young people entering the property market for investment

[frances56]

Well maybe I'll tell my kids to become money lenders! Although the government is cracking down on them too!

[sophialoren2]

Nobody has any contemplations on property speculation methodology for youngsters beginning?

[donna]

Geez what a minefield - why does property speculation interest you and have you the financial resources to do it?

cheers

Donna

[frances56]

Not speculation for me. Husband due to retire so don't want the stress. Only reason we r fairly comfy is because we bought home own homes young and paid them off which enabled us to buy 3 rentals 10 yrs ago. Would like my kids to start early to enable them to have some financial freedom as they get older. We're not high flyers or property moguls just happy to be able to live comfortably with some spending money ????

[donna]

^^ and would you not recommend the same strategy to them? You’ve done well from it?

[Rohb]

Not speculation for me. Husband due to retire so don't want the stress. Only reason we r fairly comfy is because we bought home own homes young and paid them off which enabled us to buy 3 rentals 10 yrs ago. Would like my kids to start early to enable them to have some financial freedom as they get older. We're not high flyers or property moguls just happy to be able to live comfortably with some spending money ????

I think, what ever strategy you've done will be hard to replicate now. And that goes for most of us that started this PI journey few decades ago. Back in 2005 nobody wants to buy rundown houses but I always knew then about the value of houses and location.Location is everything to me and locations that are easy to rent out...Simple stategy..BUY rundown homes in good location or location I like buy them really cheap ,renovate and hold. Sold and fund the next project.This strategy got me here, but the numbers don't work now but I still see some potential not as good but this still will work if you intend to live in it and renovate over time but seriously when the last time you seen a rundown house for sale that are cheap?

Dunno how much your still leverage with your portfolio but if you intend to sell I think the best you can do for your kids is sell one of your properties to them to start them off.Just make it work for them. Give them the property with a good potential that can accommodate multiple units and build in the future. Depending land size and location will be the key.

Also, giving them a good deposit is good too I have done that.and have sold to my family at a discounted price...Just to get them started. They can get house with multiple rooms use those free rooms and get boarders to help them pay off the mortgage sooner. Once paid off or when they have a good equity buy another's one.The cycle continue, do the same thing get boarders and rent it out by the rooms by that time they will have one property each.

(Having boarders if your living in that property don't think you pay tax or do you ?)

Anyway I really hope your kids are financially deciplined.If not they need to educate themselves. In saving and investing. And also knowing how to renovate will help in their journey .

Good luck!

.....

[McDuck]

Nobody has any contemplations on property speculation methodology for youngsters beginning?

The thing is, young people have lots going on.

And their focus is on social events, reproduction, education, rebellion, adventure and ego and image etc,

And with all that youth and energy and opportunity, who would have it any other way.

For them, the future is a long long way off, and they are bulletproof.

A really good starting point would be to get them to sit down and see what they spent money on that week.
then later, what they spent money on that month,
an later, what they spent money on that year.

They will be surprised to see they spent $3000 on take out coffee.

Then get them to try and find the balance between enjoying themselves and wasting money.

Once they have a little stockpile of spare money, get them to put it in a really short term deposit.

let them see that money cam "make" money. With the coming credit tightening , they are going to be pleased with the returns.

Once they get on the path of wanting to grow that little project pile, they will eventually take that leap into more riskier activities, with larger returns.

then you might need to coach them on diversification against loss strategies.

Essentially, they need the passion and the determination to carry out the projects themselves.