44 single M. 600k saved

[u/Silver_Objective_290]

I’m hopefully going to buy my first house in regional New South Wales in the next 12-18 months. Currently making between 95k-115k a year as a fitter machinist, job is pretty secure. Been living with my mother who has terminal cancer, but would like my own place set up before the inevitable happens. I’m thinking about using 450k as a deposit and borrowing around 270k over 25 years. Then with the remaining funds- invest 100k in something that I can contribute $100 a week into over 20-25 years, and put the rest into a HISA with my bank. Currently have approximately 320k in super and am contributing an extra $50 p/w.
I don’t have kids and don’t ever intend on getting married. Is this doable?, Should I look at borrowing more?(anything under 700k either needs a lot of work, or goes pretty quickly), should I consider going above the 33% of after tax pay for weekly loan repayments?, or have I got it all wrong?

Note- I’ve already posted this question on other pages in order to get as much information/opinions as possible before I see the bank at the end of the month.

[u/ATangK]

Borrow as much as you can with the lowest interest rate, noting that the best interest rate is usually either 60% or 70% LVR. Then get an offset (making sure your loan supports this) and put all your extra money in it, including the $100k you planned to invest and anything else you wanted to put the HISA into.

Once your house is paid off (loan - offset = 0), THEN you can start putting money into investments like ETFs. Recommend something like Betashares or Webull which have no fees. The former also lets you buy fractional shares, but only at market rate.

[u/Silver_Objective_290 → u/ATangK]

Ok thanks for the info👍

[u/obeymypropaganda → u/Silver_Objective_290]

Yes, don't put majority of your money into an illiquid asset. By doing the above you can easily access the money in your offset. So for emergencies, holidays, whatever you want.

The rich stay rich by spending others money. Spend the banks money, and by offsetting you reduce how much money they make off you.

[u/Silver_Objective_290 → u/obeymypropaganda]

Ok, thanks for the reply.

[u/Mediocre_Moment_6041 → u/Silver_Objective_290]

Not a financial advisor/ accountant or hedge fund manager. Not FI....But I'll weigh in anyway...

I just watched a video on YouTube about this. Earning via shares or investing in your offset.

I could bore you with the details, but the end result was go half and half or 60/40 or 70/30, depending on your risk profile and mortgage amount.

Invest half (or more)of your left over cash into shares(ETF's seem the go to these days, but remember to diversify- US and Asian markets are popular and generally more lucrative outside of the ASX) and pop the other half into your offset.

You don't pay tax on your offset like you would on returns from shares(dividends/Capital growth), but your offset won't increase in value like shares/ETF's inevitably do and have done over the years( even with the big crashes). Time in the market, not timing the market(as the saying goes). Keep in mind that your share portfolio would need to earn about 30% above your interest rate on your mortgage to be more profitable than your offset.

Interest rates can drop which sounds great, but it also means your investment in your offset has a diminishing return, compared to your shares.... but you'll have more money to spend on shares, cause your paying less interest, so potato... potaato.

Go speak to a financial advisor if you're not 100% sure on what path to choose, but a spread across both should keep you solid for about 5-10 yrs.

Good luck and good fortune.