Unless the OP put a whole lot of his own money into this, it will be far from +CF. Purchase price of $220k, rented for $240pw is only slightly over 5% yeild.
Young investors - tell all #2
- Thread starter zed_kid
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Unless the OP put a whole lot of his own money into this, it will be far from +CF. Purchase price of $220k, rented for $240pw is only slightly over 5% yeild.
i just turned 23, bought my first house when i was 18 and have bought two since. i owe under 800K with a (small) portfolio of 920-950K
living in a rental with my partner and son
im a boilermaker on 60k gross including overtime
living in a rental with my partner and son
im a boilermaker on 60k gross including overtime
cant believe i just found this thread. alot of good info n inspiration on here.
im 28, wife also 27, married for one year very shortly. it has gone quick tho. finished high school in 2001, went onto uni for 3 years. dropped out. stuffed around for a year, then went and got an electrical apprenticeship. started on around 15bucks an hour, and slowly moved up during the 4 years.
i now work 4500k away from where i did my aprenticeship in melb to up in the pilbara chasing the big bucks. it did enable me to save a good deposit in just over a year and purcahse our first IP as well as some shares this year. and just recently purchase 2x 2 bed units.
future plans are to buy at least 1IP a year for the next 5 or so years.
im 28, wife also 27, married for one year very shortly.
it has gone quick tho. finished high school in 2001, went onto uni for 3 years. dropped out. stuffed around for a year, then went and got an electrical apprenticeship. started on around 15bucks an hour, and slowly moved up during the 4 years. i now work 4500k away from where i did my aprenticeship in melb to up in the pilbara chasing the big bucks. it did enable me to save a good deposit in just over a year and purcahse our first IP as well as some shares this year. and just recently purchase 2x 2 bed units.
future plans are to buy at least 1IP a year for the next 5 or so years.
cant believe i just found this thread. alot of good info n inspiration on here.
im 28, wife also 27, married for one year very shortly.
i now work 4500k away from where i did my aprenticeship in melb to up in the pilbara chasing the big bucks. it did enable me to save a good deposit in just over a year and purcahse our first IP as well as some shares this year. and just recently purchase 2x 2 bed units.
future plans are to buy at least 1IP a year for the next 5 or so years.
This is the type of story we should hear more of. Unfortunately, most young people are happy to just whinge and whine and live off mum and dad at their expense. Well done Jonesy.
i just turned 23, bought my first house when i was 18 and have bought two since. i owe under 800K with a (small) portfolio of 920-950K
living in a rental with my partner and son
im a boilermaker on 60k gross including overtime
Why the sad face! 18 and you purchased a house. Well done
I'd hate to say this to dampen your spirits, but with the way prices are moving you should be happy if you keep your pants on if your time frame is a few years. The downward spiral seems to have just started?
with the amount im earning atm i can cover alot of extra repayments even if prices do go south n rates up. so im not too worry. im in for the long haul not for short term CG. but long term CG and rent increases. sure it will slow me down a bit. but people will always need a place to live.
Yea that's what the Americans thought.
Oh and the British, Irish, Italians, Greeks, Spanish, Portugese. Did I miss any former world powers? Oh and Japan.
Oh and the British, Irish, Italians, Greeks, Spanish, Portugese. Did I miss any former world powers? Oh and Japan.
That's a good position to be in. Control the things you can control.
Nobody knows for sure what the housing market will do. Some people seem to have a crystal ball and can see the market taking a massive hit.
It is up to you whether you would rather be on the sidelines and watch the world go by or jump in and try and set yourself up for the future. I mean what is the alternative, I gather you are working offshore or in the mines? So many of those people get their higher than average incomes and blow it on liquor and other things. You have a plan to invest in good property, you don't need to be crucified for that.
That's great, but be careful and do your research first. Don't just go out and buy the first thing you can afford. Use this forum to learn, learn, learn. You will be miles ahead of all your peer group if you do that.
started when i was 27, if only i knew this forum when i started so i didnt make the mistake purchasing the first property, bought second one when i was 29 which i thought was a good buy (after learning few calculations and getting myself little bit educated from this forum)
i am pretty highly geared (85.7%!!) at the moment which sometimes causing some stress in the back of my mind, especially with the current trend which will expose me even further
now i am 30 and looking for another one by using equity from second house, but it would have to be really really good buy or else i could be in trouble if the market declines further
i am pretty highly geared (85.7%!!) at the moment which sometimes causing some stress in the back of my mind, especially with the current trend which will expose me even further
now i am 30 and looking for another one by using equity from second house, but it would have to be really really good buy or else i could be in trouble if the market declines further
i will see how i go.
Good on you mate!
If anyone tries to tell you our RE market is anything like the US market, well, you need to quetion their motivation and come to your own conclusion. (as it seems you have
)
Good on you mate!
If anyone tries to tell you our RE market is anything like the US market, well, you need to quetion their motivation and come to your own conclusion. (as it seems you have
Read everything but trust nothing
Just had to say, always factor in the opportunity cost of your capital as it could be earning money. For example.... let's say I buy a house outright in cash. Am I positively geared just because my loan is 0? It's possible to make your investment positively geared via artificial means (eg putting in a larger than 20% deposit) but that doesn't mean it is actually making money for you.
I always factor in the opportunity cost of capital and aim for a neutrally to CF+ investment property. Am fine with slightly negative cashflow in the early years but not too negative. Hence anything with 5.2% yield (eg. purchase $400k, rent $400pw) I don't touch. It has to be more around 7%+ yield. Highest yielding one is 8.8% (purchased 1.5 years ago)
In the early stages of getting IP#3 if all goes well.... running into serviceability walls though. Not with us, but with the banks. We can service all our mortgages fine, we have stable jobs and a good household income, and we are pretty frugal hence we have been saving a lot each month. Just need the banks to start coming to the party too...........
