Low income means can't buy IPs?

[naijacoder]

Lots of people invest on low incomes. It does limit what you can afford, but there's quite a few people who have become extremely successful and wealthy despite only having a small income to start with.

Ignore the groups that make you pay membership fees. Whilst they might give you some information, the tend to sell you the property and the all the other services. In my mind they're acting for the seller and the buyer, which creates a conflict of interest.

If you're interested, there's a Somersoft meeting tomorrow (Thursday) night at the Mitcham Hotel at 7:00pm. It's a good way to meet other investor from the forum in a friendly atmosphere. If you can't make it, there's additional meetings published in the 'Meeting Point' section on a monthly basis.

Edit: $65k per annum isn't a high income, but it's not low either. Novated leases destroy affordability. You're probably in a better position than quite a few people.

Awesome going macca

Hmm... About if the market crashes.what will happen?

 

[macca446]

Hmm... About if the market crashes.what will happen?

Have buffers in place what else ??

 

[D.T.]

Hmm... About if the market crashes.what will happen?

Can you be more specific?

 

[macca446]

Hmm... About if the market crashes.what will happen?

Thinking like this will see you miss out on opportunities available in the market,like I said mind set

 

[joanmc]

Hi Big S. We were on a low income (35k)when we started too. Hubby worked and I was home with 3 kids. We bought the cheapest house we could find in our area and I did a reno on it (yes, dragging 3 kids with me!). I also read everything I could get my hands on about investing, went to free seminars etc.
This forum will give you heaps of great information, don't be afraid to ask questions.
Good luck.

 

[beaver700]

Hi BigS

I started buying IP's during my apprenticeship on about 40k/year. With the help on an excellent mortgage broker (with whom I met on these very forums) we have built our portfolio to 6 over three years.
Of course my pay has gone up to a tradesmans wage now (65k/year). But we also have a novated lease (big mistake btw) and are renters ourselves.
As you go on and buy more property - the easier it gets (that's what I think anyway)
My advice - have a yarn to a good broker and get the ball rolling.
Cheers
Martin

 

[scha9799]

I don't charge "member fee". ( you should run away from those company which charge member fee !)

I think you can still invest in property

the below are what you can buy.

http://www.realestate.com.au/property-unit-sa-reynella-113430731

http://www.realestate.com.au/property-apartment-vic-burwood-118190795

http://www.realestate.com.au/property-apartment-vic-camberwell-117926823

http://www.realestate.com.au/property-unit-vic-geelong+west-118181763

http://www.realestate.com.au/property-unit-nsw-east+albury-118171027

but just like everyone said you double check with those good brokers on the forum. They are very informative and helpful.

 

[Television]

Hi,
It is all about mindset and having a good broker,at the height of my investing about 6 months ago had only 1 wage earner $48k per annum and settled on 5th IP our debt was 1.2m and values of all property 2.1m with 80k gross rental return,so it can be done.
Macca446

A very enviable portfolio, Macca. Awesome job!

 

[+Mpire_Builder+]

Have buffers in place what else ??

A solid piece of advice for someone like yourself starting out is to have an asset protection plan.
By this I don't mean by the IP in a trust or anything, but moreover having a buffer in place as mentioned above.

Rule of thumb I tell my clients is to maintain 3 months salary as a minimum stashed away.. Strange things happen and you do not want to default on your IP, loose or and or damage your credit which will then hinder future potential purchases.

 

[paul81]

Hi,
It is all about mindset and having a good broker,at the height of my investing about 6 months ago had only 1 wage earner $48k per annum and settled on 5th IP our debt was 1.2m and values of all property 2.1m with 80k gross rental return,so it can be done.
Macca446

wow thats amazing. We have combine income of $70k and only managed to purchase 1 per year let alone 5 property in 6 months! How are you able to save deposit or get finace? i wll pay top dollar just for your brokers contact number

 

[tobe]

wow thats amazing. We have combine income of $70k and only managed to purchase 1 per year let alone 5 property in 6 months! How are you able to save deposit or get finace? i wll pay top dollar just for your brokers contact number

I think its 5th property 6 months ago, on an average wage (combined with his existing rental income). Not 5 purchases within 6 months...