Author Topic: Difficult Decision  (Read 1156 times)

Birdman Nan

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Difficult Decision
« on: April 15, 2019, 06:09:47 AM »
Hi everyone,

My name is Nathan. I've been interested in FIRE for years now and it's my life's goal.

I'm 25, and I have a well paying ($80,000 AUD) full time position on the Australian Government.

I've been investing since 2016, and I've grown my investment portfolio to $30,000 AUD.

I've recently moved out of home and renting with my partner. I save roughly 40-50% of my income every year. Last year is saved 53%! Super happy about that.

I am at a dilemma in my life and I don't know what the best course of action is for money.

I have little savings outside of investing, $5,000.

I would like to own a house one day, for the obvious pleasures of home ownership, security, comfort, peace, ability to rent out, do whatever I want whenever.

My job is very stable as is and I can expect to earn the same or more over the years to come.

The question is, where should I put my money? Should I start saving completely for a house and forget about investing, should I invest all the money for better than bank returns until I want to withdraw SOME and use it for a house deposit. I figured if I invest for 2-3 years, that deposit will grow faster than by just leaving it in a low interest bank account.

If I go for the house, I will be aiming to pay it off within 5 years.

Units in Canberra start at roughly $350,000. I figured I could save a good deposit over 2, 3, 5 years towards it.

I've been travelling, so I feel like now I want to work hard towards saving and investing for a while.

Does anyone have any suggestions for a plan of action? Would love any suggestions. My current plan is to put all my money towards safer investments, such as indices and bond funds for safe keeping and growth, then later once it's grown more, take some out and then go all in for a house.

What do you think?



  • Magnum Stache
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Re: Difficult Decision
« Reply #1 on: April 15, 2019, 07:18:53 AM »
Investment Order:

Scroll down until you get to the post that is specifically for Australians. I believe itís the third post in the thread. Follow the Investment Order. Retire early.

Also, look up a rent vs. buy calculator and calculate whether or not it makes more sense to rent or to own a house in your city.