How Should First Time Investors Get Started?
b'ARVE Error: Mode: lazyload not available (ARVE Pro not active?), switching to normal mode\\n\\n\\n\\n\\n\\n\\n\\n\\n{"@context":"http:\\\\/\\\\/schema.org\\\\/","@id":"https:\\\\/\\\\/onproperty.com.au\\\\/first-time-investors-get-started\\\\/#arve-youtube-hkmmjnno7oe659a0b2e5bfd3015689973","type":"VideoObject","embedURL":"https:\\\\/\\\\/www.youtube-nocookie.com\\\\/embed\\\\/HKMmJNnO7OE?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0"}\\n\\n\\n\\nHow should first time investors get started? Should they save a deposit, use vendor financing, do a joint venture or something entirely different?\\n\\nHow should first-time investors get started in the property market? Should they save their own deposit? Go to the vendor finance route? Go into a joint venture? Or use some other strategy?\\n\\nHey! I am Ryan from OnProperty.com.au, helping you find positive cash flow property and this question was asked by Gordon. Thank you Gordon for sending in your question. If you want to have your question answered, just email it to Ryan@OnProperty.com.au.\\n\\nSo when you are a first-time investor, it could be very difficult to get into the market. It could be extremely expensive to get into the market and you feel like you are trying to save, but it just takes forever to get there and you are not making any progress. So, is there a better way than saving your deposit? Should you look at joint venture? Should you look at vendor finance, etcetera? Or should you just stick with the staple approach of saving your deposit?\\xa0I cannot answer the question for you, but I can give you some pros and cons and things to think about with each of them.\\n\\nThe most common way to get into the market is obviously saving your deposit yourself. This can be difficult. Saving a deposit even if it is 5% plus cost, or maybe 10% of the purchase price; if you are purchasing a $300,000 property, that is $30,000. A $500,000 property, that is $50,000. That is a lot of money to save. In some cases, that might be a year or more worth of your wage, which can be extremely difficult to do.\\n\\nSo, the negative with saving your deposit is obviously that it can take a great deal of time. It involves an extreme amount of discipline to not go out there and not buy the latest iPhone, or not buy a car on a loan, or not purchase the latest thing that you want to purchase. It takes an extreme amount of discipline to be able to do that. A large portion of my audience that does have that discipline, but I am sure there are some of you out there who just really struggle with that, and that may be unachievable for you. So, the negative of it is it can take a lot of time to do. The positive of that is you then have full control.\\n\\nYou can purchase a property yourself in your own name or in a trust if you decide to go down that route; but you have the deposit. You are investing it for yourself. This gives you full control over your decisions: what suburbs you want to invest in, what type of property, how much money do you want to spend, are you going to do a renovation, what are you going to put the profits towards, etcetera, etcetera.\\n\\nSo, when you purchase a property it means you get full control over it. You are the decision-maker. You can make whatever decision you want. That is a huge benefit to it. It can be beneficial going into yourself rather than going in something like a joint venture when it comes to buying property number 2 and 3 and things like that because the banks will look at the entire loan against your income. So, it can negatively affect lending in the future if you do a joint venture.\\n\\nSaving a deposit is probably ideal in most situations if you can actually go about and save the deposit. Hopefully after then you can do something to that property to improve it, to increase the equity on that property, and then maybe in the future you may be able to borrow against the equity to go again because it can be difficult to save a deposit over and over.\\n\\nSo,'