I feel quite confident that i could do alot of renovations at some stage down the track if need be. I've been fortunate enough to have a fair bit of experience in house renovating :)

Of primary importance is that the place must be a winner on paper. I like the idea of living close to Sydney Uni - say around Surry Hills. But obviously i am willing to travel- but no more than 30mins by public if possible. So a 2 room Apartment easily accessible to transport would be ideal and i would be more than happy living there... i hope this doesn't sound too demanding, but i think these requirements aren't that unreasonable for anyone who is thinking of buying or renting an apartment.

I will definately be occupying the establishment by early March if i am successful in moving to Sydney. I won't know any definates until late december. At that time i may leave earlier (earliest mid jan) to start work in Sydney if it suits.

Unfortunately i have not yet meet any Real estate agents in Sydney nor have i got a property manager or accountant. I'm near certain that i won't need a pm yet, but i think i should look into developing a relationship with an accountant. perhaps sign up with Dale ? :D

Acey, yeah the ole study study study, work work and work harder again and you will then die having lived a good life. :( Not me. Well not 100% me. I'm off to read up on the legal position of being a leaseholder in contrast to owner and again refresh my knowledge of trusts. Is there any major fundamental difference i should be aware of in this case?

You are right about the time perhaps not being the right moment to purchase. If this could be pulled of in my current disposition than that would really be quite amazing. But not only that but it just might not be an ideal time in the market to be purchasing a 2 room place in Sydney. A better Ip endeavour may be in brisbane but right now my circumstances seem to suggest sydney. I intend to have an Ip in brisbane not that far down the track!

But i'm sure there are good bargains everywhere... hopefully i can find one soon :eek:

Cheers,
kris
 
Hi Kris

I have sent you the report but decided against posting it here - five pages and 1,400 words is probably a bit much for a general post!

Actually, with all this rain I was talking to one of the Bank BDM's during the week about preparation: God told everybody the rains were coming, but only Noah set about it and built the Ark.

Us City Slickers often forget how much preparation goes on out there in the 'real world'. Farmers have to plough and prepare months before sowing the seed, and the preparation for next year must be done at certain times or it will be of no use.

With investing, preparation is a major part of success, and sometimes that preparation takes years, not months.

Yes, if you can live in your own place whilst studying your Degree that is socially, emotionally and obviously financially more rewarding than just renting what you can find.

But only you can make the decision as to what will suit you best.

Good luck

Kristine
 
Hello,

Well as of Feb i will be attending the Sydney investment meets. I am definately moving up by the 1st of Feb. However I still haven't made firm arrangements in regards to accommodation.

I've worked hard the last last month boosting my weekly wages so I can qualify for independent student allowance. This will entitle me to $318/ fortnight and also allow me to earn $236/fortnight from paid employment before my centrelink allowance is reduced. This equals roughly $275/week.

I have put aside my plan to buy an Ip or ppor in Sydney as this is simply not feasible. Its sad, but these goals, i think, will have to wait until 2008 when i finish studying. I have my name down for college as a safety net so i at least have somewhere to go if my renting plan fails. College will cost roughly $270/week with full meals, laundry etc. This plan leaves me with next to no cash unless i work harder and lose some centrelink benefits. [+$2 paid work = -$1 centrelink].

But i was hoping i could get some help about renting from the Sydney forumites. I have done a lot of searching on realestate.com.au and individual real estate agent websites for rental properties. There are quiet a number of studios / 1 bedrooms for rent at roughly $145- $195/week in the vicinity of Surry Hills. But there is only so much i can do on the internet. I really have to go there and check them out. Can anyone give me advice what to do in this situation? I guess i must go and have a look? Or does anyone know of a good studio in that price range available that they could reccommend? Or is anyone willing to go have a look for me and 'report' back, perhaps send more photos of the inside room etc? OR does anyone want the perfect tenant for their Ip for a fair arrangement?! :D

Is there a certain checklist to use when finding a rental property? I've spent so much of my time learning how to buy, and been ignoring to much information about renting [i never thought i would one day rent! :eek: ], when i believe it must be best to be aware of both sides of the equation to make positive investment decisions.

Kind Regards,
Kristian.
 
Kristian

Welcome to Sydney.

The first SIG is 25th Jan and Steve Navra. Very popular and good start.

Whilst we would all like to start young I suggest you see your present cashflow issue as a opportunity to learn. The follwoing things are in your favoir:

1. At early 20 of age, you have more knowledge here than most of us had at that age. But we all had no cash like you. So... in a way, you are already ahead :D

2. We have just ended a huge boom in RE so being dormant for the next 12 to 24 months is a good idea even if you had cash.

3. YOu need to learn the market here and see if you can cut it a Uni. Nothing worst than buying a Home only to say move Uni in year 2.

As I see it, glass is half full.

Re Rent please PM me you personal details as I may be able to help out.

A firends has recently bought a pub nearby and it may( i dont know) have a small flat above. They usually do. He may be interested in some on site caretaker role for a fair rent. Cant promise but a start.

Send me you contact email via Private message and I will email back to get your CV.

Regards, Peter 147
 
Not really another 6months on.

Hi Guys,

For those of you who are interested, i'm just updating- what seems to be a bit like a journal. I must apologise for missing last Tuesday evening at SIG but my mum flew up to spend sometime with me.

I'm currently renting USyd property @ $575/fn. Its a studio but i get some included meals. I know this is a rip off (even with the unbeatble location), but its been good while i first moved up to Sydney to get a feel for the place etc. I'm receiving centrelink payments which turned out to be a much nicer surprise than i had originally thought totalling ~$420/fn. I make up the difference by working a bit, using savings and help from parents.

I have severely dented my savings by forking out tonnes of cash on HECS fees, equipment fees, etc. I'm planning on moving out either during the semester break if i can find a suitable 1bedroom apartment somewhere near the Uni and Surry Hills / Central station / glebe . If not then definately at the end of the year- in which case i may opt for share accommodation.

At the end of 2006 i'm likely to move again and rent nearby to where i will be doing clinical rotations.

Ciao,
Kris
 
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