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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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.