Investment Help - Starting young

[Alex P Keaton]

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.

thanks

Yeah... um it wasnt so much that I needed to move back. Its just that I felt I wasnt getting anywhere renting. Wasnt able to save much. Basically I was really scared about my future and getting stressed. I was thinking about how I would cope when my parents retire so I asked if I could move in with them for a year so as to save some money.

I'm itching to get out now. I crave to have my own space. Cant wait till I move in to my apartment. Wow my first place. I am going to keep to a budget. I have found a good way to reduce my expenses. I'm keeping a track of everything in a money journal. lol I'll start to write shopping lists and things like that haha.

Good luck with your investments. Wish I had started at your age. You will really set your self up nicely.

 

[jaycee]

tb, you did well buying a place, now

Save save & save & knock some extra bucks off the loan (put it in an offset / pay off the loarn whatever, in fact, take the time to find out what might be best FOR YOU..).

See what pops up in the next few months, (tenants move / things needs etc reparing sometimes), see how much money you get back at tax time (and put it all onto the loan again).

Look, make the best of it, like you said paying no board is a great opportunity, and having paents able/ & happy to provide it, well god bless 'em - So the money you'd pay for board normally (at least this amount, it would cost more if you lived out on your own) put it away as savings, then your normal minimum (to covering your loan / rent shortfall), then your extra savings ontop, otherewise, it is false economy - do it right though, and it can work great, I was too stupid, but seen it done well....

As this goes on read things like this forum, there's heaps tyo learn just by reading, then ask quetions out of curiousity you build up and what's happening around you and see whats going on with property values (it's a bit funny out there)... you'll learn heaps

 

[Bandita]

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

Hi TB,

I think what all these very intelligent (and experienced) investors are trying to tell you is - it's very easy to save and invest when you're living from home. But you need to understand the "real world expenses" before you start investing in more and more property. The reason is, once you do move out of home, your expenses are going to increase dramatically! So, if you don't plan in moving out for 5-10 years - probably won't be so much of an issue - but if you're thinking of moving out in the next couple of years - all of a sudden you'll be hit will rent, water, gas, electricity, rent, phone, internet, food....etc, etc. The ability to maintain a (cashflow negative) IP will diminish incredibly - compared to living at home.

I know - hubby and I lived with his parents when first out of Uni - he was working and I couldn't due to residency but we still saved bucketloads!! (IP#1 - easy as ) I'm not sure if we realised at the time how much expenses go out the window into "living" - but we sure do now, and we earn twice as much but save a quarter of what we did compared to when living with the P's.

It's something to think about when buying more investment properties - if you're going to be moving out of home soon, you're going to want properties that get as close to possible to paying for themselves. If you buy highly negatively geared properties while living at home - you're going to be in for a shock once you move out.

Not trying to be negative - if your parents are helping you out, certainly cherish it and use that savings wisely (which you are) - just keep in mind how things will change when you're not living with them anymore.

Cheers,
Jen

 

[emcdonald]

TB,

It's sad to see that someone asking for advice was judged and shut down so quickly, I asked plenty of similar questions when I was just starting out and fortunately wasn't shot down or deemed to be 'sponging' or a 'selfish' 'gen y'er'. This isn't the way somersoft runs, keep criticism constructive and not a personal attack on someone you don't know.

I'm 23 and currently own one property at the moment (held for 2 1/2 years now) looking again to purchase in the next 6 months hopefully if things work out. Keep saving, work out what your strategy is - buy and hold, reno, negative gear, I/O and refinance down the track - and work out how many properties you need to buy, sell or retain to meet that goal in ten years time.

Don't stress over the people out to knock you, there'll always be plenty of them. I moved out early (not through my parent's urging) but if I had my time again I would have stayed home a couple more years and saved harder.

Good luck,

Erin

 

[BanjoSmyth]

Great post Erin

There are thousands of 22 year olds who are living at home and not paying rent. Unfortunately most of them are donating most of their money to the bars and clubs that they go to on Saturday night.

Here is a young kid who has has the maturity, dedication and commitment to buy an investment property and he has been met with some criticism. I am totally shocked by this response. Especially from an investment forum where people should realize how much courage it takes to break away from the crowd and try to become financially successful.

If TB is lucky enough to have parents that don't need the money for board and they can see that he is saving etc then I think its wonderful that that his parents would encourage him to keep saving.

Great stuff TB

Cheers

Banjo

ps. The Real World Is over rated

Anyway I have a feeling you have already been living in it for about 22 years.




www.SharesPropertyMoney.com

 

[Rob Williams]

There are thousands of 22 year olds who are living at home and not paying rent. Unfortunately most of them are donating most of their money to the bars and clubs that they go to on Saturday night.

My 19 year old lives at home with her Mum. She's just bought her first IP with a 95% LVR having saved a deposit over the last 18 months. She's seen what others in her age group do with their money and has decided to delay the gratification for a while as she builds up an asset base.
Don't know where she got THAT idea from.
And yes Steve, if you're reading this, she bought in the Eastern Suburbs

 

[fokas]

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.

I wonder...how important is this? Any other thoughts from other people?

 

[fokas]

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.

Whi-cii! *whip noise*

 

[emcdonald]

I wonder...how important is this? Any other thoughts from other people?

I think lending has changed so much in the past ten years that 'relationships' with banks (or their lending staff) is largely a thing of the past. Perhaps this would come into play with higher LVR loans or greater risk lending??

Mortgage brokers might be able to help us out a bit with this one...

 

[Mrman]

tbinvestor,

I'm 25 years old and still live at home with my parents and don't pay board . I always find it amusing and sometimes annoying when people get irritated at the fact that I get to live at home rent free when they pay board or left home when they were young and had to do it tough.

I have been working on average 65 hours per week in 2 jobs for the last 2 and a half years and bought 2 investment properties 12 months ago. I consider myself very lucky to have parents that have given me the chance to get ahead in life while I'm young and able to do it.

Some people think that people like you and I are selfish & spoilt as mentioned earlier but my response to them is, just because you don't agree with the way parents raise their children, doesn't mean that they are wrong.

Whether parents let their kids stay at home until they are ready to leave or make them pay board or kick them out and let them learn to fend for themselves, the goal is to make sure their kids realise that life isn't easy and you have to make some important decisions that will impact on the future.

You will encounter many different people in your life with many different views. Investor888 could have given you some good advice on where to get started but chose to criticise you so my advice to you is don't listen or worry about people like him of her.

The people you need to listen to will be more than happy to help you and give you advice and the people that critisie will be the ones left behind.


Back on topic:

Read as many books as you can, go to as many free seminars as possible, go on as many forums as you can and most importantly ask as many questions as you want because there is no definative answer in property investing.

There are so many different ways to invest in property that you have to learn as much as you can and then decide which path you want to take.

You are in a very good position at the moment financially and I think the next move you make will either speed up your money making or slow it down. You need to make sure you don't get into a position where things will fall apart if something goes wrong.

George

 

[Sheryn]

I think lending has changed so much in the past ten years that 'relationships' with banks (or their lending staff) is largely a thing of the past.

I disagree....
Last Friday I experienced the a very good example of what 'good relationships' can do for you..eg. save you money.

Hubby & daughter received a phone call from our lender to let us know our 12 month I/O property loan had run out (of course they had no idea what Lender was talking about)

When I got home and phoned Lender she had solved our problem - she was going to draw down $1 on our construction loan (once authorised by me) to save us $225 re-application fee.


Regards
Sheryn

 

[steveadl]

My 19 year old lives at home with her Mum. She's just bought her first IP with a 95% LVR having saved a deposit over the last 18 months. She's seen what others in her age group do with their money and has decided to delay the gratification for a while as she builds up an asset base.
Don't know where she got THAT idea from.
And yes Steve, if you're reading this, she bought in the Eastern Suburbs

pfffft talk about irresponsible parenting! Can't believe you let your daughter buy a unit in this current market! You know all property is going to drop 40% right?! And of all places, the eastern suburbs?! Yuck!!