Hi
im 20 years old and hoping to buy my first property. I have saved a deposit and been pre-approved. I just want to get some background info from some experienced investors. my goals is to hopefully keep investing in properties and retire early. There is so much information out there that its hard to know which is the one to take, such as positive gearing vs negative gearing? Interest only loan on an IP for positive cashflow. If i can get any info on how people structured there portfolio any advice would be great
 
I would go for interest only with a linked offset. I would work my backside off and accumulate as much as I can in that offset so that I can launch myself at the next property. I would go for something that has land content. Something I can take a bit of hit on the cash-flow but has the potential for development in x years.

Thats just me. The guy next to me will have a completely different strategy so you need to see what suits you - i.e. how much time you are willing to inject into the property and how much risk you are willing to take on.

Marriage and kids will severely affect both of these things so consider this at your age - if you can afford it then do it sooner than later.
 
Give the bank the minimum amount required aka interest only and save the difference in an offset as Shahin advised.

Focus on spending less and earning more and investing the difference.

Consider 90% LVRs if you want to acquire more properties sooner than later.

Well selected land increases in value and buildings depreciate so if you can find properties that you can add value too then in the medium to long term you should do well.

Marriage, children and being self employed will slow you down but if you have an abundance mindset then you will find opportunities everywhere regardless of your status in life, so don't let that stop you :D
 
thank you so much for the responses. As a said I'm very new to this and hoping that if I work hard it will pay off in the end with no plans for a family any time soon.
Is this a way of accumulating multiple properties; saving in an offset then borrowing against it to a quire another property paying interest only and renting it positively geared to get cash flow then save enough for another property and continue the process.

Or am I just getting ahead of myself and there's no real formula for this
 
Top