Hi everyone,
What would you do if you have 400k to invest?
Let’s be a little frivolous & adventurous – in light of the most recent corrections to the stockmarket, possibly consider a diverse portfolio of blue-chip stocks which will pay handsome dividends considering the p/e ratio will be favourabe for a while. Just for good measure, throw in some REITs with OS exposure to capitalise on the strengthening USD.
Thanks Scott No Mates for your idea.
Any suggestion in real estate firm ?
MJP where are you looking to invest ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Qlds007,
I live in Brisbane so I am thinking in QLD.
for that amount of money you can buy a large waterfront house on an island in a marina in south Australia close to every thing
Go to Thailand and live like a king and buy out a whole village
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Hi MJP
Interesting question. My passion is (obviously) real estate therefore my answer is focused on property. I don’t need to speculate as to what I would do because I AM doing it…I can answer from my current ‘real-life’ situation.
We (my business partner & I) are (after several pre-DA meetings with Council), submitting a Development Application (DA) this week to Council for the construction of 4 Villas. We purchased land with and existing house and granny flat (rent is $640 per week so holding costs prior to demolition are minimal), planning to demolish the house and build the 4 Villas. We paid just over $400,000 for the property AND contributed $200,000 ourselves. We have the actual costs except for fixed price building (which we pretty much know). Return on investment is looking very good indeed.
Additionally we’re embarking on a Joint Venture with another similar property contributing another $200,000 ourselves.
Cheers
GarryHi MJP,
We are located in Brisbane, some of the things you could think about would be the following:
1. If that $400,000 was hard cold cash or superannuation and you were looking at a passive way of investing your money you could look at becoming a private money lender (Private Banker) where you would receive about 12% for the use of your money secured by a first registered mortgage over a property. Check out our website at Boston West just to give you an idea of how it works or Google private money lending on the net and that will give you heaps of information regarding that type of passive lending strategy.
2. If you’re borrowing the money and you’re looking at building a rental portfolio then check out the links below as Great Property Deals is a property wholesaler suppling rental properties to investors below the market prices.
3. A bit more active in property you could consider a joint-venture arrangement in a property transaction. You can check out Paul Dobson on this forum as he provides joint-venture arrangements.
4. Are you working full-time? If you want to become extremely active you could consider becoming a renovator.
My personal opinion, if I had 400,000 hard cold cash I would do option number one. However, I have 12 years’ experience in doing it and I am very comfortable with that strategy.
I hope this helps. If you got questions, just shoot us an e-mail.
Kind regards,
Jason Moore and Sherry Ortiz
Deal Maker | Great Property Deals
http://www.greatpropertydeals.com.au
Email Me | Phone MeYour Private Off Market Property Acquisition Specialist - Forget Buying Through Real Estate Agents
I am not sure about your age and what is tour plan. But with 400,000. You can actually retire and be a millionaire in the future.
Case scenario 1
You can buy 2 apartments in Melbourne. As a first home buyer, government will pay most of the stamp duty and some extra money is left to be used for other property stamp duty as well, buy 2 apartments in western suburbs. Live in one of the property and rent the second one and you can survive happily with the other rent.
If the inflation is 3%. You can increase the rent by 5% a year. So, your living expenses are covered. Now the question is, how will I be a millionaire. If you own the both the places for more than 15 – 20 years. Automatically your properties are worth more than millionaire.
This is the best option if you are thinking of retiring and doing what you like in life. Hope this helps.
Regards,
Hari yellinaHari Yellina
Email MeKeep Investing - Grow while Resting.
yellina wrote:I am not sure about your age and what is tour plan. But with 400,000. You can actually retire and be a millionaire in the future. Case scenario 1 You can buy 2 apartments in Melbourne. As a first home buyer, government will pay most of the stamp duty and some extra money is left to be used for other property stamp duty as well, buy 2 apartments in western suburbs. Live in one of the property and rent the second one and you can survive happily with the other rent. If the inflation is 3%. You can increase the rent by 5% a year. So, your living expenses are covered. Now the question is, how will I be a millionaire. If you own the both the places for more than 15 – 20 years. Automatically your properties are worth more than millionaire. This is the best option if you are thinking of retiring and doing what you like in life. Hope this helps. Regards, Hari yellinaI'm not so sure about this – for three reasons.
A single person would need $40k a year to live comfortably in retirement. Let's say one of these properties was purchased in a SMSF and thus income was tax free at retirement. That property must still pull in over $42k a year ($40k to live on, $2k for accounting fees, and some more for property maintance and vacancy coverage). This equates to a property that rents today at $800 per week. That's quite a return…. where in Melbourne are you thinking?
I'd also be worried about putting all my eggs in the one retirement fund basket. If your tenant fails to pay rent when you're retired, you have NO MONEY.
The matter of becoming a millionaire in the future… a million dollars isn't very much today, and "in the future" it will be worth even less (ie a million dollars in a few years will buy you less things than it does today).
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Further to my comments above; if you have $400k and you wanted to sink it all into property to fund your retirement, I'd put it into a few lower-end properties to spread my risk.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
In my post I have mentioned to buy 2 Flats.
Lets Presume some thing close to City ( 6 KMS from the City ) or (20 KM from the city )
Suburbs Footscray ( Eldridge St, Empire St, Cross St, Carmichael St, Barkly St)
Suburb Hoppers Crossing / WerribieYou can find 2 apartments for 400 K. If he is living in one he might not have to pay rent. So, other apartment giving him $250 a week. It is $1100 a month for expenses. Which is quite sufiicient to eat and pay the bills.
Case 2
1) Buy a flat at 200 K and first home owners grant (he can stay rent free)
2) Invest in high yeild shares like Tabcorp (20% yield) , Telstra (12% Yield) or there are few more shares he can invest which can give you 10 – 60 % yield per year. I am writing this with my research, you might say which gives 60% yield. AYT (adelaide managed funds).That way the cash flow is promised every 6 months with less hassles .
Thank you
Hari YellinaHari Yellina
Email MeKeep Investing - Grow while Resting.
$250 a week is only $13k a year. That's a pretty meagre existence… especially when you consider from that you also have to pay council rates and insurance on both properties.
Definitely acquiring 2 properties is an excellent start but not enough to retire on.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
This Was suggested, if u want to retire by next month with only 400000.
If we have time. I got lot of strategies. What you can do with 400k.
Hari Yellina
Email MeKeep Investing - Grow while Resting.
Put $360K into a property renting for $1100/week. Comparables currently sell for $525K
Plough all of the rental income into the mortgage and costs – own the property outright in ~10 yrs.
The property will deliver me $57K/annum in rental income and be debt free.
N.B. All figures are today's figures.
Thank you so much everyone!
This is great Forum!!!
I personally like Jason and Sherry's idea. It certainly is something to chew on.Garry, I will be interested to know the output of your investment.
You could invest in Tax Liens in USA for 16% to 36% yield and retire.
Mattnz
What about those properties you get stuck with? It sounds a bit too good to be true….. is it? Have you had some experience in that field?
Cheers.
I havent purchased any myself,so not the foremost expert. If you get “stuck” with the property as they don’t pay their taxes, thats just a bonus. Those returns are possible without reposessing the house for non-payment.
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