How to get started ASAP!?
- Thread starter bret
- Start date
You...draw roofs? As in using CAD (or AutoCAD..whatever the designer-builders version of Photoshop is)? Are you an architect?
I wouldn't take any advice from someone with such poor judgement as to hate Hawks... what is there to hate? We're a happy team!
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
$3k . Gamble it if you really frustrated to go into property. Either you will double it or lose it. (Don't take this advice. It's just sarcasm)
On a serious note, I had put $30 into my tatt bet app account. By putting $5 or $10 bets as a fun on tennis games happening in china, my account is now $51. Simply I am putting bet where winning chances are 1 to 7 or 1 to 8.....
I hope I will not get greedy and lose my savings for my 2nd IP
It gets worse, I'm a collingwood supporter!
And Ofcourse your happy you've just won back to back.
We on the other hand are going backwards and about to lose our second best player to Brisbane. Maybe Beams is just wanting to get closer to the hot Brissie property market.
Expenses from 7/9-6/10.
Just finished first month of tracking expenses. Here are my results!
-I'm living in shared accommodation.
-I thought buying an IP would be more affordable than buying a PPOR. I asked a mortgage broker here in VIC about living in it to claim the FHOG and stamp exemption. He said, if I remember correctly, I'd need to live in it for a year and that the FHOG of $10k is available only for new and off the plan purchases which I expect are too expensive and too risky, respectively.
-I finished tracking my first month of expenses on Tues.
Savings
Deposit: 650
Other: 112 (xmass gifts, travel costs to visit family interstate, etc..)
Rent: 595
Health & Fitness: 256
Insurance
Medical: 28
Auto: 10
Other: 7
-Extra work: I rarely do some casual work that comes up from my old job. Just doing some exams for accreditation now that if I pass will allow me to do part time work in the evenings through the week and on weekends! Will find out if I pass in a couple months. Will look at doing other part time work on weekends until then.
-Existing debt: about $29k HECS.
Thanks.
Bret
Where are you living now? presumably at home with this folks?
Why dont you plan on continuing with your current living arrangements and buy a rental? You can move into the property for the first 3months, then rent it out. Thus claiming it as your ppor for 3months, and recieving the tax concessions (CGT) and FHOG (does that still exist?).
If you are tracking your expenses post it up here, and let us cut them down.
I whole heartedly agree with DaveM. Focus on earning more. The majority of people on here would have taken a second (or third) job when starting out. This could be an extra couple of hundred a week which goes straight into your saving acct.
What existing debts have you got? CC, store card? car loan? etc?
The more info you provide the more we can review and critique. Just be prepared for the onslaught
Blacky
Just finished first month of tracking expenses. Here are my results!
-I'm living in shared accommodation.
-I thought buying an IP would be more affordable than buying a PPOR. I asked a mortgage broker here in VIC about living in it to claim the FHOG and stamp exemption. He said, if I remember correctly, I'd need to live in it for a year and that the FHOG of $10k is available only for new and off the plan purchases which I expect are too expensive and too risky, respectively.
-I finished tracking my first month of expenses on Tues.
Savings
Deposit: 650
Other: 112 (xmass gifts, travel costs to visit family interstate, etc..)
Rent: 595
Health & Fitness: 256
Gym: 115
Protein shakes: 140 (this is now down to $75 as started buying in bulk). Could actually reduce this further by buying even more in bulk.
Eating Out: 264 This includes all those coffees. Am now waiting until I get to the office and drinking Internation lol.
Every Fri night I have take-out about $10.
I now only eat/take out on weekends and order el cheapo options or places. For example, all you can eat curry for $6.50.
Also will eat something cheap at home if I'm meeting a friend for lunch so I'm less hungry at restaurant.
Groceries: 263 (I pay a housemate $40/week to shop and cook dinner for me! I buy lentils and make curry that I freeze and microwave at lunch through the work week.)
Transport: 202Public transport is so expensive!
Gifts: 195Every fri I buy 2 of my house mates dinner for about $15 all up.
$60 was for xmass gifts this year.
About $15 was for a b'day gift.
About $120 was for shouting meals/coffee/etc for friends.
Utilities: 183Elect: 120 (this isn't likely to recur now that winters over)
Mobile: 40
Internet: 23
Education92 (this was a one of but I'd like to invest in my education more to get better paying and more interesting work.)
Entertainment: 84About $23 on going to a club and having drinks.
$20 Melbourne Show.
6.50 iTunes/AppStore.
Don't remember what the rest was on. Purchases under $10.
Tax repayment: 78 (My tax return estimated I'd get about $5k back so won't be paying this any more). Insurance
68 (This is going to go up $33 while I take a friend's car for 3 months while she travels overseas. Planning on still using PT to commute to work).
Charity: 60Medical: 28
Auto: 10
(This will prob go up to maybe $50 since taking the car.) Will prob go on a few day trips on the weekend.
Household: 7Other: 7
-Extra work: I rarely do some casual work that comes up from my old job. Just doing some exams for accreditation now that if I pass will allow me to do part time work in the evenings through the week and on weekends! Will find out if I pass in a couple months. Will look at doing other part time work on weekends until then.
-Existing debt: about $29k HECS.
Thanks.
Bret
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Good on you Bret for coming back and reporting in.
Your budget is somewhat extravagant but it's up to you if you want to cut back on it. As you've read and noted taking on extra work will allow you to get your deposit quicker.
Also if do the extra jobs/work in the evenings you have less time to go out to dinner etc so you naturally save.
If PT is your major bugbear have you considered cycling to work? Good exercise and cheap
Your budget is somewhat extravagant but it's up to you if you want to cut back on it. As you've read and noted taking on extra work will allow you to get your deposit quicker.
Also if do the extra jobs/work in the evenings you have less time to go out to dinner etc so you naturally save.
If PT is your major bugbear have you considered cycling to work? Good exercise and cheap
Hey Bret,
Great work on tracking your budget. From an outsider looking in though:
I pay a housemate $40/week to shop and cook dinner for me!
Every fri I buy 2 of my house mates dinner for about $15 all up.
About $120 was for shouting meals/coffee/etc for friends.
If you were to continue this trend each month then annually this would cost you $4300. Now its very important to note that no one likes a tight @.. but it seems like you spend A LOT on your friends. Do they return this?
Given your current position then $4300 is a hell of a lot of money to be spending on friends a year.
Also I know this is a property forum but what is your gym goals? If you are skinny and trying to bulk up then you will need protein but if you goal is to get lean then you can totally drop the protein powder.
Great work on tracking your budget. From an outsider looking in though:
I pay a housemate $40/week to shop and cook dinner for me!
Every fri I buy 2 of my house mates dinner for about $15 all up.
About $120 was for shouting meals/coffee/etc for friends.
If you were to continue this trend each month then annually this would cost you $4300. Now its very important to note that no one likes a tight @.. but it seems like you spend A LOT on your friends. Do they return this?
Given your current position then $4300 is a hell of a lot of money to be spending on friends a year.
Also I know this is a property forum but what is your gym goals? If you are skinny and trying to bulk up then you will need protein but if you goal is to get lean then you can totally drop the protein powder.
Last month was extravagant because it was just to see what I'm actually spending although I already cut down on coffee and eating out.
I've thought about riding to work but I'd have to spend a few hundred to get a decent bike to ride the 15ks once/twice a day. Also thought about getting a scooter/motorbike with a similar intention but would have to spend atleast a couple $k.
Thanks.
$40 a week for shopping and cooking is pretty good though right?!
I reckon I can bring that $120 down to half and then see if I can bring it down more.
I am trying to bulk up. I'm also finding going to the gym is helping me develop more confidence and mental health which surely will help investment goals, and perhaps reduce medical/health costs in future :*
Thanks
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$40 a week for shopping and cooking is pretty good though right?!
I reckon I can bring that $120 down to half and then see if I can bring it down more.
I am trying to bulk up. I'm also finding going to the gym is helping me develop more confidence and mental health which surely will help investment goals, and perhaps reduce medical/health costs in future :*
Thanks
No doubt! $40 is a bargain but just pointing out it is one of these things you could do yourself to save that money. That being said as long as the time you save on shopping and cooking is spent educating yourself on property then I imagine it would probably equate to around 5 hours a week extra, so its really an investment
If you spend the time watching more TV then maybe not so much
Good work on the gym as well. It definitely helps with confidence and ofcourse you are keeping yourself healthy.
Why don't you get a job in a bar fri and sat night?
Make yourself a free coffee when you arrive
Drink on the job and save going out money
Make best friends with the chef and get free food (usually you just make them coffees all the time and they'll be happy)
Stay behind with the bar staff when you knock off and receive more free drinks
Get paid to party and serve idiots
Save more money
Chat up hotties all night and maybe get a free ride home!
Make yourself a free coffee when you arrive
Drink on the job and save going out money
Make best friends with the chef and get free food (usually you just make them coffees all the time and they'll be happy)
Stay behind with the bar staff when you knock off and receive more free drinks
Get paid to party and serve idiots
Save more money
Chat up hotties all night and maybe get a free ride home!
You do need quite a bit of money in your Super to set up a SMSF but yes many people do it to buy property.
Clients come in and ask me this week in week out.
I tell them, due to compliance costs in maintaining a SMSF over an industry fund, as a rule of thumb I like to see $200K in the SMSF before I will sit down and talk about property etc.
Also, to get the legal framework, initial feasibility done, bare trust set up, bank fees etc on set up is expensive, we say to clients to budget for $10K roughly.
So with my clients, if property in SMSF is what they are wanting to do, we work out where they are at in their industry fund now and a plan to get to the magic number in X years. Usually my clients are self employed so the super contributions are deductible in the business, so this forms part of a tax minimising strategy.
The allure of SMSF property is being peddled to people as a magic bean.. But in reality, it takes careful planning, $$$ and also must fit in with your long term strategy.
DZ
Good on you for following up and posting this. Kudos!
Im not the best person to speak (Where is Kathryn when you need her?). But anyway here is my thoughts.
I would focus on 3 main areas
1) eating out - goes without saying this is a relatively expensive pastime. You don't want to become a hermit, but this is a fairly hefty un-required expense.
2) Gifts - I would definitely be cutting this back. There is a good balance between generous and frivolous. Given your situation I think you are going a bit over the top.
3) Transport - this is the easiest one to eradicate. Buy a bike. You can get really decent mountain bikes for $500 and very good road bikes for under $1,000 (remembering that you are a weekend warrior and not Pinkboy). Think about it - $800 on a bike is repaid in 4months. This will also help with your gym goals
Overall I don't think your expenses are excessive though. I would keep tracking these to help you get on track. Use a program such as the ANZ, or Pocketbook apps. Makes life really easy.
Then - go and get a job in a bar. Working an extra 10-15hrs/week will be about $1,000/month ($12k/year). Plus if I remember correctly a lot of the second job will be taxed high, so come end of year you get a bulky ATO cheque - its like forced savings.
Blacky
Im not the best person to speak (Where is Kathryn when you need her?). But anyway here is my thoughts.
I would focus on 3 main areas
1) eating out - goes without saying this is a relatively expensive pastime. You don't want to become a hermit, but this is a fairly hefty un-required expense.
2) Gifts - I would definitely be cutting this back. There is a good balance between generous and frivolous. Given your situation I think you are going a bit over the top.
3) Transport - this is the easiest one to eradicate. Buy a bike. You can get really decent mountain bikes for $500 and very good road bikes for under $1,000 (remembering that you are a weekend warrior and not Pinkboy). Think about it - $800 on a bike is repaid in 4months. This will also help with your gym goals
Overall I don't think your expenses are excessive though. I would keep tracking these to help you get on track. Use a program such as the ANZ, or Pocketbook apps. Makes life really easy.
Then - go and get a job in a bar. Working an extra 10-15hrs/week will be about $1,000/month ($12k/year). Plus if I remember correctly a lot of the second job will be taxed high, so come end of year you get a bulky ATO cheque - its like forced savings.
Blacky
