Advice needed

F

Fox89

Hi all first time here and keen to learn.

Im looking for some advice and opinions on what you people would do in my situation. im very keen to get into property investing and one day live off it.

Im 22 years old have no debts, have over 100k in savings and currently save 10k a month.

should i keep saving and live the good life or should i get stuck in now to my goals of obtaining propertys. any advice much appreciated thanks. :)
 
That is an excellent savings record so far. In general I think it's good to start investing as early as possible as compounding returns is on your side. I would, however, take the time to educate yourself on what constitutes a good investment and then go from there.
 
That's amazing. Saving $120,000 per year! well done.

What is your goal? If you want to 'retire' what sort of income do you need? You could probably get their in a few years by just saving into an ING account.

BTW, how much do you live on per month?
 
my ultimate goal is to have enough propertys to live off so that is my income and i can surf all the time. It may sound unrealistic but that is what i want

I work in WA mining as a FIFO electrician so i literally live for free and have no expenses. all my accomodation and food is provided so i save alot of money.

things i need to learn are about what sort of loans would suit me eg interest only vs paying as much as possible and tax benefits of investment propertys.
 
Def suggest IO loan with 100% offset. Should not be paying off rental properties as this will eat up your cash which you may need down the track for a main residence.
 
Hi, in order to surf all the time re your current circumstances, you need 2.5M capital, more or less.

So, on your current savings rate, I'd say 12 years down the track.

KY
 
thanks for the replies anyone else wants to add anything i listen to everyone. if i keep saving by the time im 30 i could probably live off the bank interest but obviously everyone needs a house to live in.
 
Seeing as you have come to somersoft - I assume you are wanting to "do more" than just save.

Start working back from your end goal (surfing all the time). How much would you need to live off - and what sort of capital would that require.

Start developing a strategy for how you can implement/work towards this goal.

120k per year is a great amount of saving - and will quickly help reduce your LVR.

Well done for getting yourself into this position at such an early age.
 
Advice

Hi,
When I finished my training, an old boss pulled me aside and gave me some advice. He said my income was enough to be comfortable without having to take any risks and that the only people he had seen that got themselves in financial difficulty had done so by over-extending themselves (big houses, boats, investments that went bad, etc). If you don't need to take risks to be comfortable (most people would be comfortable with $10,000 per month disposable income), then why would you?
Maybe you are worried that times won't always be so good (aren't we in the middle of a mining boom?) And if that is the case then it also pays to be cautious. You would know more than me about the jobs situation at present.
I only invest what I can afford to lose. That is my risk profile. Most here are different, and that is why I find this board valuable.
But one possible scenario is that you leverage yourself to the hilt, get retrenched, and lose it all. Consideration of this should be part of everyone's due diligence. This advice probably won't make you rich.
Cheers.
 
Hi peeps

So i am still thinking about what i want to do with my self and have a few questions.

who are the best people to talk to about getting advice and getting started?
Things i want to talk about are which home loans to choose, Tax and all the rest.
Financial Advisor, Planner, Accountant, which one do you recommend?

Any advice is much appreciated thanks
 
Best person to speak to about home loans is a mortgage broker, not a financial advisor. FAs advise on how to allocate funds and risk management like insurance etc.
 
Fox89,
Well done,your doing well at 22....Educate yourself on property investment,read books(maybe some members on here could recommend some good material to read).Alot of good info on this site also.
As aaron said speak to a mortgage broker,plenty of good ones on here including aaron,financial advisors as aaron said are more for risk management.A tax accountant to minimise tax when you start investing.
Personally i'd steer clear of investment seminars etc...Maybe go to a SS meetup with like minded investors.
Fox89 as you said above,keep learning and saving.
Cheers Spades.

Ps.LOL Kum yin lau in reply to HomesForAll
 
Last edited:
some good books at the news stands at perth airport. doing fifo from NSW you have a few hours to kill. read the books on the plane. its easy to smash thru a couple of books a trip.

also good to see another sparky on here! :)
 
Fox89 said:
thanks for the replies, i think for the time being im just going to keep saving and learning more before i jump in.
Click to expand...

That is a good idea, no rush I do not see any particular market booming at the moment.

Once you work out a plan moving forward and educate yourself on the various strategies you may find that this will save you many years.

Income streams are important, bringing cashflow on the table and growth to access equity.

Look at "Adding Value" and "Innovative Techniques" on SS, to see how investors access equity, buy under market value etc.


Cheers, MTR
 
Fox89 said:
Hi peeps

So i am still thinking about what i want to do with my self and have a few questions.

who are the best people to talk to about getting advice and getting started?
Things i want to talk about are which home loans to choose, Tax and all the rest.
Financial Advisor, Planner, Accountant, which one do you recommend?

Any advice is much appreciated thanks
Click to expand...

I would use none of these.
Mortgage Broker, I use AaronC, he is very savvy broker;)
 
Ok thanks guys im taking it all in. The advice i get from people at work is that money is no good sitting in the bank earning interest. and because i get taxed a ridiculous amount with my job (ALOT!) i should be trying to minimise this through property.

Peoples thoughts?
 
Fox89; said:
Peoples thoughts?
Click to expand...

Fox

We all make mistakes, get cracking and make some. If u FIFO out of Perth (or any capital city) buy a property there close to airport without much plane noise. Ideally as soon as u are in the game u will slowly learn.

Be prepared to make mistakes, but the mistakes won't inflict too much pain ( I hope) if you earn big $ and start small.

Aim to attend any SS meeting in your area. Keep reading this forum etc.

The biggest mistake IMHO is to not make a decision.


Cheers
Sheryn

PS
find someone where you work who has property or done some developing and ask them what they did.
 
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