I'm 18 yo, I work part time and just wondering if buying an apartment/house is a good idea. I would buy it for around 300-350 (10% savings, 90% loan) and put it up for rent. If the rent covers for the monthly loan or weekly or etc, should I go for it? I know I have to pay for insurance, maintaince etc.
thank you
Buying House/Apartment
L[Deactivated] on 15/07/2015 - 13:20
Comments
How do I find out if it's a good investment property? I'm sure if I ask the realtor of course he will say it is
I was in the same boat with your few years back. I was lucky to meet my cousin who was successful property investor and developer.
I asked the secret for my first step in property. I expected a magic secret.
His answer was: 1. Location, 2, Location 3, Location.Location location location, are there schools near by, public transport, hospitals, are there any future developments in the area that will increase the value, have prices in the area increased in the past, what is the crime rate in the area etc
not that easy champ.
U got a full time job?
U got credit history?
Awesome idea and good thinking at your age but there is criteria u have to meet
Go contact a mortgage broker 1st before anything.Not full time, part time, still studying
My credit is clean, never loaned
Most banks would have wanted you to have had a credit card or personal loan to show that you can repay your debt.
You may think that you never borrow money from bank that you are a good customer, but it is not because the bank do not have a history about your payment pattern or history, so it is good to apply for a credit card and make sure you pay promptly.
My credit is clean, never loaned.
That means your credit isnt good as you have never had a loan/credit card.
It's really as long as the rent covers your expenses.
And you can afford to chip away at it if it goes un-rented for a period of time / interest rates rise.
Don't forget the Body Corp fee if it is apart.
Did you get assistance from the bank of mum and dad? because 10% deposit is about $35k, then being and investment, stamp duty is about $13K, solicitor and other fees about $2k.
Dont know where you are interested in, but if it sits for weeks and months with no tennant, can you afford this too?And if the interest rate rises to 10%-14% in a few years can he cover it, what if property prices drop are you able to cover the difference if you cant pay off the loan?
bank of mum and dad lol
I also forgot to add, if you received this deposit as a lump sum, the bank will only class this as genuine savings if you have held its for at least 3 months. Don't know if this rule as changed.
Heh, OP created and disabled his/her account in less than a day!
Good on you! I wish more people would start earlier- well at least by the age of 25. The bank/credit union will love you. No probs there; just stay away from dodgy lenders, etc.
Advice: location - next to railway station and it will never be unoccupied.
Question: how much do you earn in your part time job?
Do you earn enough to cover unexpected surprises? (Trust me, you will get them)You're not going to get a reply from him
If borrowing 90%, bank will lug you lenders mortgage insurance. Thats a few extra thousand dollars.
Good on you for thinking long term. Most young ppl only think of saving for their holidays and buying new "stuff".
A lot of the successful property investory do buy positively geared properties as the rent outlays the costs, don't forget to do your research to see if the property is going to increase in value in the future