Reply: 2.2.1
From: Debra L
Marc,
Firstly don't be disillusioned when I tell you that perhaps you should wait, before making your first property investment.
Take control of your finances first so that you can work on eliminating your current debt and begin putting something away toward a deposit on your first investment property.
Learn to put aside a proportion of your income each pay period (10% if possible), before paying the bills, buying the groceries and spending what is left over.
This may sound difficult, but once you put it into play, you will find that you soon adapt to living on less than your full wage.
If you already had your own home, and a reasonable amount of equity in it, then it would be possible to start investing in property without any cash outlays...but if you are not in this position, then you really do need to save for a deposit.
Use the proportion that you put aside from each weeks pay to start eliminating your other debts/saving for a deposit.
Set yourself a goal, maybe 12 months as to when you want to have the means to purchase your first investment property.
Write this down....read it everyday. Use it as the inspiration you need to help keep you one track with keeping your finances under control.
Believe in yourself and your ability to achieve this goal...and you will make it happen.
In the meanwhile spend your time researching the market, and reading all the information you can find on property investment. Spend your time learning as much as possible, so that once you are ready to make your first purchase, you will have accumulated the knowledge that allows you to make an intelligent, well informed decision as to the best property to buy.
If you purchase a property well under the current market value (or council valuation) it is possible to refinance it shortly after purchase to 80% of the market, or council value...and redraw the additional funds to reimburse yourself for your original outlays (effectively meaning you have had no cash outlays) or better still...you can use this money to fund your next property investment.
Because you have a low income...you are far better choosing a property that is positively geared (you can find them even in the suburbs if you look hard enough) as this will make the serviceability of the loan much more affordable.
Always stay positive and you will find that the time passes quickly...and you will soon be satisfied that you have not only taken control of your finances...but you are well on the way to ensuring you have a happy and secure future as well.
All the best
Debra