/biz/ - Business & Finance

>>9068900
In my country (ausfag), this is how it's done:
>Buy a house for $415,000 with around 20% deposit to beat Mortgage Lenders Insurance, making an LVR of around 75%
>Pay off mortgage over 4 or 5 years at around $1400 per month
>Home appreciates in value during that time, let's say to around $440,000 with some light renovations
>Reach into the equity of your home
>Use this plus cash saved as deposit for new investment property for $350,000
>Rent that home for $400 per week
>Its mortgage is $1200 per month
>You're cash-flow positive by $100 per week
>Continue this for 2 or 3 years, investment property appreciates in value during this time along with your first home
>Reach into their equity + the cash you've saved, make deposit on another home worth $350,000
>Rent it out for $420 a week because rent has increased
>Its mortgage is $1200 per month
>You're now cash flow positive for $220 a week
>Repeat the process

Compare this to:
>paying $20,000 a year for the roof over your head
>your money provides a 0% ROI
>you have no equity to reach into, no leverage to borrow from

Owning your home is decent way to get into the market, if you make smart decisions. The earlier you get in, the better. The adage that "Time IN the market beats timing the market" is especially true for housing. Sure there's bubbles, but in property-market timeframes they recover quickly (The 2008 GFC was entirely recovered from in my country within 3 or 4 years - in fact, property prices had never soared higher since).

I'm 22, just bought my first home and will be moving to acquire my first investment property in the next 2 years. Looking to achieve a 5% monthly yield.

Anyone done this before and have any tips?

>>8895827
>I'm 23, what do I need to save for right now

OP here, I'll be 23 in november. Though I already bought a house, here's what I've always saved for:
>a safety net (i.e. minimum of 12 months of mortgage / rent, and living, including extra expenses - assume you've been diagnosed with cancer or something and need to stop work for a year)
>future 'spotfire' costs, such as your car getting wrecked, your home getting burgled, a fridge or washing machine breaking, a fire or flood damaging your home or possessions etc.
>unexpected costs such as having to organise and pay for a funeral, or medical care for a loved one
That's the risks covered. Now for things that will appreciate the value of my investments.
>saving for home improvements
>saving for future investments, such as crypto
>saving for professional qualifications
Now for saving for things that I want.
>saving for a wedding
>saving for kids
>saving to have enough to pay off my mortgage and purchase an investment property
>saving to have enough to provide myself and future family with what they need and want
>saving to have enough for holidays for my family
>saving to have enough to pay for good education for my future children, and things like piano lessons / after-school care etc.
>saving to have enough to help my kids get a home, if they fuckin' deserve it
>saving to have enough for a reasonably comfortable retirement

I always grew up poor as fuck. Mum and dad both worked 2, sometimes even 3 low-wage jobs just to support us. I hated every second of knowing that I was eating dinner while dad was going without. I fucking despised knowing that my mother smiled and encouraged us to choose a toy that we liked, knowing it would sacrifice her getting something she deserved.
Finally:
>saving up so that my parents can be looked after properly when they need it
>saving up to help my parents pay off their mortgages
>saving up to get my parents a holiday or two.

What are you guys saving for?