At the beginning...

[Maverick86]

First post on Somersoft! I stumbled across SS as I was google-ing things on property investment. i've learnt quite a bit though it's quite mind-boggling at the beginning. was wondering if anyone has any advice on my current situation.

I'm 22 and I've just started work full-time after graduating from uni. I currently live with my grandparents (whom I'm extremely grateful to) after arriving in Australia for uni. I worked casually the past 3 years and it was only just enough to pay my living expenses considering i don't get concession on anything (being an international student).

My first plan of action is this: save up 6 months worth of income over the next 15-18 months as an emergency buffer (mum's advice: she's a financial planner). After that, I plan to start investing in property!

Considering that I don't have a PPOR, is my first course of action to save up a 20% deposit on an IP to avoid LMI (i'm not sure how costly this is)? From other threads, there have been advice to purchase your first IP at about 250-300k. I'm just thinking this might take a while, whereas i've seen some other forumites younger than myself who've already purchased their first IP (good on them, for me)

In the meantime, I'll be educating myself on property investing books Thanks, and i appreciate constructive criticism!

 

[The Y-man]

...(being an international student).

Welcome Mav,

Are you eligible to buy any property, or will you get hit by the FIRB?

Cheers,

The Y-man

 

[Collector]

First post on Somersoft! I stumbled across SS as I was google-ing things on property investment. i've learnt quite a bit though it's quite mind-boggling at the beginning. was wondering if anyone has any advice on my current situation.

I'm 22 and I've just started work full-time after graduating from uni. I currently live with my grandparents (whom I'm extremely grateful to) after arriving in Australia for uni. I worked casually the past 3 years and it was only just enough to pay my living expenses considering i don't get concession on anything (being an international student).

My first plan of action is this: save up 6 months worth of income over the next 15-18 months as an emergency buffer (mum's advice: she's a financial planner). After that, I plan to start investing in property!

Considering that I don't have a PPOR, is my first course of action to save up a 20% deposit on an IP to avoid LMI (i'm not sure how costly this is)? From other threads, there have been advice to purchase your first IP at about 250-300k. I'm just thinking this might take a while, whereas i've seen some other forumites younger than myself who've already purchased their first IP (good on them, for me)

In the meantime, I'll be educating myself on property investing books Thanks, and i appreciate constructive criticism!

I came across this handy calculator while doing sums on a property. It may help you when the time is right.

MORTGAGE INSURANCE CALCULATOR​

 

[Maverick86]

FIRB? what's that? I've sent in my application for permanent residency in Australia, and I should be getting that in about 6 to 9 months time. In the meantime, I'm on a bridging visa which allows me to work in Australia full-time.

I guess my plan of action is to hopefully purchase one property a year for about 8 years. I'm trying to work out how I'll be able to keep buying 1 property a year. Is it a matter of saving for a deposit, or do you redraw equity from previous IP? That seems to be the 2 ways I've seen done on this forum.

Thanks for the calculator, Collector! Appreciate it!

 

[quoll]

I'm trying to work out how I'll be able to keep buying 1 property a year.

That's the hard bit which is why the property spruikers just say "buy one property a year for ten years"

Lots of people on here have done it and more than lots haven't. There are so many ways to mold and shape your investing, you have to learn and work out what your happy with and what fits your mind set.

Have fun reading and asking questions.

Cheers
Graeme

 

[Collector]

FIRB? what's that?

Foreign investment review board.

If you are not an Australian resident you will not be able to purchase a property atm unless the property is new.

however there is a bill that is being put to parliment that will change this restriction if passed.

 

[jsj]

http://assistant.treasurer.gov.au/D...008/107.htm&pageID=003&min=ceb&Year=&DocType=

http://www.firb.gov.au/content/real_estate/residential.asp

It may be worthwhile looking at a cheap block of land if saving for a deposit is a limitation. Some of the big developers are offering some sweet deals at the moment. You then have 24 months to start building. (under some definitions this only means getting a signed contract with a builder)
That may give you time to pay some off and hopefully with some capital growth, you can use some equity as part or all of a deposit to build.watch for shorter build time covenants with the developers though.

or find out when you will qualify for the first home owners grant and wait for then. with the current fhog it is worth getting an owner occupier for six months and converting to ip later (this varies state to state)
http://www.firsthome.gov.au/
Good Luck