Starting out young

M

murph14

Hey all. First post! Not sure if this is the right place so move if need be.

It seems the biggest friend anyone will have as an investor is time. Well I'm glad I found this site because maybe you guys can help me over the next 1-3 years when I plan to buy my first house. I'm 17 now and have some ambitious savings plans to meet my goals.

Anyway, I have always had a huge interest in property, houses, designing, etc. so it only seems appropriate that property investing is something I would do. What advice can anyone give me about property investment as a complete beginner and learner? Start small in shares to get a bigger deposit? Or take out a loan (I need a credit rating) to reinvest in term deposits? What's the best way for a young person to get finance? I don't see this as a get rich quick scheme btw and I have plans to go to uni. This is all a hypothetical atm since I don't have a full time job but I've finished school now and should have one over the coming months. Sorry for the broad question - any info is welcome :)

I find this all very interesting and hope to be 'part of it' one day. :cool:

Thanks! :D
 
Hi Murph,
Welcome to the forum :) I think the gubermints first home saver account has been forgotten about?

Check out the details, because I don't think you can beat it at the moment.. Especially if you're not sure what you doing in the share market. Getting a loan for a term deposit is bound to lose money, just check out the interest rates for both and do the maths.

and ask loads of questions here in the meantime :)
 
You are right, time is on your side. One of the best things you can do is to learn as much as possible about property and being here, reading and contributing, you will learn far more than you can imagine.

There are a few young investors/wannabe investors on this site. One of the youngest is Lil Skater. She has been contributing since age 14. Although only 19 now, if you read some of the comments she makes, you will agree that she is wise above her years.

Of course, there are many others too, and I appologise for not mentioning anyone else, but heck, it's 2am and my mind is a bit fuzzy ATM.
 
forget the personal loan, it won't help at all.

just get a $500 credit card limit and don't use it, that helps much more on credit score than a personal loan which actually lowers the score
 
murph14 said:
I'm 17 now and have some ambitious savings plans to meet my goals.
Click to expand...

Damn, now I feel old :(

Welcome Murph, you will find this forum just amazing, as I have.

Just stick around and lurk - You don't always have to say a lot to learn a lot :)

Although sometimes I should take my own advice!
 
Thanks for the advice all. That FHSA sounds alright but 4 years is a long time. I certainly will lurk here a lot. I think of it as virtual experience.

$500 credit card sounds alright. I defs have the discipline to not impulse buy stuff with it.

I'll try and contribute and let you know if ever I get anything (and/or need help :p)
 
Don't forget to continue your non-investing education, and think about what job you'll do. Having a good income makes investing much easier! It also gives you good options for when the day comes that you don't want to work full time.
 
I certainly agree with time.

I'm 27 with a 25 year old partner.

Bought our first IP 4 years ago and settle on number 3 in January.

We have built up a nice little pot of equity (melbourne resi market has been good to us over the past few years - some dumb luck there).

I still have a lot of friends on very good 6 figure incomes (lawyers, ad executives etc) that are renting and paying off expensive cars loans and credit cards. These guys live week to week, slog their guts out at work, and having nothing but bad debt and little equity to show for it.

My partner and I love our jobs and have no dreams of cashing out and retiring young, instead, building equity has become a hobby, and will hopefully set us up so that we can spend time with our future children, educate them with the best money can buy and leave them with something they can pass on to their children.
 
go hard and just do it kid. I wish this forum existed when i was 17.

Find the right one, makes sure the numbers add up and do it.

Plan for 2020. Not 2013.

Also i cant recommend highly enough a book called Motivated Money (www.motivatedmoney.com.au) to educated yourself about the power and simplicity of dividends. This is where the true value in shares lies that doesnt get reported on the nightly news ;p CHASE DIVIDEND INCOME.. NOT THE SHARE PRICE.

IMO we are comming into a great time to buy.

Good luck.
 
Thesnowyforest said:
go hard and just do it kid. I wish this forum existed when i was 17.

Find the right one, makes sure the numbers add up and do it.

Plan for 2020. Not 2013.

Also i cant recommend highly enough a book called Motivated Money (www.motivatedmoney.com.au) to educated yourself about the power and simplicity of dividends. This is where the true value in shares lies that doesnt get reported on the nightly news ;p CHASE DIVIDEND INCOME.. NOT THE SHARE PRICE.

IMO we are comming into a great time to buy.

Good luck.
Click to expand...

Hi snowyforest. Wanna explain why you think this?
 
Thesnowyforest said:
go hard and just do it kid. I wish this forum existed when i was 17.
Click to expand...

Availability of Information isn't the problem. The Richest Man in Babylon, Think and Grow Rich etc have been around for decades. What's missing is motivation. People aren't failing to find information even though they want it. It's because they aren't motivated to look for it in the first place.
 
Go hard and good on you young fella. Great attitude.

Keep a balance and remember to keep on educating yourself and pursuing a career and qualifications too. The more you earn, the quicker you will be able to invest in property.

Go as hard as you can in the first 10 years. I.e. work super hard and try to get as many investments under your belt. After that first 10 years, the investments will start to work for you more and then you can work less with your body. Over time you want the investments to be doing the work, not your body.
 
recruit2 said:
I.e. work super hard and try to get as many investments under your belt.
Click to expand...

As a vehicle, super is designed to limit leverage and lock away money until one is in one's 60s, at least.

For a young, motivated person, I would suggest super is the worst vehicle for investments.

One way to get more investments is to borrow money. Super has many limitations on gearing.
 
alexlee said:
As a vehicle, super is designed to limit leverage and lock away money until one is in one's 60s, at least.

For a young, motivated person, I would suggest super is the worst vehicle for investments.

One way to get more investments is to borrow money. Super has many limitations on gearing.
Click to expand...

I thought Recruit2 meant work "super hard" as in to work "very hard" to earn as much money as possible in the early years.
 
alexlee said:
As a vehicle, super is designed to limit leverage and lock away money until one is in one's 60s, at least.

For a young, motivated person, I would suggest super is the worst vehicle for investments.

One way to get more investments is to borrow money. Super has many limitations on gearing.
Click to expand...

Lol I was saying.. "work VERY hard" = "work SUPER/very hard" - not "work superannuation hard".
 
I facepalmed at the loan reinvest to Term Deposit idea.

Best Advice? Get a good job, whether you're going to go to uni or not. Why work at a supermarket Part Time at what? $16/hour, when you can pick up a niche job at $40/hour.

Getting a decent job alleviates the 'burden' of uni upon setting yourself up financially, and those 3-4 years can be extremely productive.

Go Hard, or Go Home.
 
CJProperty said:
I facepalmed at the loan reinvest to Term Deposit idea.
Click to expand...
I was thinking more along the lines of save $6k, take out $5k loan to get interest on $11k. Assuming term deposit rate is 5% and loan rate is 14% payed back over 1 year, that'd be ~$388 in interest but $550 earned in the term deposit. So maybe a few hundred out of it, but the point is to get a good credit rating so I can take out a mortgage. But the credit card is better?

I certainly will get a job and go to uni in the near future. Investing is something I want to do on top of building a career.

On a separate note, what's the best property investing book y'all can recommend?

Cheers :cool:
 
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