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looking to make first investment - young guy looking for advice

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George93 | 13 Dec 2014, 11:57 AM Agree 0
Hi,
I am in my early 20s and have 200k invested in a company and receive 20k a year in return. I am finishing my uni degree and work part time (15-20k per year), which covers my living expenses. I have managed to save 50k, and am looking to make my next investment. I am leaning towards property, aiming for cash flow positive or neutral.
Ive got a couple of idea, but looking if anyone has any advice or thoughts for me?
Cheers
  • Lachy | 25 Dec 2014, 10:20 PM Agree 0
    Could you tell be more about the money you have invested? Is this accessible? Who owns this?

    I just turned 19 and bought my first house earlier this year. Overall a pretty smooth experience. Where are you looking at buying and how much are you looking to spend?

  • Lachy | 25 Dec 2014, 10:21 PM Agree 0
    Could you tell be more about the money you have invested? Is this accessible? Who owns this?

    I just turned 19 and bought my first house earlier this year. Overall a pretty smooth experience. Where are you looking at buying and how much are you looking to spend?
  • Chris - MyFlats | 26 Dec 2014, 02:32 AM Agree 0
    Hello

    Positive property, find a financier and how much you could achieve to borrow first, and a financier that will take the rental income into account first. This way will let a lower income get into the investment marketplace.

    Once you have found out how much you can borrow. To achieve a positive property, constructing a house and putting a "granny flat" on the rear of the land, 2 bedroom 60sqm can help you achieve a much higher return.

    This is achieved through SEPP (State Environment Planning Policy).

    At the Central Coast, some properties are renting for $500-$600 per week and around $350 per week for a decent Granny flat on the back. (Around a 7% rental yield/return)

    Rule of thumb for calculating what you can rent a Granny Flat out for, look at Real Estate and at the area you are looking to purchase, what the rental you can achieve for a 3 bedroom property?, take off $100 per week for a 2 bedroom.

    One example, recently in Mt Druitt, an OLD run down 1 bedroom granny flat rented out for about $270 per week, and had about 50 applications for it.

    Council prefers down hill sloping land or flat land with Granny flat approvals.

    If anyone needs any assistance. Please contact myself for more information or HELP!
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