Low income earner.



From: Anonymous

Hi there,

Been reading forum some time now and learning heaps. I am a low income earner and live in Melbourne Eastern suburbs. I have a $15,000 deposit at the moment and was wondering if I should buy an IP now or wait. I don't have any IP's and don't own my own home. The dilemma I have is will real estate substantially go up(or down) in next 1-2 years. I'd like to save more but I'm not sure whether we're going to have another boom, like we have in the last 2 years. If so, I don't think I'll ever be able to buy an IP. On the other hand, if prices remain steady(or even fall, I wish) over the next few years, I will have a nice deposit and will pay less interest. As I'm a low income earner negative gearing won't help me much either. Looking at borrowing about $190-200k. Crystal ball anyone?
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Reply: 1
From: Yuch .

Hi there,

Have you palyed Cashflow 101?

If you have, you'll know that it's not how much you earn but how you invest. If you haven't, keep your eye on the forum there are always people organising games periodically in Melbourne.

You can always start with cheaper properties that give you good cashflow and slowly move on to something bigger. The most important thing is to get into the market. The cashflow generating properties might not give you good capital growth but they get you into the game.

But don't just jump into the market without doing your due diligence. Do your research before you buy anything. There are some very good property investment books recommended in this foreum, check them out.

I hope this helps.

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Reply: 1.1
From: Jack Moro

I have to agree with Yuchen,

Educate yourself first on I.Ps, but then get started and stop speculating.

Property will go up as it always has when you hold on to it (10 yrs +)so long as its not the Chernoble site, but you will learn what to avoid with the education.

And to all those who like quotes heres one I prepared earlier.

"A good plan put into action today is far better than a Excellent plan put into action next week."

so anonymous, learn grasshopper, then act on what you have learned my son, and ye shall prosper.

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