20-Somethings Guide to Smashing it onto the Property Ladder. (OK it works for 30’s as well)

Brett Alegre-wood
January 5, 2023

So I was once a 20-something with no money, no experience and no way of getting on the ladder it seemed. I was lucky enough to trade my energy and time with an experience property investor and ended up with not 1 but 3 Aussie properties before my 30th birthday. It was possible back then and it's still possible today. 

It can be tough to get on the property ladder when you're young, especially if you don't have a lot of money or experience. But it's still possible to do it. To make it happen, you might have to make some sacrifices, like going out less or saving a certain percentage of your income. Keep in mind that you're not entitled to anything, and it's up to you to take responsibility for your own future. 

To get on the property ladder, it might be helpful to work with someone who can help you with the process, but it can also be expensive. Instead, you can try saving up a certain percentage of the cost of the property you want, and then look for a place in an area that you can afford. Make sure to do your research and find a property with good fundamentals, like being near schools, shops, and major employers. It might take some time and discipline, but with hard work and determination, you can get on the property ladder.

Give us a call once you have saved the 5% deposit and let's see if we can't help you get on the ladder. 

Live with passion,
Brett

Video Transcription

Have you ever said you're 20? Something? And you're going How the hell am I ever going to get on the property ladder? Well, let me tell you, everybody who's 20. And everybody who's ever been 20, doesn't have capital has huge enthusiasm wants to do this. You know, it doesn't matter what age or what stage, what year, what decade is it? It's the same there, you've got low experience, you've got all the things that turn against you, to get you where you need to go. Yeah. But what I will say is this, it's actually relatively easy still, to get on the property ladder. And now, I know everybody's going to be telling you how hard it is, and you've got to save and cost of living has gone up and all this other stuff, and how do you save? And you're right, you know what, in order to get on the ladder, you're gonna have to make some sacrifices. You can't be going out a piece every Saturday night, Friday night, Thursday night. And then Sunday night, and probably one extra night of the week. Yeah, because if you got to do that, you'd be spending all your excess money or your discretionary money. So my suggestion is, if you're gonna go out, you know, go out, but make it count, you know, one night a week, maybe two nights a week. But the reality is, is what you need, it doesn't matter how many nights it's about how much discretionary income you have to put away to save. And what I always say is, save 5% of what it is now, here's the problem. You live you work in London. So your expectation is, I am entitled to a place in London? Well, there's your first mistake, all right, you're not entitled to anything. Don't expect any entitlement anywhere from anyone because life doesn't work like that. Yeah, if you think you're entitled for something, then I can tell you life will soon stick to the stick up your ass. I shouldn't say that we're but anyway, the bottom line is, you know, you're not entitled to anything. If you can't afford it, then. But nobody is going to help you. Now, yes, your parents may help you. And you may get some good advice and listen to channels like this and all that. But the reality is, it's on you. Yeah, you have to take total responsibility. Yeah, Extreme Ownership, as Jaco willing says, you know, and basically, you got to do all thiswith limited funds in an environment that is quite hostile right now, to property owners, and investors. So the good thing is really first property, which is going to be difficult because you have to a not only learn the process, but you have to also get the investments, build the relationship, build the team behind you, and do pretty much everything you need to get that first property. Now, yes, you can use someone like ourselves, who we can go out and we can source we can do them for mortgages, and the finance and blah, blah, blah, and all the bits and pieces for you. Okay? But oftentimes, you've got to pay somebody else, that's gonna cost money, and you don't have the capital to do and you're better to put the capital into deposit. Okay, so this video is not about selling you on our services. I mean, obviously, you can use this no problems.You know, and there's a whole strategy around Off Plan that we can work with, there's no problems there. But the reality is, this is not what this is about, this is about saying this, yeah, if you can demonstrate the discipline of saving 5% of whatever property you wanna buy. So that property doesn't need to be close to you, it doesn't need to be, you know, within any distance of whatever, because you're not entitled to that. Yeah, whatever you can afford, and however much you've got, whatever you've got there 5% worth that out. And then you use that to go and buy in an area that you can afford it there. And that'll be and what I would say too, is in the area you can afford, find the best possible property in the best area with best fundamentals, fundamentals, shops and schools, transfers, major employers major investment, that's the research you need to do in the area, before you buy there. And then try and afford the best you possibly get. Now you can try different few different strategies. You can try high income because high income if you get it say 10% yield, technically, that's going to take about 10%. And so that's gonna take about a decade to get all your money back. All right. So that's good. All right, which means you get on to your next investment sooner is usually from strategy. So as an income strategy, there's also a dough and renovate strategy. Okay? So you buy a crappy little property. On the outskirts of town, you say you're living man, maybe you keep practising maybe that maybe you do live there. Maybe you travel in to the office, in London, or wherever you are Manchester or whatever.Because you don't have to, you know, there's lots of options, but you can renovate it and renovate it over the next three or six months or 12 months while you're living there. And then you can look to re mortgage it, take that money out, and obviously get your next property because make no mistake.If you're starting this, and you're focusing onOne property, that's not where you need to be. That's you know what, it's an awesome achievement, get it done with your 20s get your first property is when he's 100%. Because you know what the first property is done in your 20s, you're likely to get the second property is done in your 20s. And your third probably done in your 20s. And then before you now you're entering your 30s. Now with capital behind, which is going to put you well ahead of most 40 year olds, okay, so that's just simple goals. You know, Grant Cardone talks about 10 XE Well, 10x goals, you know, yeah, by all means, go for 1010 properties is awesome. It's certainly the goal that we used to set. And we used to do governments change the rules slightly, quite dramatically. So it makes it a lot harder to do to the property station on time. But it is doable. So. Okay, so 10x, for me is more about the effort you put in the necessarily the immediate results, you'll get straightaway. Because remember, 10x is 10 properties is going to be built one property at a time.Short towards the end, you may get two properties at the same time, but let's not even talk about that. Now. Let's get you on the ladder. So 5%, you know, saved over whatever period, it might take six months, 12 months, a year, two years, doesn't matter. Get on the ladder, do whatever it needs to do. Yes. stay disciplined on that. Yeah, once you get over 1000 pounds, yeah, just payment savings account where you can or, you know, an ICER, you can put it into which is great, okay, because it's obviously tax free.But as soon as you have 1000 pounds, and look at how you take that 1000 pounds, and turn it into 2000 pounds, nothing to do with property right now. That's just how to get that deposit quicker. Yeah. Now a lot of you guys young guys in 20s, may be looking at crypto, it may have given up on crypto, that is a viable option. But as with any investment, you got to know the rules of the game, you got to know the risks, okay? And you got to invest based on that. And you're prepared to take risks, you're in your 20s take risks, okay? You need to take risks when you're in 20s. Because otherwise, you're just going to plod along and be in your 40s and 50s. And probably where you know a lot of your parents are out, which is where they're now starting to realise they're going to struggle in retirement, in fact, retirement, what's that going to happen? That doesn't need to be there's so many ways to make money these days. So property is a great way of doing it. Properties, actually, probably one of the board's still one of the best ways by now. But you have so many opportunities to make money with it being a being an influencer, whether it be through crypto, you know, trading, day trading, whatever, you know, I mean, they're all different strategies, and they're not property strategies, you can make your money there. But what I'd say is, if you're making money there, put it in a property to many of my mates. Now I've seen and unfortunately, I told them this. And I explained to this, you know, they got into crypto that did really well, they then started telling me how to be an investor. And of course, look what's happened in the last year. They've gone from being, you know, where they've made 500% return, and now they're wiped out. And now they're left there holding the bag. Whereas if they had just got a property on their belt, they'd been with a totally different situation. So property isn't a massively beneficial strategy. Okay. But anyway, we're getting a bit off track down. So bottom line is this, get that 5% away of whatever the property value is, then match that 5% to wherever you're buying property, and buying the best area that you can afford investment of minerals, because that's the likely to go up and then operate whatever strategy it is you need to operate, it could be an Off Plan strategy, where you buy it off plant in a massively changing fundamentals area. So the prices go up. And then you can either flip it, as long as you can do that in the marketplace. Remember, there's risks, or you owners in the end, yeah, but of course, because it's gone up, you can re mortgage you can take money out, or re mortgage it now you've got equity in it. Alright, so there's heaps of options. Don't be don't listen to the news. And don't be put off by all the BS that you're handed down in the news, you can still do this in your 20s in your early 20s, in your mid 20s, in your late 20s. It doesn't matter get your first one away in your 20s because it will change the course of your life. I've seen it happen so many times, and happened for me, you know, and in fact, everyone I've seen who's done that in their 20s and followed it through now. I've seen plenty guys buy houses in their 20s and then not go on to invest. They just settled down on a home and they had kids and they did all that sort of stuff. And they just got ordinary lives from a financial great people. No disrespect to, you know, then that was a decision but from an investment perspective. They stoppedand that's the only thing if you fall over if you lose moneyGet back on the horse take the lessons leave the baggage on guys have a fantastic day


Tags

Gen Z, Millenials, property ladder


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