New Investor: Hi to the forum

Firstly, hi to everyone! I?m posting this as a little introduction to myself and a bit of background and what I am hoping to achieve. I believe you I need to have the end goal in mind when choosing an investment strategy, so here are my goals:

Generate passive income and an asset base to enable me the opportunity to travel, spend more time pursuing further studies, personal development and languages, and allow me the choice to work based solely on personal satisfaction and significant contribution towards environmental and social issues without the stress of having to worry about providing for a potential future family and a cushy retirement.

My current situation: I have a high disposable income (approx. $95k gross, with relatively low expenses and no dependents). I?m relatively young (26), however due to a failed marriage (I know, divorced in my early 20?s :eek:) and a few wayward years since getting divorced I don?t have much in the way of assets or cash (credit cards all recently paid off and around $10k saved now) - although my parents are currently considering assisting as a guarantor on my first property. My goal isn?t to have a squillion dollars of property and hundreds of thousands a year in passive income ? it?s to spend several years now building a moderate portfolio, and then spending the next 20 years working without golden handcuffs, and still being able to retire comfortable later in life.

The way I see this playing out: At my current income and expenses I am saving $30k per year. I?d like to purchase $1M worth of properties over the next 3 years, at least neutrally geared and have a sufficient buffer to be confident to spend 2-3 years travelling (plus I would need to cash for this this after purchasing the properties!!!). Returning from travel, I?d ideally like to invest again in several more properties and start a Masters/PhD ? I realise that $1M of property definitely isn?t enough to retire on and I would still need to work, but security is my goal, not early retirement. I have a partner who is on-board with the travel and timeline, and her career would actually benefit a lot from working and travelling in the places I am looking at!!

I?ve been doing a lot of reading and researching: API Magazine, Michael Yardney?s Rules of Property and How to build a multi-million property portfolio, Steve McKnight, Chris Gray, Nathan Birch?s story, Pet Wargent?s Get a Financial Grip, Rich Dad etc etc etc

I?m highly motivated ? once I set my mind to something, I make it happen. I?ve signed up to the Somersoft forum due to the amount of great information available, and due to generous successful members who are willing to contribute their experience.

I?ve got a basic idea of what strategy I need to pursue to achieve my goals and I?ll be writing it out over the coming week and posting it up here for feedback. In the meantime, hi to all! My current biggest struggle is getting finance for the first purchase, so I?d love some feedback ? is a guarantor feasible for a first investment (I?d take out income insurance to minimise that risk) or do I really just need to spend another year or so saving a deposit and purchasing with LMI and a low deposit? What would the minimum deposit really be? Seems like the sooner you can get in and get OTM?s working for me the better! I?ll be working some more on my strategy soon, but Logan area seems to be a good option right now!
 
Hi Scheept, welcome to the forum!

That was a long post :)

I was thinking, you do not have much deposit. If you are ready to invest, you could look into vendor financing, especially where the vendor finances your deposit. Your income is good, therefore you would have no issues on serviceability. With your ability to save $30k per year, that's gold to any lender.
I think the market is rising in Brisbane so I'd try to get into the market as soon as you are happy to go. Btw. I agree, Logan is a good area to start.

I haven't done a vendor finance deal, but I think you should read up on them. In the meantime, keep reading the forum, and keep saving!
 
Welcome!Like yourself, discovered the somersoft family earlier this year.

Take time to read through the forums and a great thing to do would be to join the SS meet ups organised. It's a great meet up to exchange ideas and knowledge. Check out the Meeting Point thread :)
 
HI Schpeet,

Welcome to the forum.

Basicially i would be saving as much as you can for a deposit to buy your first ip. Creative financiaing is not something i would recommend especially at this point in building your portfolio. If your parents are happy to help you with a deposit and guys have a good relationship ect then you could consider it. But really, save as much and as hard as you can for your first place. If you can do it without your parents being a guarnator then even better.


The reading you have done is really good as well. Well done.

Leo
 
Welcome to the forums Schpeet!

If your parents are happy to sign guarantee I would use the chance and in midtime keep saving

If you buy right property in Logan and if QLD moves a bit in next few months or a year or two as we all hope so, you'll soon be able to take equity plus your savings by then and buy more :)
 
Thanks all for your welcomes, I'll be heading along to a Sydney meetup when I get the chance, and in the meantime will continue lurking and learning while saving madly.
 
Top