Buy my own house, save my money or invest it into property?

[booostindazz]

Hello everyone,

I just need a bit of advice on what I should do early next year. Basically I'm stuck with ways to break out of the ever so fustrating rat race that I'm in. I have only got 2 years to go in my traineeship and after that I'm on my own, maybe without no job at all. I missed out of buying my parents business which certainly would of been a headstart in life!

I am fortunate enough to be living with my parents at present. This can allow me to save good money over the next 2 years, but I hate having all that money there doing nothing. The next thing I could do is buy my first house, pour all my spare money into doing it up to increase the value and use this as leverage for business opportunities. The last idea I had was just to try at investment properties now, even tho it seems very hard to make any money at the moment.

Any advice would be appreciated.

cheers
Darren

[The_Dog]

Sooner rather than later is a good time to start. Not to say you should go for a deal where the numbers stack up, never a good time for that.

If you are worried about your job stability, see what the banks can do for you now. Living with your parents is a great opportunity as you will be alarmed at the costs going it on your own!! Also, the first few years of ownership are the hardest, which is a burden reduced if you stay at home.

Once you are up and running, houses 2, 3, 4 and 5 will be easy!!

The DOg

[donna]

Umm I agree with The Dog.....

Read Graeme Fowler's book - it's in our bookstore - click link below.

http://www.propertytalk.co.nz/modules.php?name=bookstore&file=index&op=moreDetails&bookId=14

There are many ways you could finance an Investment Property now - and Graeme amongst other members in this Forum has done it all

Cheers,

Donna

[booostindazz]

Thankyou people for your advice. I must admit I do procrastinate alot! I think it's because I loose sight of my goals very often and reality. Hmmmm as they say, starting it all off is the hardest part and I certainly bileve that. It's the distractions in life caused by my emotional decisions that have wasted my time. I'm sure someone must understand what I'm going on about, I should just do it! No excuses! :P

[wada]

Hello,

I should just do it! No excuses!
Good attitude however what will you do Tough question. I don't know your circumstances (guessing you are single with no children) but I would buy a rental that you 'could' live in (not necessarily would live in) and stay with your parents until they kick you out . If things turn to custard then you will still have a roof over your head but if things turn out well then your options are boundless.

Others have done the quick cash deals with success so don't limit you thinking. Just my opinion.

Wada

[booostindazz]

Hey,

Gee I hope I have no kids on the way! hehe. I'm 21 by the way, the parents are still happy to keep me here. I think its only fair that I pay them more board money considering they are willing to lend me alot of security to buy my first house. I had a yarn to the bank and I am able to borrow around $150,000 even up to $200,000 if I have to. So that's a good start! I've been thinking about property investment for over a year now, just keep putting it off. To me it looks like it's hard to make positive cashflow on a rental property here in Christchurch at the moment, so creating a few quick cash deals could be a good idea.

[wada]

Hi,

Well I'm 29 with 3 kiddies and if I knew then on what I do now...

Good on you Booostindazz for even thinking about investing. 8 years ago I was p...ing it all away but that's another story. Yep start early and get good advice on what is best for you, as you can do alot with $150-$200K borrowing.

Read all the threads on quick cash deals on this forum (sorry I don't know where they are) as a few forumnites have been successful doing this. I've never done it so I only know the theory side

Wada

[drelly]

I feel the same Wada... didn't buy my first house until I was 28. 34 now. Wish I had made the effort to get into something earlier... I just didn't realise!

[bsc]

Wow people are in this game and so young ! 34, 28 and even 21 ! blimey.
I wish I'd started out then.
Never mind can't change the past, wouldn't want to, got to look forward.
I'm 39, with 5 kids. I've equity sat in a bank account in UK. I've a half decent job, and I'm renting at present in The Hutt.

I'm setting up my structure, and am in the process of getting the lawyer on board. I've been offered pre-approval on low %age fixed term money.
I'm ready to go for it.
I'll be getting my kids into property from an early age, educating them that time is more valuable, its something that can't be replaced. Working for a living, for someone else is a mugs game ! we all know it, we're all doing it ! nice relatively easy money, but only a handful of people make it to financial independence from a 9-5 job.
Booostindazz, while you're young, give it a go. If it turns to custard, try again. Read Steve McKnights latest book "$1,000,000 in Property in One Year". In there there's a couple who came to property with AUS$200k debt ! and now they've purchased a millionaire dollars of property and have passive income of 50-100k ! :P
If it turns to even sloppier custard, then get a job.
I suspect that if you get engrained in a 9-5 life, its harder to make that shift as you'll have more commitments. Do it now, get rich by 35.
Read Martin Ayles 'You need a rocket' - he used to be a supermarket trolley pusher only 5 yrs ago or so, now he's worth about 8.5m I think.
Give yourself a chance. Life is only so long !

[bigp]

Never too young to start

If you've got the ability to start investing - Jump on it! Build up your portfolio while you can. If income is an issue, buy income property or arrange a wholesale deal. The best advice I can give anyone and everyone is START TODAY!