HELP! Need Advice!!! Invest later - apprenticeship now?

[tbinvestor]

Hi, I am 23 years old and I currently have 2 almost positive IP's, i live at home with my parents and earn around 65k, I have been in my job since i finished school year 12 VCE.

When i finished school i didnt know what i wanted to do i just knew what i liked doing so i moved into an area of work which i found interesting (at the time but no longer do), now 5 years later i am at the stage where i am over it, i have worked myself to a level where i cannot move any further up or around the business, if i was to leave and go with another company it would just be a different business but same thing different place.

So....

I have now considered putting a hold on my property investing and going back to school to do an apprenticeship (plumber or refridgeration mechanic).
I have always wanted to do an apprenticship but i have never actually made the effort to look into it, i just procrastinated the idea as the years passed by... Ultimatly i would like to do an apprenticship but i feel i will be taking a step back for at least 3 years of my 4 year apprenticship - which means no more property investing and back to a very low wage.

But...

When i am qualified i will hope to be earning a much better wage then i am now; so i am told by qualified plumbers, and i will have to opportunity to open my own business later on and work for myself where i will have the flexibility to work as much as i want and get back into my property investing. So i guess i will be catching back up on the years i lost while i was doing my apprenticship.

Need advice!, i hope this all makes sense and somebody could give me some wise advice, possible somebody who has been in a similar position to me, or sombody else who did a mature age apprenticship - how did you find it?

Any advice at this stage will help - i have hit rock bottom in terms of what decision to make.


Regards,
Tyson

 

[wylie]

I think that at age 23 with two "almost positive" IPs you are so far ahead of many 23 year olds that you should be proud of your achievements.

My advice would be to follow your heart and do the apprenticeship, but to do so means you lose $65K income which is servicing the IPs.

Have you a plan to be able to hold these IPs without your salary? What type of drop in salary would you be faced with? Of course, any reduction in salary means they go from "almost positive" to (possibly) "fairly negative".

Can you take up an apprenticeship now, or do you wait until the new year? If so, can you throw as much of what you are earning now into an offset account, and try to live on the reduced earnings to see if you can hold the two IPs?

Perhaps your parents could help out while your salary slowly increases, and you could document any borrowings, and pay them back when you are on a better income. Many will say "stand of your own two feet" and I agree to a degree, but if your parents can help out, and if your relationship is a good one, that is just one idea. I would do it for my kids, because my parents have always been there in the background for when we needed a short term loan in the early days. We always paid interest and always paid it back, but it allowed us to not to have to sell a house just to access maybe $1000 for a car repair, when things were tight.

Just a few thoughts that sprang into my head. I don't know if they will help you.

(My son has just decided after 2.5 years of architecture that it is not for him and in January 2010, at 21 years of age, he will start a law/journalism double degree, so don't think of having "wasted your time" by not starting the apprenticeship earlier. I asked my son if he felt frustrated or that he had "wasted" 2.5 years and he said all he felt right now was "relief" that he had made a decision about getting out of something he was not enjoying.)

If you can do something that you love, then it is not really "work".

 

[Nathan]

Congrats.

I wouldnt be doing apprenticeship.

Your investing for lifestyle? your inevesting to be financial independant? Why do you want to invest in you working for more years into the future?

$65k and cf neutral is a good base to be working from on your investment front. I would stick to what your best at and not worry about apprenticeship.

Thats my opinion though,

 

[Rockstar]

I have now considered putting a hold on my property investing and going back to school to do an apprenticeship (plumber or refridgeration mechanic).

After I bought my first IP I sold the show car i was building because I knew i could afford to buy another IP with the money it owed me...big mistake, I now own 2 IP's and I miss this car like no other, I hand built this car from the ground up and in a way it was a part of me and it was my hobby, dont make the mistake of selling your hobbies to invest, you need to enjoy living first.

Sounds like you should be looking at something in the Motor Industry with those skills and interests?

What other skills do you have and what is your current area of work?

 

[Leikela]

I completely agree, follow your heart and do your apprenticeship. You're only 23 and with already 2 IP's like Wylie said, you are well ahead of most other 23 year olds. 3-4 years of putting your investing on hold is nothing at that age, especially if you're living at home and can continue to do so throughout your apprenticeship. The main thing is that you can continue to service your current IPs (even if that means maybe getting a second part time job a couple of nights a week).

I experienced something similiar. When I was in school, all I wanted to do was get a good career and make lots of money. I ultimately ended up in a career which I can potentially make good money but hate. By the age of 25 I was so miserable every night that I came to the realisation that money isn't everything. I discovered flying and decided to forget the $$ and get my commercial pilot license (and all the other ratings and endorsements you need with it) at a cost of $80,000. At first the thought was terrifying, "wasting" all that money but it was just a few years of sacrifice and now I'm back to making ok money and I haven't missed those few years of money I could have invested. Mind you, I haven't taken that leap yet of leaving my current well paid job into the field of aviation which will mean a good few years of very low income, but I know I can now do it at any time I want so there is some light at the end of the tunnel for me. I am still in the career I don't like, but I have since changed jobs and love the place I work at, which makes it bareable now. I did that with only a PPOR which I bought when I was 22. So I had to support myself entirely during that time, so I think at 23 with 2 properties and being able to stay at home, you should definately go for it.

Also, what is your long term goal? To own 5, 10, 15, more? investment properties? What good is it, to have all that money invested, but you're miserable doing something you don't enjoy? And as you pointed out, the apprenticeship is itself an investment as you say you can earn more money in the long term especially if you start your own business. So perhaps think of your apprenticeship as Investment No. 3.

I say go for it!

 

[BV]

Actually, I wouldn't do it, I'd buy a few more IP's
and keep doing the same for another decade.

Following this path you'll be way ahead of most people of your age and after that if you're still not happy with what you are doing you can concentrate on a career change.

Can you get an apprentiship at 23?
I ask because I've heard that employers prefer teenage kids so they pay them less

 

[Minxdamanx]

Can you get an apprentiship at 23?
I ask because I've heard that employers prefer teenage kids so they pay them less

My son has just started his second apprenticeship at 26. He's an automotive mechanic and just starting his apprenticeship as an auto-electrician. He works for a mining company, so that might make a difference to 'affordability' as far as his employer is concerned.

 

[nww]

Actually, I wouldn't do it, I'd buy a few more IP's
and keep doing the same for another decade.

Following this path you'll be way ahead of most people of your age and after that if you're still not happy with what you are doing you can concentrate on a career change.

Can you get an apprentiship at 23?
I ask because I've heard that employers prefer teenage kids so they pay them less

I think the Government treats it as a mature apprenticeship and pays the difference. Might be worth looking into it a bit further.

 

[pennyk]

I think you should do the apprenticeship. Life is too short, and we spend way too much time at work to waste time on something you don't enjoy.
Life is also not just about getting IP's and building wealth... its about building skills, building businesses, building inner strength etc.
In the long term, 3 years of not earning so much money is nothing. You will easily make that up. Whereas 3 or 4 or more years of doing a job that you hate is a real waste of time. It will sap your energy, and your motivation.
Follow your dream,
Pen

 

[gg1965]

Can i recommend a different idea?

Keep your current job, but go to TAFE after hours and do a management course or a project management course and get your current employer to pay for it.

This keeps your income and also builds up your qualifications and then jump ship when you finish your course(s).


g

 

[tbinvestor]

Thanks for all your advice

I think i know what i want to do, i am going to look solidly for an apprenticship and see how this goes becuase it wont be an easy task, while doing this i will work at my current job and who knows what happens in the mean time, somthing might pop up.

I can afford to keep my IP's and i have worked very hard to get to where i have so far in my short working life so selling up wouldnt be an option, i think if i do it touch for 2-3 years of my life it will have a quick payback in the future.

I do agree with one of your coments regarding investing...whenever i feel like i am going down hill with my investment plan i will just take a minute to think about my 3rd investment; investing in myself broadening my skill sets and knowledge!

I will keep you all posted how it pans out.

Thanks for all the help, much appreciated.

 

[AJG]

I wouldn't be doing it. Manual labour only sounds like a good idea when you drive past a construction site on a cool sunny day. My opinion, having done my fair share of manual labour, it sucks. Use your mind as much as you can.

Going into an apprenticeship at 23, will be a major kick in the teeth for you. That is in respect to status and recognition. It's a pretty black and white industry and considering you are thinking about doing an apprenticeship at 23 implies you are uncertain about aspects of your life. Maybe more of an emotional person. That's a recipe for one bad cookie mix if you want to work as a plumber. This is from personal experiences. I'd be talking to some sort of career advisor, probably an organisational psychologist.

 

[The Fence]

Only my opinion but if I could be 23 again............I'd be keeping on doing what you are doing now and concentrating on more IP's/investing in general...you are one very large step ahead of most your age already...

If only I was 23 and knew what you already know now...

Going back to apprenticeship wages won't help anything at your age...but I can see what you are struggling to decide...the only reason I'd go on and do the apprenticeship would be for that end goal of going into my own business....not doing your trade on wages....then get stuck back into the investing.

You'll be retired by 40 if you really get moving....

Good luck, nice to see a youn'gn havin' a go...

 

[Minxdamanx]

If you are unhappy in your current position then by all means change careers.

At your age there will be probably be a few career changes over the course of your working life!

Unfortunately an apprenticeship - mature age or not, will mean limiting your earning and investment potential for about 4 years, by which stage you will be 27 or so. Big Deal!

Go to this website (if you haven't already) http://www.australianapprenticeships.gov.au/
and look up the number for the Apprenticeship Centre in your state and make a time to meet with an advisor and discuss your options.

Life is too short to be stuck in a job you dislike. (now say 'yes mum'!)

 

[13910]

Only one person can answer this question: you. Think about it long and hard, ensure it's not just one of those phases you'll end up regretting, and follow whatever the outcome of those thoughts are. Happiness comes from different sources for different people - the feedback you've received shows some can tolerate an uninteresting position for the sake of investing happiness, while others follow their heart - find what does it for you and proceed.

http://www.fleurdelis.com/desiderata.htm

Cheers
Greg

 

[jaycee]

Either way, you will be able to a) keep your properties & b) keep investing (after bit)... seeing as you alredy have 2 IP's, they'll go positive soon, so will cost nothing to hold. I dont think learning a new skill is a bad thing. You already have more investing expreience than me at nearly 38.

Think about what skills you want to learn.

 

[shanecaz]

I completed a plumbing apprenticeship about 15 years ago and it has been the best thing I ever did. Its a bit like nursing in the way that you can travel virtually anywhere (within reason) and get a job. It will be a little tough financialy for a 3 or 4 years but you should be able to earn a lot more than your current income once qualified. As for leaving your current job due to being sick of it I know plenty of plumbers that are sick to death of plumbing (I am not one of them)so you should make sure that you are sure that it is what you want to do. Sounds like you already have a great head start on property investment so why not spend a little time investing in your earning potential.

 

[shanecaz]

Can i recommend a different idea?

Keep your current job, but go to TAFE after hours and do a management course or a project management course and get your current employer to pay for it.

This keeps your income and also builds up your qualifications and then jump ship when you finish your course(s).


g

quite hard to get a job in project management without experience I would of thought

 

[Minx]

I would do it. You are young and it's not as if you are supporting a family.
Just be sure that you do the right apprenticeship and not any apprenticeship for the sake of doing one.

Money will be tight but that is how the cookie crumbles really when doing an apprenticeship.

9 months ago I left my job where I was working shift work, weekends, public holidays, nights etc for the job I'm doing now. Same employer so I kept all my leave incl long service. I took a pay cut as I work mon-fri 9-5 so no penalty rates. I am so much happier now. Where I work now isn't a bitchy environment and management are much more supportive. Most importantly I have my sanity.

Who knows, if you do something that you are good at and work hard you might get early signoff, so you may avoid a whole 4 years of apprentice wages.
The other opportunity is if you do an apprenticeship in construction, down the track after some experience on your own you can go for your builders license.

Myself, I completed a science degree last year whilst working full time. This year I my year off then next year I'm planning on going to TAFE and doing a drafting diploma part time.
I hope to do the drafting for our construction company and know plenty of builders who sub contract to my partner who would use my services. Would be great to do this whilst working from home and raising children.

Do what will make you happy. Owning a IP's IMHO is not the end all and be all.

 

[Alex P Keaton]

The other opportunity is if you do an apprenticeship in construction, down the track after some experience on your own you can go for your builders license.
.

Yeah I was thinking something along this line to. You would be able to use your tradie skills later on if you decide you want to renovate or develop. Carpentry, Painting, electical, plumbing, etc?

Have you thought about that option? Then you could combine your two passions!! That'd be cool