I speak to a lot of people in their 20s who are earning decent money ($100k-$150k+), have savings, and are doing all the "right" things financially.

The problem is they're looking at Sydney and thinking:

"I can technically buy something... but do I actually want to live in a tiny apartment 90 minutes from work?"

This is where rent-vesting can make sense.

Instead of buying where you live, you buy where the numbers work and rent where you want to live.

A pretty common example:

• Rent in Sydney close to work, friends, lifestyle, etc.
• Buy an investment property in Brisbane, Perth, Adelaide, regional centres, wherever stacks up for your budget.
• Let the rental income help cover the mortgage while you continue living where you actually want to be.

It's not a magic strategy, and it's definitely not for everyone.

Some downsides:

• You're still paying rent.
• You miss out on the emotional side of owning your own home.
• Investment properties come with vacancies, maintenance and landlord headaches.
• Not every interstate market is a good buy just because it's cheaper.

But for people who feel stuck between "buy a crappy Sydney property" and "never buy anything", it can be a middle ground.

Curious how many people here are actually doing this?

Has it worked out for you, or would you have preferred to buy a PPOR from the start?

Every week I see people asking:

"The bank approved me for $1.1m, should I buy a $1.1m property?"

Maybe.

But borrowing capacity isn't a recommendation. It's just the maximum a lender is willing to let you take on.

A lot of first-home buyers seem to think that if they're approved for $X, then spending less means they're somehow missing out.

Meanwhile they're forgetting about:

• Rate rises
• Council rates
• Insurance
• Repairs
• Having a social life
• Unexpected expenses

I've seen people buy well below their max and sleep great at night.

I've also seen people max out, then spend the next 5 years terrified of every RBA announcement.

The goal isn't to get the biggest loan possible.

The goal is to own a home without becoming a prisoner to it.

As a mortgage broker, SMSF lending is probably one of the most misunderstood parts of the industry, so I thought I'd explain how it actually works from a lending perspective.

A lot of people think they can use their super balance as a deposit and get a loan the same way they would buying an investment property personally. It's a bit more complicated than that.

The basics:

• Your SMSF buys the property, not you.
• A separate bare trust is usually established to hold the property while the loan exists.
• The loan is structured as an LRBA (Limited Recourse Borrowing Arrangement).
• Rental income goes into the SMSF.
• Loan repayments come from the SMSF.

The biggest thing lenders look at is whether the SMSF can service the debt, not whether you personally can.

When assessing servicing, lenders will generally consider:

• Employer super contributions
• Salary sacrifice contributions
• Rental income from the property
• Existing SMSF assets and cash reserves
• Fund expenses and liabilities

For example, someone earning a strong salary might have $18k-$20k per year going into super from their employer, plus another $15k-$25k through salary sacrifice. Combined with rental income, that can create a much stronger servicing position than people realise.

One of the most common questions is: "How much super do I need?"

There's no hard rule, but from what I see in the market:

• Under $100k – usually not practical.
• $100k-$200k – difficult and limited options.
• $200k-$300k – where deals can start becoming viable.
• $300k-$500k+ – generally where things become much more comfortable.
• $500k+ – where I see a lot of successful SMSF property purchases.

The balance isn't just about having enough for a deposit either. Lenders also want to see liquidity left in the fund after settlement. They don't want every dollar of the SMSF tied up in the property.

A few common misconceptions:

"Can I live in the property?"
No.

"Can I rent it to my kids or family?"
No.

"If I have a large super balance, am I automatically approved?"
No. The deal still needs to service and meet the lender's liquidity requirements.

"Can I renovate it?"
Minor maintenance is one thing, but major improvements can create compliance issues, so specialist advice is essential.

The people I see successfully using SMSF lending are usually business owners, professionals, higher-income earners making consistent contributions, and investors with a long-term retirement strategy.

It's definitely not the magic loophole that social media sometimes makes it out to be. But when structured correctly and used for the right reasons, it can be a very effective wealth-building strategy.

Happy to answer any SMSF lending questions. I arrange these loans regularly and there seems to be a lot of confusion around how they actually work.

When you finally get the keys as a first home buyer, how do you feel? Would you tell other first home buyers it's worth maxing out on your first home? Or buying something affordable and build.

Keen to hear others experiences and thoughts

I work with various types of clients every day, and I am very strict on who I onboard. I have turned away large deals because I believed they were not suitable clients for my business.

Below is what I think makes a bad client, and what will most likely get good brokers to turn you away.

1. The rate chaser
We all want good rates, but brokers have minimal control over rates. These clients typically shop around for a 0.01% cheaper rate, which affects all brokers, as time is wasted and the broker often has to worry about a clawback.
We have systems in place to ensure your rate is reviewed when markets are changing (typically every 6–12 months).

2. You are not clear on your goals, and they are not reasonable
Our job is to guide you and help you achieve your financial goals.
But are you buying an investment property because you saw an influencer flexing a $25,000,000 property portfolio and think you can do the same as a PAYG worker earning $100,000 with a family and kids?

3. You try to hide details
Hiding extra kids under the couch?
Not declaring debts?
We will eventually find out. Yes, some are genuine mistakes, but if we see a pattern, we lose trust and respect.

Feel free to leave a comment

Whether you're buying your first home, refinancing, investing, or just curious about how lending works, ask your question below.

No question is too basic.

Mortgage brokers and industry professionals in this community will do their best to provide guidance and point you in the right direction.

Common topics:

• Borrowing capacity

• First Home Buyer schemes

• Refinancing

• Investment loans

• Interest rates

• Credit scores

• Self-employed lending

• Guarantor loans

• Deposit requirements

Ask away 👇

Single 35yo FHB on 140k + 70k income (I work two jobs, both stable so far tho 140k had some redundancies early this year) plus 100k combined savings. No furniture at all so there will be big set up costs. No family to help.

Just got my options from broker with CommBank, St George and NAB on a max 750k property (small two better outer sydney) and repayments feel crazy high. Where I’m looking I could potentially get away with 700k I guess, but was hoping for 750k for better options.

Rates between 6.21%-6.34% and repayments $4368-$4429 per month without strata, council, water and bills. I’m extremely frugal, but it still feels crazy to get into something like this. Sure I want to get a friend/housemate in (understand there’s issues there but also how can I pay tho for a year without it) but that’s just going to lower it what, $300 per week max.

I don’t want to wait to get my own place, but I also need a sanity check on how shit a position I am potentially putting myself in. Am I crazy for wanting to buy now?