Investment Help - Starting young

[tbinvestor]

Hi Everyone, I am 22 years old and i recently bought a unit which i have tenants paying rent in, I live at home with my parents....what i want to know is how do i get ahead in life? i work fulltime on a very good wage(for my age) and i bought the unit to get ahead in life so i dont have to work till im 70 i have no living expenses becuase my parents pay for everything. i have owned the unit for 10 months now and my savings are starting to build again, should i start to look for my second property? Maybe a house this time?

I am really interested in property investing but i dont know a great deal about how to manage multiple propertys to my biggest advantage.

I hope this thread is clear, basically what i want to know is...in order to become comfortable and get ahead should i be buying as much as i can afford now when im young and have little expenses? Is this how you end up with 10 properties by the time your 40-50 years old?

 

[marg4000]

I would suggest you start by paying your parents reasonable board regardless of whether they ask for it or not.

You will never learn lessons in life while you are being, in your own words, fully supported by someone else.

At what age do you intend to stand on your own two feet?

Sounds harsh I know, but how can you take on any debt when you have no idea of how much independent living costs and how to support yourself as well as pay your debts?
Marg

 

[investor888]

Stop freeloading!

It sounds like you are a little spoiled kid. Start paying your parents board, and contribute more to where you currently live.
You also sounds a little selfish. I'm sure your parents, who are closer to retirement than you, would also like to get ahead, and not have to maintain your freeloader lifestyle indefinately.
"in order to become comfortable", hehe. It sounds like your already living comfortable currently. Grow up, contribute to the family.
How long before you move out of home, and start living independently. Until then, you have no idea of number of properties, or retirement age, because you have no guage of what it will cost for you to live independently.

 

[Gee Cee]

I would suggest that you offer some form of board to your parents. However they may be proud that you have got off ya ar e and not been some drop kick druggo. Are supportive and see that you are putting your money into your future.

Do not live rent free whilst buying Plasmas, new phones and traveling around the countryside

Great to see that you have got your first place.

Normally I would post to be aggressive. But with the world changed at present I have different views.

How secure is your job? You say you earn good money but is that sustainable?
Or if the real Poo hits the fan could you be out of a job?

I would be :
1) Asking my parents if they need some board to survive themselves. If not just buy a few needed things occasionally for them.

(Don't turn up with a brand new car or go Overseas for 6 mths whilst you are being supported by your parents.)


2) Put some extra $$$ towards the loan each week to reduce your debt. Even if it is only a small amount.

3) Educate yourself about Property. But more importantly the cycles that work for property and every other investment choice.

4 ) Put money aside into different banks so you build up a relationship with each. Then when the market turns you have a number of options for finance.

5 ) Don't be to quick to buy to much property in the present climate.

Don't forget to have some fun along the way


Gee Cee

Greg

 

[BayView]

Hi Everyone, I am 22 years old and i recently bought a unit which i have tenants paying rent in, I live at home with my parents....what i want to know is how do i get ahead in life? i work fulltime on a very good wage(for my age) and i bought the unit to get ahead in life so i dont have to work till im 70 i have no living expenses becuase my parents pay for everything. i have owned the unit for 10 months now and my savings are starting to build again, should i start to look for my second property? Maybe a house this time?

I am really interested in property investing but i dont know a great deal about how to manage multiple propertys to my biggest advantage.

I hope this thread is clear, basically what i want to know is...in order to become comfortable and get ahead should i be buying as much as i can afford now when im young and have little expenses? Is this how you end up with 10 properties by the time your 40-50 years old?

Well done so far TB.

To get ahead in life all you need to do is continue to keep doing what you're doing now; but look after those wonderful parents that are doing so much for you.

I don't think continually buying small units will get you there in super-quick fashion, but starting out; this is a good way to go.

Once you get a bit of a wealth base behind you from these, you will probably want to step up to something bigger; a small development, or a block of units, a commercial property or businesses maybe.

We've used our IP portfolio to buy a business recently for some instant passive income, and debt reduction across the board, and will be doing the same again in the not-to-distant future.

These will then be used to buy more real estate, underpinning the businesses, and then more businesses, and repeat cycle.

Not suggesting this is the path you should take, but this is our evolution, and it may be yours - but your strategy will constantly evolve as your position changes.

Good luck!

 

[RumpledElf]

I bought my first house at 22 but at that stage I had just finished uni and was in my first job, and hadn't been living at home for ages.

That was 10 years ago and I do regret selling that house ...

 

[tbinvestor]

a little off topic...

I appreciate everyones opinions but i think we went off topic a little, i didnt ask you all wheather i should be paying my parents board or not, i asked for investment help, how i can get a head in life, thanks for everyones 2 cents but i think i chose the wrong forum, thanks to thoes who answer my actual question.

TB

 

[marg4000]

You asked how to get ahead in life and that is the question I answered.

Become independent first.
Marg

 

[investor888]

It's the right forum tbinvestor. Any forum would tell you you are a selfish little Gen Y.
Help the household out, become indedependent. Stop sponging off your parents.

 

[Sheryn]

what i want to know is how do i get ahead in life?

Start reading property books and continue asking questions on this forum.

i work fulltime on a very good wage(for my age) and i bought the unit to get ahead in life so i dont have to work till im 70;

Good on you - buying a unit is a great way to start your IP portfolio.

i have no living expenses becuase my parents pay for everything.

Your parents are probably proud that you are saving and getting ahead. If they haven't told you that they are proud then ask them.

i have owned the unit for 10 months now and my savings are starting to build again, should i start to look for my second property? Maybe a house this time?

Yes, but also consult your accountant (but remember the decision is yours) & also post questions on this forum

I am really interested in property investing but i dont know a great deal about how to manage multiple propertys to my biggest advantage.

We all have to start somewhere and we all make mistakes.

I hope this thread is clear, basically what i want to know is...in order to become comfortable and get ahead should i be buying as much as i can afford now when im young and have little expenses?

IMHO personally start slow just like you are doing buy one property (see how it works out after tax) save and buy the next property like you are doing.

Is this how you end up with 10 properties by the time your 40-50 years old?

If that is your goal then that is what you will achieve but some people accerate their plan and end up with 10 quicker.


Kind Regards
Sheryn

 

[Sheryn]

It's the right forum tbinvestor.

Agree

Any forum would tell you you are a selfish little Gen Y.

Possibly

Help the household out, maybe TB is by doing otherthings eg additional housework or helping parents with computer / technology problems.

become indedependent. Stop sponging off your parents. Maybe parents are happy TB is saving and are happy to help their 22 year to become finanically independent. In my case I was happy to financially support our kids if they saved and brought a house or unit

TB - sometimes criticism can make you grow and really think about what is going on.



Regards
Sheryn

 

[tbinvestor]

being a little judgemental?

Not that it matters at all but just to shut most of you up, i have made multiple attempts to pay board and every time they tell me they dont want my money they are just happy im not wasting it. I help out around the house i clean, cook and do many things around the house, im selfish am I?

Most of you are jumping on your high horse and making judgements based on what it sounds like is a selfish 'gen Y' as you call it and not stopping to ask maybe his done all these things and has the financial ability to invest, so why not look at whats ahead and try and get ahead, which takes me back to the original answer i was looking for.

thanks to all of you who had constructive criticism.

 

[Token Funder]

Receive largesse from parent happy to provide same - selfish little Gen Y
Receive largesse from govt happy to provide same - astute investor

Pot.
Kettle.
Black.

 

[Gee Cee]

Hay everyone here has a different opinion on everything. Depending on their past life and where they are in life.

When I was young i took on so much pessamistic negativity. But I just took it on board and crunched it through the system.

OK you are going to get pessamism, jealousy, etc, etc.

Take all the comments on board. Summarising EVERYTHING out there will make you aware of the BIG picture. And the small picture.

Don't just get the shits and take your ball home.

I learn a lot here

This site brings so many people together.
OK they could be sitting watching TV and winging all day.
(But I think MOST people are to busy to watch TV.

If you cannot handle a little bit of flak with the huge advise then go watch something real.

Like Neighbours or Home & Away or Big Brother

Then come back in ten years and tell us your story

If you have a backbone hang around. Take advise, summarise it all and get ahead

Gee Cee

Old Fart

 

[Nathan]

TB, good work.

I am 23, a little further along, just do what you feel is right obviously making educated decisions along the way.

You can do what your saying you want to do, i have.

People will criticise you, but grow from it.

I dont belive in taking, especially from those who you love and care for, but if theres a genuine offer out there at any time take it.

I live in my family home, long story, but its convenient for my mother to have me living in the house and maintaining it vs renting to a stranger, and it is cost effective for me. so win win.

Chin up soilder.

Regards,
The big kid.

 

[Alex P Keaton]

Not that it matters at all but just to shut most of you up, i have made multiple attempts to pay board and every time they tell me they dont want my money they are just happy im not wasting it. I help out around the house i clean, cook and do many things around the house, im selfish am I?

Most of you are jumping on your high horse and making judgements based on what it sounds like is a selfish 'gen Y' as you call it and not stopping to ask maybe his done all these things and has the financial ability to invest, so why not look at whats ahead and try and get ahead, which takes me back to the original answer i was looking for.

thanks to all of you who had constructive criticism.

Hi, how ya doing



I'm 36 and moved back in with my parents for 12 months after renting. Mum and dad wouldn't take any board from me either. Didnt have to pay for food or utilities. They wanted me to save as much as I could whilst being there. I have built up a nice little buffer. I am so grateful for that.

I'll be moving out into my first ip soon as a fhb. They also helped me with the deposit. They would rather give me some of my inheritance now when I need it rather than later when their dead. I intend to help support them later in life. So its a win win for all of us. They have given me this great start and I will look after them later. Thats the way I see it. They see it that way too.

Dont let those peeps get to you. People do things differently. Anyway good luck with everything.

 

[Alex P Keaton]

It's the right forum tbinvestor. Any forum would tell you you are a selfish little Gen Y.
Help the household out, become indedependent. Stop sponging off your parents.

hmmmm I wander who this post is really from

 

[triton07]

Tbinvestor,
Keep doing what you’re comfortable with, if parents are supporting you, nothing wrong with that (just some jealous SS members here). With parents involved it’s a great way to kick start you’re investment journey & great way to save, save,,,,,,,,,,,,.

Your unit purchase is a good way to see how things work out & get you to you next purchase.

With knowledge on when your ready for your next purchase, I would say read books, alots of IP books & on this forum there is alot of good helpfull material.

I wish I started at your age.

Like I said don’t let others put you down on your investment strategy, it’s your future plan.

Cheers
George.

 

[investor888]

Haha Kim5. Moving back in with the parents. Kind of reminds me of George Costansa in Seinfeild. You really know when you have made good life choices when you need to move back in with the parents at 36yrs of age.
Anyway, good luck with your investment.

 

[VCDenton]

Hi TB

I am in the similar situation as you living with my family but paying board at the same time.

I think you may as well pick up the advice bit and just accept the 'criticize' bit silently....I think they are making sense by asking you to pay some and hence u will be able to prepare the budget or just as said, how much you need for surviving.

BTW, I am currently paying 200 a week what do you guys pay coz i feel like ripping my family off (i eat a lot and also consume quite abit of electricity with my non-stop PC ps3...)

Regards
Vince