Hi, I thought that I'll introduce my self.
I'm in my late twenties, single and what I guess you'd call a 'casual' factory worker with limited future job prospects.
Early last year I decided that I had to start thinking seriously about moving out of home (was living with my dad) to gain some more independence. My goal was to save for a deposit and buy a house. I realised after working in casual positions anywhere from 3 months to a year that I couldn't rely on finding a permanant secure job. I felt some what dienchanted about life and how times had changed since my parents days etc. Back then it was a lot easier to hook up with a job that would last a life time.
Last year I started working in a factory where I met a number of interesting people. After mentioning that I wanted to buy a house, I was given all sorts of advice. The problem I guess was that a lot of these people were all talk but no action. One bloke in particular gave me a tip regarding a book - Rich dad poor dad. I went home that day and downloaded an ebook version and started reading. I can say honestly that it definately changed my way of looking at life. It's a shame that the bloke who gave me the advice didn't use it himself. He had a gambling problem and beleived he could make a fortune playing poker at the casino. Other people I worked with I though were really in the know, but then I discovered that they didn't even own one investment property and planned on investing later. A few other's that I met also had the philosophy of doing it 'later'.
Anyhow All my life I had been given good advice but rarely took it. I just wasn't ready for it. I know that I'm not that old at 29 but I'm feeling a bit of a squeeze knowing that my future in a factory is limited. Currently I have a few weeks off because of a Hernia that I got at work. How long can a body physically work for - 10 years, 20, 30?
Realizing all this I have become determined to make investing in property work for me. I only discovered this forum recently and have found it full of very usefull advice. Also I went on a buying spree on eBay and have around a dozen property investing books aswell as about three years worth of Aust Property investor magazines.
So my plan was to buy a house but I felt discouraged with the thought of staying in a job for at least a year so as to get a loan. Around mid last year my dad was arranging a loan for a block of land in 'millicent' and whilst he was doing that he mentioned my situation - working casual jobs etc. The bank person said for me to start saving straight away and that times have changed and that I only have to be in a casual job for 6 months or so to get a loan.
Well that was it, I started putting most of my money aside and finally paid of the credit card after 10 years.
I started researching the market in my area. I spent countless hours on the internet and quite a few weekends checking out open inspections. At one of these inspections the agent told me that they had access to a broker that could arrange a loan for me. Normally I'd had thanked her for her offer etc and said that I'm 'just looking' but for some reason I just let it all go on auto pilot and accepted her offer.
A few days later to my suprise I had an appointment booked with the mortgage broker. Things had started to move - no backing out now..
Anyhow, after doing the reaserch for a few months I was starting to develop the 'analysis paralysis' as some of you might say. One morning I saw a brand new listing on the net. It was a 'semi detached ex housing trust property in my local area (23km from Adelaide CBD). I jumped on it. I was confident enough now that it was the right thing for me. I new that I shouldn't over commit and buy something for my max loan amount that was offered to me (~190k) and this they wanted only $135k+. I had managed to save around 7k so far, but realised that the FOH would help considerably.
So I rang the agent on Saturday morning. She was somewhat suprised as the listing was only put up the evening before. I aranged a time to check it out later that day. I looked at the place for 15 minutes only as she was in a rush to get to an open- I made a offer for 125k a few hours later. And that was that. Yes I was nervous signing the 'written offer' but I knew that I had to move on and learn from the experience. The bloke selling the place wanted to do a bit more renos himself but after looking at his dreadfull painting job I told the agent, leave the work how it is and take 125k. The offer was accepted. Soon I had another appointment with the mortgage broker to finalise everything. I went for a 5 year IO fixed for 3 years @ 7.24% with the CBA.
I went with the CBA because at the time I hadn't quite worked for 6 months in my job and providing that I payed a larger deposit, the CBA didn't care if I worked for 3 months or 12. Originally the broker recommended ING bank with 3% deposit - but they were stricter in regards to employment..
December last year I took possesion of the house. I had to live in it for 6 months and claim the first home owners grant. I'm still living in the house right now. Probably spending up to 10k in renovations. Brand new flat pack kitchen. Ducted cooling on the roof, new doors in all the rooms, new paint job inside and out and polished floor boards. All work done by my dad and I. Huge learning curve. I realised that you constantly get unpleasent suprises whilst renovating... Oh well.
My aim is to refinance the house at the end of the six months and get a LOC of about 10-15k so as to purchase my next property. Move back in with my dad and rent this place out for $180+pw. My house is valued at $139k with the council. Most houses of simmilar calibre in my neighbourhood are being sold / under contract for around $150-160k. I'm still reading up about all this but figure if the bank can value the house for $150k and a LVR of say 90% that would give me a LOC of around $14k (loan of $135k-$121k). I hope this goes to plan, but I'm a lot more confident after reading this forum.
My plan is to buy up as cheap as possible, ugliest on the nicest street- up to 30km north of the CBD. Repaint and do minor renovations, bump up the rent and see how it goes for a few months, then refinance again, and so forth. In the mean time work in my factory jobs (maybe arvo shift) and save as much as possible.
If I can get two places per year, I'll be happy. I'll be happy with more though ie 3 per year for the firt few years whilst I can keep the cash flow happening through work. In theory, If I can get 10 properties to double in price and then sell half of them off to pay the other half off (and live in one).
At todays prices (without cpi) I could basically be on $500-$1000 of income per week - for the rest of my life. Sounds like a plan
So that's a bit about my self and my plan for the future.
I'm in my late twenties, single and what I guess you'd call a 'casual' factory worker with limited future job prospects.
Early last year I decided that I had to start thinking seriously about moving out of home (was living with my dad) to gain some more independence. My goal was to save for a deposit and buy a house. I realised after working in casual positions anywhere from 3 months to a year that I couldn't rely on finding a permanant secure job. I felt some what dienchanted about life and how times had changed since my parents days etc. Back then it was a lot easier to hook up with a job that would last a life time.
Last year I started working in a factory where I met a number of interesting people. After mentioning that I wanted to buy a house, I was given all sorts of advice. The problem I guess was that a lot of these people were all talk but no action. One bloke in particular gave me a tip regarding a book - Rich dad poor dad. I went home that day and downloaded an ebook version and started reading. I can say honestly that it definately changed my way of looking at life. It's a shame that the bloke who gave me the advice didn't use it himself. He had a gambling problem and beleived he could make a fortune playing poker at the casino. Other people I worked with I though were really in the know, but then I discovered that they didn't even own one investment property and planned on investing later. A few other's that I met also had the philosophy of doing it 'later'.
Anyhow All my life I had been given good advice but rarely took it. I just wasn't ready for it. I know that I'm not that old at 29 but I'm feeling a bit of a squeeze knowing that my future in a factory is limited. Currently I have a few weeks off because of a Hernia that I got at work. How long can a body physically work for - 10 years, 20, 30?
Realizing all this I have become determined to make investing in property work for me. I only discovered this forum recently and have found it full of very usefull advice. Also I went on a buying spree on eBay and have around a dozen property investing books aswell as about three years worth of Aust Property investor magazines.
So my plan was to buy a house but I felt discouraged with the thought of staying in a job for at least a year so as to get a loan. Around mid last year my dad was arranging a loan for a block of land in 'millicent' and whilst he was doing that he mentioned my situation - working casual jobs etc. The bank person said for me to start saving straight away and that times have changed and that I only have to be in a casual job for 6 months or so to get a loan.
Well that was it, I started putting most of my money aside and finally paid of the credit card after 10 years.
I started researching the market in my area. I spent countless hours on the internet and quite a few weekends checking out open inspections. At one of these inspections the agent told me that they had access to a broker that could arrange a loan for me. Normally I'd had thanked her for her offer etc and said that I'm 'just looking' but for some reason I just let it all go on auto pilot and accepted her offer.
A few days later to my suprise I had an appointment booked with the mortgage broker. Things had started to move - no backing out now..
Anyhow, after doing the reaserch for a few months I was starting to develop the 'analysis paralysis' as some of you might say. One morning I saw a brand new listing on the net. It was a 'semi detached ex housing trust property in my local area (23km from Adelaide CBD). I jumped on it. I was confident enough now that it was the right thing for me. I new that I shouldn't over commit and buy something for my max loan amount that was offered to me (~190k) and this they wanted only $135k+. I had managed to save around 7k so far, but realised that the FOH would help considerably.
So I rang the agent on Saturday morning. She was somewhat suprised as the listing was only put up the evening before. I aranged a time to check it out later that day. I looked at the place for 15 minutes only as she was in a rush to get to an open- I made a offer for 125k a few hours later. And that was that. Yes I was nervous signing the 'written offer' but I knew that I had to move on and learn from the experience. The bloke selling the place wanted to do a bit more renos himself but after looking at his dreadfull painting job I told the agent, leave the work how it is and take 125k. The offer was accepted. Soon I had another appointment with the mortgage broker to finalise everything. I went for a 5 year IO fixed for 3 years @ 7.24% with the CBA.
I went with the CBA because at the time I hadn't quite worked for 6 months in my job and providing that I payed a larger deposit, the CBA didn't care if I worked for 3 months or 12. Originally the broker recommended ING bank with 3% deposit - but they were stricter in regards to employment..
December last year I took possesion of the house. I had to live in it for 6 months and claim the first home owners grant. I'm still living in the house right now. Probably spending up to 10k in renovations. Brand new flat pack kitchen. Ducted cooling on the roof, new doors in all the rooms, new paint job inside and out and polished floor boards. All work done by my dad and I. Huge learning curve. I realised that you constantly get unpleasent suprises whilst renovating... Oh well.
My aim is to refinance the house at the end of the six months and get a LOC of about 10-15k so as to purchase my next property. Move back in with my dad and rent this place out for $180+pw. My house is valued at $139k with the council. Most houses of simmilar calibre in my neighbourhood are being sold / under contract for around $150-160k. I'm still reading up about all this but figure if the bank can value the house for $150k and a LVR of say 90% that would give me a LOC of around $14k (loan of $135k-$121k). I hope this goes to plan, but I'm a lot more confident after reading this forum.
My plan is to buy up as cheap as possible, ugliest on the nicest street- up to 30km north of the CBD. Repaint and do minor renovations, bump up the rent and see how it goes for a few months, then refinance again, and so forth. In the mean time work in my factory jobs (maybe arvo shift) and save as much as possible.
If I can get two places per year, I'll be happy. I'll be happy with more though ie 3 per year for the firt few years whilst I can keep the cash flow happening through work. In theory, If I can get 10 properties to double in price and then sell half of them off to pay the other half off (and live in one).
At todays prices (without cpi) I could basically be on $500-$1000 of income per week - for the rest of my life. Sounds like a plan
So that's a bit about my self and my plan for the future.
