20 yr old looking to invest

Matt S · 22-01-2010, 08:20 AM

Yeah i have. Are there any other Grants and Concessions i should be looking at?

Matt S

Chris C · 22-01-2010, 01:51 PM

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Originally Posted by Matt S

I realised almost as soon as finding this site that my current knowledge was only the tip of the iceberg.

Get used to that feeling, the reality of life is the more you learn the more you realise you don't know - it's a never ending cycle. On the plus side it means there always something new and interesting to learn about.

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I'm trying to be as thorough as possible in my research. i'm just finding it difficult with the specifics as to WHAT thorough research means in terms of property investment.

Best thing to do is to just start a thread here on invested asking what other successful property investors look to do when they are performing "thorough research". It's what the forums are for, and there are lots of people on these forums willing to help.

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Problem was my mindset upon entering uni. i should have had a gap year to get some perspective and have a think about what direction i really want to go in.

I think this gap year should be mandatory for all school leavers, because from what I have seen so many school leaver don't really have any idea about what they really want to do with themselves and just end up doing something that they sort of like, not thinking that they are spending tens of thousands of dollars to study that subject to make a career of it.

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I definately want to go back, i'd love to do some marketing or something. i've always been interested in business, but its not even a priority atm.

I studied business management and economics at uni, and to be honest, I think you could probably learn a lot more about the ins and outs of business by being involved with business and just reading good business books (and there are lots of them).

Studying business is something I'd suggest you do latter in life as like a masters or something because the majority of it isn't rocket science and you don't need a degree to be a good business man.

Once again best of luck with it all.

GregR · 24-01-2010, 06:51 PM

Matt,
Michael Yardney is an interesting writer and speaker but he is only one of the many successful investors out there. Jan Somers, Margaret Lomas and Hans Jakobi are others come to mind with a wider view than what Michael has in relation to the type of investment and the areas where they have successfully built portfolio's in.

I agree with Chris that self education is critical but it is also allowing yourself the luxury of learning by experience, of doing it and getting involved. We try to minimise the risks through strategies such as insurance, use of professionals etc.

If you cannot afford to buy in the capital cities yet, then learn about the areas around you, understand who is renting what type of properties, what are the characteristics that are common and wanted by renters, talk to some property managers about what they look for. For instance is it the 3 bed home with garage, is it close to facilities, is 1 bed flats in demand?

Then it depends on your circumstances of what is important to you to be able to move to the next IP, is it capital growth (only if you can revalue and refinance generally requiring you can show servicing) or is it rental income stream more important?

It is about working out what your goal is, perhaps not necessarily end goal as this changes over time, but an intermediary goal, say 5 to 10 years. Then work out a strategy and structure to achieve it.
Good luck
Greg

James_w · 11-02-2010, 06:51 PM

Quote:

Originally Posted by Matt S

Hey to all of you, I’m a 20 year old living on the Far North Coast of NSW.
for the past 8 months I have been saving everything I can to scrape together a deposit for an IP with my brother ( I realise this isn’t optimal but it's the only way we can afford to enter the property market).

I have gotten together 17k (saving approx 450/wk), while he has ~26k. My parents are also interested in investing.

I am in the process of reading Michael Yardley’s "how to build a multi million dollar Property portfolio in your spare time" and I have to say it has raised more questions than it has provided answers. If any of you have read this book, you will know he strongly encourages investment in the capital cities, and warns against investment in regional areas. However, I have never lived in the city, do not have any knowledge of the property markets in Brisbane (my closest capital city), and have no time to do the legwork and research necessary to make a calculated decision as to what would make a good IP.

This leads me to think that it might be my only option to invest in a regional area, as its better to have my money doing SOMETHING rather than nothing at all in my bank account. Additionally if I invested locally I could take advantage of the FHOG.

I guess I could also wait but I don’t want to miss the boat with property investment as Yardley has indicated in his book that right now is a buyers market (though I don’t understand why). Please keep in mind I have very little financial knowledge and a lot of the jargon I don’t quite understand yet.

I'm Sorry to ask such a broad question but what would you do in my situation?

Thanks very much in advance. I appreciate any input

congrats matt I have invested in regional areas such as stanwell which is just outside rockhampton with a good size population in rockhampton and plenty of people looking for rentals not only from rockhampton but surrounding mining areas I also invested in alderhsot which is 5mins out of maryborough in qld and a new mine is looking to be open inside the next 12months toogoom is also a great beachside area around 15klms from the mine in alderhsot with beautiful beaches and public transport daily to hervey bay which is a mere 13min drive away.