Scenario:
Your currently renting, are on a low income and have never invested before but would like to get into investing. $4000 caomes your way, what do you do with it?
(Now I know everyone/situation etc is different, just though it would be interesting to see what different things people come uo with) [biggrin]
Melissah
I would used the 4 grand to educate myself, so that i could no longer be renting and in a low income job.
besides educating yourself, as this is already happening and is already accounted for cash wise, and your already in the process of building a company that will enable you to add to your finaccial freedom as it will be set up to run without you.(hence the present low income [wink] )
Melissah
Buy four NAB September at the money Puts and enjoy the ride baby
As everyone situation are different…I think $4000 is not a lot to play around with especially with property investing. Therefore if $4000 is mine and if I have enough knowledge in the share market (I am not at the moment) I will buy some shares or use it to trade options.
Kind regards
Jet Dollars
[Retire Young, Retire Rich]
Share Investing Forum: http://www.aussiestockforums.comJet Baby what do you think of my suggestion above? Let’s do a paper trade and will see what happens, Just checked NAB $28.00 Sept puts @ 0.51c. Go for four, NAB @ $28.34
Melissah,
For 4k, you could put down a 10% deposit on a 28k house- so that’s 2800 gone, and then you have 1200 for legals etc. It would be a tight call, and you’d have to think about insurance costs etc etc etc.
Not sure that 4k is really enough to get into property investing, but others might have different ideas.
kay henry
Melissa
i’d like to see you save a bit more , during this time read as much as you can about investing not just property but also shares. Join a local library and borrow, but buy good books. Don’t take supafreaks advice as while he may be right you can lose all of your money if he is wrong.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Melissah,
May I suggest that until you decide what you are going to do with the money, deposit it into a no fee bank account like ING direct where its paying 5.25% interest. At least its returning something while you decide.
[biggrin]
Cheers,
J.
Originally posted by Supa Freak:Buy four NAB September at the money Puts and enjoy the ride baby
LoL.. dont think id recommend options Supa.
(I bought 20 NAB 2900 puts and had a fine ride for 24 hrs.) Opportunites dont come often but when they do you need to identify them be it options or property.
So I WOULD maybe buy $3500 NAB shares (nice yeild), and spend the rest on books. After 12 months youve probably read all the books and recieved the NAB dividend (yay free books, free learning ride).
With more education you can decide what game to play.
PS if the shares idea is to “out there” at the moment then put it into a Cash Management Account (adelaide around 5%) and just read and ask questions.
Hi
Im happy to learn you have enquired about $4000
This is the first step. Seeking advice.
Im in the Kay Henry direction. ( Though you prob dont have enough $$ just yet.. crawl before walking type stuff but dont lose end goal !!)
Treasure the Dollars and build on them. Pop it in a safe account first up ( no shares) and build up on it each pay day, if you are young. ( are U young)???
Most important advice…dont watch TV ( consumer buy me now garbage stuff), forget the latest designer clothing trends… keep focused on the real things that gain in wealth… property.
Imagine your house warming with your friends.. a few friends … toast to your own plot of dirt… no one can take that away. There aint nothing better in life…Regards
“Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emerson
Thanks for all your replies so far [biggrin]
Dont worry Im hardly go to rush out and *Buy four NAB September at the money Puts and enjoy the ride baby* as i know next to nothing about it and dont really feel like taking a huge risk because Ive done somthing I know nothing about [blink]
The current plan is to add savings to it, as there has been a slight rise in pay, so Im going to utalise that my adding it to my regualar savings amount [thumbsupanim]
I was mainly not wanting to just have it sitting there when it could be doing somtihting more productive. But it looks like so far, its time to employ the good old patience and wait a bit longer till I have more to play with [whistle]
Im very interested in getting into property investing to create a positive cashflow, and am busy,busy,busy buliding my business empire [king]
jancrows ~ Not inot designer clothing (I prefer to op-shop [suave2] ) and dont watch TV so Im not about to go getting sucked into any of that
crap LOLAnd yes Iam young – 27 – [biggrin] so still got a bit of time left in me yet.
Melissah
Mellis…
Can you add a First Home Owners Grant to it ?Just a thought.
KP
turning 4 k into 12 k
I have a price target of 26$ b4 i get on NAB. Take a good look at a small cap share that is on the rise. I have just bought into a little BIO share with a heap of upside in the next 6 months, its called Eastland Medical Systems EMS, they are doing all the right things ATM and i beleive good news is just around the corner, RE: large contracts and positive Cash flow. EMS is currently trading at 34.5c but i have a price target of 90 to 115c in the short term.
I own ems and i strongly advise ppl to do there own research. This can be done at http://www.asx.com.au . Go back thru all the latest announcements and you will see what i am talking about.
Hi,
KP, that was an excellent suggestion, about the FHOG. In Victoria that is $12,000 at the moment… It’s strange that nobody else suggested it.
Just a word of caution, posts about shares tend to get deleted…. We are not allowed to discuss any specific share prices etc…
Melissah, I’d start a savings budget, and start by writing down EVERYTHING that you spend. It’s amazing sometimes to actually SEE where your money has gone. Set yourself a goal of trying to double that $4000 in say, 3 months and really work towards making it happen!
Good luck,
Del
Hi John
as Del mentioned just for future information (i’m not a moderator) but you aren’t allowed to post detailed info on shares on this forum. Many people here are active share traders but keep the discussion to property here.
Del i thought the same thing about KP’s advise on the FHOG, good thinking KP.
regards westanregards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
So what could you do with $4k in prop? (maybe mortgage insurance and a cheapie)>> bringing the topic back in line.
Being that you cant broadly discuss shares.. so really you shouldnt discuss term deposits, cash management trusts or any banking transaction as that is not “property” either.
Also technically the rules would be breached as well if talk revolved around investing in a property fund, funny that.
Provided you can get a mortgage. And that you are keen to invest in property. Since that’s what you question is about!
You could try the first home owners grant for one property. And if the property is around 50k then you will get change out of the grant, so therefor, the first property would be no money down! then buy a second property around the same price.
Also you will get stamp duty of whatever waived for the first house and thats about 700-1000 free again. This is all in Victoria of coarse. Varies for differant states.
Then you could live in the first house and study, and you would be paying no rent, just the costs to run the place. Which will in most cases be lower then the rent. And saving more… for more..more…more….more properties [biggrin].
Hi super Ted
you can actually do something with 4k in property. I know of a house in St Arnaud Victoria that is an ex state house new carpet 1 year ago, new stove sold for 50kwith an existing tennant paying 120pw.
If you got a 5% deposit thats $2,500 plus costs you can make a deal happen with only $4,000.
With a larger saving say 11,000 you can buy properties in NZ for 45k that are renting for 120pw, only thing is you would need 20% deposit plus another 2,000 for legals, building reports etc.
As far as talking shares they are the rules of the forum, whether we agree or disagree noesn’t really matter.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Originally posted by westan:As far as talking shares they are the rules of the forum, whether we agree or disagree noesn’t really matter.
regards westan
Hi Westan
I have no Prob with the rules …. are you wanting to be a moderator as you seem to have a prob with rules or their enforcement??Actually you said the bad share word before me and a moderator followed on with Supafreaks comments
Plus re read the original post.
Originally posted by Melissah:Scenario:
Your currently renting, are on a low income and have never invested before but would like to get into investing. $4000 caomes your way, what do you do with it?
(Now I know everyone/situation etc is different, just though it would be interesting to see what different things people come uo with) [biggrin]
Melissah
Now Id hope that the forum was more well rounded to discuss various techniques that would add to a possible better property entry (education and $$) for Melissah instead of forum ppl trying to earn brownie points.
Everyone has different ideas..(which was asked for in the original post). The beauty of the forum is that wierd and wonderfull ideas get thrown up most being dismissed..and hopefully the good ones get acted upon.
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