Hi Everyone,
If you had $500,000 to invest, how would you spend it? Would you buy 1 expensive house or a few cheapies? Would you buy in the one area or spread out a bit?
My father has just borrowed this amount to buy a unit on the Gold Coast in QLD but the sale fell over. He is now looking for other investment options and is looking for advice. Any of you gurus out there got any ideas?
Cheers [cap]
DannadsCheers
DannadsHi Dannads,
Hmmmmm – well that depends on oh so many factors.
It sounds as if your Dad is more focussed on potential growat and as a growth focussed investor I would seriously look at the Gold Coast but not a high rise unit – there are so many of them being built there on a continuous basis it is staggering – construction is everywhere, in one case 80+ stories of residential units.
ABS projections are that population growth in the area is staggering with 1000 people per week moving to Queenslnad and 60 percent of these to the SEQ area. This equates to 270/week into the Gold Coast.
Given your Dad has the capacity to borrow $500K that would suggest he has a ‘highish’ income and is able to write off greater deductions. As a result he should be able to find something that has minimal outgoings after tax.
But then there is the potential to buy lots of cashflow properties – is that what your father wants?
Derek
[email protected]Read my comments? Think I can help you? PM or email me.
personally – Id go on a wild shopping spree in LA followed by Europe and the Bahamas – then off to the Greek Islands and Zafari tours in South Africa…
“If You never never ask, you’ll never never know”
nah…on a more serious note, Id look for small investment deals – with 500k you can purchase enough good +CF deals within 2-3 months having good returns and retire immediately. I would then look towards the payments of the rent going to the repaymenst of the loan, thus increasing my return…
“If You never never ask, you’ll never never know”
[buz2]Confusedus say “Man invest money on stockmarket, silly silly grasshopper.”
“man who divide 500 000 dolla into 25 equaw deposits, vewy vewy wise.[buz2]Seriously, think about it, 500000 / 20000 (decent sized deposit for cheaper homes) = 25 potential properties. Lets say around the 120 000 mark in the cheaper areas.
This would mean his net worth would be 120 000 x 25 = 3 000 000 big ones.[biggrin]
Now lets geusstimate that the average rental was a reasonable $145 a week. $145 x 25 = $3625 per week! not bad.
$3625 x 52 = $188500 per year[biggrin].
I know what i would be doing.
Naturally all the fees and crap that comes with them would put a bit of a dampener on things, but you get the general idea.Work smarter, not harder!.
how true cremen
leverage is the key
remember that a loan of any amount of money is going to be peanuts in 25 or 30 years, cheersI would probably spilt it up and do a number of different things such as shares and properties (using the capital as deposits), but maybe keep 10% for doing more riskying type investing such as share trading, investing in business etc.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I’m with you Cremin,
Buy several properties and multiply your return.
But (and I keep stressing this) WHERE DO YOU GET A PROPERTY FOR 20,000 – SIBERIA????? I read one post where someone suggested 25,000 per property; are we talking units here. Surely, you can’t be referring to a 3 or 4 bedroom house – and if you are whereabouts….in a dusty town in central Australia where the only inhabitants are cactus plants??????
I know, I know you so-called “spotters” can put the stones down for a minute….I haven’t finished my speech yet.
I am obviously missing the boat here, and not seeing these hidden little (cheap) gems, but seriously, I have to wonder how many people out there are going to accumulate heaps of IPs and when time comes, meet their maker with a debt the size of Texas !!!!
Oh well….go for it now….I deserve it. HIT ME!!!!!!!
Jo
Monopoly,
You read my husbands reply wrong. He said $20K for a deposit. Not a property. And no we don’t live in the sticks. We go to the end of our driveway and look at the ocean….Scremin.
Success is 1% inspiration and 99% perspiration.
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