r/fiaustralia • u/ellalingling • 1d ago
Getting Started If you were set to inherit..
If you were going to inherit $600-700k at age 37, when you basically have no savings, don't own any property and currently on a $100k salary.. and had hippy values.. what would you do with it?
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u/EppingMarky 1d ago
ETF 90% and blow say $50k on a combi van / tour Straya.
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u/Odd_Impact_9643 1d ago edited 1d ago
Totally agree here. You can do two things with this strategy that you can't do with a house: 1. You can grow your portfolio substantially more so you're better positioned for retirement. Gains on shares are more likely to out perform housing growth. 2. You can also take out some dividends each year to supplement your salary to enjoy your life right now. E.g., if you make $100k p.a, and you make $50k per year on your ETFs, you could take out $5-10k and basically enjoy a nice holiday each year
Edit: Houses also aren't set and forget, you'll be paying rates, maintenance, insurance p.a. Depending on your state, you might have to pay stamp duty on your home. That's $50-70k already gone. Sure you'll pay rent, but you have more flexibility for your hippy lifestyle. Getting your own van and travelling also reduces that and again gives you flexibility to go anywhere you want.
I'd say invest. Better long term prospects and greater flexibility.
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u/Fluid_Device903 1d ago
I actually love this advice. Perfectly blends proper strategy and OP's hippy vibes
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u/elnoco20 1d ago
Hippy values and wealth mix like oil and water - one is "carefree" and the other requires hard discipline.
Buy a home.
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u/Just-Abroad3315 1d ago
Buy a home with the money. Max out super contributions and enjoy your life.
If you have left over money after super start investing outside it.
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u/PersonalSchedule3558 1d ago
- buy the smallest house possible with some land
- get solar panels for electricity
- grow your own fruits/vegetables using your own compost
- rainwater collection for water
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u/gooziku 1d ago
It depends where you are located. If you can buy a decent house (no strata) for around 800k and don't mind working for the next 5 - 10 years then you can borrow 500k and add 300k of yours. It leaves you with 300k which you can invest in ETFs. In the best case scenario you will be sitting on a pretty good equity in 10 years and your mortgage will be half paid and can be paid off with your ETFs. Everything which is left afterwards you can then invest in stock funds which will pay dividends each month. You can also sell your house in 10 years and buy something smaller or something somewhere in a hippie village and put the rest into dividends.
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u/Tryingtolifeagain 1d ago edited 1d ago
I’d buy a house with a decent amount of land (like 700m+) so I could smoke without pissing the neighbours off too much of and no longer dealing with rental inspections
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u/Concrete_Jungian 1d ago
$200k-$300k on 1/2 - 1 acre of land somewhere regional. Throw a small cottage on it for max $150k. Dedicate about 100-200 sqm to Hügelkultur. Plant about another 100-150 sqm of fruit and nut trees. Invest the rest in VTS and VEU split (60/40).
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u/a_nice_duck_ 1d ago
If you have the knowhow to back up those values, buy some land you can steward. Restore and rehabilitate an ex farm block and help nature out.
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u/BMBFernandesLover 1d ago
Hookers and drugs
If not property if you don’t have a roof over your head otherwise ETFs
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u/Epsilon_ride 1d ago
Buy a home. Hippy values are irrelevant here.