What Would you do in this situation

Sorry for the late response. Im happy with the studio seeing ill be in Asia a lot also (Family condo there) obviously the only thing will derail that is girl / wife / child. I can live cheap, I did it for 10 years paying off the mortgage those skills are a great trait to learn.

This is not exact science, but a rough guide on my next step for the next ten years based on no situational changes to my current living. Considering my income now either option would be under 50% of my income going out monthly..

5K a month in ETFs with 5% growth and Reinvested DRP
vs
800K Unit in Sydney paid off in 10 years with 500pw rent and 700pm expenses with 80% growth

To be honest both of them seem very underwhelming but a good slow and steady approach. Has self managed PPOR house with multi apartment ruined me? With house prices tipping 2m in my suburb I can't see myself grabbing more land close to me and really don't want to get caught up in travel for property management.

I haven't decided either way, or just to sit on cash for a while and wait for an opportunity option A would probably be better mentally, I don't really feel like going back into debt.

 

I think the ETF growth and unit/apartment holding costs might both be underestimated.

I'd check the quarterly strata levy and rates on any unit/apartment you plan to invest in, and consider that might double in 10 years. I doubt the rent will increase by as much.

I think the main advantage of property over shares is leverage, which wouldn't really apply if you plan to pay the loan off within 10 years.

If I were you, I'd do both:

• invest $5k per month in ETFs
  
• purchase an $800k unit with a 30 year loan (IO for the first 5-10 years), then sell 10 years down the track to reap the capital gains
• reinvest the capital gains into more ETFs

 

I woudnt spend 10 years going from Point B to point A and back to point B. I would buy 3 R I properties for 750k and net 2.5k a month instantly or a C I P that gives me my 30K in advance from day one. That could be reinvested into growth shares. . . I would invest in companies that can scale and give 30% + returns by reinvesting internally. I. also live on a $2M property that it gives me 80k p/a income. paid 12 months in advance . I also lived in Asia on $100 a week so I could do important things like being able to afford to drink beer until kids became school age. and let time do its magic .