Just wondering what people here think is best to do. I used to own property but sold it off a few years ago. Currently I have all my money invested (and geared at 55%) in managed funds, shares, property, etc etc. With house pricing going up and up and up, is it better to buy something now, which I can afford and rent it out (as I live at home now) with the view to live there in the next few years, or is it better to commit the same money into the managed funds and grow my assets that way. but that will mean I will either have to rent in the future as house prices will run away, or I will have to sell down a larger portion of my portifilo to buy a similar house today. Currently I have about 110k of my money in the markets geared. I would look at buying a $270,000 house, so would need $30k deposit, $15k costs, so $45-50k to buy the house, and then I would assume it would cost me $5000 per year negative gearing to keep. so essentially I would be putting 40% of my net worth into the house. My original purpose for the managed funds was to reach $500,000, so I could invest it for income and replace a good portion of my income. I'm also commiting $1500 per month to it currently. But I would say in 7 years time when I would reach that goal, the same property wont be $270,000 but $450,000. So I guess the end result will be I can buy a house cash! but will have nothing left for income What are peoples thoughts?