Someone help!

[trey]

Hi guys got a few questions i would like your advice on.

My names trey and live in NSW with the parents. Im 24. Ive got 200k saved for a deposit and im currently saving around 3k a week. people tell me i should buy a house which i would rent out because its better than having money doing nothing for you. Ive been looking around and houses are espensive! im scared about jumping into a mortage at 24 and often wonder what would happen to all these people who have large mortages if there was a crash! i no no one can tell me exactly what to do but would just like peoples insights if they were in my situation.

 

[alexlee]

Uh, you're 24, you've saved 200k, you save another 150k a year, and YOU think houses are expensive?

 

[trey]

Uh, you're 24, you've saved 200k, you save another 150k a year, and YOU think houses are expensive?

sorry hope i didnt sound like a douche. but yes i do think they are

 

[spludgey]

would just like peoples insights if they were in my situation.

Unfortunately I was never in your situation. I've never had $200k saved up, nor was I ever able to save $3k a week. Especially not at 24.

My advice though: Read!

 

[monalisa]

Are you looking to buy a home to live in or to invest (and continue living at home)?

Depends on what price bracket you are looking at? What is defined as expensive?

$350K would fund eight $300K properties (10% deposits and 5% for costs).

Purchase price is not the determinant for purchase however, you also need to consider the return, and what sort of cash in/outflow the property has.

 

[trey]

Unfortunately I was never in your situation. I've never had $200k saved up, nor was I ever able to save $3k a week. Especially not at 24.

My advice though: Read!

ok thanks im going to me hitting all this forums pages hard.

 

[trey]

Are you looking to buy a home to live in or to invest (and continue living at home)?

Depends on what price bracket you are looking at? What is defined as expensive?

$350K would fund eight $300K properties (10% deposits and 5% for costs).

Purchase price is not the determinant for purchase however, you also need to consider the return, and what sort of cash in/outflow the property has.

hi and thanks, i want to buy a investment property and continue living at home

 

[travelbug]

Im 24. Ive got 200k saved for a deposit and im currently saving around 3k a week.

Are you a drug lord?

We like property but it may or may not be for you. Start with reading heaps here. If a friend recommended this site they may have some books they recommend. Otherwise there is thread here somewhere with recommended books.
Decide whether property is appealing to you. Set some goals.
Find a strategy that suits your goals.

As you learn you'll have more questions. Keep asking.

Go to meet ups and talk to people. If you're in Sydney there's a meet up on Friday night.

 

[Aaron_C]

Wow $200k at 24 - good effort.

Keep researching and see what you can get out of real estate, and see if it is the right thing for you. It takes a bit of work and research but it is worth it.

 

[trey]

Are you a drug lord?

We like property but it may or may not be for you. Start with reading heaps here. If a friend recommended this site they may have some books they recommend. Otherwise there is thread here somewhere with recommended books.
Decide whether property is appealing to you. Set some goals.
Find a strategy that suits your goals.

As you learn you'll have more questions. Keep asking.

Go to meet ups and talk to people. If you're in Sydney there's a meet up on Friday night.

lol no im just a tradie who works away! Thanks for your advice. property is definately appealing as i see it as the only way to retire early through making some right decisions at a young age.

 

[trey]

Wow $200k at 24 - good effort.

Keep researching and see what you can get out of real estate, and see if it is the right thing for you. It takes a bit of work and research but it is worth it.

Thanks would you say now is a good time to buy? people say hold off as prices might come down in a few years. cant see that though.

 

[Darlogus]

start with your goal of what you want to achieve by when and then work backwards. this will give you a plan of action. Then the work starts research, research and more research.
Property investing is a journey and takes time, your knowledge will grow over time.
can't give you advise on what to do with your money as not a licences financial planner.
You have shown good discipline to save and not spend and waste your wages and staying at home gives you a great opportunity to keep saving to invest.
This forum is a great source of knowledge, and there are plenty of investment property books out there to do research.

 

[Aaron_C]

Thanks would you say now is a good time to buy? people say hold off as prices might come down in a few years. cant see that though.

I don't know but Sydney is going crazy right now....All I'd say is don't overpay and only pay what something is worth.

 

[Rolf Latham]

I don't know but Sydney is going crazy right now....All I'd say is don't overpay and only pay what something is worth.

who determines worth ?

ta
rolf

 

[china]

I would say buy something in Sydney, close to city.

About fourteen years ago, I was 24, like yourself and was also afraid of committing to a mortgage, with the same fears as yourself. The uncertainty and enormity of it all was just overwhelming.

But looking back, I regret not buying. If I had bought anything at all, I would now be far more relaxed, possibly semi-retired. In 1999, brand new townhouses in Paddington were selling for about 360k. Now they have almost tripled in value. Similar to units in Bondi.

Contemporaries of mine bought at that stage and are now very content.

For me 14 years have passed by. Although I have accumulated much savings, if I had bought some property at your age and stage, my overall position would currently be far better off. So go for it. It does not get easier as you get older.

 

[Brady]

I would say buy something in Sydney, close to city.

About fourteen years ago, I was 24, like yourself and was also afraid of committing to a mortgage, with the same fears as yourself. The uncertainty and enormity of it all was just overwhelming.

But looking back, I regret not buying. If I had bought anything at all, I would now be far more relaxed, possibly semi-retired. In 1999, brand new townhouses in Paddington were selling for about 360k. Now they have almost tripled in value. Similar to units in Bondi.

Contemporaries of mine bought at that stage and are now very content.

For me 14 years have passed by. Although I have accumulated much savings, if I had bought some property at your age and stage, my overall position would currently be far better off. So go for it. It does not get easier as you get older.

You say stuff like this once a week, if not more.

Seriously this whole forum is going to celebrate when the day comes... If it does.

 

[zed_kid]

And they say property is doomed, we’ve got blokes like this coming into the market picking up the slack. On ya mate! (I’m being serious too, not trolling)

 

[pinkboy]

You say stuff like this once a week, if not more.

Seriously this whole forum is going to celebrate when the day comes... If it does.

I reckon the complete opposite!

It will be a 'meh' moment at best!

pinkboy

 

[D.T.]

I reckon the complete opposite!

It will be a 'meh' moment at best!

pinkboy

I think we'll all be too old and have too much arthritis to clap

 

[Colin Rice]

I bought my first property in 2000. It was a one bedroom flat less than 10k from the Perth CBD for $55k. I used the newly introduced FHOG to pay 5% deposit and costs and $800 LMI was capped on the loan. Genuine savings was in the form of a geared manage fund that I had been contributing to for several years. Two more flats came up for sale at under 50k and I could have bought them but was fixated with the fact that I owed the bank $52K and to borrow another 50K was a little overwhelming. BTW the rent covered the interest payments and some at the time. Why didnt I buy them? Lack of education on how it all worked is the simple answer.
These same flats sell for over $200k and rent for who knows what? A lady living there from Sydney told me flats like this in Sydney sell for $200k. When you borrow money dont look at the fact that you owe x amount of dollars, look at what you can rent the property for v what your total costs are to hold it. If they are on par or close then you get to control an asset that has the potential to rise in value over time and to command higher rents. Someone else pays for it, your tenant and the tax man. It is possible to buy properties that are cash flow positive from day one.
Am I telling you to buy real estate? Nope but if you are interested, read read read, attend property seminars and if you get a good gut feeling with out being sucked into the hype then do a full course over a weekend or whatever. Join groups that have other successful property investors. Find trusted advisers to guide you. Read this forum. Good luck!