Hi everyone i've been a long time reader first time poster, this may be a long post but I really need some help as I'm only 18 and looking to be a builder and invest in property as my chosen career. I will start by telling you what I'm thinking about doing and my circumstances.
Well I'm an 18 year old male, and I've chosen to be a carpenter I jus started my apprenticeship in January 2010. I plan to complete the apprenticeship whilst also studying my cert IV in building and construction (builders licence) so by 2014 I will be a qualified and work a further 2 years qualified to obtain my builders licence. I also have a bet with my dad. If I save $30,000 by 2014 my dad will give me $15,000 so in total I will have $45,000 when I finish my apprenticeship. I Plan to retire about 45 - 50.
Now this is where I need some help. I'm 18 and just out of school and eager to succeed in the real world. Please be kind as I may not make much sense
This is my plan,
as I'm a carpenter I will be able to put down a deposit for a loan and build (the carpentry side), and I already have friends that will be qualified before I am that are, Electricians, Plumbers, Plasters, Shopfitter/cabinet maker so I can save alot there. Once the house is build I will be able to keep it for a year and sell (less capital gains tax) and then build another so on and so on until I have made enough profit to own a house. Then I will start again but keep one house then work full time building a house keeping it for a year then selling unit a have made enough to own the second house outright and repeat this sequence.
but since I have been reading I'm not sure weather I should keep the first house and build another using equity. With equity I want a straight aswer how it works? (A simple definition maybe?) I've tried to research but I can't fully quite understand it. I don't understand how someone can own 5 houses equity ofc rent out 4 and still pay the mortgage like I'm sure the rent wouldn't pay the whole mortgage right?
To make the questions straight forward,
1. Is there money in building and selling? specially if I can get cashies done?
2. How does equity work?
3. Is the difference between the 2 questions above building and selling is cash flow and equity is long-term?
4.
Well I'm an 18 year old male, and I've chosen to be a carpenter I jus started my apprenticeship in January 2010. I plan to complete the apprenticeship whilst also studying my cert IV in building and construction (builders licence) so by 2014 I will be a qualified and work a further 2 years qualified to obtain my builders licence. I also have a bet with my dad. If I save $30,000 by 2014 my dad will give me $15,000 so in total I will have $45,000 when I finish my apprenticeship. I Plan to retire about 45 - 50.
Now this is where I need some help. I'm 18 and just out of school and eager to succeed in the real world. Please be kind as I may not make much sense
This is my plan,
as I'm a carpenter I will be able to put down a deposit for a loan and build (the carpentry side), and I already have friends that will be qualified before I am that are, Electricians, Plumbers, Plasters, Shopfitter/cabinet maker so I can save alot there. Once the house is build I will be able to keep it for a year and sell (less capital gains tax) and then build another so on and so on until I have made enough profit to own a house. Then I will start again but keep one house then work full time building a house keeping it for a year then selling unit a have made enough to own the second house outright and repeat this sequence.
but since I have been reading I'm not sure weather I should keep the first house and build another using equity. With equity I want a straight aswer how it works? (A simple definition maybe?) I've tried to research but I can't fully quite understand it. I don't understand how someone can own 5 houses equity ofc rent out 4 and still pay the mortgage like I'm sure the rent wouldn't pay the whole mortgage right?
To make the questions straight forward,
1. Is there money in building and selling? specially if I can get cashies done?
2. How does equity work?
3. Is the difference between the 2 questions above building and selling is cash flow and equity is long-term?
4.