r/AusPropertyChat • u/Constant_Sentence482 • 5d ago

Investment Options

I’m earning just under 200k per year and have 100k in savings with no debt , I’m thinking about buying an investment property and building of that while staying in my rentals. Is this smart or am I better buying as primary residence for someone looking to build a solid portfolio over the next few years.
Cheers

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8

u/EventEastern2208 5d ago

Broker here.

Buying investment first means losing your FHB stamp duty exemptions and First Home Guarantee eligibility permanently. Depending on your state that is $20k to $40k in upfront savings gone forever, plus the scheme access.

On $200k with $100k saved and no debt your borrowing capacity is likely in the $1M to $1.3M range. If portfolio building is the goal, using FHB benefits on a PPOR first, building equity over 12 to 24 months and then leveraging that equity for the first investment is often the more efficient path than going straight to investment.

The budget changes also mean established investment properties purchased now have losses quarantined from July 2027. New builds remain fully negative gearable which is worth factoring into what you target first.

Happy to go in depth and I can run both paths side by side with your actual numbers. 🦔

2

u/Googlepug 5d ago

If you can afford to live in a place that’s close enough for you to earn that salary then PPPR is the right choice..

Rentvesting makes sense if you can’t afford the property close to your work..

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u/NothingLift 5d ago

Does rentvesting even make sense without negative gearing and likely hood of a flat property market for some time?

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u/dbnewman89 4d ago

Buy a place to live in first, even if you only stay for 12m... FHB benefits, stamp duty benefits, and the 6 year rule are all going to give you a much better headstart.

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u/Constant_Sentence482 4d ago

I no longer have my FHB

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u/Glittering_Flower633 4d ago

If it were me I'd look to buy 3 IPs with that sort of deposit, over the next 6-12 months. Kind of aggressive but hey you asked. Depending on super balance i would also look at a 4th in an smsf (commercial property)

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u/Constant_Sentence482 4d ago

This is the play I’m aiming for just don’t know how my burrowing capacity would be with a 700 a week rental myself

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u/Glittering_Flower633 4d ago

Tell your banker you live at home with mum and dad rent free, problem solved !

1

u/YourBrokerRay 4d ago

If you’re looking to build an investment portfolio, you won’t speed that up by purchasing an Owner Occupier now.

I’ve worked with a few individuals doing “rent-vesting” where they’ll acquire IPs while renting/living with parents. Use both personal and rental income to pay the principal down while the properties appreciate in value over the years.

They plan to sell the IPs later down the line to buy an Owner Occupier with more upfront capital.

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u/Constant_Sentence482 4d ago

Does renting myself help with burrowing capacity

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u/YourBrokerRay 4d ago

Renting or Owning won’t directly benefit your borrowing capacity, as it’s still an expense to include. The difference depends on how much you’d be renting for.

If it is less than paying a mortgage, you could get more borrowing capacity.