Buying for equity

Hi everyone I'm the new guy

I have about 40k in savings and I have access to another 50k if needed. I am 31 and for most of the year I do not pay rent. I earn about 80k a year and save about 65% of my income.

I am thinking about buying an IP around Wiley Park in Sydney and holding onto it for about 5-7 years. During these 5-7 years I would try to pay off the mortgage as quickly as possible using my income and the rental income. So then I would have a fully paid off house which I could use as a downpayment for something bigger.

My goal is to be living off grid somewhere so I would eventually like to buy some land to retire on.

I would love to hear your thoughts! Thanks

 

Perhaps you could keep money in an offset account and not pay off the loan any quicker than necessary so that when you do buy your land the interest on it will be indirectly tax deductible - but without an income this may not be so relevant, however you would still have rent I guess

 

Around $400,000

 

I’d also recommend having the offset account. You just don’t know going forward how the banks will take towards redraws and refinance. You need to strike the right balance between paying off debt and having enough money to leap into your next investment. I’d set some goals as to when you’d like to live off grid and have no debt then simply reverse engineer what you need to do to get there.