investment property beginner

"My first property will be an investment property."

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Buying your first property as an investment property makes sense to you.

You like the idea of the tenant and the taxman carrying most of the cost of your investment property. Your current living expenses make it possible for you to get ahead quickly, allowing you to reduce debt and perhaps look at another property sooner than if you were to buy your first property as a home.

Jasmin’s Story

Jasmin has a good job and is living at home with her parents, paying minimal board. Her living expenses are low and she is able to save most of her pay each fortnight.

Over two years, she saved a reasonable deposit and her parents were willing to add a little extra if required. Her parents have done well over the years with property, so she was very keen to start young and buy an investment property as soon as she could. She wanted to know where to buy and how much it would cost her. She was keen to get started and be ready in a few years to purchase her second property.

dpn’s solution

DPN conducted a Property Accumulation Analysis for Jasmin. She was able to see that after tax, she would only have to contribute $63 per week toward her property investment. This was easily achievable as she was saving about $500 per week, and any additional funds could be used to reduce her loan and hence reduce her interest further.

DPN ensured her finance was pre-approved so she could buy with confidence.

DPN’s Property Valet presented Jasmin with a number of properties at her price point. Jasmin selected the one she was comfortable with and DPN helped her all the way through settlement, as well as sourcing the right Property Manager, discounts on depreciation schedules and adequate landlord’s insurance.

We also worked with Jasmin’s tax accountant to set up a tax variation form to get her tax refunded with each pay instead of waiting until the end of the financial year, helping with cash-flow and minimizing out-of-pocket costs.

Jasmin has seen some decent growth on her property as she had bought in the right area at the right time, based on DPN's research. This, along with her strong debt reduction, has set her up for her second property within her two-year goal. Jasmin may consider making her third property her home, as she is looking to get married. When she does, she'll have a reasonable property portfolio behind her.

what dpn can do for you

Starting young and saving hard can set you up for the rest of your life if you get some financial momentum going. Too many young people spend money on things that sap their resources such as cars, gadgets, etc.

If you have a stable job and have been saving a reasonable amount of money for at least 12 months, give DPN a call on 1300 713 318 or fill in the contact form below, to take the first step in setting up your financial future with your first investment property.