If you were young how would you do it?

[matt_50]

That investment property while living at home idea sounds tempting! I'm in much the same situation with savings fast approching a %20 deposit for the biggest property I would be able to afford given the max I can borrow (total price of arnd $300k). the only thing I worry about is paying close to $15k extra now, due to lack of FHG and Stamp duty that comes with buying as an investment rather than the first home. also being on a lower tax bracket, 30%, and some in my situation may be lower, tax deductions on interest become a smaller consolation.

 

[Mr J]

a %20 deposit for the biggest property I would be able to afford given the max I can borrow

Is that the max you can borrow, or the max you can comfortably afford?

 

[matt_50]

Is that the max you can borrow, or the max you can comfortably afford?

max I could borrow. It would be a stretch to say I could comfortably afford it. depends whether I remained living at home

 

[Gerkin]

That investment property while living at home idea sounds tempting! I'm in much the same situation with savings fast approching a %20 deposit for the biggest property I would be able to afford given the max I can borrow (total price of arnd $300k). the only thing I worry about is paying close to $15k extra now, due to lack of FHG and Stamp duty that comes with buying as an investment rather than the first home. also being on a lower tax bracket, 30%, and some in my situation may be lower, tax deductions on interest become a smaller consolation.

The fhog, you only have to live in the property for 6 months starting within the first 12 months of you owning it.

Nothing stopping you buying it, living in it for 6 months, moving out and it being an IP.

 

[kingcarmleo]

Im in a similiar situation (common theme). I recently resigned my job as I wanted a job that relates to my degree. Anyway when I was working I'd make $250 a week and save $100 a week for 5 weeks till I could buy a parcel of shares. Anyway I have saved 5k and invested around 8k in smaller stocks such as ESG,MEL,ISF. I plan to go to europe in july which will cost 5k so that means I'd only have my cash in shares(yikess) Anyway if I'm going to make a mistake I will do it while I'm young. Your only young once so I think it's important I wine and dine some european women

I might sell some of my stocks before I go to europe just to be safe, well hopefully by July ESG is taken over!!

 

[Mr J]

max I could borrow. It would be a stretch to say I could comfortably afford it. depends whether I remained living at home

Decisions, decisions. If you move out, are you willing (or allowed to move back? I guess you probably want to move out within the next few years, so that needs to be considered.

 

[Gunlom]

I made a one smart decision when I was 19 and bought a cheap apartment to rent out. And after a few years and twist and turns in life ( including a stint in the army) I had the mortgage down to below 10k, in the by about 2002.

Then after learning about investing, my options exploded, what I was capable of doing with that equity and rental income...

I took a trip to Europe, about $20k it cost, all paid for by my lucky tenant(didn't take a cent of my own hard earned) and starting buying more property and shares.

Basically the idea is the sooner you get some assets under your belt, the more options and choices you have later in life. And you don't need a exceptionally high wage to start, merely determination!!

Best decision I ever made... and has paid many times over, and I'm only 33 now.

 

[ck13488]

skyQuake,
By the time you are able to draw super, you shouldn't really need it if you had spent a lifetime of paying off debt and investing.

When ck13488 starts work, his employer will be putting in 9% pa, that is plenty in something you can't touch for 40-50 years.

Totally agree...too much can change in the >40-50 years till I can touch super..too greater risk IMO

The other advantage in not having all your capital tied up in shares is that if the travel bug should bite - you'll have some funds you can use to scratch the itch You're being very sensible, responsible and forward-thinking which is to be applauded. Just don't forget that life is for living, and make sure you make the best of your youth while you have it:

Still managing to travel around whilst saving...went to south island of NZ and Melbourne last year. We also really enjoygetting out and exploring the area where I live (hunter valley/newcastle) and camping is cheap and I love it! [cost a tank of petrol and $60 in food for 4 days camping]
In 2 weeks ill be in townsville and still deciding on the next trip. No extended overseas travel till uni is over with!

Looking back, one of the best financial decisions I made was to buy our first home when still quite young, and pay it off as quickly as possible. If I had my time over, I'd probably make that first home an investment property and let tenants help pay it off for me whilst I stayed at home. The equity in the investment home could then be used as additional security if needed when purchasing a home to live in, or another investment property etc.

I really don't think I could live at home any longer if I purchased a property. Parents would want me out and i need my own space...ideally I would have a friend occupy a room to help with repayments [another questionable matter:]

Thanks for all your opinions on how you would approach the situation, I really enjoy hearing how other people would go about something and taking it all in before making a decision

 

[Investor82]

Ahh a spruke after my own heart.

I was in a similar possition at about your age. At 20 I secured a great job earning more money than what I ever imagined (all $500/week of it). But as I had just come out of Uni I thought I was loaded - and had no idea what to do with all my money. The only difference was that I didnt live with my folks. But had no debt and owned my car (a ford laser which was 1 year older than me).

I left school, went to uni, got a job - no travel, no break etc - which I wanted to do at some point. But that was to come later - So without really knowing what I was doing I purchased an investment property. It turned out to be the best decision I ever made.
My situation was a bit different in that a)I was paying tax b)there was no FHOG.

So anyway turn the clock foward 7.5 years I still own the house (more than doubled in value), it returns me about $600-$700/month (after costs) plus I have travelled (Indonesia, NZ, Bali, Singapore, Istanbul, Russia, Switzerland, UAE, Milan, Austria - I think thats all?) paid off a lot of debt, got more properties (and more debt) bought my new car (New nissan navara (debt free) and all going to plan I should be able to retire in about 7 years.

Dont get me wrong, in the early days I had to do it pretty tough. I lived in a small unit, shared with 3 other people, at one point had to take on a 2nd job working nites in a bar, drove a shi* box car for 2 years etc, etc, etc. But give me the chance and I wouldnt change anything I did (except buying a vacant block of land (3rd property I purchased)) but that lesson comes later...
Good luck to you.

 

[ck13488]

got a job interview next week...holiday tomorrow.
things are looking good life is sweet