good investment strategies when saving for a first home

In my opinion I think investing in ETFs and making contributions to your FHSSS is a good idea if you're looking to invest in 5-8 years. However it all depends on your risk tolerance .

Personally, I have been investing into ETFs and have the following split:
· VAS Vanguard Australian Shares Index ETF (MER 0.10%) – 40% Allocation
· VEU Vanguard All-World ex-US Shares Index ETF (MER 0.08%) – 30% Allocation
· VTS Vanguard U.S. Total Market Shares Index ETF (MER 0.03%) – 30% Allocation

For some useful info on investing in ETFs, why the above were chosen and the reasoning behind the allocation I'd recommend having a look at AussieFirebug's blog (im not affiliated with it, just find a lot of value in the explanations and reasoning).

 

You can do both
But the question is what are your goals?

To me having a PPOR is important, I don't like renting but that's just me, on the other hand investing in ETF are great have I been doing this for years.

As long as your savings are working for you, then your fine

 

Currently, I'm in the process of investing in etfs vas, vgs it would work out to be about 7.5k over 12months. I'm not sure on exact splits but it will probably end up being 50/50. I'm tossing up whether I should put a little bit more into the market, and what sectors, Or maybe I just keep going with the etfs. As well as this I'm also making contributions to FHSSS as well as regular savings.

 

Investing $7.5k into these how much difference is this going to make to your deposit and over what period of time? Not trying to be a downer but I cant see it making any type of significant difference when house prices are rising at $20k, $50k some even $100k per month.

Your better off trying to increase income from a side business, upskilling your 9-5 so you can make alot more money or some speculative means like crypto. (Not that I endorse gambling).

 

I mean $7.5k invested over 12 months but it would be left there for 5-8 years. $7.5k as I said this is only a starting point so I would probably end up putting more in. To be honest, the actual amount that I need to invest and can afford to I am yet to work out.

In terms of upskilling, funny enough I am also in the process of doing this. I do also have some Crypto. To be honest I wouldn't put any more into it.

 

Fair enough. Your thinking is correct that you need to invest or generate other means of income but in todays climate "saving" per se is a losing game. The rate at which property is rising will far outpace whatever you can save even if you were on $250k per year income. Anyone one $100k or less have no hope unfortunately that is why many are turning to friends and family for free loans, bank of mom and dad, selling off their other non increasing assets like boats, cars, other toys etc....

Very difficult to actually save and outpace the growth of property in pretty much any city now.

 

agreed

 

Unless you are in Sydney then yes. or for some reason, you want to buy in a really expansive area. I'm in Brisbane so if your only wanting to buy in the outer suburbs you can get in the property market for $300k-400k then you would factor in 5-8 year growth on top of that.

 

I just found this and found it interesting.

How To Buy An Investment Property For Under $10,000