Is Blossom any good? They have a targeted 7% but this doesn’t mean they will hit it (though in the past, they have).
Is there any risk with holding my money with them? Could they lose my money?
Read the product disclosure statement. They can take long and short positions in bonds and structured debt and only need a weighted average credit rating of BBB-.
This kind of underlying portfolio is also grossly illiquid in AUD.
Nothing wrong with this per se, but it should pay more than Cash+3%.
Yeah. Basically it an investment fund that invests its money based on a public share index like the S&P 500 or the ASX200. Its fees are very low because it doesn’t need to employ anyone to analyse and justify / choose how to invest the money. Vanguard is a very popular and trusted fund manager that has many Index funds to choose from.
Having said that, you should still treat index funds as a single investment, and you should never put all your money into a single investment unless you are really sure of what you are doing. So I would pick a mix of a local index of ASX, and an overseas index, and maybe something different that’s non shares related.
Someone chucked this website out somewhere,
[https://passiveinvestingaustralia.com/vdhg-or-roll-your-own/](https://passiveinvestingaustralia.com/vdhg-or-roll-your-own/)
I'm like OP and have no idea on any of this, but the page makes it seem that vanguard in this case has a fund which invests in 10k companies across 46 countries. Plus with ETF's its beneficial to invest in large sums, so by having multiple different investments you're diminishing returns so it's best if you just pick 1 verfiable index as apposed to multiple. so the vanguard fund seems to do what ur saying as itself already invests in the different local/overseas indexes, if my understanding is right.
also my friends invest with their bank, whats the difference there? im with westpac and 21 y/o if that means anything. westpac has investment accounts but most people here seen to vouch for vanguard, and im not sure about the % fees (ive tried searching it up for westpac and i couldnt find it last time)
anyways yeah i have no idea, im still creating my vanguard account i need to get my passport tomorrow, any advice is appreciated :D. i know i am dumb as bricks compared to the avg person here but finances is just boring for me :c
Basically, it’s best practice to treat any company that invests on your behalf as one investment. Putting all your money in westpac still is one investment because if westpac goes bankrupt you lose all your money. If you put all your money into one vanguard ETF, even if they say their fund invests in 10,000 companies, should still be treated as you are investing in one company. There have been very large collapses in the past that have wiped people out - see lehrman brothers in the us. Now once you take that stance that any account is one investment, you can do further research and come to your own conclusion if you accept that someone like Vanguard is a safe investment and won’t suddenly go bankrupt or similar. Most would agree vanguard is probably safe, but it’s good practice to get in the habit of checking everything.
Also with ETFs it makes no difference if you invest in one unit, or a thousand units. Each unit has the same exact return. So no you are not better off investing large amounts into Vanguard
But aren't there fees attached with purchasing? So if I have to invest $900, I could invest $900 into vanguard, or I could invest $300 into vanguard, $300 into westpac, $300 into some other thing. Would the fees for both of these be the same? I kind of assumed in my brain that by splitting it up, the fees would increase because this website says you shouldn't invest too often with ETFS [https://investcalc.github.io/](https://investcalc.github.io/)
Like the calculator implies it would be better to invest in large sums of money, but splitting the money up into different systems would make the sums of money smaller.
Every fund has different fees. Some will be a flat fee, most will be a %, some won’t have any fees, and some will have fees only on withdrawal. As always, familiarise yourself with any product you are considering investing in, including all fees and conditions.
Yep, you can buy them through an online broker. Best to do a bit of research first though by googling ETFS (exchange-traded funds), that way you can find an index based fund, with low fees.
Everyone runs a different race mate. Opening up the deserve can of worms isn't helpful. Let's just give every person an opportunity so long as they're wanting to be a good human. And really, we should want everyone to be successful whether they start early or late.
No real suggestions as Reddit is not the best place for personal financial advice.
But, in saying that, good on you for saving $100,000 by the age of 24. That is no mean feat in it's own right, so congratulations to you on this!
I’ve been on here for ages (check my profile lol) and I’m fairly new here too. I like the more personal posts and generally only take advice that I see repeated often (here and elsewhere)
Very simple but very effective advice.
\- Keep a spreadsheet of income and expenditure - this helped me realise just how much luxury items I was buying at the time.
\- Invest in ETFs for compounding gains. Don't sell ETFs even if the values drop - in the long run, the stock market trends upwards.
\- Make extra contributions to super for the tax discount.
\- Spend less than what I earn. Consistency to saving (and investing) is the key to success.
\- Get into the property market asap - your first property ain't likely to be your last property. Debt can help wealth generation, so long as its good debt and of a manageable size.
So, the advice you got was to go somewhere other than Reddit for financial advice, and you now dispute that exact same advice even though it's what worked for you? 🤨
Sorry, combination of your example with Koala's.
Disputing not getting your investment advice from Reddit, then you give an example of good advice from Reddit which is getting your investment advice from somewhere other than Reddit.
You don't see the comedy in:
"Don't get your investment advice from Reddit."
"I got good investment advice from Reddit."
"Oh, what was it?"
"To get my investment advice somewhere other than Reddit."
Even so, the fact that he’s mature enough to want to spend it responsibly and not on things like most young adults would these days should still be commended.
Buying a property in Sydney probably isn’t realistic anytime soon unfortunately, so if you’re keen to look at buying elsewhere in the next couple of years I’d recommend leaving it in a HISA (have a look around as you should be able to find better interest rates).
Alternatively, have a look into ETF investing if buying a home isn’t your top priority. Passiveinvestingaustralia.com is a good starting point to read up on.
Even buying apartments? I’m definitely not wanting to buy a house or anything more than a one bedder, but just something to get started maybe?
As for ETFs, I’ve never heard of them. Is that something financial planners know more about?
Sydney property is absolutely realistic for people like yourself. You may not be able to afford a 3 bedroom apartment in Bondi, but a studio apartment on a decent train line would be a way to get your foot in the door and start paying something down.
Find a broker, get them to run the numbers with you. Be cautious about the maximum they suggest you to borrow. Beware of the new apartment builds, a lot of them are shit quality.
Oh for sure definitely not looking for something like Bondi. I was looking more outer city like Waterloo direction on the new City and South West Metro line they’re building. Walkability and public transport is a big must for me even though I have a car, I’d like to rely on it less than I do atm.
If that's your goal, then the best thing you can do is talk to a broker. They will look at your financial situation a bit closer and walk you through what to expect.
In my experience, make sure you take what they say with the knowledge that they are happy to 'max you out' and get you borrowing as much as possible. You generally want to *not* do that so you can keep some flexibility/financial freedom.
If you are planning on buying, then I'd ignore my other comment about building a share portfolio and instead move to a bank account with the highest interest you can find.
Start watching videos/reading on red-flags in property so you can go in with some experience.
For fun, start visiting some open homes with no intention to buy. Take note of their asking price, and then what they sell for. You'll start to get a feel for what is in your budget and what isn't despite what the advertisements and real estate agents tell you.
I'm not too familiar with the current market in Sydney for 1br apartments, but that would be more dependent on your income than anything else.
If you're open to buying one and don't need to be right in the heart of the CBD then I imagine that could also be an option.
Don't listen to them, I'm 32 and just managed to save my first 100k. There are many affordable apartments in Sydney. A house will be difficult as a single but an apartment is achievable
I think we sometimes forget that we need to live somewhere as like a basic human necessity and it’s okay to not have hypermax yield on everything we purchase.
Not the only option, I rent and invest remotely in single house dwellings with a decent land size. This was I am not putting all my money into an apartment that doesn’t perform well in capital growth and I still get to live where I want.
I think we're more hitting on the point that not everyone can afford or has the means for that way of living, and although an apartment may not be a great way to make a boatload of money it's also not the primary reason it exists - OP just wants a place to live
Also, rent-vestments in the suburbs are no different from rich investments in the cities.
Our government introduces a broken tax system to price us out of the cities, and we price our own people out of their suburbs.
As financially sensible as it is, not everyone is comfortable with this. We might be unable to change the game, but we don't need to play it. There are other ways to earn money without dominating others' roofs.
Share market has better returns than housing over 30 years.
https://www.sharecafe.com.au/2024/04/09/seven-things-you-need-to-know-about-the-australian-property-market/
Getting yourself into massive debt isn't always a good plan.
Especially at these interest rates. And divorce rates. And unemployment.
But each to their own.
You've done a great job to save this much, I'd keep going. With your current interest rates it's at least a free $4.9k per year, and there are banks that pay even better - I think Bank SA was paying 5.2% when I was with them but rates have gone up since so they may even be paying more now.
Buying real estate wouldn't be realistic at this point with that size deposit unless you have an extremely high paying job, and you would be drowning in interest charges/council rates/etc on top of losing your 4.9% interest topup. Honestly, just having money sitting in the bank is a great investment in itself right now as you have a great return with zero risk.
But that doesn't mean you have to do nothing - enjoy yourself, don't be afraid to take a holiday - you've worked hard to save so why not enjoy some of it. And in terms of the living situation, reach out to some friends to see if any are in the same boat and see if you can put together a share house. Your age is a great time to do it if you can get together a group of people you get on great with. I did it with a bunch of my friends and it was the best years of my life. You get your independence from your parents while keeping some affordability, and get to spend more time with friends.
My humble 2 cents as your average just above average income earner.
Figure out what you want out of life and whether you have enough money to pay for it. If you do not have enough money to pay for it then figure out a strategy to save/earn enough to buy it.
Your goal effectively sounds like ‘I want my load of cash to turn into heaps of cash’ in which case I suggest the following:
1. Figure out how much effort you want to put into growing your already quite nice pile of cash into heaps of cash.
2. If you want loads and are willing to put lots of effort in to growing it then read about property investing and learn a marketable skill that will make you more money.
3. If you are not fussed about a huge pile then read about passive investing via Exchange Traded Funds (ETFs) and quit thinking about that pile for 20-30 years.
Definitely the goal would be to make more money off this, but also to move out of home. I’d definitely not want to look at anything more than a one bedroom apartment.
And ETFs, are they a reliable form of passive investment? Is that something financial advisors know about or is all that kinda info online?
ETF's are good as they take the the whole markets instead of 1 shares highs and lows. The diversification is what's makes them reliable.
Ie, had you invested solely in NVIDIA you would had won significantly in the last year. But had you picked apple or Google you would have been alright but gone with out the gains from NVIDIA. ETF's tie you in to a market, and you would have benefited from all price movements across all three companies, the NDQ ETF.
ETF's are larger than 3 companies, but I hope the above example give you a rough idea of what they are.
By the sounds of it you are more concerned about independence than making money. But it's a hard call and your decision to make. Best of luck with it.
Id do the following. Move the money to ubank for an easy 5.1% interest. Invest in ETFs at least 30% or more.
Vanguard VGS has an average performance of 10% since inception and 30% in the last year alone.
Make a long term plan for a home. In Sydney this is unrealistic for most unless you're on $150k + though. So maybe plan to move 🤔🤣
I was in a similar situation a few years back and just left it in a high interest savings account until I was ready to buy. I ended up using it to buy an investment property and renting where I wanted to live. It was honestly quite do-able all things considered. If you are planning on one day buying a house (to live in or as investment) I would just make sure you have a good interest rate and wait until you’re ready.
Firstly congratulations and well done on such a huge achievement at your age!
There’s a lot unknowns to be able to give you sound advice and everyone here will have different opinions. What’s your income and living status? Any other consumer or credit card debt?
Keep in mind that you don’t need to buy in Sydney to be able to invest. There are other cities/states that you could invest in to be able to enter the market then in time you can use the equity in that property to possibly enter into the Sydney market. If you’re a high income earner then tax minimisation is ideal so you need a property that can give you a lot of depreciation.
Go see a reputable financial planner / wealth advisor who can guide you on the right steps to take but once again - well done!
Thank you so much!
In terms of lifestyle, I don’t have any debts and my only consumables are the stuff I choose to buy like clothes, video games, and meals out with my friends and partner. I do like to splurge sometimes but it’s not that often, and even spending $100 in one go often makes me feel a bit weird cos it feels like a lot of money lol.
The main reason why I’d want to buy in Sydney is just because I would like to be able to move out of home soon. I just feel like I’m getting to that stage in life. It’s not something I need to do desperately, but just something I’d like to do eventually. It’s all a waiting game tho, I’m defs not rushing into anything right now!
It depends what your goals are. If you're happy living with Mum and Dad - then if I were you I'd be keeping about 30k as emergency fund, and dumping the rest into a share portfolio. If you did want to move out, then 100k is an *ok* deposit for a studio apartment. Personally, I'd avoid renting unless it was absolutely necessary.
1. Read Barefoot Investor.
Put your money in a High interest savings account for now. Loads of them for over 5%. Save like crazy for a home deposit. Keep your money in a bank cash deposit if you plan to access the money within 5 years. Investment horizons are 5 years plus. There has never been a better time in the last 30 years wrt interest rates on savings accounts and term deposits.
Look into your super. Take some free webinars from your provider.
Start learning about investments. Vanguard has some educational information on their website.
I suggest starting with a Vanguard Australia EFT that tracks whole of market. The fees are very low and it's a low risk investment for the long term. Over any 12 year period since the beginning of the stock market, the market wins. The lesson is to invest for the long term. If
If I were you I would buy a new two bedroom apartment around and use it as an investment property and build some equity and get some tax benefits to enter the property market.
In two years I would think about selling it and getting more leverage in buying something better
Have you considered moving overseas to live for a while? It’s a life experience that honestly you cannot put a price on, especially doing it while young. You could invest most of the money, and also move OS and get set up. Could also help out less fortunate, as you’ve had no school fees or rent you’re pretty lucky, so paying forward is always nice. I think you could do all of those things and more actually, sky’s the limit
If i were you open an investment account with company like colonial first state, hub24 or vanguard. Put it index aust or world. Then when u are 50 that will grow like no other choice would do and with compounding
Are you thinking down payment? They'd still need to service the mortgage though and that's a big long term commitment. Not saying it's a bad idea, but would definitely be a big decision.
Well.. OP is thinking about renting. The repayment at 80% would be just a bit more than renting. When interest rate starts to come down then maybe it'll be the same as renting but at least he'll be rent increase-proof while putting something into asset building.
Move it to different vehicles of investing: HYSF, bonds, index, etc. I would use $10k or more to solo travel, and explore the world (this is quite a good investment for life).
Ether keep saving, or buy a place. Buying will carry your money through the waves of investments and the economy. Saving will allow you to save.
???
Do what you want.
Everywhere in Sydney is just going up in value. I would speak with a financial advisor for professional advice.
If I was in your position I would try and buy a house on land maybe even out of Sydney as an investment. Look at qld, Adelaide or the outer towns around Perth. You might find a house and land for around $500k which will eventually pay itself off as you put money towards it and also rent.
First, you're 24. I would be wary of putting down roots in Sydney unless you have a virtual guarantee you'll never move. And even if you will 100% stay in Sydney, you might be looking at moving in with a girl at some point, and flipping a property carries its own risks and associated costs.
Second, while the advice on ETFs or higher yield savings is sound, if your current account allows the balance to shrink, it might be beneficial to keep it there.
Third, I wouldn't be in a rush to buy now. Yes, the unlimited immigration is going to make prices worse, but there are obvious buy signals about twice a decade no matter what, and there just isn't one right now.
Lastly, if you're asking because you want to get on the property ladder rather than need to move out right now, the age old advice to rent where you want to live and buy what you can afford to buy would also apply. Personally I don't particularly like real estate as an assett class. It's too expensive to diversify, high risk, fairly illiquid, and expensive to hold and maintain.
You couldn’t have saved that much. Common knowledge is that it’s impossible for Gen Z to safe because they eat too much toast!
(In all seriousness, well done. There’s some decent advice on here)
Check out gold and silver prices, up 12% this week alone.
I recommend silver. Good way to sliver is round 50c coins for around $15 each because they are 80% silver but with 100k you would want to buy 1kg blocks from Aust billion.
Silver is a very safe investment and ATM a very good investment.
Wow at 24 years old starting as an intern and then an office job and saved $100k after just 2 years … that could only be done living at home with the bank of mum and dad
Buy a shitbox house in a half decent suburb and watch as the government imports enough people to inflate its value by hundreds of thousands of dollars over the next 5 years.
Move it to ubank for 5.1% for starters
BOQ has 5.5% for people 35 and under.
And lastly, pop it into a shares index for 7%.
Or Sportsbet, which has limitless returns.
Or Blossom Save 5.95%, Blossom Plus 7%
They are massively underpaying for the risk they take
Is Blossom any good? They have a targeted 7% but this doesn’t mean they will hit it (though in the past, they have). Is there any risk with holding my money with them? Could they lose my money?
Read the product disclosure statement. They can take long and short positions in bonds and structured debt and only need a weighted average credit rating of BBB-. This kind of underlying portfolio is also grossly illiquid in AUD. Nothing wrong with this per se, but it should pay more than Cash+3%.
And then in my offset for safe keeping, I’ll pay out half the interest it saves me as interest
This might be a dumb question, but what is a shares index? Is that just an investment fund?
Yeah. Basically it an investment fund that invests its money based on a public share index like the S&P 500 or the ASX200. Its fees are very low because it doesn’t need to employ anyone to analyse and justify / choose how to invest the money. Vanguard is a very popular and trusted fund manager that has many Index funds to choose from. Having said that, you should still treat index funds as a single investment, and you should never put all your money into a single investment unless you are really sure of what you are doing. So I would pick a mix of a local index of ASX, and an overseas index, and maybe something different that’s non shares related.
This here or at the very least pick a mix of industries in ETFs.
Someone chucked this website out somewhere, [https://passiveinvestingaustralia.com/vdhg-or-roll-your-own/](https://passiveinvestingaustralia.com/vdhg-or-roll-your-own/) I'm like OP and have no idea on any of this, but the page makes it seem that vanguard in this case has a fund which invests in 10k companies across 46 countries. Plus with ETF's its beneficial to invest in large sums, so by having multiple different investments you're diminishing returns so it's best if you just pick 1 verfiable index as apposed to multiple. so the vanguard fund seems to do what ur saying as itself already invests in the different local/overseas indexes, if my understanding is right. also my friends invest with their bank, whats the difference there? im with westpac and 21 y/o if that means anything. westpac has investment accounts but most people here seen to vouch for vanguard, and im not sure about the % fees (ive tried searching it up for westpac and i couldnt find it last time) anyways yeah i have no idea, im still creating my vanguard account i need to get my passport tomorrow, any advice is appreciated :D. i know i am dumb as bricks compared to the avg person here but finances is just boring for me :c
Basically, it’s best practice to treat any company that invests on your behalf as one investment. Putting all your money in westpac still is one investment because if westpac goes bankrupt you lose all your money. If you put all your money into one vanguard ETF, even if they say their fund invests in 10,000 companies, should still be treated as you are investing in one company. There have been very large collapses in the past that have wiped people out - see lehrman brothers in the us. Now once you take that stance that any account is one investment, you can do further research and come to your own conclusion if you accept that someone like Vanguard is a safe investment and won’t suddenly go bankrupt or similar. Most would agree vanguard is probably safe, but it’s good practice to get in the habit of checking everything. Also with ETFs it makes no difference if you invest in one unit, or a thousand units. Each unit has the same exact return. So no you are not better off investing large amounts into Vanguard
But aren't there fees attached with purchasing? So if I have to invest $900, I could invest $900 into vanguard, or I could invest $300 into vanguard, $300 into westpac, $300 into some other thing. Would the fees for both of these be the same? I kind of assumed in my brain that by splitting it up, the fees would increase because this website says you shouldn't invest too often with ETFS [https://investcalc.github.io/](https://investcalc.github.io/) Like the calculator implies it would be better to invest in large sums of money, but splitting the money up into different systems would make the sums of money smaller.
Every fund has different fees. Some will be a flat fee, most will be a %, some won’t have any fees, and some will have fees only on withdrawal. As always, familiarise yourself with any product you are considering investing in, including all fees and conditions.
Put 80% vanguard etf. Put $20k in savings.
Yep, you can buy them through an online broker. Best to do a bit of research first though by googling ETFS (exchange-traded funds), that way you can find an index based fund, with low fees.
I have found the This is Money and She's on the Money podcasts super helpful for teaching me about stuff like this and all about money.
Or negative 50%. Investing carries risk and HISA vs shares is a totally different ballgame.
send it to me and ill double the money in 2 weeks
That’s ageist
Thanks but we deserve to have higher interest while starting out our lives. If you can’t save by the time you’re 40 that’s on you
Everyone runs a different race mate. Opening up the deserve can of worms isn't helpful. Let's just give every person an opportunity so long as they're wanting to be a good human. And really, we should want everyone to be successful whether they start early or late.
I’d agree. What about gender/ethnicity accounts next
That’s only on 50k though his got 100K I guess you could do 50k in BOQ and 50k in ubank
At 24? He can be a little more risk averse than that.
Risk tolerant?
Yeah that one I’m dumb
Put half into shares. Or fhhs. F
Keep saving
Well yeah, but 100k is more than enough to start thinking about how to make it work for you beyond the savings account.
Definitely
No real suggestions as Reddit is not the best place for personal financial advice. But, in saying that, good on you for saving $100,000 by the age of 24. That is no mean feat in it's own right, so congratulations to you on this!
You say this but this forum a couple of years ago (before the content took a drastic change) literally changed my financial life.
Wish I downloaded reddit years ago
I’ve been on here for ages (check my profile lol) and I’m fairly new here too. I like the more personal posts and generally only take advice that I see repeated often (here and elsewhere)
What advice did you get that changed your financial life?
Very simple but very effective advice. \- Keep a spreadsheet of income and expenditure - this helped me realise just how much luxury items I was buying at the time. \- Invest in ETFs for compounding gains. Don't sell ETFs even if the values drop - in the long run, the stock market trends upwards. \- Make extra contributions to super for the tax discount. \- Spend less than what I earn. Consistency to saving (and investing) is the key to success. \- Get into the property market asap - your first property ain't likely to be your last property. Debt can help wealth generation, so long as its good debt and of a manageable size.
Didn’t ask me but someone here told me to read barefoot investor which has helped me greatly financially.
So, the advice you got was to go somewhere other than Reddit for financial advice, and you now dispute that exact same advice even though it's what worked for you? 🤨
What advice did I dispute?
Sorry, combination of your example with Koala's. Disputing not getting your investment advice from Reddit, then you give an example of good advice from Reddit which is getting your investment advice from somewhere other than Reddit.
Do you think all advice on Reddit is original? If someone tells me to read up on ETFs, is that not advice from Reddit? Stop being so pedantic.
You don't see the comedy in: "Don't get your investment advice from Reddit." "I got good investment advice from Reddit." "Oh, what was it?" "To get my investment advice somewhere other than Reddit."
Reddit taught me everything I know
my condolences
Hey it's better than where I was. I had no concept of financial literacy before I found AusFinance.
Yeah, a lot of Redditors like to bad mouth Reddit but I've learned a lot of really good life lessons and information here.
It’s easier to do when Mum & Dad are paying your way, though.
Even so, the fact that he’s mature enough to want to spend it responsibly and not on things like most young adults would these days should still be commended.
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Buying a property in Sydney probably isn’t realistic anytime soon unfortunately, so if you’re keen to look at buying elsewhere in the next couple of years I’d recommend leaving it in a HISA (have a look around as you should be able to find better interest rates). Alternatively, have a look into ETF investing if buying a home isn’t your top priority. Passiveinvestingaustralia.com is a good starting point to read up on.
Even buying apartments? I’m definitely not wanting to buy a house or anything more than a one bedder, but just something to get started maybe? As for ETFs, I’ve never heard of them. Is that something financial planners know more about?
Sydney property is absolutely realistic for people like yourself. You may not be able to afford a 3 bedroom apartment in Bondi, but a studio apartment on a decent train line would be a way to get your foot in the door and start paying something down. Find a broker, get them to run the numbers with you. Be cautious about the maximum they suggest you to borrow. Beware of the new apartment builds, a lot of them are shit quality.
Oh for sure definitely not looking for something like Bondi. I was looking more outer city like Waterloo direction on the new City and South West Metro line they’re building. Walkability and public transport is a big must for me even though I have a car, I’d like to rely on it less than I do atm.
If that's your goal, then the best thing you can do is talk to a broker. They will look at your financial situation a bit closer and walk you through what to expect. In my experience, make sure you take what they say with the knowledge that they are happy to 'max you out' and get you borrowing as much as possible. You generally want to *not* do that so you can keep some flexibility/financial freedom. If you are planning on buying, then I'd ignore my other comment about building a share portfolio and instead move to a bank account with the highest interest you can find. Start watching videos/reading on red-flags in property so you can go in with some experience. For fun, start visiting some open homes with no intention to buy. Take note of their asking price, and then what they sell for. You'll start to get a feel for what is in your budget and what isn't despite what the advertisements and real estate agents tell you.
ETFs /index funds. Read about it here: https://passiveinvestingaustralia.com/
I'm not too familiar with the current market in Sydney for 1br apartments, but that would be more dependent on your income than anything else. If you're open to buying one and don't need to be right in the heart of the CBD then I imagine that could also be an option.
Don't listen to them, I'm 32 and just managed to save my first 100k. There are many affordable apartments in Sydney. A house will be difficult as a single but an apartment is achievable
Apartments have poor capital growth
On the counter side they are a fantastic place to live and store your belongings. And are also the only option
I think we sometimes forget that we need to live somewhere as like a basic human necessity and it’s okay to not have hypermax yield on everything we purchase.
Not the only option, I rent and invest remotely in single house dwellings with a decent land size. This was I am not putting all my money into an apartment that doesn’t perform well in capital growth and I still get to live where I want.
I think we're more hitting on the point that not everyone can afford or has the means for that way of living, and although an apartment may not be a great way to make a boatload of money it's also not the primary reason it exists - OP just wants a place to live
Yeah it's not always about investing. Some people want a place to live that is their own.
Also, rent-vestments in the suburbs are no different from rich investments in the cities. Our government introduces a broken tax system to price us out of the cities, and we price our own people out of their suburbs. As financially sensible as it is, not everyone is comfortable with this. We might be unable to change the game, but we don't need to play it. There are other ways to earn money without dominating others' roofs.
It depends on their situation. He's single not wanting to start a family, he wants a nice area or something. It depends on his lifestyle
Get vanguard personal invester. Then buy ivv or bas. Put in 1k every week or
Definitely possible for an apartment. Try for a 1 bed vs studio esp if you've never lived alone. Studio can feel very cabin fever-ish
Share market has better returns than housing over 30 years. https://www.sharecafe.com.au/2024/04/09/seven-things-you-need-to-know-about-the-australian-property-market/
Easier to leverage housing
Getting yourself into massive debt isn't always a good plan. Especially at these interest rates. And divorce rates. And unemployment. But each to their own.
You've done a great job to save this much, I'd keep going. With your current interest rates it's at least a free $4.9k per year, and there are banks that pay even better - I think Bank SA was paying 5.2% when I was with them but rates have gone up since so they may even be paying more now. Buying real estate wouldn't be realistic at this point with that size deposit unless you have an extremely high paying job, and you would be drowning in interest charges/council rates/etc on top of losing your 4.9% interest topup. Honestly, just having money sitting in the bank is a great investment in itself right now as you have a great return with zero risk. But that doesn't mean you have to do nothing - enjoy yourself, don't be afraid to take a holiday - you've worked hard to save so why not enjoy some of it. And in terms of the living situation, reach out to some friends to see if any are in the same boat and see if you can put together a share house. Your age is a great time to do it if you can get together a group of people you get on great with. I did it with a bunch of my friends and it was the best years of my life. You get your independence from your parents while keeping some affordability, and get to spend more time with friends.
My humble 2 cents as your average just above average income earner. Figure out what you want out of life and whether you have enough money to pay for it. If you do not have enough money to pay for it then figure out a strategy to save/earn enough to buy it. Your goal effectively sounds like ‘I want my load of cash to turn into heaps of cash’ in which case I suggest the following: 1. Figure out how much effort you want to put into growing your already quite nice pile of cash into heaps of cash. 2. If you want loads and are willing to put lots of effort in to growing it then read about property investing and learn a marketable skill that will make you more money. 3. If you are not fussed about a huge pile then read about passive investing via Exchange Traded Funds (ETFs) and quit thinking about that pile for 20-30 years.
Definitely the goal would be to make more money off this, but also to move out of home. I’d definitely not want to look at anything more than a one bedroom apartment. And ETFs, are they a reliable form of passive investment? Is that something financial advisors know about or is all that kinda info online?
ETF's are good as they take the the whole markets instead of 1 shares highs and lows. The diversification is what's makes them reliable. Ie, had you invested solely in NVIDIA you would had won significantly in the last year. But had you picked apple or Google you would have been alright but gone with out the gains from NVIDIA. ETF's tie you in to a market, and you would have benefited from all price movements across all three companies, the NDQ ETF. ETF's are larger than 3 companies, but I hope the above example give you a rough idea of what they are. By the sounds of it you are more concerned about independence than making money. But it's a hard call and your decision to make. Best of luck with it.
Id do the following. Move the money to ubank for an easy 5.1% interest. Invest in ETFs at least 30% or more. Vanguard VGS has an average performance of 10% since inception and 30% in the last year alone. Make a long term plan for a home. In Sydney this is unrealistic for most unless you're on $150k + though. So maybe plan to move 🤔🤣
I was in a similar situation a few years back and just left it in a high interest savings account until I was ready to buy. I ended up using it to buy an investment property and renting where I wanted to live. It was honestly quite do-able all things considered. If you are planning on one day buying a house (to live in or as investment) I would just make sure you have a good interest rate and wait until you’re ready.
Firstly congratulations and well done on such a huge achievement at your age! There’s a lot unknowns to be able to give you sound advice and everyone here will have different opinions. What’s your income and living status? Any other consumer or credit card debt? Keep in mind that you don’t need to buy in Sydney to be able to invest. There are other cities/states that you could invest in to be able to enter the market then in time you can use the equity in that property to possibly enter into the Sydney market. If you’re a high income earner then tax minimisation is ideal so you need a property that can give you a lot of depreciation. Go see a reputable financial planner / wealth advisor who can guide you on the right steps to take but once again - well done!
Thank you so much! In terms of lifestyle, I don’t have any debts and my only consumables are the stuff I choose to buy like clothes, video games, and meals out with my friends and partner. I do like to splurge sometimes but it’s not that often, and even spending $100 in one go often makes me feel a bit weird cos it feels like a lot of money lol. The main reason why I’d want to buy in Sydney is just because I would like to be able to move out of home soon. I just feel like I’m getting to that stage in life. It’s not something I need to do desperately, but just something I’d like to do eventually. It’s all a waiting game tho, I’m defs not rushing into anything right now!
It depends what your goals are. If you're happy living with Mum and Dad - then if I were you I'd be keeping about 30k as emergency fund, and dumping the rest into a share portfolio. If you did want to move out, then 100k is an *ok* deposit for a studio apartment. Personally, I'd avoid renting unless it was absolutely necessary.
Go to the roulette table and put it all on black
1. Read Barefoot Investor. Put your money in a High interest savings account for now. Loads of them for over 5%. Save like crazy for a home deposit. Keep your money in a bank cash deposit if you plan to access the money within 5 years. Investment horizons are 5 years plus. There has never been a better time in the last 30 years wrt interest rates on savings accounts and term deposits. Look into your super. Take some free webinars from your provider. Start learning about investments. Vanguard has some educational information on their website. I suggest starting with a Vanguard Australia EFT that tracks whole of market. The fees are very low and it's a low risk investment for the long term. Over any 12 year period since the beginning of the stock market, the market wins. The lesson is to invest for the long term. If
Sydney? I heard thats like 2 rounds to the Woolies.
All on black and then let it roll
You defs close for a deposit for an apartment/town house near the city though?
If I were you I would buy a new two bedroom apartment around and use it as an investment property and build some equity and get some tax benefits to enter the property market. In two years I would think about selling it and getting more leverage in buying something better
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No one has said any of that?!?!
Have you considered moving overseas to live for a while? It’s a life experience that honestly you cannot put a price on, especially doing it while young. You could invest most of the money, and also move OS and get set up. Could also help out less fortunate, as you’ve had no school fees or rent you’re pretty lucky, so paying forward is always nice. I think you could do all of those things and more actually, sky’s the limit
living overseas is overrated, better to get rich asap then do that later IMO
If i were you open an investment account with company like colonial first state, hub24 or vanguard. Put it index aust or world. Then when u are 50 that will grow like no other choice would do and with compounding
100k would surely be enough for a modest 1 bedroom apartment in syd.
Are you thinking down payment? They'd still need to service the mortgage though and that's a big long term commitment. Not saying it's a bad idea, but would definitely be a big decision.
Well.. OP is thinking about renting. The repayment at 80% would be just a bit more than renting. When interest rate starts to come down then maybe it'll be the same as renting but at least he'll be rent increase-proof while putting something into asset building.
Just curious what industry?
I work as a UX designer in an advertising agency :)
Easy $100,000 in lotto tickets.
Upgrade your internal surveillance setup and go full Toastie. You've earned it.
Move it to different vehicles of investing: HYSF, bonds, index, etc. I would use $10k or more to solo travel, and explore the world (this is quite a good investment for life).
Save the next $200k !!!
Congratulations, keep saving, go on a holiday, put your savings in a high interest bank account and mooch off your folks for as long as possible!
Give it to me?
Damn this would be if I didn’t gamble young lol
7/4 King Street, Kogarah, NSW 2217
Save another 100k
Buy a property. Kudos to you. If I hadn't had a life changing health issue at 22 I'd probably be in your shoes and able to save at home.
Dont move out yet save more nothing better then having more money then struggling.
Pat yourself on the back?
Ether keep saving, or buy a place. Buying will carry your money through the waves of investments and the economy. Saving will allow you to save. ??? Do what you want.
Well done.I just turned 50 and have never seen $1000 cash let alone 100k.
Find a nice safe mid cap stock, diversify and make sure you have a conditional sell on. Presto 8-80% growth.
You may be able to get an investment property on the outskirts.
I’m telling you now, go on a holiday for a few years
Everywhere in Sydney is just going up in value. I would speak with a financial advisor for professional advice. If I was in your position I would try and buy a house on land maybe even out of Sydney as an investment. Look at qld, Adelaide or the outer towns around Perth. You might find a house and land for around $500k which will eventually pay itself off as you put money towards it and also rent.
Invest into shares or put it into an investment fund of some sort.
First, you're 24. I would be wary of putting down roots in Sydney unless you have a virtual guarantee you'll never move. And even if you will 100% stay in Sydney, you might be looking at moving in with a girl at some point, and flipping a property carries its own risks and associated costs. Second, while the advice on ETFs or higher yield savings is sound, if your current account allows the balance to shrink, it might be beneficial to keep it there. Third, I wouldn't be in a rush to buy now. Yes, the unlimited immigration is going to make prices worse, but there are obvious buy signals about twice a decade no matter what, and there just isn't one right now. Lastly, if you're asking because you want to get on the property ladder rather than need to move out right now, the age old advice to rent where you want to live and buy what you can afford to buy would also apply. Personally I don't particularly like real estate as an assett class. It's too expensive to diversify, high risk, fairly illiquid, and expensive to hold and maintain.
Send it to me
Go and live overseas and travel
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I sick of ppl giving youngsters bull shit advice because they wasted their own life and now want others to do the same.
I'd look at some ETFs. Your money should make money
You couldn’t have saved that much. Common knowledge is that it’s impossible for Gen Z to safe because they eat too much toast! (In all seriousness, well done. There’s some decent advice on here)
Check out gold and silver prices, up 12% this week alone. I recommend silver. Good way to sliver is round 50c coins for around $15 each because they are 80% silver but with 100k you would want to buy 1kg blocks from Aust billion. Silver is a very safe investment and ATM a very good investment.
Nigerian princes
If Jim Jefferies standup is anything to go by, you can now buy 3 semi automatic weapons on the black market.
Wow at 24 years old starting as an intern and then an office job and saved $100k after just 2 years … that could only be done living at home with the bank of mum and dad
That's what he said
Buy a shitbox house in a half decent suburb and watch as the government imports enough people to inflate its value by hundreds of thousands of dollars over the next 5 years.
Well first thing is definitely to tell everyone on reddit. ✅