What to do with significant Cash?

Hi everyone,

I have also posted this on another forum and thought I would see what the members here would suggest.

I’m quite lucky to be in a very well off position for my age. I am 23, have cash savings of $260k (had inherited the bulk of this) and earn approx. $80k pa. at the moment.

I want to invest this wisely and I am prepayed to sacrifice now to reap the rewards later in life.

Basically I am not sure of the best course of action to invest (although at this stage, assume property). I know that I should seek the advice of my accountant at least and possibly a financial planner and mortgage broker. I will be doing this although thought this forum would give me an idea of what the general consensus is and give me a better understanding of what advice I should seek.

I know it’s a vague open ended question so have pointed out some ideas/q’s I have had:

– Will apply for FOHG and leases after the first 6 months.
– Want to move out of home sometime early year and would be flexible with living arrangements (ie. I don’t mind living in a house/unit, renting or in something I own)
– I am in Sydney and don’t want anything further than 10-15kms fromt the City unless I could do well out of it.

– How much should I look to spend, and subsequently borrow?
– What are some ideas on what I should buy? A House, an inner city unit, a couple of units?
– Based on borowing suggestions, is an IO loan a better option for me in my situation?
– Do I borrow as little as I can and use all my cash or borrow the full purchase price?
etc..

As you can see, I am a little unsure of how to best use the upfront cash I have, I appreciate any help and/or any recommendations on ppl (eg. advisers/brokers) to approach for some assistance!

Thanks!