18 yr old

hi, im an 18 yr old and ive just started saving for a deposit on a house/unit for a couple of years away when i can afford to pay one off.
ive got a couple of questions:
should i buy an investment property first?
unit or house?
what characteristics should i be looking for in a property?
can anyone recommend some good research material, books or magazines on property?
does the homesaver account sound like a good idea to store my funds?

my long term goal, is to purchase 3-4 investment propertys to hold for the long term.

cheers, dane

 

Dane

Welcome to the forum.

House or unit doesn't matter, although a unit will have less maintenance issues you are paying for it with the strata fees.

Financially it's always easier if you start with an IP.
Starting early when you are still staying at home and have not many other expenses will definitely help accelerate your wealth.

The homesaver account is a good way to save.

cheers

 

My suggestions:
- Buy a property with the intention of it being an IP but live in it yourself for long enough to qualify for the first homeowners grant. Then move back home!
- Location is key. Buy in an area where it is easy to rent the property out. Not sure what city you live in? Close to the CBD or to a Westfield shopping centre is a good place to start looking.
- Homesaver account sounds like a good idea.
- Unit/house doesn't really matter but units prob better if you are starting out as they are generally cheaper and less potential for nasty surprises.
- Whatever you buy get it checked out comprehensively by a building inspector before you commit

 

thanks for the suggestions guys its good to be able to get other peoples opinions, yeah i have always thought a unit to start with, i was wondering how close to the cbd i should buy, i live in perth wa


cheers dane!

 

It doesn't necessarily need to be in the CBD.
I'd buy somewhere where it's walking distance to a major shopping centre and a train station.

Always check the strata fees because some of them are very high.
Buildings with elevator, gym and/or pool are usually the ones to avoid
but you do get a higher rent so it could compensate for the higher strata fees. Some are also very popular so you will never have problems finding tenants.

I don't know how the situation is in Perth but in some instances small units less than 50 sq m are not easy to buy because some lenders won't finance them so you might have to go for a bigger unit (2bedder) or one which is further out.

Cheers

 

Hi Dane and welcome to the forum!

Congrats on being so young and yet having the foresight to already consider your financial future- I'm sure you'll go far if you continue to think so far ahead

I'd second other opinions here to keep saving and buy when you can comfortably afford. Taking advantage of the grant may be an idea as well, as you simply don't know when it's due to expire. Governments are fickle creatures and may well decide to retire it when they need cash for other projects or when the housing market cools to an "acceptable affordability" level. Remember that you can always save more living at home, though this may not necessarily be the best option in your situation.

The govt homesaver accounts are a good start- do a search on this forum to learn more about them- and nothing replaces good old fashioned cash saving. Just make sure you can comfortably afford your repayments, allow for vacancy periods and maintenance costs on whatever property you do buy and listen/read to lots of investors who've been there done that.

Happy reading