What should I do with only $100k in Bank..

[positivexx]

I only have $100k savings in my bank account, but really want to buy a property that I can move in in a year's time...I am also the first home buyer, but not really interested in buying OTP.

Question is.. what should I do..I want to live close to city (30 mins travel by train is ok for me)

I think I can only afford one bedroom apartment or units...

Oh.. I live in SYD

Advise needed..

Thank you ALL!

 

[D.T.]

Wish I 'only' had 100k in the bank.

 

[EN710]

Wish I 'only' had 100k in the bank.

I would have thought you have more?

Haha... I 'only' have more than minus 100K in my bank...

 

[Peter_Tersteeg]

Only $100k in the bank

You'd be amazed at how many people we see with far less and they manage to do a lot over time.

As a first home buyer, you may be entitled to grants and stamp duty benefits depending on what you do, but I'll assume there's no benefits and you have to pay everything in full.

$100k is enough money to cover 5% stamp duty and a 20% deposit on a $400,000 property and you'll avoid mortgage insurance entirely.

If you pay a modest amount of mortgage insurance (which can be added to the loan), you'll cover the stamp duty, and a 10% deposit on about $650,000.

If you want to be super aggressive and lend up to 95% a couple of lenders might allow you to purchase a house worth as much as about $825,000.

This is all subject to affordability and potentially quite a few other things, but I'd say you're off to a good start.

 

[datto]

A mere 100K...pfft...that would look nice in datto's bank acct

 

[Zipper]

I'd split it into two $40K deposits and $10K lots for costs and buy two places with an LVR of 90% which makes about a $400K place. Then in 10 years or so when your values double, you can sell the IP if you wish and pay out your PPOR mortgage.

 

[Joeyv]

I'd split it into two $40K deposits and $10K lots for costs and buy two places with an LVR of 90% which makes about a $400K place. Then in 10 years or so when your values double, you can sell the IP if you wish and pay out your PPOR mortgage.

What if they don't double

 

[Television]

What if they don't double

Wait longer.

If they never double, regret your decisions.

 

[bez23]

Personally I keep 100k for sanf. Find it scary to invest all of the cash. Although I might be down to 50k for a few months during development before I sell off the lands.

 

[Newbieatlife]

I'd split it into two $40K deposits and $10K lots for costs and buy two places with an LVR of 90% which makes about a $400K place. Then in 10 years or so when your values double, you can sell the IP if you wish and pay out your PPOR mortgage.

Terrible strategy IMO...leaves you with almost $0 for emergencies...2 weeks vacancy or a hot water tank replacement and you're screwed...especially at 90% lvr lol

Should always leave at least $20k buffer in the bank

 

[D.T.]

Terrible strategy IMO...leaves you with almost $0 for emergencies...2 weeks vacancy or a hot water tank replacement and you're screwed...especially at 90% lvr lol

Should always leave at least $20k buffer in the bank

You're assuming that theres 0 further earnings? Id be comfortable with the above (except id prob do 3 instead of 2) because salary is still coming in, rent is still coming in... buffer replenished

 

[Newbieatlife]

You're assuming that theres 0 further earnings? Id be comfortable with the above (except id prob do 3 instead of 2) because salary is still coming in, rent is still coming in... buffer replenished

You're also making the following assumptions;

positively geared (good luck in todays market at 90%+ LVR)
rented from day 1
no 'teething problems' or quick touchups on settlement
$0 living expenses

I guess everyones risk profile is different .... I have had bills around $10,000 worth of surprise maintanence upon settlement....do you think its wise to be spending each of your paycheck on property maintenance, even if it is just for a few months?

 

[LeoT]

Terrible strategy IMO...leaves you with almost $0 for emergencies...2 weeks vacancy or a hot water tank replacement and you're screwed...especially at 90% lvr lol

Should always leave at least $20k buffer in the bank

I actually think its a good strategy/approach to build some wealth. Its definitely more aggressive than the 20% deposit, but nothing too out there IMO. Just depends on her level of risk tolerance. But I think she said it was for a PPOR so.... all this investment talk is not really relevant.

 

[LeoT]

You're assuming that theres 0 further earnings? Id be comfortable with the above (except id prob do 3 instead of 2) because salary is still coming in, rent is still coming in... buffer replenished

DT I like your strategy there mate, it fits your level of aggression/risk tolerance.

 

[LeoT]

I only have $100k savings in my bank account, but really want to buy a property that I can move in in a year's time...I am also the first home buyer, but not really interested in buying OTP.

Question is.. what should I do..I want to live close to city (30 mins travel by train is ok for me)

I think I can only afford one bedroom apartment or units...

Oh.. I live in SYD

Advise needed..

Thank you ALL!

Hi positivexx,

Like the others have said you really have a lot of options (also depending on your income/other undisclosed debt if any). I would recommend you talk to a good mortgage broker. I can recommend one if you are interested just PM me, I live in syd too.

Good luck

Leo

 

[D.T.]

You're also making the following assumptions;

positively geared (good luck in todays market at 90%+ LVR)
rented from day 1
no 'teething problems' or quick touchups on settlement
$0 living expenses

I guess everyones risk profile is different .... I have had bills around $10,000 worth of surprise maintanence upon settlement....do you think its wise to be spending each of your paycheck on property maintenance, even if it is just for a few months?

. All of mine are positive geared
. Most of mine have come with tenants already present or found within 2 weeks
. Dont need 0 living expenses lol
. Pretty simple to buy something that doesnt need 10k worth of work lol - most of mine have been 0, one was 3k but wasnt a surprise.

 

[TMNT]

man, how do you live with only $100k in your account!?!?!?!/

 

[Newbieatlife]

. All of mine are positive geared
. Most of mine have come with tenants already present or found within 2 weeks
. Dont need 0 living expenses lol
. Pretty simple to buy something that doesnt need 10k worth of work lol - most of mine have been 0, one was 3k but wasnt a surprise.

congratulations - but we're not talking about your properties

$10k was an example...an outdoor deck/patio area deemed unsafe after tenants had moved in

show me a genuine positively geared property in Logan or wherever you buy today at 90% lvr ....and also without the need to throw any money at it

 

[D.T.]

congratulations - but we're not talking about your properties

$10k was an example...an outdoor deck/patio area deemed unsafe after tenants had moved in

show me a genuine positively geared property in Logan or wherever you buy today at 90% lvr ....and also without the need to throw any money at it

But I thought we weren't talking about my properties but now you want examples?

 

[Jamie_]

show me a genuine positively geared property in Logan or wherever you buy today at 90% lvr ....and also without the need to throw any money at it

Throw a dart at a map of South Australia mate