Seeking Advice (Trapped)

Okay, my problem isn't that I don't have any information to get started. It's 2010 - we have information at our fingertips. That IS my problem. I have spent the last year and a half reading and reading. I feel like I'm getting nowhere. You read one thing, then you read another and it contradicts what you just read. You come online here and seek advice, you read one users post which seems to make sense, then someone else counters it with other arguments, bottom line - I feel as though with all this information bombarded at me, I will NEVER make a call on my own.

Snapshot of me -
20/m/Australia, Public Servant - 54,000p/a income. No bills
Started work September 2009, have saved $16,000.

Goal - Increase my net worth so I am wealthy at 30 and free at 40, when I say free, I mean free of that stupid office so I can do whatever I want in life. I am happy to work a job I don't love/don't hate.. because I have fun outside of these hours and can manipulate the money I take home to get me out of there eventually.

Problem - All the conflicting opinions that are stopping me from making a decision, sick of my parents giving me advice, I know they're my parents but I feel as though I shouldn't be taking advice from them, considering where they are now is not where I want to be in the future. They play it too safe, with their term deposits and boring bonds, and all they have is a paid off home in an average suburb with enough money to live a simple life. Good for them! I'm proud, but that isn't what I want, and honestly I'm a bit tired of them saying i'm greedy and evil for wanting more.

What to do?! Keep reading, or just go buy a home and rent it out?! I don't want to be one of those fools on news.com.au who say things like 'If only 6 years ago I had have.. blah blah blah' That's wasted time. I'm sick of worrying about my financial future, I'm not your average 20 year old obviously, I've just taken a good long hard look around at 90% of those around me and decided I don't want to do what they're doing, that is .. lead a boring life where they're chained to a desk and stuck in debt til they die. I want more than that.

I think I'd feel better if I started taking some actions, even if they're small ones.
 
welcome damoz, your not the only one that feels this way so relax, its each to their own , every one will give you their opinions on this subject , some always buy off the plan, others will try and search the next best areas , others choose to value add and some do all of the above, you need to find your niche' you might be great with your hands , so value adding might be best for you, you could do some awsome deal and flickit, a unit or two, it could be a house or a bed sitter???

As i try to educate my two carpenters i tell them this !
In Australia we have a desert called trifell its a mixture of jelly fruit, custurd and other ingredients, only over time you will eventually make the best triful? that suits you , some add brandy and others rum, some use chocolate and others use berries , this takes time to find the flavour that suits you , but perhaps you should start with the basic recipe first , and after you have tasted this you might change it to your own liking the next time around, ;)

But if you dont have a taste you will never learn to build the best recipe that suits you.
 
You seem to have your head screwed on right.

I'm sure your parents mean well.You may need to provide them with limited information as you gather IP's in the future. They don't like they will be very supportive.
If you still live at home, you may want to consider having your first purchase be a PPOR, and rent out the spare rooms, so you can still continue to live "rent free", but gather the life skills you need.The bonus will being to continue to save for your next property.
Personally I wouldn't rent to friends, but someone you won't be too chummy with.Makes it easier if things go wrong and you need to ask them to leave, and find a replacement.

Buying a property is not rocket science.
If you make a mistake, after doing all your DD, chalk it up to a learning experience and move on.

The road to wealth through property investing is fun, exciting, scary, frustrating and very rewarding.

If you choose to use a Property manager, make sure you read the Tenancy Act, and the lease your tenants will be signing.
If you don't know the rules, how will you know when you are being wronged.

The property doesn't need to be one you would live in.
It just needs to either be CF+ (my preference) or capable of good CG.
We have lots and I don't want to particullarity live in any of them.

Good luck...and just start.
 
Your parents have done what most of theor generation have done.
However, it is becoming clear (or should be) that the old "pay off the house, invest in super and keep working until your 65" plan doesn't really work.
After 40 years in the "stupid office", you retire with barely enough super to maintain a lifestyle above the poverty line and it's doubtful there will be much pension on offer.
If you want what they have, then do what they've done.
If you want what other people, whe are financially free in the 40's have, then you need to learn the lessons from what they have done.
It's as simple as that.
Learn the lessons and apply those that resonate with you.
 
Just do your research and then make a decision, but just do something at least and take action.

You will gain experience which is the most important thing, more important than any small financial gains you may gain in the next year or 2.

Personally, I jumped into many opportunities starting at your age and lost money over the next 10 years on all of them.
My day job paid for all these losses.
I would save up, lay my money down, then lose it and start all over again on another opportunity, with learned knowledge from the last experience.
Finally, I learned from my mistakes and finally broke through.
Now earning 10 times the income I was earning back then.

You have to start somewhere and learn from your mistakes.
Don't delay by being too careful and scared to make mistakes.
Make the mistakes while you are young, so you have the time to learn from them and let them pay you off soon after.
Experience is the best teacher.
Pay for your lessons and you will be rewarded, work hard too, and don't give up!

Good luck
 
I'd just jump in and buy something, rent it out while you are still living at home (as long as that is okay with your parents) and let someone start paying off your first IP.

If you don't want to manage it, let a PM do it, but read up on this forum to see what you are signing up for to get a good manager with fees you are happy with. We self-manage and there appears to be a HUGE difference between the fees and hidden extras that some PMs charge.

Try to find something that you can rent without having to tip in any (or too much) or your own money and get a feel for whether being a landlord is for you.
 
OK so you are up against a few things:
1. Parents whose lifestyle you do not plan to emulate
2. In the public service surrounded by people who are there mostly for safety reasons (yes broad sweeping statement - I know, my apologies)
3. You are over-analysing to the point of paralysis

BUT you have some good things going for you:
1. You have a goal and know what you want (as well as what you don't want)
2. You are working
3. You can save
4. You are educated enough that you know you need information (and where to get it) and know you don't know it all
5. You are only 20

You need protection from your weaknesses, so:
1. Limit exposure to parental guidance in relation to investing
2. Limit exposure to work collegues without the same life goals as yourself
3. Stop analysing now - you got all the info you need

Now take some action:
1. Go to some freebie seminars of Michael Yardney's, Bill Zheng, M-Corp etc
and formulate a plan of action for yourself. Don't necessarily sign on for the big week-end seminars and pay money. There are plenty of freebies. This will get your brain thinking and something will resonate with you and you will beging to develop a plan & a path
2. Get around some like-minded people. Go to the meetings with investors off the forum here.
3. Buy a house, get a tenant.;)
 
I'm new here so take what I say (well read today any way) with a grain of salt. In todays Sunday Herald Sun there is a 4 page spread showing property prices (predicted I guess but it doesn't say how) of melbourne suburbs over the next 3, 5 and 10 years.

I read it but i don't know how they can justify some of the prices predicted nor how ANYONE ca afford them.
 
I've just taken a good long hard look around at 90% of those around me and decided I don't want to do what they're doing, that is .. lead a boring life where they're chained to a desk and stuck in debt til they die. I want more than that.

Then start investing early.

Not all investment vehicles will get you excellent results but investments have their cycles and if you are prepared to wait you'll do well.

Properties are good because you can get loans relatively easily, you can gear your money and therefore increase potential gains.
 
OK so you are up against a few things:
1. Parents whose lifestyle you do not plan to emulate
2. In the public service surrounded by people who are there mostly for safety reasons (yes broad sweeping statement - I know, my apologies)
3. You are over-analysing to the point of paralysis


Yep..... the colleagues have already accepted the fact that they will be working forever, and they see someone young who still has hope and try to crush it out of I don't know, jealousy.. or maybe the fact that they don't believe it is possible. It's very easy to create false beliefs and if you set out to do something with the belief in the back of your mind that you can't really achieve it well then you won't. I think they all have this kind of belief and are set in it now. God I need to take a shower or three on a friday when I get home just to get the negativity and depressive feeling they push out onto me off.
 
OK so you are up against a few things:
1. Parents whose lifestyle you do not plan to emulate
2. In the public service surrounded by people who are there mostly for safety reasons (yes broad sweeping statement - I know, my apologies)
3. You are over-analysing to the point of paralysis

BUT you have some good things going for you:
1. You have a goal and know what you want (as well as what you don't want)
2. You are working
3. You can save
4. You are educated enough that you know you need information (and where to get it) and know you don't know it all
5. You are only 20

You need protection from your weaknesses, so:
1. Limit exposure to parental guidance in relation to investing
2. Limit exposure to work collegues without the same life goals as yourself
3. Stop analysing now - you got all the info you need

Now take some action:
1. Go to some freebie seminars of Michael Yardney's, Bill Zheng, M-Corp etc
and formulate a plan of action for yourself. Don't necessarily sign on for the big week-end seminars and pay money. There are plenty of freebies. This will get your brain thinking and something will resonate with you and you will beging to develop a plan & a path
2. Get around some like-minded people. Go to the meetings with investors off the forum here.
3. Buy a house, get a tenant.;)

Agree with Propertunity ;)

1. Go to free seminars - BUT don't sign up for expensive seminars or mentors etc.
2. Go to a few SS meetings in Melbourne (if that is where you live)
3. Aim to buy a house or a unit ASAP.
4. Talk to a mortgage broker form this forum to see what you can borrow
5. You have analysis paralysis ( afraid to make a mistake - don't be you will learn from them).
6. Post on here and get feedback on your thoughts.


FWIW
When I first started everyone laughed at me, husband, friends, no financial institution would lend money to a female, took me many years to actually start.

Go for it...


Regards
Sheryn
 
Hey Damoz,

I can't really add anything more than what's already been said except "just do it!"

Your switched on enough to know that the status quo isn't the way to go.

But like someone else mentioned, maybe the best move to begin with is purchasing your first PPOR - get some room mates to help pay the mortgage.

There's plenty of different strategies, etc, and you'll work out what's best for you as you go along. The worst thing you can do at the moment is to do NOTHING.
 
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....I need to take a shower or three on a friday when I get home just to get the negativity and depressive feeling they push out onto me off.

One you get a few IPs under your belt and some share investments (if you want), I doubt you will tolerate the public service for long.;)

You will begin to realise that you need to "banish negativity to the furthest reaches......." (Jim Rohn quote I think) so you can start to achieve.
 
Mate, I remember thinking I overpaid for my first property when I was 21 - When I look back at the $174k purchase price I feel pretty good now!

In short, Take some Action!! You won't regret it several years from now!
 
At 20, do what everyone else in your age does and go enjoy yourself, travel the world and party hard, forget trying to make it by 30, 40 or whatever. Life is a journey of experiences. You don't need to always try to get ahead of the pack. People who live for the future grow old and grumpier much faster.
 
Why not buy something like a one bedroom unit in Footscray for low 200's. Use the $9k fhog plus your $16k as deposit, live in it for 6 months then move back to parents and rent it out.

You would be in market and away.

The best way to learn about property investing is to start doing it. Listen to people but make your own decisions. Don't read another book until you have bought the 1st property.

Use a Mortgage Broker for guidance but first question is " do you have more than 5 investment properties"? If not call someone else.
 
Craig - im fascinated you sit around talking about triffles with a group of blokey carpenters. They brew beer in different ways. Maybe thats more your demographic?

I know moderators - off topic....
 
At 20, do what everyone else in your age does and go enjoy yourself, travel the world and party hard, forget trying to make it by 30, 40 or whatever. Life is a journey of experiences. You don't need to always try to get ahead of the pack. People who live for the future grow old and grumpier much faster.

I do the same things as my friends on weekends and after work.
Difference is that I pull in $700 a week more than they do, and i'd like to make this work for me rather than be some wage slave. Thanks though. :)
 
I do the same things as my friends on weekends and after work.
Difference is that I pull in $700 a week more than they do, and i'd like to make this work for me rather than be some wage slave. Thanks though. :)

There's no rule that you either have to a) invest wisely, or b) enjoy life. It is possible to do c) both.
 
I do the same things as my friends on weekends and after work.
Difference is that I pull in $700 a week more than they do, and i'd like to make this work for me rather than be some wage slave. Thanks though. :)

Man what i wouldnt give to be 20 again. Youve got no idea that your biggest asset is your youth and attitude. Id give alot to be in your shoes matey. Even with all the negativity. You actually need it in some form because itl toughen you up for the neg your certainly gonna recieve in the future.

So lap it up and keep plugging along champ. Overall the negativety means jack in the long run but i guess you need to be in my shoes (another 10 plus years) to really appreciate what you have.

No1 rule is surround yourself with people on your side. Welcome to your new home. Stick around and youl certainly be on your way

Best of luck bud.
 
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