$400k windfall, what would you do?

I would pay off the PPOR and invest the remainder at 2% per month in mortgage-backed private funding. I would also borrow the maximum against the PPOR and invest this money in the same type of investment. From the cashflow, I would buy into various shares using ‘dollar-cost averaging’ techniques and buy positively geared investments to further increase cashflow. Of course, all this would be done under a coporate trustee / trust structure.

The Mortgage Adviser

Hard to find. I am stating what ‘I’ would do. I have no intention of advising others I do not know in this area but I am more than happy to help with loan structuring, rates and product advice. Sorry about that. If you do the wrong thing, I get in trouble.

Look them up on Google. There should be a few there.

The Mortgage Adviser

I’d use it as a deposit on a +CF office complex in the CBD.

Thanks Rob,

Doesn’t matter…any that you felt confident with, after having carried out the usual thorough Due Diligence on the specific property in question.

I’ve found it’s not relevant using sweeping categories like each city – you need to get down in the weeds and get way more specific than that…

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Hi Pete

As a general rule, I follow the maxim: “I don’t buy cars, I buy property!!”

But when I am forced to update, I’m a fan of buying quality cars which get a hiding in the depreciation stakes because of Australia’s fascination with Fords and Holdens (that’s why I buy top of the range Mitsubishis).

I also love my luxuries, so my 2 latest cars are a 1988 Jaguar XJ6 Sovereign, and a 2001 Mitsubishi Verada Xi top of the range Verada (all leather seats, leather draped down the sides of all 4 doors, electric front seat adjustor, electric sunroof, cruise control etc etc).

Some poor guy paid $53,000 in October 2001 out of the showroom, and I picked it up in Feb this year for $16,500 with 145,000kms on the clock. It’s an awesome car, top image, and cheap as chips.

Good luck with your car hunting. By the way, stay away from the Verada Ei; the Xi is a much better fitout, and you won’t pay much more for the extra bit of luxury. Go http://www.carsales.com.au and type in a search under “Dealer” cars
Cheers
Greg

Hi Pete

In relation to mortgage backed private funding, you asked “where can these be found?”

One place this type of funding can be found is with people running a residential real estate, seller finance business. The two types of investors these businesses are normally looking for are “Money Partners” and Joint Venture Partners”.

“Money Partners” usually finance 20% of a house purchase while the seller financier raises the other 80% via a traditional mortgage lender. The “Money Partner’s” security is usually structured as a Second Mortgage protected by a Caveat. The length of the loan is fully negotiable with the “Money Partner” receiving monthly interest payments and the principal back on completion of the term (or earlier with an agreed upon notice period). As an example, we give our “Money Partners” 15%.

“Joint Venture Partners” buy the property in their name. The seller financiers find and install the new buyers and manage the property until the new buyers complete the purchase (usually by refinancing with a bank). Positive monthly cashflow and “back end” profit is split on an agreed basis. We normally arrange our joint ventures on a 50/50 slit.

I hope this helps.

Cheers, Paul

I would recommend a 911 porsche because at 200K an hour down a quiet road if you make a mistake you dont need to worry about what to do anymore some other person will need to work out how to spend your hard earned.

[chill]