Buying Your Property.

[theunfairadvant]

Below is just my suggestions only.

Staying with your parents is a good start to save as much as 60 to 80% of your income to have a deposit for an investment property.
You don't have to go out every week to get drunk and get smash and spend all your money.
When going out, try not to spend more than 10% of your income on the weekend. I see many people spend more than 60% of their income on the weekend,
and in the end, they got no money left or even save any at all.

Start saving now and buy investment property so by the time you hit 65 or 70, you would have at
least 5k to 10k weekly rental income coming in, so you don't have to rely on the pension for the rest of your life.

My suggestion to you is to buy an investment property first as this way you will get your foot into the door.

It will not cost you a lot of money as the tenants will be paying for most of your mortgage
and might only cost you about $100 bucks weekly for your investment property.

Many people are always trying to save money and buy their own Principle Place Of Residence ( PPOR ) first and are doing it all wrong.
When you buy your PPOR first and start paying it off for the next 20 to 25 yrs,by the time you start investing in property,
you might be over 65 and might find it hard to start investing in property.


When you have saved up some money or have a few friends getting together to get the ball rolling is even better when you are young.

Below are my suggestions for you to get started when you are ready.
1. Set up a Pty Ltd company and a trust to buy an investment property
( IP for short ). Buying under a company and trust is for tax benefits and can claim the maximum tax deductions.
If you were to have 10 investment properties, you would have 10 Pty Ltd companies and 10 trusts.

Only set up the company when you are ready to buy, or you can set up the company now and wait for 2 yrs as some banks or other lenders do lend you money
without having you to show any financials, which is good when you first get started.

They need your company ABN to be at least 2 to 4 yrs old. ( Make sure you remember to file your GST and income tax
and pay for your company registration every year if you were to go down this route.


1A. Do not ever go down doing the negative gearing path. If your income were to be over 80 to 250k then you can go down the path for a few years
till your income changes then do the above on number 1.
Yes, you have to pay stamp duty and everything all over again but the benefits in the long run far outweigh the upfront cost.

When your income were to drop but the rental still getting $1k per week per investment property, plus your income of say $100k so now your income is $150k + $52K rental income
so your income now is $202k and you are on a higher tax bracket.

2. Refinance your IP every 2 to 3 yrs to get the extra equity so that you can buy another IP.

TIPS: When you go to the bank to get refinance to buy another IP, DO NOT, I REPEAT DO NOT tell them that you want to refinance and draw down on the equity to buy another IP
or else they will say you need a new loan. This way, you missed out on drawing down your equity.

Always tell the bank that you want to draw down on the extra equity to renovate the kitchen, bathroom and living area, so this way you get refinance approved much quicker.

If you go to say NAB to get your loan and you or your wife is a 7 Eleven and say it out by mistake, don't worry; just go to another NAB,
and they can get the loan for you but make sure you don't fill in any forms till you can refinance.

3. Buy an investment property every 3 to 5 yrs till retirement.

4. After 15 yrs investing in property, try to get your LVR down to 40% or less. Even you might have an 80% loan, but your LVR is 40%.
E.g. LVR ( Loan to Value Ratio ) means your Investment Property is valued at 1 million. The bank loan is $800k, so your LVR is 80%

If you have paid off $400k, then your LVR is 40%, meaning you still owe $400k, and you have got $400k equity that you can draw down to buy another investment property.

5. Go to attend a few property seminars as it is tax-deductible, or attend a few paid property seminars every year once you have at least 1 or 2 IPs under your belt.
This way is to expand your knowledge in property.

6. After having a few IPs under your belt and when it is time to buy your PPOR, you can refinance and draw down the equity of all your IP and put a large chunk of deposit,
and by that time, it could be 60 to 80% deposit for your own place.

7. Buying an investment property is to buy and hold never ever sell unless the place you believe is a ****hole. There is no more of these places these days
as even Mt Druitt in Sydney and Logan in Brissy. Their house prices were under $150k back about 20 yrs ago, but look at those places now, and you can't buy anything under $600k.