New/ Starting Out- Can i get some tips and advice

[TN_]

Hi guys, been scouring the forums in recent months trying to build up my knowledge about this topic (property) and i have to say despite many hours of reading i still feel a bit less 'educated'. As of late I've been getting mixed messages about the current market. So I'm writing to the readers out there to get some insight and perhaps gather some idea to build up my strategy and plan my next move.

So here is my situation. One day I woke up and realized i better grow up and get a house. I work full time, been saving since towards the end of last year and got to around 30k of savings so far. I have no debt. I moved back home with my parents. I have minimized all my weekly expenses and been roughly saving 70-80% of my income.

My intention is to buy a house within my mean and rent it out while i have the advantage of living the parents for the first few years while my income + the rental income pays off some of the house.

So with the current market the way it is (i've read its crashing?) what do you guys reckon I should do? Keep saving?

 

[rugrat]

I think you should stop trying to time the market. Truth is, the only real way you KNOW whether now is a good time to buy or not is through hindsight. By all means get to know the area you intend to buy in, get a feel for what is happening at ground level with regards to rental income, market values etc. Do all your due dilligence. But sometimes you just need to get IN the market, rather then procrastinating.

I have learnt alot about property in the few years I have been a member here, but I have also learnt that there is always something new to learn. The best way of learning in my experience is by doing.

FWIW - I think your plan of buying something to rent out first is a good idea, whilst you are in the situation you are in.

 

[Sheryn]

Hi guys, been scouring the forums in recent months trying to build up my knowledge about this topic (property) and i have to say despite many hours of reading i still feel a bit less 'educated'.

Good

As of late I've been getting mixed messages about the current market.

The market always sends mixed messages.

So I'm writing to the readers out there to get some insight and perhaps gather some idea to build up my strategy and plan my next move.

Your strategy is a good starting point.

So here is my situation. One day I woke up and realized i better grow up and get a house. I work full time, been saving since towards the end of last year and got to around 30k of savings so far. I have no debt. I moved back home with my parents. I have minimized all my weekly expenses and been roughly saving 70-80% of my income.

Excellent

My intention is to buy a house within my mean and rent it out while i have the advantage of living the parents for the first few years while my income + the rental income pays off some of the house.

Excellent strategy - have you discussed living with your parents for a few more years with your parents, so they know your thoughts?

So with the current market the way it is (i've read its crashing?) what do you guys reckon I should do?

Find out how much you can borrow on an IP

Keep saving?

Definitely

Meet up with other local posters, network and hear there stories.

Rob's down your way
http://www.somersoft.com/forums/showthread.php?t=51677


Good Luck
Kind Regards
Sheryn

 

[TN_]

Thanks for that link. Enjoyed reading that. I've come to realised that I need to get out of my comfort zone and take that first plunge (with due diligence).

I've set myself between now and July 1st 2012 to buy my first property. The state government is halving the FHG to 4k and abolishing is entirely by 2013. I figured I might as well take advantage of it and perhaps pays for those pesty fees. Problems if I go down this path then I'll need to live in it for 10-12 months* to qualify for the FHG. But I'm sure renting out all the rooms should fix this. Between now and then, I'll keep slogging away at my two jobs and keep building up the capital. Anyone else on here browse through the real-estate.com.au app on their iPhone at work?

I come from a motorsport background and when I first started I had mates and friends to help me build my cars. They in effect became my mentors. Now jumping into this field I feel alone and some what daughting but it's a good feeling venturing into unexplored territory!