I agree wholeheartedly Alex - might as well be as agressive as possible now, to maximise the leverage/return and there will be plenty of time for conservative protection strategies when we are older. Whats the worst that can happen - lose the lot and go back to where I was when I started all this? Oh well....many of my friends have nothing now so it won't kill me if that happens.
young property investors
- Thread starter toylux95
- Start date
I'm just wary of the emotional traps of owning your own home. You get attached to it, you want to do things to improve it, and you're not going to take as many risks with it. This is especially if you buy it as your first property. When you're young, it makes more sense to take more risks because you have more time to recover. Not saying we should all take stupid risks, but if it's your PPOR you might end up taking less risk than otherwise. While improving your own home adds value, if it's a PPOR you are more likely to put in things that you want as opposed to thinking what would a future buyer want.
Alex
Alex
If you mean non FINANCED , then that's correct bangers - cars can definitely chew into your cashflow if you like the pricey ones. If you mean what you wrote I am not into that kind of thing - 1 wife is enough for me, would never cheat, not even with a car.
Apologies for the typo. Thanks for that.
Interesting, I hadn't thought of it exactly like that but its true with my own place I would be more likely to put quality fixtures in and suit my own taste rather than just giving the market what it wants. Also the psychology of being more financially conservative on the rest of your investment decisions once you have a house to protect would be a factor.
Happily I just had a conversation with wifey last night and we have agreed to rent for another 1-2 years at least allowing me to go shopping for more IP's once we have refinanced and completed our little Kalgoorlie subdivision in the next 6 months - yay!
I am 23 yr old, started investing nearly 18 month ago with total $2M cash&equity. Thanks to melbourne's booming market I now have 14 IPs & 1 PPOR worth $11.8M with 55% debt level.
Although I made some money, but I clearly kown my opportunity cost was far greater than the money I made.
Some tips from my experence, I wish I knew it from the beginning:
1) Choose capital gain ahead of CF returns.
2) Don't go anywhere but inner city&bayside.
3) Development/Renovation is good, but really, I don't make much abnormal returns.
4) Believe in value, not bargain.
Although I made some money, but I clearly kown my opportunity cost was far greater than the money I made.
Some tips from my experence, I wish I knew it from the beginning:
1) Choose capital gain ahead of CF returns.
2) Don't go anywhere but inner city&bayside.
3) Development/Renovation is good, but really, I don't make much abnormal returns.
4) Believe in value, not bargain.
I agree with CashflowPlus. How did you get so many IPs at your age? I'm impressed.
I got my first IP today (at 21) and am now the proud owner of two properties (one PPOR at 20) and $650,000 worth of debt
http://www.somersoft.com/forums/showthread.php?t=37281
http://www.somersoft.com/forums/showthread.php?t=37281
I am a business migrant. The starting fund is mostly from overseas. To me it's not how much i like property, it's just another opportunity awaits.
I only buy houses because I believe in scarcity in a desirable location will drive prices up and that's all comming from the limited land supply. Bigger land ratio will give me a bigger chance of appreciation in value. Half of my property within 10Kmz of CBD and the other half within 20KMZ of CBD. I only brought in melbourne because I know nowhere else.
We might think 10% or 20% p/a return on a property is regarded as "good". However just compare with opportunities overseas, such as Chinese stock market which nearly tripled this year and with no CGT Laws in place. Average Investment Fund is returning above 200%. Some stocks went up 100 times.
It would be my stupidity to say that australia is not a good place to make money. But to be honest, I would say australia is less than the best place to make quick money.
I would love to invest in australia, it's the place to have a life.
I'm 21. I bought my first IP. in Jan 2006 when i was 19. It was $249,000 and is rented for $245 per week.
Just bought a joint IP with my partner (34) which settled on Friday. It was $241,000 and will be rented for $275 per week. We live in my partners house and he as another IP (unit) in his name.
We have acquired 4 mortgages in 4 years
Just bought a joint IP with my partner (34) which settled on Friday. It was $241,000 and will be rented for $275 per week. We live in my partners house and he as another IP (unit) in his name.
We have acquired 4 mortgages in 4 years
hello all, this is my first post.
We built our first house when we were just 18 years of age. Although, it was very difficult at the time as we had only one income. Now 21 years old, we have one rental property which we have renovated, and 2 blocks of land on the capricornia coast in which we have commenced building on one. All very exciting but hard work!
We built our first house when we were just 18 years of age. Although, it was very difficult at the time as we had only one income. Now 21 years old, we have one rental property which we have renovated, and 2 blocks of land on the capricornia coast in which we have commenced building on one. All very exciting but hard work!
Hello all,
My wife and I bought our PPOR last year when i was 24 and she was 25. I had been working full time for 3 years, however she was still at university. We also have money invested in a managed fund and have capital invested in a business which we run as well. Looking at purchasing our first IP within the next few months, maybe just before our baby is due in February!
I only worked 1 day a week while at high school and university, so didn't really have the funds to invest back then. But i had enough on my plate with uni work and my social life back then to do it properly anyway.
I feel i probably could have started 1~2 years earlier than i did, however i did some travelling, prior to marriage and after marriage that ate up some cash but has enriched my life. I wouldn't change anything if i had another chance, very happy with current situation.
Good on everybody else who started even younger than me and have done well! ;-)
My wife and I bought our PPOR last year when i was 24 and she was 25. I had been working full time for 3 years, however she was still at university. We also have money invested in a managed fund and have capital invested in a business which we run as well. Looking at purchasing our first IP within the next few months, maybe just before our baby is due in February!
I only worked 1 day a week while at high school and university, so didn't really have the funds to invest back then. But i had enough on my plate with uni work and my social life back then to do it properly anyway.
I feel i probably could have started 1~2 years earlier than i did, however i did some travelling, prior to marriage and after marriage that ate up some cash but has enriched my life. I wouldn't change anything if i had another chance, very happy with current situation.
Good on everybody else who started even younger than me and have done well! ;-)
I noticed that a few people bought their first property between 18-22, which are the uni years. Were you working instead of studying? If not, how did you manage?
At the moment, I'm a full-time student and I'm not willing to work full time and study full-time because I know that how well I do at uni will dictate my income later on and I enjoy studying. I'm saving 95% per cent of my income, now have a big sum of money and am looking to put that money into different asset types than property (for now).
At the moment, I'm a full-time student and I'm not willing to work full time and study full-time because I know that how well I do at uni will dictate my income later on and I enjoy studying. I'm saving 95% per cent of my income, now have a big sum of money and am looking to put that money into different asset types than property (for now).
That's not helpful at all.
