$10,000

[Gets!]

Currently sitting in an ING savings maximiser.

Is there anything else out there which could be earning more interest?

Also do you think this is enough to start a decent share portfolio?

Thanks,

Ryan

 

[The Rooch]

Currently sitting in an ING savings maximiser.

Is there anything else out there which could be earning more interest?

Also do you think this is enough to start a decent share portfolio?

Thanks,

Ryan

you have to start somewhere, and I think $10,000 is pretty good. if you havent done it before you dont want to be putting your whole life into it.

having your money sitting int he ING savings account, your money is sitting there and not really doing much. I don't think you are maximising your interest no, you need to get your money working for you. I recommend investing into a few different shares, but be careful, make sure you know what you want from your money first.

 

[tayls]

Add the First Home Owner Grant to that and you have got yourself a deposit on your first home. $20,000 deposit. Would get you a loan of about 300,000 as long as you income can support it.

My tip but a home.

 

[R00StaR]

Property is a great way to get started, great leverage. An investment property would be even better if you could do it, as the interest will be tax deductible. Research the use of trust, forums and industry reports such as Residex.

You’ve made a great start, well done!

Edit: Oh and I don’t know how many noticed, but in the Herald Sun a while back they said how Vizards home was owned by his trust. Its might be possible you could rent from your own trust, I know others do it. Now imagine if you rented a fully furnished house that the owner (trust) deprecates that widescreen TV and all furniture. Well worth investigating.

 

[Gets!]

Thanks for the replies guys, I have been thinking about property a lot and I think it will be good to start young and build up equity.

My father works for a finance company and with his software we worked out that on my income I can borrow about $315,000.

Now just have to find something affordable, not too far from the city, live in it for 6 months (to get the home buyers grant?) and then rent it out to mates or something.

 

[Deej]

Edit: Oh and I don’t know how many noticed, but in the Herald Sun a while back they said how Vizards home was owned by his trust. Its might be possible you could rent from your own trust, I know others do it. Now imagine if you rented a fully furnished house that the owner (trust) deprecates that widescreen TV and all furniture. Well worth investigating.

I have a trading trust, and my company is trading as trustee of the trust. i have another company set up which i pay all profits into that the trust makes. (hope that's not too complicated). So, what is the deal, i should buy my house (i'm in the market) in the name of my trust and rent off the trust? We would also have a portion of the house set up as an office for the missus to work when she needs to on accounts etc. How would this all work for me? I'm going to run this by my accountant, whatever you tell me. What does vizard do?

 

[Former]

TNow just have to find something affordable, not too far from the city, live in it for 6 months (to get the home buyers grant?) and then rent it out to mates or something.

I wouldn't rent to mates. Your parents friends maybe, but not younger mates. Hassle city.

Also right now I'd go commercial rather than residential as there is more growth there and your tenants are more likely to keep up the appearance of the property than let it rot. Look for income producing property. $10k isn't much for that but you might get an office in a larger complex or something similar.

 

[R00StaR]

Gday Deej, not too complicated, I have exactly the same setup

Yep your trust buys the property and you simply become a tenant paying rent at roughly market rates. I rent from my trust but not 100% sure about the office stuff. Between the misses, the bookkeeper and my accountant im fortunate enough not to get bogged down in the finer details, Im just the show me the money man lol

Just keep in mind you will lose the CGT benefit you would receive if held in your own name but I think the other tax/ asset protection benefits of trust ownership more than make up for this. Besides who wants to sell anyway? Ill just draw down equity and buy a new place to rent if I want to move on.

The paper didn’t go into great detail about Vizard other than he may lose control of his home because he couldnt be a director. Then when on to say its owned by his trust which he is a director of the trustee company.

As you’d know that wouldn’t be a huge issue, he just makes MrsVizard director or takes on the role of trustee himself (without trustee company protection) I guess.

Definitely worth running it by the number cruncher imo.

 

[The Rooch]

Property is a great way to get started, great leverage. An investment property would be even better if you could do it, as the interest will be tax deductible. Research the use of trust, forums and industry reports such as Residex.

You’ve made a great start, well done!

Edit: Oh and I don’t know how many noticed, but in the Herald Sun a while back they said how Vizards home was owned by his trust. Its might be possible you could rent from your own trust, I know others do it. Now imagine if you rented a fully furnished house that the owner (trust) deprecates that widescreen TV and all furniture. Well worth investigating.

i notice a lot that you mention property as a great way to start off, like you have here roostar.

if you have $10-20k, how are you supposed to get a home? i know many investors say that is a question that the poor ask, but im not asking how could it be possible, i know its possible, but im just not too sure how to work it out. im not looking to buy property just yet, but if i have the goal clear cut now, then it would help me focus on my goals etc.

 

[Gets!]

$10,000 + Home Buyers grant, plus if you have a decent job with a good income you should be able to get a decent loan (Y)

Also helps if you own your own car or something.

 

[The Rooch]

$10,000 + Home Buyers grant, plus if you have a decent job with a good income you should be able to get a decent loan (Y)

Also helps if you own your own car or something.

yeah that would only get you a hut lol. how much do you reckon it would be per week...or per month?? in terms of a mortage if you had $10,000 plus first homebuyers grant, and were looking at a 300,000 house.

 

[HighRoller]

In terms of a $300k mortgage you would be looking at repayments nearing $900 per fortnight. Not sure how much you earn but not really all that feasible without a really high paid job for someone who is young. Now this of course can be countered by using the rent you plan to get from the property in the application. Its a two edged sword though because if you do that then no home owners grant because its a rental property.

I bought a unit just over a year ago and had the same problems, you just have to go the smaller option unless your parents will go guarantor for you.

 

[Rhombus]

BankWest is offering 6% as opposed to ING 5.4%

 

[meatray]

I love you more than monies

 

[Leper]

i notice a lot that you mention property as a great way to start off, like you have here roostar.

if you have $10-20k, how are you supposed to get a home? i know many investors say that is a question that the poor ask, but im not asking how could it be possible, i know its possible, but im just not too sure how to work it out. im not looking to buy property just yet, but if i have the goal clear cut now, then it would help me focus on my goals etc.

Not necesarily this simple I know, but my opinion FWIW:

* Get a good education.
* Go overseas for a couple of years and earn tax free US$ (Euro even better) and have your company pay all your bills (I'm no kidding - it's part of being an expat).
* Don't get married or have kids until you can afford it.
* Consider making your first house an investment whilst you rent a modest place elsewhere.

If you can do all of the above you may own your house outright by the time you're 30 and multiply that by 10 by the time you're 40 (commercial ppty even better).

ps - I'm not knocking those who choose to, say, have kids at a young age. Money isn't everything - it will just make it harder for you to get it.

 

[The Rooch]

Not necesarily this simple I know, but my opinion FWIW:

* Get a good education.
* Go overseas for a couple of years and earn tax free US$ (Euro even better) and have your company pay all your bills (I'm no kidding - it's part of being an expat).
* Don't get married or have kids until you can afford it.
* Consider making your first house an investment whilst you rent a modest place elsewhere.

If you can do all of the above you may own your house outright by the time you're 30 and multiply that by 10 by the time you're 40 (commercial ppty even better).

ps - I'm not knocking those who choose to, say, have kids at a young age. Money isn't everything - it will just make it harder for you to get it.

expand on that whole idea of working overseas for tax free money and having companies pay for your bills. what sort of jobs are you talking about?

 

[Leper]

In my case the construction game, for which you will need an engineering degree.

That said, expat teachers are very common in these parts too - they may not make as much $, but are still given deals complete with housing, travel, etc.

A graduate earning AUS$40k in Aus (I'm guessing in that figure - maybe it's less depending what field) may save $5k a year after tax and living costs are taken out depending how they live.

That same graduate working as an expat may earn US$50k (+ benefits) and save $40k a year of it.

Not everyone's cup of tea I know, but it worked for me.

Edit - another one I forgot to add is nurses. They can go to place like Saudi or Dubai and make heaps.

 

[Gets!]

In terms of a $300k mortgage you would be looking at repayments nearing $900 per fortnight. Not sure how much you earn but not really all that feasible without a really high paid job for someone who is young. Now this of course can be countered by using the rent you plan to get from the property in the application. Its a two edged sword though because if you do that then no home owners grant because its a rental property.

I bought a unit just over a year ago and had the same problems, you just have to go the smaller option unless your parents will go guarantor for you.

Yeah looking at a brand new 2 bedroom apartment in the city tomorrow. Right in the CBD, on Grenfell St, so that's good.

Im 18 and earning about $43500 P.A. + around $5000 in penalty rates.

What I am going to do is live in the apartment for 6 months to get my home buyer's grant, then move back home and rent out both bedrooms (will have someone renting with me for the first 6 months).

I am an avid saver so I could easily manage $600-$800 fortnightly repayments, the loan would probably be $272,000. I mean I want to be a millionaire, there is lots of money out there, so why shouldn't I, or you be enjoying it

Sound like a decent idea?

 

[Footscray_Fan87]

what job do u have to be earning that much at 18!!

i want in

 

[HighRoller]

Yeah looking at a brand new 2 bedroom apartment in the city tomorrow. Right in the CBD, on Grenfell St, so that's good.

Im 18 and earning about $43500 P.A. + around $5000 in penalty rates.

What I am going to do is live in the apartment for 6 months to get my home buyer's grant, then move back home and rent out both bedrooms (will have someone renting with me for the first 6 months).

I am an avid saver so I could easily manage $600-$800 fortnightly repayments, the loan would probably be $272,000. I mean I want to be a millionaire, there is lots of money out there, so why shouldn't I, or you be enjoying it

Sound like a decent idea?

Yup perfect thats exactly what i did only thing is you may find it hard to get a loan applying for a mortgage of that amount. I know technically you may have no problems making the repayments etc but remember they wont be taking into account any rental income because you are buying the property and claiming the grant. For this to work you may need someone to go guarantor for you in the beginning at least anyway but yeah you definetely have the right idea.

 

[ExpectToWin]

When thinking about investing in property there are simple measurements you
can do to see if it is affordable.

At the moment it is very hard for people to start investing in their first property because of the recent boom in Real Estate prices. Rent has not kept up with the recent price hikes. Having said that Property Investment has fallen which means there will be an upward move in rent prices. Couple that with the fact that some house prices are starting to fall in some areas it wont be to long before you can start investing.

What you need to do is work out the interest on the amount you have to borrow. If you were paying monthy you could use the formula

Borrowed Amount * Interest Rate / 365 * Number of Days in the month

Add to the interest all other expenses that go with having a rental property like Council Rates, levies, Insurance etc and you will have a clear picture of how affordable it is.

When borrowing money try and get an Interest Only loan as this will reduce your costs

 

[Gets!]

fortunately my old man is in the finance industry and with his software I have worked out that I will be able to get the Loan with several institutions. Although I would prefer ING because of no application fee and ongoing fees and I can get discounted interest rates as well (not by much but it all adds up).

Also the commission that the broker would receive I will receive half of

I work full time at Telstra Bigpond in Adelaide.

 

[Rhombus]

You could move it to BankWest who pay 6% and if you contribute an additional $500 per month then you would have a very healthy return after 5 years.

 

[rdangelo]

Gets! - you're a dreamer!
You said your an 'avid saver' earning '$43500' + '$5000 penalty rates' yet you only have $10'000 to invest. Something dosent really add up.

What if you lose you're job at 'Telstra'?, you are only 18 y.o. and and highly doubt that your the most important person down there (depending what you actually do!) How would you keep up with your 'repayments' ?

Buddy, I'd go straight down to the TAB tomorro morning at put it all on Australia to beat Uruguay in Montivedio at $5.
$10'000 will soon turn into $50'000, then you can ask us how to invest your '$50'000'. It's better than any other advice iv'e seen in here, except Leper, who knew what he was talking about.

Best of luck though - Gets!