How to invest 180k and rentvest

Hey there team,

I currently have money in a bank account making little interest. I've heard great things about renting and investing elsewhere.

I've decided to find an investment property interstate as Sydney stock is quite poor atm.

Would love to understand what states and areas should I start looking in?

Also curious about the best resources are (eg books, podcasts) to dive deeper into this realm.

Here's some background context:

• Sydney based
• 135k salary + super
• 180k in savings
• Looking for returns over the next 3-5 year period. Will buy PPOR then.
• Renting in Sydney (Zetlands) now.

Thanks everyone

 

Borrowing capacity? How much ppor are you thinking about?

 

800k.

PPOR in the future 1-1.5m. (But this will be split between my partner whereas now im investing alone)

 

Do you think it is better to rent and invest in these days of low rates?

 

does this mean you plan on selling in 3-5 years?

 

Would like to hold and use the equity + additional savings from an offset to fund the PPOR.

 

I have a preference for living in newer 2bd apartments near the CBD. I'm concerned that this is out of my price range. I'm also concerned about the limited capital growth from newer apartments in Sydey.

I could be wrong though, would love to hear about the potentials of the PPOR strategy at this point in time,

 

Its generally cheaper to own than the rent now - or very close
you can get a tax free asset
no land tax
improved serviceability long term
can debt recycle
cheaper rate of interest
etc

 

But if its a high cost (body corp etc) new apartment with a lot of supply..... you are basically betting that it doesnt go up so no point in buying.

 

@Terry_w Given the circumstances as trainee mentioned, is this still this most feasible option?

@Trainee I suppose rentvesting is the way to go, do you have any areas where I should be looking at? Will likely be considering contacting a buyers agent in the area however I assume I'd need to pick an area in Aus first before reaching other.

 

I am not advising you, but just pointing out some things you should consider.

 

There is a huge amount of information on this forum. Searching and reading finds a lot more information than just asking questions. Lots to be said for using your "cash" in a PPOR purchase.

It is easy to lose money buying an "investment" property. PPOR is a little different if you plan living it it for a very long time it's "value" is less important.

A lot easier to wisely buy $180k of ETF shares to invest your money in than make a good "investment property" purchase. A lot of research and knowledge Ris needed to buy a quality property imho but ymmv

Terry's questions/things to think about are well worth thinking about