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Melbourne, VIC

Hi, I am 30 and earn 87k pa. My boyfriend is 27 and doesn’t have an income (but will in the next few years). We have combined savings of around 150k.

My question is: what is our best move? Continue to save and put down a chunky deposit on a place in Perth (where we plan to live in a few years) and then use equity to buy an investment property or the reverse? Buy an investment property in the interim that I can service with my income. Orrrr start a share portfolio?

I’m feeling the opportunity cost of not doing anything right now.

last year


Hi AK,

By the questions you’re asking you already sound like you’re on the right track - congratulations.

Firstly, don’t let the opportunity cost worry rush you into doing something too quickly without doing your homework. There will always be other investment opportunities.

It would be great to talk this through with you, to really flesh out your aspirations more than is possible on a forum such as this.

Have you considered buying an investment property in Perth now or very soon given the cash you’ve got saved up? This achieves a few things:
1. Gets you investing

2. Gets you exposure to the Perth property market now, where I assume you intend buying when you eventually move. So if there is a pick up in property prices in the short term you don’t miss out
3. Maybe you can buy something now that you eventually decide to live in, if not sell it and use the equity towards the house you do want to live in

It would be good to talk so I can get an understanding of timeframes etc from there I can help some more.

All the best
03 9909 5800

Hi AK,
Great to see you have started planning for this. As James said running straight into something may bite you later if the strategy isn’t well thought out.
I heard a great new acronym the other day JOMO! The joy of missing out. Don’t let fear guide your decisions.
In terms of whether to buy a home in Perth or elsewhere now versus investing in other assets, it may well be worth speaking to a broker who could give you 3 or 4 scenarios based on current and projected income as to what you may be able to achieve over the next 10 years.
My opinion would be to buy something you can afford on your own now in a metropolitan suburb that has strong appeal to families and is well serviced. These tend to grow faster than outlying suburbs or apartments that would be in your price range.
If you would like to have a no obligation appointment to gain some further insight to your actual situation, please don’t hesitate to give me a call on 0435.474.498
Kind regards

Hi AK,

From James above, I'd suggest (though not financial advice) looking at the Perth market for where you would like to live, and rent it out until you are ready to move in. a real buyers' market over here, though not sure when the market will turn.

You will get short term negative gearing while also being in the market. Being your only property, and planning to move in, not a bad idea to then smash off the loan as much as possible (outside of opportunity cost of other investments). That equity could then be used to assist with your next investment.

Use your team of Accountant, Financial Planner and Finance Broker to help set everything up right, and look at all the options.

You've taken the first step - asked the questions!


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