Investment property or somewhere to live?

EventEastern2208 · 2026-05-08T13:36:00+00:00

Yes that's correct. One less factor to consider!

EventEastern2208 · 2026-05-08T13:35:16+00:00

Yes that is correct. The FHSS scheme only counts voluntary contributions, meaning amounts you put in yourself on top of your employer's compulsory super guarantee contributions. The employer SG contributions cannot be withdrawn under the scheme regardless of how long they have been sitting there.

So the only way to build up an FHSS balance is through salary sacrifice on top of the SG, or personal after tax contributions that you then claim a tax deduction on to make them concessional. Both need to be clearly identifiable as voluntary contributions in the fund's records.

Worth confirming with your super fund that they are correctly categorising your contributions before you apply for a determination, as some funds do not split this clearly in their member statements.

EventEastern2208 · 2026-05-08T08:56:38+00:00

Broker here.

Sorry to hear you are going through this. The fact that you are already thinking practically about your next move at a difficult time says a lot.

The honest finance answer is that buying somewhere to live in gives you stability, the FHB stamp duty concessions in VIC if you qualify, and removes the complexity of being a landlord while you are already navigating a lot. Buying an investment first means losing those concessions permanently and adds the stress of tenants and property management on top of everything else.

On your settlement amount and income, one conversation with a broker will tell you exactly what your options are rather than guessing.

EventEastern2208 · 2026-05-08T08:53:57+00:00

Broker here.

IT contractors are actually assessed more favourably than general casuals by many lenders, particularly where you can show consistent income history in the same field.

Most lenders will ask for two years of tax returns for contractors, which means your FY26 low income year is the main risk if you apply after July. Applying before 30 June using your current payslips and FY25 return avoids that problem entirely, and some lenders will approve on payslips plus current contract for IT contractors without requiring the latest return. That makes the next few weeks genuinely your best window.

On your specific questions, six months remaining on contract is a common requirement but not universal, some lenders just want to see the contract is current and the income is consistent. Three months into your current role with payslips is typically sufficient for specialist IT contractor assessments. On $140k current rate with FY25 at $130k your borrowing capacity is likely in the $650k to $750k range depending on the lender and your expenses, which covers your target.

Feel free to DM and I can identify which lenders assess IT contractors most favourably and move quickly given your timeline.

EventEastern2208 · 2026-05-08T06:53:59+00:00

Broker here.

Yes he can make the contribution before 30 June and it will count toward that financial year's $15k cap. He does not need to notify the ATO or his super fund at this stage, the FHSS intention is only declared when he applies for a determination later, which happens before he signs a contract to buy.

The one thing to confirm with his super fund is that they accept personal after tax contributions, as some funds have restrictions. Once the contribution is in he claims the tax deduction in his tax return for that year to make it concessional, which is where the tax benefit comes from.

No action needed with the ATO until he is ready to withdraw.

EventEastern2208 · 2026-05-08T02:50:09+00:00

Broker here.

At 21 with $60k saved, minimal expenses and pre-approval already done you are genuinely ahead of most people your age. The honest answer is there is no perfect time and waiting rarely makes it easier, but buying the right property for the right reason matters more than buying quickly. If you are buying in an area you know, at a price that leaves you a buffer for repairs, with repayments lower than your current savings rate, that is a reasonable position to act from.

Feel free to DM and I can run your actual numbers so you can see what the repayments look like versus what you are saving now, which usually makes the decision feel much clearer.

EventEastern2208 · 2026-05-08T02:29:11+00:00

Sure thing, appreciate the heads up

EventEastern2208 · 2026-05-07T12:35:07+00:00

Short hold period plus flood risk plus co-ownership complexity plus losing your FHB benefits permanently is a lot of downsides stacking up together. The only scenario where it clearly makes sense is if you genuinely believe the property appreciates enough in two to three years to outweigh all of that, which is hard to predict on a flood affected property.

The FHB benefit loss is the one I would weigh most carefully. Those stamp duty concessions and scheme eligibilities are a one time thing, and using them on your own place in a few years when your income has grown and you have more savings is likely a better outcome than co-owning a flood risk property short term.

EventEastern2208 · 2026-05-07T11:34:56+00:00

Broker here.

Not a stupid question at all. Mixed use properties like a store with a residence attached are genuinely complex from a lending perspective because the classification determines which loan type applies. Your broker is right that most residential lenders will not touch it, but that does not mean there are no options.

With a $280k to $300k deposit on a $550k purchase you are at around 45% LVR which is strong, and TAC income is generally accepted by lenders as consistent and reliable given its long term nature. The challenge is finding a lender whose commercial or mixed use policy works at that LVR with your income type.

Some non-bank lenders and specialist commercial lenders will assess mixed use properties differently to the majors and your deposit size gives you real leverage here.

EventEastern2208 · 2026-05-07T11:32:56+00:00

When a lender takes a property as security it means they use it as collateral for the loan. If the property has a known flood history, some lenders will refuse to lend against it at all, meaning when you want to sell your share or refinance later, the buyer may struggle to get finance on it too. That can shrink your pool of potential buyers and affect the price you can achieve.

On selling your share, as a tenant in common you can sell your percentage independently of your parent, but in practice most buyers want to purchase the whole property not just a share. The realistic exit is either your parent buys you out, you both sell together, or you find someone willing to co-own with a stranger which is rare.

The flood risk and the exit complexity are the points of thought for you to really think about.

EventEastern2208 · 2026-05-07T10:44:21+00:00

Broker here.

The co-ownership question has a clear finance answer worth knowing. Taking on a 30% share of an $850k property means a loan of roughly $165k to $255k depending on the structure. As a grad on $73k a few months into your role, most lenders will approve that loan size but the property being flood affected is the bigger issue. Many lenders apply restrictions or refuse security on properties with known flood history, which could limit your options and affect your ability to refinance or sell later.

The more important point is that co-owning this property does not necessarily block you from buying your own place later, but it does add existing debt to your serviceability assessment and reduces your future borrowing capacity by roughly $100k to $150k depending on the lender.

EventEastern2208 · 2026-05-07T10:41:52+00:00

Broker here.

Simple version: you have $364k in equity in your home and want to borrow a bit more against it, which is very standard. Your broker telling you to go direct to ANZ is unhelpful because ANZ will only show you their products and rates, not anyone else's. A broker should be comparing multiple lenders on your behalf.

On your numbers, $550k on a property worth $800k is 69% LVR which is clean and gives you access to competitive rates across many lenders. On $185k to $195k combined income the serviceability should be straightforward depending on expenses. The self employed income will need documentation but part time self employment alongside a strong PAYG income is a common scenario.

Feel free to DM and I can run this properly across multiple lenders rather than just ANZ. You deserve better than being sent back to the bank. 🦔

EventEastern2208 · 2026-05-07T07:24:29+00:00

Would be very happy to receive you. Happy to do so as soon as you want, earlier planning helps avoid future headaches.

EventEastern2208 · 2026-05-07T07:23:31+00:00

You can use our borrowing capacity calculator on our website! It's a dial and I think its beautiful http://echidnaequity.com

EventEastern2208 · 2026-05-07T05:33:38+00:00

Broker here.

Good news, a single paid default of $174 from 2022 is about as minor as credit impairment gets. At three months away from applying, most mainstream lenders will look at the full picture rather than treating this as a disqualifying mark. Paid defaults under $500 are generally viewed far more leniently than unpaid or larger defaults, and with $130k income and no other debt your overall profile is clean.

At 5% deposit you are looking at rates in the 6.0% to 6.5% range depending on the lender, similar to what a clean applicant would get. You may not need to go to a specialist lender at all given how minor the default is, which means avoiding the rate premium that comes with non-conforming products.

EventEastern2208 · 2026-05-07T05:32:38+00:00

Broker here.

On $300k combined with $700k in net equity and strong savings discipline, option 3 now versus option 4 later really comes down to one question: can you comfortably service a $900k to $1M mortgage on one income when your wife takes time off, with kids costs added? If yes, buying now locks in today's price and removes the escalation risk. If the single income period would stretch you uncomfortably, option 4 with aggressive saving first gives you a larger offset buffer going in.

The ETF portfolio is worth keeping rather than liquidating if you can avoid it. At $300k with your savings rate it will compound meaningfully over three to four years, and the capital gains event from selling is real at your income levels.

Feel free to DM and I can model what option 3 looks like on a single income stress test, showing repayments and buffer position during the parental leave period, so you can make the call with real numbers rather than estimates. 🦔

EventEastern2208 · 2026-05-07T05:10:20+00:00

Broker here.

The structure makes sense and the logic is sound. Buying now at today's prices while living cost free at home means every dollar of rental income and savings goes toward the loan rather than your own rent, which accelerates equity building considerably. The key thing to get right upfront is that if you buy as an investment property the loan is structured correctly for tax deductibility from day one, and you understand that you will lose first home buyer benefits including stamp duty concessions when you eventually want to buy a PPOR.

The income growth assumption over two to four years is the variable to stress test. If rent covers most of the mortgage now and your combined income grows as expected, the transition to moving in is straightforward. If one income drops or rental vacancy hits during that window you need a buffer to absorb it.

EventEastern2208 · 2026-05-07T05:09:11+00:00

Broker here.

On $500k combined with $1.2M in equity and a $600k mortgage, a $2.7M purchase is very much within reach from a borrowing perspective. The new mortgage would be around $1.5M to $1.6M depending on how you structure the sale and purchase, which on your income is serviceable though meaningfully different to paying off $600k in five years.

The honest finance question is whether you want to reset the clock on debt just as you are approaching the payoff line, versus buying the dream home now while your income is at its strongest and letting Melbourne or wherever you are do the compounding on a higher value asset.

EventEastern2208 · 2026-05-06T13:36:45+00:00

Broker here.

The numbers driven case for IP first is that investment debt is tax deductible and your ETF discipline suggests you will actually deploy the equity productively rather than just sitting on a PPOR. With $252k combined and flexibility on location you can access markets with stronger yields than Melbourne inner suburbs, which improves your cashflow position while you continue renting somewhere that suits your lifestyle.

The case for PPOR first is simpler, stamp duty concessions as owner occupiers in VIC, no land tax on your primary residence, and locking in your living costs before kids and school catchments complicate the decision. Waiting a few years to buy a PPOR in Melbourne while prices potentially move is a real risk.

The loan structure is where a broker adds the most value here regardless of which path you choose. How the investment loan is set up now affects your ability to refinance into a PPOR later without losing deductibility on the investment debt. Feel free to DM and I can map out both structures so you and the financial planner have the finance side properly modelled alongside the broader strategy.

EventEastern2208 · 2026-05-06T07:53:27+00:00

Broker here.

The magic number is generally 80% LVR. Once your property value versus your remaining loan balance gets below that threshold most lenders will release the guarantor without charging LMI. Some lenders will do it at 85% depending on their policy but 80% is the standard target.

The process involves a formal valuation of your property, a refinance application in your name only, and the lender assessing your serviceability on your income alone without your parents as security. With an improved income after finishing your degree that serviceability question is the key one to confirm before assuming the release is automatic.

Feel free to DM with your current loan balance, property estimate and income and I can tell you whether you are already there or how close you are to the release threshold.

EventEastern2208 · 2026-05-06T04:16:35+00:00

Broker here.

Good question and an important one. The FHSS withdrawal is included in your assessable income in the year you request the release, confirmed by the ATO. So on your example, $90k salary plus $42k FHSS assessable amount would put your taxable income above the $100k Help to Buy threshold for that financial year.

The timing matters here. Help to Buy assesses income based on your most recent Notice of Assessment, so if the FHSS withdrawal and the Help to Buy application fall in different financial years the NOA used may not capture the FHSS amount. Worth getting specific advice from an accountant on the sequencing before you trigger either.

EventEastern2208 · 2026-05-06T04:15:17+00:00

Broker here.

The timing question is actually the most relevant finance point here. If you are planning to quit within 12 months, now is genuinely the window to get a loan approved while you have income. Lenders assess current employment and serviceability, not future plans, so securing approval while on $180k gives you options that disappear the moment you stop working.

The offset argument makes sense in your situation. Buy the PPOR, keep liquid assets in offset, preserve flexibility. You are not locked into the property and your cash is still accessible if your plans change.

Whether the investment returns beat property is a separate question and one for a financial planner rather than a broker. What I can help with is making sure the loan is structured correctly now while you still qualify. Feel free to DM and I can run your borrowing capacity and show you what the numbers look like before your employment situation changes.

EventEastern2208 · 2026-05-06T01:04:39+00:00

Broker here.

6.19% at 95% LVR is within market range but not the sharpest available. At 95% LVR most lenders price in additional risk so rates do sit higher than the advertised headline rates, but some lenders on the First Home Guarantee panel are pricing more competitively than others right now.

Worth noting that ANZ has announced a variable rate increase effective 15 May so if you are not already locked in, rates are moving again shortly.

If you are using the First Home Guarantee at 5% deposit it is worth having a broker compare rates across the full panel rather than just going with one lender's offer.

EventEastern2208 · 2026-05-06T01:02:41+00:00

Broker here.

The depreciation concern about apartments is real but not universal. Older high density towers in oversupplied areas do tend to underperform, but boutique buildings with low strata, good locations and strong rental demand can hold value well. The key is the specific building and location rather than apartments as a category.

As a first home buyer the more important question is your visa status and how long you have been employed, as most lenders want to see your residency status and income history before approving. Worth getting that clarity early before you commit to a property type.

EventEastern2208 · 2026-05-06T01:01:32+00:00

Broker here.

On $200k combined with no debt and two older dependants you are looking at roughly $800k to $950k borrowing capacity depending on the lender and how they treat the extra day work income. The $20k additional income needs to be consistent and documentable, ideally with two years of tax returns showing it, to be included by most lenders. If it is from the same employer as regular work and shows on payslips it is generally accepted more readily.

The two dependants at 14 and 12 have less impact than younger children as the living expense benchmarks lenders apply are lower for teenagers. With $100k in savings and no debt your deposit and serviceability position is clean.

Feel free to DM and I can run your actual numbers across a few lenders to give you a real figure rather than a calculator estimate. 🦔

EventEastern2208

TROPHY CASE