How to get started ASAP!?

B

bret

Hi there!
I really love this forum :)
Such a pleasure to read everyone's posts.
I wonder if anyone can give me any ideas how to invest ASAP?!
I have about 3k saved up and earn about 50k though it will hopefully go up to 70k in Nov.
I've been thinking of buying an apartment in the city with 2 bedrooms, living in one and renting out the other, and putting it all under an IO loan for servicability.
Or alternatively to continue renting and buy and rent out an IP with IO loan.
Can I get a loan with only 5% deposit as I don't want to save for the next year to finally get started.
What is the best and fastest way for me to go about things to acquire an IP?
Thanks!
Bret
 
Just changing the loan to IO wont increase your serviceability in most cases, they loan is being taken out over a loan term still need to show ability to repay the loan.

Renting the room out to someone will help your hip pocket but in most cases banks wont take this income into consideration.

You will need approx 5% deposit for the banks & 5% for the fees involved (stamp duty, conveyancer/solicitor, mortgage reg etc). I would suggest aiming for 11% as a minimum. Note that this doesn't guarantee you a loan financing loans >90% isn't always the easiest especially for tight servicing.

Best of luck, 1st thing is to save as much as possible. In the mean time read as much as possible on this forum.
 
95% leverage on a CBD apartment is a bit harder to get. Remember it's quality not quantity that makes investment sense and given the amount of new dwellings in Melbourne CBD - hard to see the investment case for it.
 
bret said:
Hi there!
I really love this forum :)
Such a pleasure to read everyone's posts.
I wonder if anyone can give me any ideas how to invest ASAP?!
I have about 3k saved up and earn about 50k though it will hopefully go up to 70k in Nov.
I've been thinking of buying an apartment in the city with 2 bedrooms, living in one and renting out the other, and putting it all under an IO loan for servicability.
Or alternatively to continue renting and buy and rent out an IP with IO loan.
Can I get a loan with only 5% deposit as I don't want to save for the next year to finally get started.
What is the best and fastest way for me to go about things to acquire an IP?
Thanks!
Bret
Click to expand...

It's difficult saving for your first investment property, don't give up

Think about living further out and buying something established with land you can live in and renovate, I did this and the benefits were worth it

I worked 2 jobs, ate at work, sold my car and bused, instead of going to the pub I just used to go the gym, was worth the sacrifices
 
It's gonna take ages for me to save enough for a deposit..

What about boosting savings with buying shares or units in an ETF?

Have been looking at
iShares S&P/ASX 20 ETF, and
iShares S&P/ASX Dividend Opportunities ETF.

For investing to boost savings does it make sense to look for growth or income in a fund?

Would people recommend these?
 
bret said:
It's gonna take ages for me to save enough for a deposit..

What about boosting savings with buying shares or units in an ETF?

Have been looking at
iShares S&P/ASX 20 ETF, and
iShares S&P/ASX Dividend Opportunities ETF.

For investing to boost savings does it make sense to look for growth or income in a fund?

Would people recommend these?
Click to expand...

OK, but what happens if your savings goes down in value?
 
Put your 3k on Daniel Hannerberry norm smith into swans under 39 which on your investment should return you around 51k. :p

From what I am reading though you have just discovered a passion of property and want to jump in head first. I was exactly the same about 6 months ago and just wanted to get stuck into doing something but I couldn't so have since spent that time reading reading and more reading. I still know so little but compared to where I was 6 months ago is crazy.
I really recommend you do the same, there is no rush, spend the time educating yourself as much as possible. Given your minimal savings and ok wage then even if you could invest then it's going to be negatively geared and what happens if you buy a lemon because u just wanted to jump straight in without the knowledge. It could set you back a long long way.

Bottom line, spend the next year educating yourself whilst you save atleast a 10% or more deposit and then your going to put yourself in a great position.
Good Luck!
 
albanga said:
Put your 3k on Daniel Hannerberry norm smith into swans under 39 which on your investment should return you around 51k. :p

From what I am reading though you have just discovered a passion of property and want to jump in head first. I was exactly the same about 6 months ago and just wanted to get stuck into doing something but I couldn't so have since spent that time reading reading and more reading. I still know so little but compared to where I was 6 months ago is crazy.
I really recommend you do the same, there is no rush, spend the time educating yourself as much as possible. Given your minimal savings and ok wage then even if you could invest then it's going to be negatively geared and what happens if you buy a lemon because u just wanted to jump straight in without the knowledge. It could set you back a long long way.

Bottom line, spend the next year educating yourself whilst you save atleast a 10% or more deposit and then your going to put yourself in a great position.
Good Luck!
Click to expand...

Good advice here. Yes prices may go up somewhat in 6-12mths but they may also go down.

Spending 6mths learning what a GOOD investment is will outweigh any market movements. Rushing in buying the only thing you can afford may lead to POOR decisions.

The hardest thing will be to save save save. You really need to look at your budget and pare it down to the minimim. Set up one of those savers accounts with a bank where you get bonus interest for depositing and dump as much cash as you can.

Serious scrutiny of your budget (or even creating a budget if you don't have one) can find money. Many of us on here have made sacrifices to be able to get into the market - for me it was selling my car, giving up holidays and living a pretty boring life :)
 
bret said:
Hi there!
I really love this forum :)
Such a pleasure to read everyone's posts.
I wonder if anyone can give me any ideas how to invest ASAP?!
I have about 3k saved up and earn about 50k though it will hopefully go up to 70k in Nov.
I've been thinking of buying an apartment in the city with 2 bedrooms, living in one and renting out the other, and putting it all under an IO loan for servicability.
Or alternatively to continue renting and buy and rent out an IP with IO loan.
Can I get a loan with only 5% deposit as I don't want to save for the next year to finally get started.
What is the best and fastest way for me to go about things to acquire an IP?
Thanks!
Bret
Click to expand...

What city you in?
 
Deltaberry, I'm in Melbourne. Why? Is there a good investment group here?

Apparently putting my money on the SWANS would have left me bankrupt^^ Lol :)

I've been tracking my spending this month and so I'm gonna be able to see where I can cut costs :) I'm already getting my coffee from 7/11 which some people here think is disgraceful!
 
bret said:
Deltaberry, I'm in Melbourne. Why? Is there a good investment group here?

Apparently putting my money on the SWANS would have left me bankrupt^^ Lol :)

I've been tracking my spending this month and so I'm gonna be able to see where I can cut costs :) I'm already getting my coffee from 7/11 which some people here think is disgraceful!
Click to expand...

When you start only drinking the International Roast at work because it's free then you're saving money :)
 
bret said:
I'm already getting my coffee from 7/11 which some people here think is disgraceful!
Click to expand...

Reducing a $4 purchase down to $3 is not saving money. And drinking crap coffee is not good for your well being. I need good coffee in the morning to function :)

You should instead being looking for unnecessary items you can remove completely.
 
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